South32 is celebrating a 579 per cent jump in profits for the first half of the 2024–25 financial year (H1 FY25).
The company announced a five per cent boost in aluminium production to 604,000 tonnes (t), which was underpinned by a surge in prices across H1.
This brought South32’s aluminium business’ earnings before interest, taxes, depreciation and amortisation (EBITDA) to $US136 million ($215 million).
Healthy growth to be sure, but it was copper that won the day for the global miner as it clocked a 16 per cent boost in production across its operations.
Crediting improved ore quality, South32 increased copper production at its Chilean Sierra Gorda operation in particular by 21 per cent, bringing its output to 46,400t across H1.
This saw South32’s copper arm swing an EBITDA of $US215 million ($342 million).
The impressive copper increase has coincided with the progression of South32’s plan to refocus its portfolio on minerals critical to the global energy transition.
This culminated in the $2.5 billion sale of its long-held Illawarra Metallurgical Coal operations in August last year, which at the time accounted for 35 per cent of the company’s capital expenditure.
“The sale of Illawarra Metallurgical Coal has unlocked significant value and streamlined our portfolio to be focused on minerals and metals critical to the world’s energy transition,” South32 chief executive officer Graham Kerr said.
“The sale has also simplified our business, lowered our sustaining capital intensity and strengthened our balance sheet, enabling us to self-fund our growth in zinc and copper.”
The company’s Cannington zinc operation in Queensland experienced a 17 per cent dip in production, but Kerr isn’t concerned.
“We are focused on continuing our strong operating performance into the second half, unlocking value from our growth pipeline and continuing to reward shareholders as our financial performance improves,” he said.
Overall, South32 enjoyed a 44 per cent underlying EBITDA increase in H1 FY25 to $US1 billion ($1.58 billion).
South32 has also announced a fully-franked interim ordinary dividend of $US154 million ($154 million) and the continuation of its capital management program, with $US171 million ($270.6 million) remaining to be returned to shareholders.
