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South32 Ltd. (AU:S32)
:S32

South32 Ltd. (S32) AI Stock Analysis

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AU

South32 Ltd.

(LSE:S32)

54Neutral
South32 Ltd.'s overall stock score reflects a challenging financial situation with declining revenues and profitability, as well as bearish technical indicators. The high P/E ratio underscores valuation concerns, though a positive earnings call indicates some operational improvements and strategic initiatives. Despite these improvements, significant risks remain, particularly in operational and geopolitical factors, necessitating cautious optimism.
Positive Factors
Financial Position
South32 Ltd's strong financial position is highlighted as a key factor in its favorable stock rating.
Strategic Acquisition
South32 Ltd's strategic acquisition activities are seen as a growth opportunity.
Sustainability
An emphasis on sustainable practices is viewed positively, potentially enhancing South32 Ltd's long-term value.
Negative Factors
Market Volatility
Market volatility is considered a risk factor that could negatively affect South32 Ltd's stock performance.
Regulatory Challenges
There are concerns about regulatory challenges impacting South32 Ltd's operations, which could affect future performance.

South32 Ltd. (S32) vs. S&P 500 (SPY)

South32 Ltd. Business Overview & Revenue Model

Company DescriptionSouth32 Ltd. (S32) is a globally diversified mining and metals company headquartered in Perth, Australia. The company operates in the mining sector, focusing on the extraction and production of commodities such as aluminum, coal, manganese, nickel, silver, lead, and zinc. South32 manages operations across several continents, including Australia, Southern Africa, and South America, providing essential raw materials for industrial and consumer markets worldwide.
How the Company Makes MoneySouth32 Ltd. generates revenue primarily through the extraction and sale of mineral resources. The company operates mines and smelters that produce a range of commodities, which are then sold to industrial customers globally. Key revenue streams include the sale of aluminum, coal, and manganese, which are used in a variety of applications such as construction, automotive, and steel production. Additionally, South32 benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The company's earnings are influenced by commodity prices, production volumes, and operational efficiencies, as well as its ability to manage costs and optimize its supply chain.

South32 Ltd. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
5.48B7.54B9.38B5.58B5.13B
Gross Profit
2.43B3.95B6.19B3.37B2.85B
EBIT
-735.00M929.00M3.43B773.00M240.00M
EBITDA
141.00M791.00M4.05B1.47B932.00M
Net Income Common Stockholders
-203.00M-173.00M2.67B142.00M158.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
842.00M1.26B2.37B1.61B1.31B
Total Assets
14.24B14.56B16.34B13.24B13.74B
Total Debt
1.57B1.74B1.83B1.21B1.02B
Net Debt
726.00M483.00M-538.00M-406.00M-298.00M
Total Liabilities
5.27B5.19B5.56B4.29B4.17B
Stockholders Equity
8.96B9.38B10.78B8.96B9.56B
Cash FlowFree Cash Flow
-2.00M303.00M2.48B815.00M628.00M
Operating Cash Flow
1.12B1.19B3.07B1.41B1.36B
Investing Cash Flow
-1.11B-908.00M-2.10B-608.00M-873.00M
Financing Cash Flow
-417.00M-1.39B-215.00M-501.00M-562.00M

South32 Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.71
Price Trends
50DMA
3.31
Negative
100DMA
3.37
Negative
200DMA
3.33
Negative
Market Momentum
MACD
-0.21
Positive
RSI
32.54
Neutral
STOCH
42.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:S32, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 3.31, and below the 200-day MA of 3.33, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 42.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:S32.

South32 Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFMG
77
Outperform
$47.76B8.0720.21%9.36%-11.33%-32.11%
AURIO
75
Outperform
$162.90B10.6521.04%7.98%-0.10%15.50%
AUBHP
68
Neutral
$185.27B10.7226.20%4.98%-2.47%57.01%
AUILU
66
Neutral
$1.64B7.0610.39%2.20%-9.35%-32.77%
AUS32
54
Neutral
AU$12.20B53.98-3.53%4.01%-19.74%
49
Neutral
$1.96B-1.42-21.96%3.81%0.71%-27.38%
AUMIN
48
Neutral
$3.56B50.78-33.95%4.54%2.22%-411.10%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:S32
South32 Ltd.
2.71
-0.56
-17.13%
AU:ILU
Iluka Resources Limited
3.82
-3.37
-46.90%
AU:BHP
BHP Group Ltd
38.06
-3.04
-7.39%
AU:MIN
Mineral Resources Limited
18.23
-51.97
-74.03%
AU:FMG
Fortescue Metals Group Ltd
15.52
-8.11
-34.31%
AU:RIO
Rio Tinto Limited
114.92
-9.03
-7.29%

South32 Ltd. Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: -19.75% | Next Earnings Date: Aug 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with increased production, reduced debt, and a robust cash position. However, there were concerns regarding safety incidents, civil unrest impacts, and operational challenges at GEMCO. The strategic focus remains on safety improvements and operational efficiencies.
Highlights
Increased Aluminum and Copper Production
Aluminum production increased by 5% and copper equivalent production increased by 21% at Sierra Gorda.
Significant Financial Performance Improvement
44% increase in underlying EBITDA to $1 billion and an increase in underlying earnings of $375 million.
Strong Cash Flow and Debt Reduction
Cash flow from operations improved by $361 million, and net debt was reduced by $715 million to $47 million.
Environmental Approvals and Project Progress
Received primary state and federal environmental approvals for the Worsley mine development project, which will sustain production to at least FY '36.
Dividend and Capital Management
Announced a fully franked interim ordinary dividend of $154 million and continuation of capital management program with $171 million remaining for shareholder returns.
Lowlights
Safety Incident at Cerro Matoso
Tragically lost a colleague, José Luis Pérez, in a safety incident at Cerro Matoso, prompting an investigation and ongoing safety improvement actions.
Civil Unrest Impact at Mozal Aluminium
Updated production guidance for Mozal Aluminium due to the impacts of civil unrest in Mozambique.
Challenges in GEMCO Operations
Challenges from Cyclone Megan caused significant damage, impacting production timelines and requiring extensive rebuild efforts.
Company Guidance
During the call, several key metrics and guidance updates were provided. The company reported a 44% increase in underlying EBITDA, reaching $1 billion, alongside a $375 million rise in underlying earnings. Cash flow from operations improved by $361 million, even with increased working capital due to higher commodity prices and shipment timing. Net debt was reduced by $715 million to $47 million, reflecting a strong balance sheet focus. Production highlights included a 5% increase in aluminum output and a 21% hike in copper equivalent production at Sierra Gorda. The company maintained production guidance except for Mozal Aluminium due to civil unrest in Mozambique. The Worsley mine development project received environmental approvals, ensuring bauxite production until at least FY '36. The company announced a $154 million interim dividend and continued its capital management program with $171 million to return to shareholders. The sale of Illawarra Metallurgical Coal for up to $1.65 billion was noted as a significant portfolio streamlining move. The company also focused on growing critical minerals production, advancing the Tailor zinc-lead-silver project in Arizona, and exploring further high-grade copper opportunities at the Peake deposit.

South32 Ltd. Corporate Events

South32 Ltd. Updates on Market Buy-Back Program
Apr 16, 2025

South32 Ltd. has announced an update on its ongoing on-market buy-back program, detailing the acquisition of 419,064 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 20,353,278. This buy-back initiative is part of the company’s strategy to manage its capital structure and return value to shareholders, potentially impacting its share price and market perception.

South32 Reports Strong Quarter with Strategic Advancements and Production Increases
Apr 16, 2025

South32 reported a strong quarter with a net cash increase of US$299M, driven by improved operating performance and strategic projects. The company saw significant production increases in copper and aluminium, while advancing key projects like the Worsley Mine Development and Hermosa’s Taylor zinc-lead-silver project. Despite challenges such as civil unrest in Mozambique and weather disruptions in Queensland, South32 maintained its production guidance for most operations, except for a 10% reduction at Cannington. The company also highlighted its focus on safety improvements and cost management, positioning itself to navigate potential global market uncertainties.

South32 Ltd. Updates on Share Buy-Back Progress
Apr 15, 2025

South32 Ltd. has announced an update regarding its ongoing share buy-back program. As of April 16, 2025, the company has repurchased a total of 19,955,341 shares, with an additional 397,937 shares bought back on the previous day. This buy-back initiative is part of South32’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing its market position and shareholder confidence.

South32 Ltd. Updates on Market Buy-Back Program
Apr 13, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 19,282,530 securities, with an additional 672,811 securities repurchased on the previous day. This buy-back initiative is part of South32’s strategy to manage its capital structure and return value to shareholders, potentially impacting the company’s stock performance and market perception.

South32 Ltd. Updates on Market Buy-Back Program
Apr 8, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, where a total of 860,579 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 18,421,951 securities repurchased. This buy-back initiative is part of the company’s strategy to manage its capital structure and return value to shareholders, reflecting its robust financial position and commitment to enhancing shareholder returns.

South32 Ltd. Announces Cessation of Securities Following Buy-Back
Apr 1, 2025

South32 Ltd. announced the cessation of 3,947,781 ordinary fully paid securities due to an on-market buy-back, effective March 31, 2025. This move reflects the company’s ongoing capital management strategy, potentially impacting its share value and signaling confidence in its financial stability, which may influence investor perception and market positioning.

South32 Ltd. Updates on Market Buy-Back Program
Mar 31, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, with a total of 16,994,347 securities bought back before the previous day and an additional 702,276 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its commitment to maintaining financial flexibility and optimizing its balance sheet.

South32 Ltd. Updates on Market Buy-Back Program
Mar 30, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, with a total of 16,526,075 securities bought back before the previous day and an additional 468,272 securities acquired on the previous day. This buy-back initiative reflects the company’s strategy to optimize its capital structure and potentially enhance shareholder value by reducing the number of outstanding shares.

South32 Ltd. Updates on Market Buy-Back Program
Mar 26, 2025

South32 Ltd. has announced an update on its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 16,526,075 securities, with 348,166 purchased on the previous day. This buy-back initiative is part of South32’s strategy to manage its capital structure and deliver value to its shareholders, potentially impacting its stock liquidity and market perception.

South32 Ltd. Updates on Ongoing Buy-Back Program
Mar 25, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program. As of the latest notification, the company has repurchased a total of 15,719,686 securities before the previous day, with an additional 458,223 securities bought back on the previous day. This buy-back initiative is part of South32’s strategy to manage its capital structure and return value to shareholders, potentially impacting its stock market performance and stakeholder interests.

South32 Ltd. Updates Dividend Distribution Details
Mar 13, 2025

South32 Ltd. announced an update to its previous dividend distribution notification, providing details on exchange rates and local currency conversions for the dividend related to the six-month period ending December 31, 2024. This update is crucial for stakeholders as it ensures clarity and transparency in financial transactions, potentially impacting investor relations and market confidence.

South32 Announces Interim Dividend Currency Exchange Rates
Mar 13, 2025

South32 Ltd. announced the currency exchange rates for its interim dividend of US 3.4 cents per share, payable on 3 April 2025. The exchange rates determine the dividend value in Australian, British, New Zealand, and South African currencies, impacting shareholders in these regions. This announcement reflects South32’s ongoing commitment to shareholder returns and its strategic positioning in the global market.

South32 Ltd. Updates on Market Buy-Back Program
Mar 11, 2025

South32 Ltd. has announced an update on its ongoing on-market buy-back program, revealing that a total of 14,404,847 securities have been bought back before the previous day, with an additional 598,553 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its commitment to optimizing financial performance and market positioning.

South32 Ltd. Updates on Share Buy-Back Program
Mar 10, 2025

South32 Ltd. has announced an update on its ongoing share buy-back program, detailing the acquisition of 329,049 ordinary fully paid shares on the previous day, bringing the total number of shares bought back to 14,075,798. This buy-back initiative is part of the company’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing its market position and financial performance.

South32 Ltd. Updates on Share Buy-Back Program
Mar 9, 2025

South32 Ltd. has announced an update on its ongoing on-market share buy-back program, revealing that a total of 370,868 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 13,704,930 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting a proactive approach to managing its financial resources and market positioning.

South32 Announces Cessation of Securities via Buy-Back
Mar 3, 2025

South32 Ltd. has announced the cessation of 735,508 ordinary fully paid securities due to an on-market buy-back, effective February 28, 2025. This move is part of the company’s capital management strategy, potentially impacting its financial structure and shareholder value by reducing the number of shares outstanding.

South32 Ltd. Updates on Market Buy-Back Program
Feb 27, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, with a total of 470,089 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 12,578,294 securities bought back prior. This buy-back initiative is part of the company’s strategy to manage its capital structure effectively, potentially enhancing shareholder value and reflecting confidence in its financial stability.

South32 Ltd. Updates on Ongoing Share Buy-Back Program
Feb 25, 2025

South32 Ltd. has announced an update regarding its ongoing on-market buy-back program, revealing that a total of 12,254,220 ordinary fully paid securities have been bought back before the previous day, with an additional 324,074 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

South32 Ltd. Updates on Aggressive Share Buy-Back Strategy
Feb 18, 2025

South32 Ltd. has announced an update on its ongoing on-market buy-back program, indicating the acquisition of 288,351 securities on the previous day, adding to a total of 11,965,869 securities repurchased so far. This buy-back strategy reflects the company’s aim to optimize its capital structure and enhance shareholder value, potentially impacting its market positioning and financial performance positively.

South32 Ltd Updates on Ongoing Share Buy-Back Program
Feb 17, 2025

South32 Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of February 18, 2025, the company has repurchased a total of 11,965,869 securities, indicating its commitment to returning value to shareholders. This strategic move may enhance the company’s stock value and reflects a positive outlook on its financial health.

South32 Director Stephen Pearce Increases Indirect Shareholdings
Feb 17, 2025

South32 Ltd has announced a change in the director’s interest notice, with Director Stephen Pearce acquiring 30,000 ordinary shares through an on-market purchase valued at $108,000. This transaction does not affect his direct holdings, as the shares are held indirectly through the Cufflink Super Pty Ltd ATF S & C Pearce Superannuation Fund. The acquisition reflects confidence in the company’s prospects and may influence stakeholder perceptions regarding the company’s market positioning.

South32 Ltd. Reports 2024 Half-Year Financial Results Amid Strategic Resource Management Focus
Feb 12, 2025

South32 Ltd. released its financial results for the half year ending December 2024, highlighting the company’s strategic focus on production targets and resource management. The announcement underscores the company’s commitment to maintaining its competitive position in the mining industry, with detailed updates on its mineral resources and ore reserves, and emphasizes the importance of sustainable exploration and production practices.

South32 Ltd. Announces Dividend Distribution for 2024 Period
Feb 12, 2025

South32 Ltd. has announced a dividend distribution, with a payment of USD 0.034 per share to its shareholders. This dividend relates to the financial period ending December 31, 2024, and will be paid on April 3, 2025, marking a consistent return to investors, which may enhance the company’s market positioning and stakeholder confidence.

South32’s Worsley Mine Project Gains Federal Approval
Feb 12, 2025

South32 Limited has received Federal environmental approval for the Worsley Mine Development Project, allowing it to access bauxite resources to sustain production at Worsley Alumina. This project, commencing mining in Q4 FY25, is expected to support production until at least FY36, benefiting the local economy and workforce.

South32 Appoints New Director to Enhance Leadership Team
Feb 3, 2025

South32 Limited has announced the appointment of Mandla Mandlesilo Lambase Bavumile Msimang as a director, effective 1 February 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder interests positively.

South32 Ltd Appoints New Director with No Initial Securities Interest
Feb 3, 2025

South32 Limited announced the appointment of Stephen Thomas Pearce as a director effective February 1, 2025. The announcement, which included an initial director’s interest notice, indicated that Pearce holds no relevant interest in the company’s securities at this time. This development is expected to influence the company’s governance structure, potentially impacting its strategic direction and engagement with stakeholders.

South32 Limited Announces Key Financial Dates for 2025
Jan 31, 2025

South32 Limited has announced its key financial dates for 2025, including the schedule for half and full-year results, interim and final dividend payments, and the Annual General Meeting. These dates are subject to board approval and potential changes, which will be communicated via market announcements. This schedule reflects South32’s ongoing commitment to transparency and shareholder engagement as it continues its operations across key regions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.