Pinned straw:
The Group’s statutory profit after tax decreased by US$2,842M to a loss of US$173M in FY23, including the US$1,300M non-cash impairment of Hermosa’s Taylor deposit, while Underlying earnings decreased by US$1,686M to US$916M.
Ret
Return (inc div) 1yr: -1.63% 3yr: 24.53% pa 5yr: 6.35% pa
Forecast Ex Div Date: 15/09/2023 (22 days away)
Just missed consensus EPS of 0.20 versus 0.21. Revenue 8390 versus 9000 consensus
Tempting to top up here but I don't think we are at the bottom of the cycle yet.
Interest rates still high and commodity prices like Illawarra met coal and Worsley alumina still too low for many of South32 assets to offer any upside.
They in fact seem to be marginal according to one analyst at the call.
Only ray of hope is Sierra Gorda.
And I know lots of people like charts so here are a few below to see how South32 squares up against the competition.
Looking at the charts below explains why S32 are looking at low cost jurisdictions for copper exposure. Escondida marked in Red. And you can see 29 Metals right at the end.
And below is South32 against Adriatic Metals. ADT going in with guns blazing in the Balkans and beating Cannington (yellow) and Sierra Gorda (right) at their own game. I was wrong to assume the Balkans political climate would negatively impact ADT. Also Cannington is nearly on its last legs.
Was a bit surprised by the cost number on Sierra Gorda. Need to do a bit of research on that.