South32 (S32) – Volumes the highlight

South32 is a diversified metals and mining company, whose portfolio includes bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, and ferronickel products. The company operates around the globe but principally in Australia and South Africa. South32 was spun off from what was then BHP Billiton in 2015, and is headquartered in Perth, Australia.

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Diversified miner South32 (S32) posted a December-quarter production report that came in ahead of, or in line with, market expectations for most of its commodities. Aluminium, alumina and copper prices fell short of Ord Minnett’s forecasts, although other realised commodity prices bettered or matched our expectations. Guidance for FY25 was maintained across all South32's divisions, bar the Mozal smelter in Mozambique where disruptions from political and civil unrest led the company to withdraw its guidance in December. The strong first-half run rate shows that most of South32’s divisions are tracking ahead full-year guidance, and this has compensated for increased unit costs and weaker-than-forecast realised prices for some commodities in the quarter. We maintain our Buy recommendation and target price of $4.35 on South32.

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