South32 Ltd reported a 55% increase in underlying earnings to $1.0 billion for the fiscal year ending June 2026, driven by higher base metals prices, stronger output, and tighter cost controls.
Underlying EBITDA rose 28% to $2.5 billion, while operating cash flow climbed $352 million to $610 million. The miner’s net cash position stood at $283 million after investing roughly $700 million in growth projects at the Hermosa zinc-lead-silver project and returning $327 million to shareholders.
The board approved a fully franked dividend of 5.4 cents per share, equivalent to $242 million, for the June 2026 half-year. South32 also extended its capital management program through September 2027, with $209 million remaining to be returned to shareholders.
Shares traded 0.39% higher at $5.16, near the top of the 52-week range of $2.52 to $5.29, and have delivered a 99% return over the past year.
The company outlined plans to sell its aluminum value chain assets to Alcoa for up to $5.6 billion, plus the assumption of rehabilitation provisions exceeding $1 billion, with completion expected in the second half of fiscal 2027.
On the operational front, South32 reported a 61% increase in ore reserves at the Sierra Gorda copper mine to 1.1 billion tons, extending the mine life by approximately five years to 19 years. Production is expected to rise 5% in fiscal 2027 and a further 2% in fiscal 2028, with the fourth grinding line project projected to boost output by around 30% from fiscal 2031. Drilling activities totaled roughly 85,000 meters, and the mine remains 10 kilometers from the Spence operation.
At the Cannington silver-lead-zinc mine, total resources reached about 70 million tons, including 11 million tons in reserves, as mills approached a 3 million ton annual run rate from a current 2.1 million tons. The Hermosa project is progressing toward first production at the Taylor zinc-lead-silver deposit, with key processing infrastructure now installed.
South32 also highlighted its Ambler Metals project in Alaska’s Ambler mining district as a strategic growth asset.
