South32 said underlying EBITDA for the June 2026 half‑year increased 28% to $2.5 billion, up from $1.95 billion a year earlier. Underlying earnings rose 55% to $1 billion, compared with $645 million in the prior period. Cash flow from operations improved by $352 million to $610 million, leaving a net cash position of $283 million.
The miner returned $327 million to shareholders and declared a fully franked ordinary dividend of 5.4 cents per share, amounting to $242 million. A further $209 million remains earmarked for the capital‑management programme, now extended to September 2027. Capital investment during the period totalled $700 million, primarily for the Hermosa project in the United States.
Key balance‑sheet metrics included a current ratio of 2.44 and a debt‑to‑capital ratio of 9%. The lockbox balance as of June 30 was about $100 million. South32’s shares traded at $5.21, up 1.36%, near a 52‑week high of $5.29, with a dividend yield of 1.78%.
The company highlighted several operational updates. At the Hermosa lead‑silver‑copper project, surface infrastructure is largely in place and a ventilation shaft is nearing completion. In Chile’s Sierra Gorda mine, ore reserves rose 61% to 1.1 billion tonnes, extending the mine life by roughly five years to 19 years, with production slated to grow 5% in FY27 and 2% in FY28. A newly approved fourth grinding line is expected to lift output by about 30% from FY31.
Cannington in Australia is guiding plant throughput at about 2.1 million tonnes, below its historical 3 million‑ton capacity, and processed 200,000 tonnes last year. GEMCO in the Northern Territory projects a mine life of about six years to 2033, subject to weather and water‑permit constraints.
South32 also disclosed a fatal incident at its Worsley Alumina site in March 2026, which the CEO described as having a profound impact on the workforce. The company reiterated its safety focus while noting that the incident fell short of its expectations.
In a separate transaction, Alcoa agreed to acquire South32’s aluminium value‑chain assets for an enterprise value of up to $5.6 billion, plus the assumption of rehabilitation provisions exceeding $1 billion. Completion is expected in the second half of FY27, and the sale is positioned to refocus South32 as a leading base‑metals company on the ASX.
