KEY POINTS
- South32’s underlying EBITDA rose 28% to $2.5 billion, while earnings jumped 55% to $1 billion.
- Strong copper, silver and lead performance helped offset weaker South African manganese earnings and higher operating costs.
- South32 is selling most of its aluminium assets for up to $5.6 billion and focusing increasingly on copper, zinc and silver growth.
Australia-based diversified mining company South32 has reported a strong financial performance for the year ended June 30, 2026, driven largely by higher commodity prices and improved production from its base metals operations.
The company’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 28% year-on-year to $2.5 billion, while underlying earnings jumped 55% to $1 billion.
Chief executive officer Matt Daley said the company’s strategic shift towards base metals was beginning to deliver significant financial benefits, particularly from copper, zinc and silver.
South32 benefited from strong operating results at its Cannington silver and lead mine in Australia and the Sierra Gorda copper mine in Chile.
The improved performance from these operations helped lift earnings and cash flow from the group’s base metals portfolio as the company took advantage of favourable commodity prices.
Cash flow from operations increased by $352 million to $610 million during the financial year. South32 also invested $711 million in its Hermosa project in the United States as it works to expand its future base metals production.
Despite the investment, the company maintained a strong balance sheet, ending the year with net cash of $283 million.
South32 returned $327 million to shareholders during the financial year.
The board has also approved a fully franked ordinary dividend of $242 million for the second half of the financial year and extended its capital management programme to September 2027.
A further $209 million remains available for distribution to shareholders under the programme.
