Half Year 2025 South32 Ltd Earnings Call - Australia Transcript
Key Points
- South32 Ltd (SHTLF) reported a 44% increase in underlying EBITDA to USD1 billion, showcasing strong financial performance.
- The company achieved a 21% increase in copper equivalent production at Sierra Gorda and a 5% increase in aluminum production.
- South32 Ltd (SHTLF) received primary state and federal environmental approvals for the Worsley Mine development project, ensuring sustained production until at least FY36.
- The company reduced net debt by USD715 million to USD47 million, maintaining a strong balance sheet.
- A fully franked interim ordinary dividend of USD154 million was announced, along with the continuation of the capital management program with USD171 million to be returned to shareholders.
- The tragic loss of a colleague at Cerro Matoso highlighted ongoing safety challenges, despite efforts to improve safety performance.
- Production guidance for Mozal Aluminum was updated due to civil unrest in Mozambique, indicating operational challenges.
- The company faces higher unit costs at Worsley due to increased bauxite consumption and additional administrative costs from new conditions.
- South32 Ltd (SHTLF) is exploring the potential divestment of Cerro Matoso, reflecting challenges in the ferronickel market and natural grade decline.
- The aluminum market remains volatile with fluctuating costs for raw materials and energy, impacting the company's cost structure.
Thank you for standing by, and welcome to the South32 H1 FY25 financial results announcement investor and analyst teleconference. (Operator Instructions)
I would now like to hand the conference over to Mr. Graham Kerr, Chief Executive Officer. Please go ahead.
Thanks. Good morning, everyone, and thanks for joining us today. On the call with me is our Chief Financial Officer, Sandy Sibenaler; and Chief Operating Officers, Vanessa Torres and Noel Pillay. I'll give a short summary of our financial results and outlook for the first half of FY25 before taking questions.
Firstly, I'd like to talk about safety. In September, we tragically lost our colleague, José Luis Pérez, who was fatally injured in an incident at Cerro Matoso. The investigation into the incident was completed during December, key learnings have been shared across our organization, and improvement actions are underway in a similar incident happening again.
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