South32 profit up 579% on strong copper, aluminium performances

South32 Ltd (ASX:S32) has seen profit rise a whopping 579% in the half-year ending December 31 on a stronger operating performance and an updated portfolio.

The diversified mining giant posted an H125 profit after tax of $US360 million (or $573 million) – up from US$53 million in 1H24.

Increased production in aluminium and copper were part of the story, rising by 5% and 16% respectively, leading to a 44% increase in EBITDA (earnings before interest, taxes, depreciation and amortization) to US$1 billion in H1 FY25.

CEO Graham Kerr declared the company had started the year with a bang.

“We delivered a strong start to FY25, off the back of our improved operating performance and transformed portfolio,” he said.

“The sale of Illawarra Metallurgical Coal has unlocked significant value and streamlined our portfolio to be focused on minerals and metals critical to the world’s energy transition.

“The sale has also simplified our business, lowered our sustaining capital intensity and strengthened our balance sheet, enabling us to self-fund our growth in zinc and copper.

“We invested to grow our future production during the period, as we continued construction of our large-scale, long-life Taylor zinc-lead-silver project at Hermosa in Arizona, United States, and expanded our pipeline of copper exploration options in highly prospective regions.”

The ordinary dividend for the period was set at 3.4 cents per share (in U.S. currency) – a rise of 750% from 0.4 cps in the first half of FY24.

S32 was trading at $3.43.

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