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CANBERA (dpa-AFX) - Australian mining and metals company South32 Limited (SOUHY.PK, SHTLF.PK) reported that its third-quarter production of metallurgical coal increased 34% to 1.57 million tonnes
The South32 (ASX:S32) share price is up this morning. Here’s why
Brooke Cooper | April 27, 2021 11:29am |
More on: Image source: Getty Images
South32 Ltd(ASX: S32) shares are edging higher this morning after the company released its results for the quarter ended 31 March.
At the time of writing, the South32 share price is swapping hands for $2.89, up 0.7% from yesterday’s close of $2.87.
Let’s take a close look at what the company has been up to over the last quarter.
The quarter that’s been for South32
The South32 share price is in the green today after the mining company reported a good quarter for its cash position.
Strong operating performance across the portfolio during the quarter combined with improving prices for most of our commodities saw our net cash position increase to US$517 million. During the period we returned US$90 million to our shareholders via our on-market share buy-back bringing total returns under our capital management program to US$1.5 billion. We set year to date production records at Brazil Alumina and Australia Manganese. We increased our production guidance for South Africa Manganese as we continue to respond to market conditions and at Cannington off the back of continued strong underground performance. Having successfully completed a major furnace refurbishment at Cerro Matoso, we approved further investment in a new project that will lift future nickel production.
South32 still sweating on approvals for thermal coal exit
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South32’s difficult exit from its thermal coal business in South Africa drags on, with final approvals for a sale to Seriti Resources still outstanding.
Graham Kerr-led South32 said on April 1, when it announced revised sale terms, that it thought approvals were just “weeks away”, but the company’s quarterly results released on Tuesday show no further progress.
South32 chief executive Graham Kerr: “We expect the global economic recovery combined with fiscal stimulus to continue, driving a rebound in metal demand and sustaining higher prices for many of our key commodities.”