Feb 17, 2017

South32 delivers strong financial results

South32 delivers strong financial results

South 32 has announced its first interim dividend.

Its come with company’s financial results on the half year ended 31 December.

One of South 32’s flagship operations is the Cannington Mine in north west Queensland.

The disciplined application of company strategy and stronger commodity prices underpinned a significant improvement in financial performance, said South 32 CEO Graham Kerr.

“We generated free cash flow of US$626M for a net cash position of US$859M as we further optimised our operations and benefitted from our operating leverage,” Mr Kerr said.

“We continue to unlock value through the accelerated development of La Esmeralda, the progression of the Klipspruit Life Extension project towards a final investment decision, the completion of the West Marradong mining access agreement and the commencement of exploration in the Southern Areas at GEMCO.

“The proposed US$200M acquisition of the Metropolitan Colliery is expected to create additional value and realise unique synergies with Illawarra Metallurgical Coal.

“Our strong balance sheet and simple capital management framework is designed to reward shareholders as financial performance improves. We have declared our first interim dividend of US$192M and will continue to manage our financial position to ensure we retain the right balance of flexibility and efficiency.”