Key highlights

  • South32 reported underlying EBITDA up 28% to US$2.5 billion and underlying Earnings up 55% to US$1.03 billion on 27 August 2026.
  • A fully franked final Dividend of US 5.4 cents per share, or US$242 million, was determined.
  • The Sierra Gorda Ore Reserve rose 61% to about 1.1 billion tonnes, and production growth of 5% is expected in FY27.

South32 Limited (ASX:S32) released its Appendix 4E and financial results and outlook for the year ended 30 June 2026 on 27 August 2026. The announcement covered earnings, cash flow, dividends and growth projects across its copper, zinc, silver and other operations. Figures are in US dollars.

About South32

South32 is a diversified metals and Mining company that produces minerals and metals it describes as critical to the energy transition, with operations across the Americas, Australia and Southern Africa. Its portfolio includes the Cannington mine in Queensland, a stake in the Sierra Gorda copper operation in Chile, and the Hermosa project in Arizona.

Earnings and margins

Underlying EBITDA increased 28% to US$2,462 million from US$1,928 million, with the Margin rising to 31.0% from 26.3%. Underlying earnings attributable to members rose 55% to US$1,032 million from US$666 million, and basic underlying Earnings Per Share were 23.0 US cents, up from 14.8 US cents. The company said operating performance at Cannington and Sierra Gorda allowed it to capture the benefit of higher prices across copper, zinc and other commodities.

Cash flow and dividend

Group Cash Flow from operations increased by US$352 million to US$610 million, after investing US$711 million at Hermosa. The board resolved to pay a final dividend of US 5.4 cents per share, fully franked, equal to US$242 million for the June 2026 half year, and resolved to extend its buy-back.

Growth projects

Sierra Gorda increased its Ore Reserve estimate by 61% to about 1.1 billion tonnes following infill drilling. It is expected to deliver production growth of 5% in FY27 and a further 2% in FY28, supported by higher planned copper grades. Construction is advancing on the Taylor zinc-lead-silver project at Hermosa.

Risks to consider

Earnings depend on Commodity prices, and the company noted that higher prices for copper, zinc and other metals supported FY26. Cash flow from operations of US$610 million was modest next to underlying EBITDA because of heavy Investment at Hermosa.

Development projects such as Taylor require Capital and delivery on schedule. Sierra Gorda production growth depends on planned grade improvements. Operations across several continents carry operating, regulatory and currency risk.

Catalysts to watch

Items to watch include progress at Hermosa and Taylor, Sierra Gorda production growth of 5% in FY27, the extended buy-back, FY27 cash flow after Hermosa investment, and commodity prices.