South32’s profit during interim period leaves it in good place for acquisitions
It declared its first interim dividend of 3.6 US cents per share
Stronger commodity prices pushed South32 into a profit for its interim period and strong free cash flow to give it a net cash position of $859m and well positioned for acquisitions and growth. South32, which has assets in Australia, SA and South America, declared its first interim dividend of 3.6 US cents per share, or $192m. Free cash flow for the six months to end-December was $626m. The company’s net cash position grew $547m to $859m. South32 is buying Metropolitan Colliery in Australia for $200m and paying $192m in interim dividends. South32 recorded net profit of $620m from a $1.75bn loss the year before. Revenue grew 8% to $3.2bn, with the increase in average realised prices for the commodities the company produces adding $661m to revenue.
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