Diversified miner South32 forecast a "strong finish" to its financial year on Thursday after free cash flow more than doubled in the first half of the year, enabling it to pay an interim dividend of 3.6 US cents a share. South32, spun out of BHP Billiton two years ago, produces mainly coal, manganese, nickel and aluminium. At the time of the spin-off their prospects seemed poor but in the past 10 months prices of energy and base metals resources have surged on renewed demand from China. South32 shares were trading at R26.34 on the JSE after the interim results were announced, almost three times higher than a year ago. Group turnover rose 8% to $3.2bn compared with the same period a year ago and basic underlying earnings surged to 9US cents a share from 0.5 US cents previously. Free cash flow was $489m, bringing the group’s net cash holdings to $859m. Capital spending was $169m. For the full year South32 will spend $450m, significantly less than the $768m spent in the 2015 financial ...
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