South32 makes dramatic turnaround on cost cuts and higher commodity prices
Diversified miner South32 posted a dramatic return to profit for its 2017 financial year, as its operations benefited from higher commodity prices and cost controls, leaving the company with a strong balance sheet that allowed for an increased share buyback programme. South32 increased funds allocated to the share buyback programme by 50% to $750m, reflecting the rude health of the company after a year in which net profit grew to $1.23bn by end-June from a $1.62bn loss before. South32, which was created by BHP Billiton spinning off assets it no longer wanted into a new company, declared a final dividend of 6.4 US cents. "The combination of our high operating leverage and stronger commodity prices delivered a substantial increase in financial performance," said South32 CEO Graham Kerr, pointing out free cash flow had more than tripled to $1.9bn, leaving the company with a net cash balance of $1.6bn — a $1.3bn increase. Investec said: "South 32 is among others, including Rio Tinto and...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.