Production guidance across all of its sites has increased.
The mining boom has contributed to South32’s 2.05% share growth.
Coal clearance has been prioritised, while grounding rehabilitation activities have been used to support its other projects.
Today its shares are valued around $3.77.
Minerals are turning over great numbers
The increased mineral production has contributed to South 32’s increase of its net cash to $1.9 billion during March.
Shares have also been impacted positively.
On its quarterly report South32 stated:
‘We had completed US$390M of our approved US$1B capital management program, having bought back 176M shares at an average price of A$2.89 per share. Subsequent to the end of the quarter we returned an additional US$154M in the form of a special dividend, bringing total returns under our approved US$1B capital management program to US$544M. We also paid a fully franked interim dividend of US$221M on 5 April 2018.’
South32 has taken advantage of the recent mining boom.
Elevated prices for minerals benefited the company as it was able to diversify its business structure, resulting in South32 strengthening its net cash.
They expect more deliveries of coal across its projects, which will carry through to 2019.
Payable silver has been one of its strongest turnouts this year, as silver production at its Cannington site increased by 28%
South32 has diversified its business, managing its South Africa Energy Coal as a standalone business.
The mining giant was able to invest $3.2 million into a variety of new exploration programs at the end of March.
These projects will help South32 further grow its portfolio as they take on new fronts of mining and exploration.
For Money Morning
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