ASX:S32

South32's Arizona Zinc-Lead-Silver Project Main Shafts Expected to Reach Primary Production Level in December Quarter, RBC Capital Markets Says

A key focus for South32's (ASX:S32) Hermosa zinc-lead-silver project in Arizona is project execution, with the ventilation and main shafts expected to reach the primary production level in the December quarter, RBC Capital Markets said in a Thursday note.As of July, the main shaft was around 70% complete, and the ventilation shaft was around 90% complete.The firm will host a site visit to its Hermosa project on Sept. 14 to Sept. 15. Hermosa is its largest growth project, and the Taylor deposit at the project includes one of the world's largest undeveloped resources of zinc.Work is ongoing to extend the Clark decline, providing additional access to the Taylor orebody, increasing ore handling capacity by around 25%. This will potentially increase production above design capacity through plant de-bottlenecking.South32 is set to provide an update on plans to potentially de-bottleneck the plant to 5 million tonnes per annum, up from the planned capacity of 4.3 million tonnes per annum.The investment firm retained its outperform rating and AU$5.50 per share price target on South32.

Alcoa Prices Nearly $3 Billion Senior Notes

Alcoa (ASX:AAI) priced a $2.6 billion senior notes offering to help finance its proposed $3.1 billion cash acquisition of South32's (ASX:S32) interests in bauxite, alumina, and aluminum operations, according to a Thursday statement by the company.The notes consist of $1.5 billion of 6.625% notes due 2034 and $1.1 billion of 6.875% notes due 2036, per the statement.The company said it expects to use the proceeds, together with cash on hand, for permanent acquisition financing and terminate its remaining bridge-loan commitments once the offering closes.The transaction is expected to close on Sept. 23, subject to customary conditions, while the acquisition remains subject to South32 shareholder and regulatory approvals, the company added.

Encounter Resources Begins Drilling at Northern Territory Copper Project

Encounter Resources (ASX:ENR) said a 6,000-meter diamond and reverse circulation drilling program began at the Jessica copper project in the Northern Territory, according to a Wednesday Australian bourse filing.The drilling is supported by a farm-in agreement with a wholly-owned subsidiary of South32 (ASX:S32).Earlier surveys identified the priority drill targets to be tested in the program.

South32 Fiscal 2026 Underlying Earnings, Revenue Up

South32 (ASX:S32) logged $0.23 in underlying earnings per basic share for the fiscal 2026, compared with $0.148 a year ago, a Thursday filing showed.For the 12 months ended June 30, underlying revenue was $8.11 billion versus $7.61 billion previously, the Australia-listed miner added. Revenue from continuing operations was $5.82 billion, compared with $5.78 billion.The board declared a final dividend of $0.054 per share, up from $0.026 a year earlier, payable Oct. 15 to shareholders on record as of Sept. 18.The company expects Sierra Gorda's copper equivalent production to grow 5% in fiscal 2027 and a further 2% in fiscal 2028, while Cannington's ore processing is expected to increase 20% to 2.1 million tonnes per year in fiscal 2027.

South32 Posts Fiscal 2026 Underlying Earnings of $0.23 Per Basic Share, Revenue of $5.82 Billion

South32 Reports 61% Rise in Sierra Gorda Ore Reserves to 1.1 Billion Tonnes

South32 (ASX:S32) reported a 61% increase in the ore reserve estimate for its Sierra Gorda copper mine in Chile to 1.1 billion tonnes averaging 0.39% total copper, 0.016% total molybdenum and 0.06 grams per tonne gold at a total copper equivalent grade of 0.46%, according to a Tuesday Australian bourse filing.The company said the updated estimate extends the initial reserve life by about five years to 2045, with a mineral resource estimate of 1.87 billion tonnes averaging 0.37% total copper, 0.016% total molybdenum and 0.06 grams per tonne gold at a total copper equivalent grade of 0.44%.South32 acquired a 45% interest in Sierra Gorda in February 2022 and has joint control alongside 55% joint venture partner KGHM Polska Miedź.

ASX Biggest Losers

Here are the ASX-listed companies with the biggest losses on Friday.Storage King (ASX:SKG): -9%, AU$1.164DMedical (ASX:4DX): -6%, AU$3.68Develop Global (ASX:DVP): -6%, AU$4.78IperionX (ASX:IPX): -6%, AU$3.27Paladin Energy (ASX:PDN): -5%, AU$10.06Alcoa Corp CDI (ASX:AAI): -5%, AU$69.67Almonty Industries CDI 1:1 (ASX:AII): -5%, AU$19.25HomeCo Daily Needs REIT (ASX:HDN): -4%, AU$1.16Mineral 260 (ASX:MI6): -4%, AU$0.75South32 (ASX:S32): -4%, AU$4.73

South32 Exceeds Production Guidance for Fiscal 2026; Shares Jump 4%

South32 (ASX:S32) said it surpassed production guidance for fiscal 2026 and posted a 15% increase in sales volumes for the June quarter amid strong market conditions across many commodities, according to a Monday filing with the Australian bourse.The company's Sierra Gorda copper mine in Chile returned fiscal year 2026 production of 87,100 tonnes of copper equivalent, higher than a forecast of 85,700 tonnes, per the filing.The Cannington mine in Queensland also beat guidance with fiscal 2026 production of 205,400 tonnes of zinc equivalent, while the Australia manganese production totaled just over 3 million wet metric tons.The company said its Worsley operation produced about 3.7 million tonnes of alumina in fiscal year 2026, with Brazil alumina output hitting 1.4 million tonnes.South32 shares gained 4% in recent Monday trade.

ASX Most Active Stocks

Here are the five most actively traded big-cap stocks on the Australian Securities Exchange on Friday.EQ Resources (ASX:EQR): 23 million sharesQube Holdings (ASX:QUB): 10.8 million sharesLiontown (ASX:LTR): 8 million sharesSouth32 (ASX:S32): 4.6 million sharesRamelius Resources (ASX:RMS): 4.3 million shares

Australian Shares Fall; ResMed to Sell MatrixCare Business to Frazier Healthcare Partners for $490 Million

Australian shares declined on Wednesday as investors reacted to a surge in oil prices on the back of renewed hostilities between the US and Iran in the Middle East.The S&P/ASX 200 Index fell by 0.21%, or 18.80 points, to close at 8,785.10.Brent crude oil futures rose over 3% to trade around $76 per barrel as the US attacked targets in Iran after Iran targeted shipping in the Strait of Hormuz. The US also ⁠moved to withdraw a sanctions waiver allowing Iran to sell oil on the global market, which Iran said breached the memorandum of understanding to ​end the conflict.On the domestic front, the seasonally adjusted estimate for the number of dwellings approved in Australia fell 1.1% month-over-month in May to 17,019 after edging 0.2% lower in April, the Australian Bureau of Statistics said.The number of dwellings commenced in Australia fell 11.2% to 48,012 in the March quarter from the previous quarter, but rose 0.2% from the same period a year earlier.In company news, ResMed (ASX:RMD) agreed to sell its MatrixCare business to healthcare-focused private equity firm Frazier Healthcare Partners in a $490 million all-cash deal.The US Forest Service has issued the final record of decision for South32 (ASX:S32) unit South32 Hermosa's proposed $2.16 billion Hermosa critical mineral project in Arizona's Santa Cruz County, marking a major regulatory milestone for the planned mining and processing operation.Lastly, Adairs (ASX:ADH) expects fiscal year 2026 group underlying earnings before interest and tax (EBIT) in the range of AU$53.5 million to AU$55.5 million, down 1.3% at the midpoint from fiscal year 2025. The company said it expects to recognize a non-cash impairment of the Focus on Furniture goodwill and brand intangible in the range of AU$62 million to AU$68 million to be excluded from underlying earnings.

Australian Shares Decline; South32 Strikes $6 Billion Deal to Sell Aluminum Assets to Alcoa

Australian shares closed lower on Wednesday as investors reacted to pessimism around a potential peace deal after Iran said it would not meet US envoys.The S&P/ASX 200 Index declined 0.64%, or by 55.80 points, to close at 8,722.90.Brent crude oil futures rose 0.5% to $73.31 per barrel, while gold eased 0.4% to $3,990 per ounce.On the domestic front, Australian manufacturing activity improved modestly in June, with employment and inventories rising even as output and new orders continued to contract amid elevated costs, supply-chain delays, and uncertainty driven by Middle East tensions. The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Manager's Index (PMI) rose to 51.5 in June from 50.7 in May, signalling a third consecutive month of expansion in the sector.The Australian Industry Index continued to signal weakness in June, declining to negative 30 in seasonally adjusted terms, indicating a broad slowdown across industrial sectors, according to a report released by the Australian Industry Group.The number of dwelling approvals in Australia declined 1.1% in May from the previous month to 17,019 after edging 0.2% lower in April, according to seasonally adjusted data released by the Australian Bureau of Statistics.In company news, South32 (ASX:S32) struck a deal to sell its aluminum assets to Alcoa (ASX:AAI) for an implied enterprise value of as much as $5.6 billion. Under the deal, Alcoa will acquire South32's 86% interest in Western Australia-based Worsley Alumina, full ownership of Hillside Aluminum in South Africa, 33% stake in Brazil's MRN bauxite mine, 36% in Brazil Alumina refinery, and 40% in Brazil Aluminum smelter.Coles Group's (ASX:COL) proposed acquisition of a leasehold for a new supermarket and liquor site in the Kalgoorlie-Boulder area of Western Australia would materially harm competition in the retail groceries space, the Australian Competition and Consumer Commission (ACCC) said.Lastly, Magellan Financial Group (ASX:MFG) said it completed its merger with Barrenjoey Capital Partners Group after receiving overwhelming shareholder support at the extraordinary general meeting on April 10 and satisfying all regulatory approvals and closing conditions.

Update: South32 Strikes $6 Billion Deal to Sell Aluminum Assets to Alcoa; Completes CEO Transition; Shares Rise 9%

(Updates with the stock movement in the headline and last paragraph.)South32 (ASX:S32) struck a deal to sell its aluminum assets to Alcoa (ASX:AAI) for an implied enterprise value of as much as $5.6 billion, according to a Wednesday filing with the Australian bourse.The consideration comprises $3.1 billion in upfront cash consideration, roughly 17 million Alcoa shares worth $1 billion, about $750 million of net debt and lease liabilities to be assumed by Alcoa, and up to $750 million of contingent cash payments linked to alumina and aluminum prices to 2030, per the filing.Under the deal, Alcoa will acquire South32's 86% interest in Western Australia-based Worsley Alumina, full ownership of Hillside Aluminum in South Africa, 33% stake in Brazil's MRN bauxite mine, 36% in Brazil Alumina refinery, and 40% in Brazil Aluminum smelter. Alcoa will also assume related rehabilitation provisions of about $1.2 billion.The sale excludes Mozal Aluminum in Mozambique, which "remains on care and maintenance, with divestment under active consideration," South32 said.The deal leaves South32 with a simplified business and expected overhead reduction of around $125 million per year, with full benefits to be realized in fiscal 2029, the company added.The transaction is expected to complete in the second half of fiscal 2027, subject to conditions that include regulatory and South32 shareholder approval. It is not subject to any due diligence or financing conditions.In a separate statement, Alcoa said it expects the deal to be accretive to earnings per share and free cash flow immediately following closing. The company has secured fully committed financing in the form of an initial $3.1 billion bridge commitment from Goldman Sachs.Additionally, Matthew Daley has succeeded Graham Kerr as CEO and managing director of South32, effective immediately, completing the company's leadership transition plan. Kerr will continue as a strategic adviser to support the deal.South32 shares rose 9% in recent Wednesday trade, while Alcoa declined 5%.

ASX Preview: Australian Shares Set to Rise with US-Iran Talks in Focus; South32 Strikes $6 Billion Deal to Sell Aluminum Assets to Alcoa

Australian shares are poised to rise on Wednesday, tracking steady oil prices that were little changed but set for their steepest monthly and quarterly losses since early 2020, as investors weighed US-Iran talks in Doha and fragile ceasefire dynamics.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 0.8%, 1.5%, and 0.3%, respectively.In the macroeconomy, Australian manufacturing activity improved modestly in June, with employment and inventories rising even as output and new orders continued to contract amid elevated costs, supply-chain delays, and uncertainty driven by Middle East tensions, according to a survey by S&P Global published Wednesday.Australian housing market worsened in June, recording the largest month-on-month decline in home values since Dec. 2022, as pessimistic sentiment grew amid rising cost-of-living pressures, Cotality said Wednesday.In corporate news, South32 (ASX:S32) struck a deal to sell its aluminum assets to Alcoa (ASX:AAI) for an implied enterprise value of as much as $5.6 billion.Coles Group's (ASX:COL) proposed acquisition of a leasehold for a new supermarket and liquor site in the Kalgoorlie-Boulder area of Western Australia would materially harm competition in the retail groceries space, the Australian Competition and Consumer Commission said Wednesday following a phase two review.Australia's benchmark index fell 0.5% or 44.7 points to close at 8,778.70 on Tuesday.

South32 Says Chile JV Approves Fourth Grinding Line Expansion

South32 (ASX:S32) said the Sierra Gorda joint venture (JV) has approved execution of a fourth grinding line project, following a feasibility study that confirmed strong return potential from the brownfield plant expansion, according to a Wednesday filing with the Australian bourse.The project will increase processing capacity to around 60 million tonnes per year from 48 million tonnes per year by expanding crushing, grinding, flotation, and related supporting infrastructure, per the filing.Initial production is targeted for mid-fiscal 2030, with full ramp-up anticipated in fiscal 2031.The annual average payable production is forecast to rise to about 195,000 tonnes of copper; 6,000 tonnes of molybdenum; 58,000 ounces of gold; and 1.7 million ounces of silver, representing a roughly 30% increase in copper-equivalent output and an estimated 10% reduction in unit costs, the filing said.The expansion requires around $725 million in growth capital, is expected to deliver an internal rate of return of about 20% to 23%, depending on copper prices, and will be funded through operating cash flow and joint venture debt facilities, the filing added.

South32 Strikes $6 Billion Deal to Sell Aluminum Assets to Alcoa; Completes CEO Transition

South32 (ASX:S32) struck a deal to sell its aluminum assets to Alcoa (ASX:AAI) for an implied enterprise value of as much as $5.6 billion, according to a Wednesday filing with the Australian bourse.The consideration comprises $3.1 billion in upfront cash consideration, roughly 17 million Alcoa shares worth $1 billion, about $750 million of net debt and lease liabilities to be assumed by Alcoa, and up to $750 million of contingent cash payments linked to alumina and aluminum prices to 2030, per the filing.Under the deal, Alcoa will acquire South32's 86% interest in Western Australia-based Worsley Alumina, full ownership of Hillside Aluminum in South Africa, 33% stake in Brazil's MRN bauxite mine, 36% in Brazil Alumina refinery, and 40% in Brazil Aluminum smelter. Alcoa will also assume related rehabilitation provisions of about $1.2 billion.The sale excludes Mozal Aluminum in Mozambique, which "remains on care and maintenance, with divestment under active consideration," South32 said.The deal leaves South32 with a simplified business and expected overhead reduction of around $125 million per year, with full benefits to be realized in fiscal 2029, the company added.The transaction is expected to complete in the second half of fiscal 2027, subject to conditions that include regulatory and South32 shareholder approval. It is not subject to any due diligence or financing conditions.In a separate statement, Alcoa said it expects the deal to be accretive to earnings per share and free cash flow immediately following closing. The company has secured fully committed financing in the form of an initial $3.1 billion bridge commitment from Goldman Sachs.Additionally, Matthew Daley has succeeded Graham Kerr as CEO and managing director of South32, effective immediately, completing the company's leadership transition plan. Kerr will continue as a strategic adviser to support the deal.

AusQuest Partially Completes Maiden Reverse Circulation Drilling Program at South Australia Iron-Oxide Copper-Gold Project

AusQuest (ASX:AQD) said its maiden reverse circulation drilling program at the Coober Pedy iron-oxide copper-gold project in South Australia was partially completed, according to a Friday Australian bourse filing.The firm is engaging a second drilling company to complete the program by using the mud rotary drilling technique to penetrate and case off the sand unit, before completing the planned hole depth of around 350 meters with either reverse circulation or diamond drilling.Drilling is planned to restart in the third quarter as soon as a suitable drill rig becomes available.The project is subject to the strategic alliance agreement with a wholly-owned unit of South32 (ASX:S32).

ASX Most Active Stocks

Here are the five most actively traded big-cap stocks on the Australian Securities Exchange on Wednesday.Arafura Rare Earths (ASX:ARU): 24.7 million sharesGQG Partners (ASX:GQG): 17.2 million sharesMirvac Group (ASX:MGR): 12.2 million sharesMinerals 260 (ASX:MI6): 9.4 million sharesSouth32 (ASX:S32): 8.7 million shares

AusQuest Starts Reverse Circulation Drilling at South Australia Project; Shares Up 4%

AusQuest (ASX:AQD) started a reverse circulation (RC) drilling program at its Coober Pedy iron-oxide copper-gold (IOCG) project in South Australia's northern Olympic Dam Province, advancing exploration under its strategic alliance agreement with South32 (ASX:S32), according to a Thursday Australian bourse filing.The program will test magnetic, gravity, and induced polarization-defined targets, along with anomalies identified in historical Vale drilling that recorded strong potassic alteration beneath shallow cover, per the filing.The company plans to drill 10 to 15 vertical RC holes to depths of around 350 meters to test semi-coincident geophysical anomalies interpreted as potential IOCG-related sulfide systems at depths of about 250 to 500 meters, the filing said.The project has shallow cover of 50 to 150 meters relative to typical IOCG settings, with drilling taking about four weeks and assay results expected roughly four weeks after completion, the filing added.AusQuest's shares rose past 4% in recent Thursday trade, while South32's shares shed about 3%.

ASX Biggest Gainers

Here are the ASX-listed companies with the biggest gains on Friday.Alcoa Corp (ASX:AAI): +4%, AU$93.22South32 (ASX:S32): +4%, AU$4.29Capstone Copper (ASX:CSC): +3%, AU$13.81James Hardie Industries (ASX:JHX): +3%, AU$28.97Evolution Mining (ASX:EVN): +3%, AU$12.18Rio Tinto (ASX:RIO): +2%, AU$186.03NEXTDC (ASX:NXT): +2%, AU$14.91SGH (ASX:SGH): +2%, AU$41.81Lynas Rare Earths (ASX:LYC): +2%, AU$18.92Pilbara Minerals (ASX:PLS): +2%, AU$6.28

South32 Says Initial Operating Life of Arizona Zinc-Lead-Silver Project Extended by Five Years, Shares Fall 8%

South32 (ASX:S32) said the initial operating life of the Taylor zinc-lead-silver project, the first development within the Hermosa project in Arizona, was extended by five years to around 33 years since the final investment approval, driven by successful infill drilling programs.The Taylor ore reserve saw a 52% increase to 99 million tonnes, and the mineral reserve rose by 10% to 169 million tonnes. First production is now expected in the second half of fiscal 2028, and nameplate capacity of 4.3 million tonnes per annum is expected by fiscal year 2031, reflecting the revised expectation for shaft construction.Updated pricing for the remaining surface and underground construction packages led to expected growth capital expenditure for Taylor being updated to around $3.3 billion.Under the updated assumptions, Taylor's steady-state earnings before interest, taxes, depreciation, and amortization is expected to be around $650 million per annum, with a net present value of around $3.1 billion.Its shares fell 8% in recent trading on Thursday.