
South32 published results for the year ended 30 June 2021 (FY21).The Group reported revenue of US$6,337 million for the full year, an increase of 4% from FY20’s revenue of US$6,075. Underlying earnings before interest and tax (EBIT) increased to US$844 million, up 89% from US$446 million in FY20.
The Group’s net loss after tax stood at US$195 million, from FY20 net loss after tax of US$65 million.
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“We delivered a strong operating result, despite the ongoing challenges of COVID-19, achieving record production at Worsley Alumina, Brazil Alumina and Australia Manganese. We also exceeded our initial production guidance at South Africa Manganese, Cerro Matoso and Cannington,” said Graham Kerr, South32 CEO.
“Reflecting our strong financial position and disciplined approach to capital management, the Board has resolved to pay a US$164 million fully franked final ordinary dividend in respect of H2 FY21 and a US$93 million fully franked special dividend. The Board has also resolved to further expand our capital management program by US$120 million to US$2 billion, leaving US$252 million to be returned to shareholders by 2 September 2022.
The Group’s full year dividend (ordinary and special) lifted to US 6.9 cents per share, up 82% on the prior year.
“Looking ahead, we expect to see strong volumes at our base metals operations - Mozal Aluminium, Cerro Matoso and Cannington - following investment in improvement projects that are designed to increase production into favourable markets. At the same time, we continue to pursue cost and volume efficiencies to offset stronger producer currencies and cyclical inflation.
“In May, we announced our medium-term target to halve our operational carbon emissions by 2035 from our 2021 baseline. To achieve this we are investing in efficiency projects, shifting to low-carbon energy, applying low-carbon design principles and adopting new technologies. At the same time, we are increasing our exposure to the base metals required for a low-carbon future.”
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