S32 Share Price History
29 Apr, 2021
What underlying fundamental trends can indicate that a company might be in decline? More often than not, we'll see a...
19 Apr, 2021
Trilogy Metals Inc. (TSX: TMQ) (NYSE American: TMQ) ("Trilogy" or the "Company") is pleased to announce that the Alaska Industrial Development and Export Authority ("AIDEA") has formally approved the proposed plan and budget for the 2021 summer field season activities and services of up to $13 million for the Ambler Access Project ("AAP"). The cost will be shared 50/50 by AIDEA and Ambler Metals LLC ("Ambler Metals"), the joint venture operating company equally owned by Trilogy and South32 Limited (ASX: S32) (LSE: S32) (JSE: S32) (ADR: SOUHY) ("South32").
15 Mar, 2021
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
28 Jan, 2021
A look at the shareholders of South32 Limited ( ASX:S32 ) can tell us which group is most powerful. Institutions will...
15 Dec, 2020
South32 Treasury (USA) Limited -- Moody's announces completion of a periodic review of ratings of South32 Limited
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of South32 Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
06 Nov, 2020
Wayne Osborn Is The Independent Non-Executive Director of South32 Limited (ASX:S32) And They Just Picked Up 39% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the South32 Limited (ASX:S32) Independent...
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...
21 Sep, 2020
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
18 Aug, 2020
(Bloomberg Opinion) -- Executives’ pronouncements about the future have a nasty habit of coming back to bite their successors a few years down the line.At annual results in 2009, BHP Group's then-Chief Executive Officer Marius Kloppers sang the praises of the company’s South African thermal coal business, an asset it was “really pleased to have” which would benefit from rising energy demand from India. Five years later, getting rid of the division through the spinoff of South32 Ltd. was one of his successor Andrew Mackenzie’s first duties in the job. (South32 is in turn selling the now money-losing unit).Asked when the company released its 2014 annual results why he didn’t get rid of BHP’s thermal coal mines in Colombia and Australia at the same time, Mackenzie was equally bullish on their future: The world is “likely to invest more in energy relative to the past than we have in steelmaking,” he said, so the company would retain “some of the very best energy coal mines in the world.”Six years on, another chief executive is struggling to dispose of those pits after they racked up $214 million of combined losses in annual results reported Tuesday. BHP has already been looking at selling the mines for about a year with no real takers, so new boss Mike Henry is hoping to offer a more tempting product as an incentive — BHP’s 80% stake in two Queensland mines producing higher-value varieties of coking coal used in steelmaking. The company will look to “maximize the value” of the thermal and coking coal mines by selling to another company or via a South32-style de-merger.That would leave BHP with its larger coking coal 50-50 joint venture with Mitsubishi Corp., BMA. This is a dominant asset producing nearly a third of the best-quality coking coal in the seaborne market. Henry — a former manager of BHP’s coal unit who knows the business well — is confident it will prosper. “We believe that a wholesale shift away from blast furnace steelmaking, which depends on metallurgical coal, is still decades in the future,” the company said.It’s tough to make predictions, especially about the future — but Henry’s successor may one day come to rue that forecast, too. To see why, consider BHP’s defense of the business. Much rests on the relative young age of blast furnaces in China (10-12 years) and India (18 years).This is indeed likely to be a decisive factor in how fast the world shifts from conventional primary steel production, which generates about as much carbon emissions per metric ton of steel as you get from burning a ton of coal. Steel made in electric arc furnaces can eliminate as much as 95% of carbon pollution. It also offers more operational flexibility than blast furnaces, which must operate at constant levels for decades at a time, one reason why the U.S. has almost given up on traditional primary steelmaking in recent decades.The youth of the blast furnace fleet in emerging Asia isn’t nearly as decisive a factor as you might think, though. For one thing, those newer steel mills in China aren’t the ones supporting the seaborne coking coal trade. While about 80% of Australia’s iron ore goes to China, the total for coking coal is barely more than 20%. India, Japan, South Korea and Taiwan together account for about three times that amount, and they’re in quite a different boat. With the exception of India, all have steel mills that are well into middle age.Japan has been halting blast furnaces at a rapid clip since the coronavirus started to cut into downstream demand from the auto sector and Korean steelmakers are also cutting production. India itself saw a brutal 65% output drop in April from a year earlier. That’s driven hard coking coal prices to a four-year low of $133.26 a ton. At those prices BHP’s coking coal unit is still making margins of around 50%, but factor in the $500 million or so a year that goes to capital expenditure plus interest and tax and that starts to narrow markedly.Even if blast furnaces can keep going for half a century or more, they require hundreds of millions to be spent on refurbishment every 15 years or so. That provides a regular opportunity to switch to electricity, which mills will take if the economics look right.With the supply of the scrap used in electric furnaces forecast to increase by about a third between 2017 and 2030, and ongoing pressure to reduce the carbon-intensity of steel (including the possibility of border adjustment taxes on emissions in Europe and the U.S.), don’t be surprised if we see a far faster switch away from blast furnaces than BHP is predicting. Should that happen, Henry’s promise of a bold future for coking coal could prove as mistaken as his predecessors’ backing of its cheaper thermal cousin. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
06 Aug, 2020
(Bloomberg Opinion) -- Ivan Glasenberg has built up a formidable commodities giant. The Glencore chief executive officer’s resolute belief in the counter-cyclical value of a trading business paid off in the first half of 2020, with an oil bonanza that helped ease blows dealt by the coronavirus. Impairments still dragged it to a $2.6 billion net loss. The past two years haven’t been kind: The group is still under investigation over possible corrupt practices, coal has crumbled and the stock has underperformed traditional mining heavyweights. Glencore could do worse than to take the pandemic hint and revamp its investment proposition, with less of the black stuff and greener assets to get ahead of peers in a sector that hasn’t been a leader in environmental, social and governance terms. That might include completing a long-signposted change at the top. All but one of the old guard of divisional heads who became billionaires alongside Glasenberg when the miner and trader listed in 2011 have now left. With a shift away from past fiefdoms and a new generation in place, the company can at last outline an exit date, a new boss and its next act.Not all of the group’s troubles are within its control, or indeed avoidable. It can’t speed up investigations, and is already cooperating. Meanwhile, an unexpected, gravity-defying surge in iron ore, which Glencore doesn’t mine, has masked plenty of problems at rival diggers. The Covid-19 pandemic also took its toll: Earnings before interest, tax, depreciation and amortization for the first six months came in at a forecast-beating $4.8 billion, but still fell 13%. It wrote $3.2 billion off the value of Colombian coal, Chadian oil, African copper and Peruvian zinc. Even its oil trading win pushed up a debt burden already higher than most peers, and forced the company to scrap dividends for the year.It can, though, tell a better story, at a time when even oil majors are going green.That involves, first and foremost, tackling coal. It still helps fund Glencore’s more eco-friendly activities like battery ingredients copper, cobalt and nickel, but coal margins have shrunk to 23%, half where they were in 2018, and that’s not just a temporary coronavirus hit. The world’s largest thermal coal exporter capped production last year, and said last week it would cut back in light of oversupply. Glencore has resisted more dramatic strategic moves, arguing the material can recover, given limited new supply and Asian demand, and remain profitable, and that it doesn’t make up enough of its earnings to scare investors. With demand in places like Vietnam looking less bright, and ESG pressures only increasing, that’s a challenging argument to defend. Options include spinning off coal assets (thermal and less significant coking coal), following the path set by BHP Group with South32 Ltd. Fund manager distaste for an all-coal business, though, may push it toward a private solution, if enough backers can be found to build a coal powerhouse to feed Asian buyers. That’s looking cheaper than a year or so ago: Assuming annual Ebitda of roughly $1.3 billion for 2020 at current prices, and the multiples on which coal rivals like Whitehaven Coal Ltd. trade, a specialized entity could be worth roughly $9 billion. Neither of these alternatives is yet on the table. Keeping it isn’t impossible, of course, but as with BP Plc and oil, Glencore may require more evidence of a change of focus, perhaps even the retirement of its former coal trader boss. Parting company will be a challenge. Glasenberg’s pugnacious charisma has been key to Glencore’s lure. When it listed in 2011, as the rest of the mining industry was cleaning up after wasteful deals and over-priced projects, he was among the first to press for a focus on returns. He wasn’t only a leader, but a major shareholder with skin in the game, as he liked to remind investors. That glow hasn’t faded entirely and he is still the second-largest owner, but Glencore shares are worth less than half what they were less than a decade ago. Including reinvested dividends, the stock has generated a negative 51% total return for investors since 2011. Not all African operations have lived up to expectations, and even trading hasn’t been consistent.After his departure, Glasenberg will remain a strong voice, with 9% of the stock, a holding he has said he won’t sell under his replacement. It might be a good time to give a well-established board a few new faces.Yet Glencore’s traders have always been famed for their impeccable timing. With ESG the company is falling worryingly behind, and not just with coal. It has shifted investment plans to green metals and has a credible 2035 target for closely watched Scope 3 emissions, the greenhouse gases released by clients, but it’s one that relies largely on the inaction of allowing assets to deplete. The company recorded six fatalities in the first half, and embarrassingly few women at the top. Glencore can clean up faster.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
23 Jul, 2020
If you want to know who really controls South32 Limited (ASX:S32), then you'll have to look at the makeup of its share...
29 Jun, 2020
(Bloomberg Opinion) -- BHP Group’s future can do without hydrocarbons.The world’s largest digger is among the last heavyweights to mix mines with a significant presence in oil, a combination that is becoming harder to justify over the long term. Crude demand will be slow to recover after a pandemic that has kept workers home and jets grounded, and some of that appetite will never come back. Meanwhile, pressure to cut carbon emissions is only increasing. Oil giant BP Plc is the latest to take a hit, warning it expects impairments and write-offs worth as much as $17.5 billion due to a more gloomy view of what lies ahead. The Big Australian could benefit from a dose of that realism.There is little question that the petroleum division, with assets from Western Australia to the Gulf of Mexico, has generated impressive cash over the years — if you exclude the ill-considered foray into U.S. shale, a $20 billion investment (excluding capital expenditure) much criticized by activist fund Elliott Management Corp. and eventually sold off in 2018. In the six months to December 2019, the unit accounted for about 13% of BHP’s total earnings before interest, tax, depreciation and amortization, notching up an impressive 65% margin. Only iron ore, the group’s top earner, was higher, at 69%. Add in low production costs that cushion the blow of 2020’s lackluster oil prices, and it’s easy to see why putting in more cash is tempting when, as analyst Glyn Lawcock of UBS Group AG points out, the miner has few readily available alternative investments.It’s also true that while the medium-term global appetite for oil looks far less certain than it did, there’s a more appealing argument to be made around fading supply. Indeed, the $115 billion miner’s central expectation last year of demand hitting a high point in the mid-2030s now looks bullish, compared to comments from the likes of Royal Dutch Shell Plc and BP. A peak even in the middle of this decade, BHP’s low-demand scenario, may prove optimistic. On the production side, though, the miner is right to point out that the industry has been investing less, a trend that will only accelerate after a disastrous 2020 and squeeze future production. BHP has estimated ongoing natural field decline at a rate of 3% to 5% per year.None of this means boss Mike Henry and his team can afford to ignore the signs that this year will prove to be a turning point for oil.Diversification has benefits, but operating synergies between oil and mining are debatable — it’s not an accident that while majors sold out of one or the other, none have returned. As a standalone business, the petroleum division might arguably have ventured less enthusiastically into shale. And the risk today is clear: Staying on can turn into overstaying.Here, Henry can reflect on the experience in thermal coal, where BHP woke up too late. Rival Rio Tinto Group offloaded its last coal mine in 2018, wrapping up a process that began in 2013. BHP held on to decent assets, using up tax losses. It’s now trying to retreat just as Anglo American Plc prepares to hive off its South African coal mines, and interest in the dirty fuel has dwindled. Oil has fewer easy substitutes, but it's conceivable that, with significant changes in policy, crude could be left similarly stranded. Accepting the need for an exit from a business that BHP has been in since the 1960s is only the first step, of course. For one, a carve-out in the mold of coal-to-aluminium producer South32 Ltd., which BHP spun off successfully in 2015, is harder to advocate for oil. The move then was about getting more out of sub-scale operations. In petroleum, BHP is not the operator for many of the assets, making such efficiencies harder to accomplish.BHP can begin by reviewing its portfolio, starting with mature assets in Australia. Partner Exxon Mobil Corp. has said that it’s seeking a buyer for its share of the Gippsland Basin oil and gas development in the Bass Strait; a joint sale with BHP has been considered before. Chevron Corp., meanwhile, has put its stake in the giant North West Shelf liquefied natural gas venture on the block. That operation, Australia’s largest LNG project, is shifting from processing its own gas to opening services to new suppliers, a business known as tolling — less suited to either Chevron or BHP. The mining giant has in any event been less enthusiastic about gas than oil.Granted, even that won’t be easy. Australia churns up a decent amount of revenue, and BHP can argue it is better to continue taking cash now, at the risk of selling for less later. Some investors may agree. A similarly short-term view in the Gulf of Mexico could see it adding to the portfolio as distressed rivals are forced out.For newish boss Henry, though, none of those would look like the decisions of a company preparing for a greener future. He has an opportunity to outline the path to net zero emissions when BHP announces full-year results in August. An exit plan for oil would be one decisive step toward that goal.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
04 Jun, 2020
Half Year 2020 South32 Ltd Earnings Call (UK and South Africa Investors)