South32 Swings to Net Loss on U.S. Project Write-Down
24 August 2023 - 9:26AM
Dow Jones News
By Rhiannon Hoyle
South32 on Thursday reported an annual net loss, reflecting the
$1.3-billion write-down against the Taylor deposit at its Hermosa
project in southern Arizona.
The Australia-based miner said it made a net loss of $173
million in the year through June, compared to a profit of $2.67
billion in the year-prior period.
South32 last month said it would need to record an impairment
against the asset, which has been negatively impacted by a number
of factors since the Hermosa project was acquired in 2018,
including delays related to the pandemic and inflation.
Underlying earnings were down by 65%, to $916 million, as
commodity prices fell and higher inflation and uncontrollable costs
more than offset increased output.
The company said it would pay a final dividend of 3.2 U.S. cents
a share. Total dividends of 8.1 cents for fiscal 2023 were down by
65% on the year prior.
The miner also added $50 million to its capital-management
program, leaving $133 million to be used by March 2024, it
said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
August 23, 2023 19:11 ET (23:11 GMT)
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