South32 Cuts Dividend as 1st Half Profit Falls by 92%
By Rhiannon Hoyle
South32 slashed its midyear payout as it reported a 92% plunge in first-half profit, but said it has approved the $2.16 billion development of the Taylor deposit at its Hermosa project in southern Arizona.
The Australia-based miner said it made a net profit of $53 million for the six months through December, compared to a profit of $685 million a year earlier. It said lower commodity prices and weaker production of metallurgical coal had driven the profit decline.
Underlying earnings were down by 93%, to $40 million.
The company said it would pay an interim dividend of 0.4 cents a share. Last year, the company paid investors 4.9 cents a share.
"Looking forward, we remain focused on driving operating performance and cost efficiencies across our business," said Chief Executive Graham Kerr. "This focus, combined with our expected 7% production uplift in the second half, places us in a strong position to capture higher margins as market conditions improve."
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
February 14, 2024 17:55 ET (22:55 GMT)
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