South32 Swings to Net Loss on U.S. Project Write-Down

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 [e-mail]

(END) Dow Jones Newswires

August 23, 2023 19:11 ET (23:11 GMT)

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