📊 South32, a global metals and mining company, has its roots firmly in the Southern Hemisphere. The company’s headquarters is situated in Perth, Australia, with regional hubs in Perth and Johannesburg, South Africa. Its marketing head office is based in Singapore. Its offices in London serve customers in Europe, the Middle East and Atlantic regions.
📊 South32 was spun off from BHP Billiton on May 2015, and trades on the Johannesburg Stock Exchange (JSE), Australian Securities Exchange and the London Stock Exchange. The company is a producer, refiner and marketer of alumina, aluminium, bauxite, manganese, silver, nickel, energy and metallurgical coal, and lead and zinc in Australia, South Africa and South America.
📊 The company boast a rich history and has an impressive assets portfolio. South32 has also been operational in Australia for over 80 years, in Africa for 78 years and in South America for 25 years. Its stellar reputation as a producer and marketer of commodities, allows the company to minimise costs and maximise returns across the supply chain.
📊 South32’s fully integrated marketing function enables the company to offer its clientele a differentiated sales proposition compared to other producers.
VISION & VALUES OF SOUTH32
- The company follows a development strategy of buying into high quality metals and mining concerns with proven track records. The company is focussed on maintaining financial discipline and optimize its portfolio to offer market leading returns for its shareholders, and to ensure steady growth of its share price. These endeavors form the core of the company’s decision-making processes.
- South32’s management comprise directors with decades of experience in corporate governance and finance. Their expertise stimulates growth and development. The company’s first annual report in 2015 showed marginal profits. This is quite a feat in a sector in which the volatility of global commodity prices has severe impacts on production.
- In an effort to negate these challenging trade conditions, the company plans to decrease controllable expenditure by US$350 million per annum and capital expenditure by 9%. These efforts clearly indicate the company’s ability to weather challenges, which fosters investor confidence. Shareholders therefore have the confidence to buy or sell company shares in the expectation of satisfactory dividends and returns.
- Significant investor buy-in has resulted in South32’s assets base being well capitalized. The company’s geographic, technical and commodity diversity shields it from further drops in commodity prices. This enables South32 to drive value for its stakeholders.
- South32 trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “S32”.
MARKET PERFORMANCE OF SOUTH32
- Stringent management practices have enabled South32 to streamline expenditure. Its live online share chart shows that the company’s share price performance has been better than most other stocks in the sector.
- Although the mining sector is regarded as a very risky market to buy into, the company’s strong industry experience and impressive performance in its first listed year still presents it as a very viable option for serious investors.
- Investment analysts advise investors to hold their positions for now while commodity prices are making a turnaround. The development of a more streamlined business model by South32’s management is an effort to negotiate the strong trade winds in the sector.
- There is, nevertheless, still some uncertainty as to the future performance of South32 shares.