South32 Limited (ASX: S32) shared its quarterly report for the period ended September 2018. In the report, it highlighted that the company has maintained the annual production guidance during the period. The company has acquired Arizona Mining and also holds 50% interest in the Eagle Downs along with the capital management program worth US$1 billion. At the end of the third quarter, the net cash available with the company is US$679 million. The company made an achievement in the quarterly performance at Australia Manganese. There was an increase of 8% in the total manganese ore production as a result of offering the better price and having a strong demand for the ore commodity. There was an increase in the production of coal at Illawarra Metallurgical by 54%. Further, there is still a need of the significant level of development in order to sustain the operation of two long walls running parallel to Appin colliery from H2 FY20. There was a full utilization of the aluminum smelters to the maximum technical capacity. There was a technical upgradation of the first pot where the Mozal Aluminium was replaced by the AP3XLE energy efficiency technology. The company has taken advantage as per the current market dynamics where they signed an agreement to ship in the month of December the stockpiled alumina hydrate. The company is continuously making efforts to reshape its portfolio. Apart from the company’s two acquisitions, the company has moved ahead with the exploration of 18 greenfield project and started the process to broaden and transform the ownership of South Africa Energy Coal and expect to consolidate the operation in 1HFY19. Recently, the group has updated the changes relating to its buy-back event. As per the release, the company has appointed Morgan Stanley Australia Securities Limited in place of J.P Morgans Securities Limited who will act as a broker on the behalf of the company for its ongoing buy-back event. The group intends to buy back shares with an aggregate total consideration of $845 million in the period 11 April 2017 to 10 April 2019. As on 12 October 2018, the group has bought back a total of 22,17,42,055 shares via on-market trade. The company notifies that the group reserves the right to suspend or terminate the buy-back event at any time.
The company has shown a positive performance of 88.50% throughout its journey. The 1-year performance of the company is 20.38%. The YTD performance of the company is 10.09%. For the period ended 30 June 2018, the company made a net profit of US$1,332 million. The amount attributable to the equity shareholder in worth US$1,332 million. The company has a total asset worth US$15,133 million and total liabilities worth US$4,424 million. This shows that the company is in a position to clear its long-term obligations. The company has a total current asset worth US$4,821 million and total current liabilities worth US$1,664 million. This indicates that the company is in a position to clear its short-term obligations as well. The total shareholder equity is worth US$10,709 million. The cash generated from the operating activities is worth US$1,717 million. The company has made a purchase of the property, plant, and equipment worth US$430 million. As a result, the net cash outflow through investing activities US$301 million. The company has made payment of dividend worth US$708 million which was the major cash outflow through financing activities. The net cash and cash equivalent at the end of the period is US$2,970 million.
S32’s share traded at $3.85 with a market capitalization of circa $19.51 billion as on 18 October 2018.
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