- The company bought a 45% stake in the Sierra Gorda mine in Chile in October.
- S32 reported a 7% increase in manganese production during its September quarter.
South32 Limited (ASX:S32), a mining and metals company, has been grabbing investors’ attention since last month. The company acquired a 45% stake in the Sierra Gorda mine in Chile in October and has performed well during the previous quarter. On that note, let’s have a quick overview of South32’s overall performance.
South32 share price movement-
S32 shares have been trading at AU$2.360 on its 52-week low. The stock opened at AU$3.55 and traded 1.54% higher to close at AU$3.62 on 25 November.
After announcing a 45% stake in the Sierra Gorda mine in Chile in October, the company’s stock price has gained momentum. It has been trading at AU$4.070 at its 52-week high.
South32 financial update
According to its latest quarterly report, the company has maintained its FY22 production guidance supported by the increased commodity prices. Additionally, S32 reported a US$254 million increase in its net cash position that stood at US$660 million in the last quarter and achieved a 7% increase in its manganese production.
South32’s solid financial performance supported a further 10 million shares via on-market share buyback priced at AU$2.95 per share.
Apart from this, S32’s expansion into copper has grabbed the attention of many investors. As the company expands to diversify its operations further, analysts anticipate likely to generate significant free cash flow soon.