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South32 Ltd (OTCMKTS:SOUHY) Announces Financial Results For FY 2015, EBIT Rises By 56% By Aaron Lyons on October 26, 2015 - The volume pattern is very proper for a corrective state, especially when the stock is building a base. The bulls can wait for their opportunity and take any breakout of the upper boundary as the entry signal. Financial Numbers - South32 has performed well over the past twelve months, thereby generating second to none revenues and sales figures. According to reports, pro forma underlying earnings before interest and tax for the year rose by 56% and touched an unbelievable $1 billion level. Overall underlying earnings of the company increased 41% to $575 million. - South32 reported PAT (profit after tax) of $28 million, better than last year’s performance. The senior management thinks that South32 can take its profitability to the next level by reducing cost. It seeks to cut down controllable cost by $350 million annually latest by the end of FY2018. Apart from this, South32 also plans to reduce sustainable capital expenditure by 9% to $650 million in FY2016. - http://www.financialstrend.com/south32-ltd-otcmktssouhy-announces-financial-results-for-fy-2015-ebit-rises-by-56-23252.html I maintain the entry at 64p on China jitters was a good opportunity and will continue to gradually build a long term holding here each time it drops below 69p with a 2-5 year view and dividend possibility.
Impressive ... as the tall dude in Black, used to say :) And what about M&A prospects?
Opium, you may find this interesting.... Itochu, Mitsui Said to Vie for Anglo Manganese Venture Stake by Brett Foley Ichiro Suzuki April 29, 2016, 7:05 AM GST - "Japanese trading houses Itochu Corp. and Mitsui & Co. separately bid for a stake in Anglo American Plc’s manganese assets in Australia and South Africa as the miner shrinks its business to weather the commodity-price rout, according to people with knowledge of the matter". "Anglo is considering the offers for its 40 percent holding in a manganese joint venture with South32 Ltd., the people said, asking not to be identified as the information is private. Perth-based South32 has an option to purchase the stake, which may fetch as much as $700 million, and may decide to pre-empt an agreement with another party, one of the people said". "Spokesmen for Anglo, Itochu, Mitsui and South32 declined to comment. South32, which was spun off from BHP Billiton Ltd. last year, said in February it would be willing to acquire Anglo’s stake in their manganese joint venture, if the price was right". "South32 owns 60 percent of the manganese joint venture, known as Samancor, and is the operator. The business, which is the world’s biggest producer of the material used in steel production, holds mines and smelters in South Africa, as well as the GEMCO mining operations at Groote Eylandt in Australia’s Northern Territory and the TEMCO alloy plant in Tasmania". - Read full article - http://www.bloomberg.com/news/articles/2016-04-29/itochu-mitsui-said-to-vie-for-anglo-stake-in-manganese-venture
Indeed - I have doubled my small holding in this arguably, the best-run & focused miner.
Opium, at one point I thought I was the only idiot here! Congrats with the windfall in S32. Many that sold initial gift will be less impressed including the gift bearer BHP. If folks saw the predictability upon initial listing & just needed to wait patiently for the small receivers to sell off and keep topping up on the way down below 64p (-50% valuation) which was already ridiculously undervalued in respect of assets, it was sure to rerate! The rerate came sooner than I anticipated and clearly S32 is top candidate for best performer midcap diversified miner 2016. Ok, that's biased & only because we've done well here! It's always the toughest decision but I've decided to lock in some profit & trim 25% of the quite bulky holding so the rest can run it's future course. Even McKenzie (BHP) stated he'd held onto his allocation & many analysts questioning the sensibility of the demerger especially at a low in global commodity cycles. I think S32 is in a great position to stake it's own claim in commodies market and already leads with Aluminium, Silver, Nickel, Zinc & the worlds largest Manganese producer etc. As Brian Gilbertson (Founder/Former Chairman BHP) once stated, you can have as much iron ore as your heart desires but you can't make steel without Manganese and that seems to be lost on the current BHP BoD's. ATB