S32 +5.64%: the miner surged today, recouping all of last week’s losses following a strong March quarter update. The company left guidance unchanged across the business except for their NT Manganese production which was impacted by a cyclone last month where production isn’t expected to come back online until 3Q FY25. High zinc grades offset some weather impacts, Alumina production is tracking marginally above FY23 and Alumina production is marginally lower while nickel production improved in 3Q after a slower start to the year. The company recently agreed to sell its Met Coal asset in the Illawarra where production surged in the quarter post mine works in 2Q. Better operational performance saw net debt fall $US154m, coming in below expectations. While guidance was left unchanged there looks to be upside in copper, nickel and zinc with relevant mines seeing higher grades coming through. Overall, today’s update was largely positive. We like S32, and own it in the Active Growth portfolio.
MM remains long and bullish S32
Add To Hit List
