South32, an Australia-based mining company, has announced an annual net loss of $173 million for the year ending in June. This stands in stark contrast to the $2.67 billion profit recorded in the previous year.
The company attributes this loss primarily to a $1.3 billion write-down against the Taylor deposit at its Hermosa project in southern Arizona. The asset has been significantly affected by various factors since its acquisition in 2018, including pandemic-related delays and inflation.
Furthermore, South32’s underlying earnings have decreased by 65% to $916 million. This decline can be attributed to falling commodity prices and rising inflation and uncontrollable costs, which have outweighed increased output.
Despite these challenges, the company announced a final dividend of 3.2 U.S. cents per share. However, this is a substantial decrease of 65% compared to the previous year’s total dividends of 8.1 cents for fiscal 2023.
In addition, South32 has allocated an additional $50 million to its capital-management program, bringing the total available funds to $133 million by March 2024.
Overall, South32’s financial performance reflects the ongoing challenges faced by the mining industry in recent times.
