South 32 / S32

Production challenges continue for S32, with a range of guidance reductions (described below) and a big working cap build. Mining ain’t easy.

Nickel is also problematic for all players, S32 have exposure via their Cerro Matoso mine.

There are also some interesting comments about WA mining approvals for bauxite/alumina production. These do not appear as dire as what AWC went through, but are certainly something to keep in mind.

We watch with interest.

I’d also thought the issues would come from met coal pricing, which I expected to be weak given the whole “Mongolian rail” thesis, but it has been a range of other headwinds, for the most part.

It is also interesting to see the mining approvals comments re: alumina/grades also.

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