We wrote about S32 relatively recently, when they sold their met coal assets to fund Hermosa (a big Zinc project) with some questionable assumptions behind it (under it?).

Yesterday, the stock traded up on the news that a cyclone in the NT had damaged one of their ports. That was weird, because the cyclone damaged one of their ports.

It should trade up if the cyclone damaged someone else’s port.

It seems a lot of manganese runs through the port, but it isn’t something that should positively affect S32.

We’ve been interested because S32 has a range of diversified commodities exposures that are trading cheap, and the market didn’t like Hermosa but seems to have priced that in quite quickly, and if the met coal sale proceeds take care of the balance sheet, at least for a little while, that’s a positive.

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