South32's maiden annual results highlight asset optimisation, cost cuts

South32 Limited's annual earnings for the 2015 financial year rose 41% year-on-year to $575 million, though it warned of $350 million in cost cuts over the next three years in a tough market.

The miner is also targeting a 9% cut to its capital expenditure in 2016 to $650 million, the company said in its maiden results statement.
“By optimising the performance of our existing assets, converting high value brownfield resources into reserves, and identifying new opportunities, we will maximise return on invested capital and deliver sector-leading total shareholder returns,” South32 ceo Graham Kerr said on Monday August 24.

“A key enabler of the strategy is the implementation of our regional operating model, which is being fast tracked. This includes reducing layers...

Published

Ellie Wang

Charlotte Radford

August 24, 2015

11:37 GMT

Shanghai, London