South32 Dives On $818M Impairment As Alumina And Nickel Assets Disappoint
Portfolio Pulse from Stjepan Kalinic
South32 (OTC:SHTLF) shares dropped significantly after announcing an $818 million impairment charge for its alumina and nickel assets. The Worsley alumina project faces environmental challenges, leading to a $554 million impairment, while the Cerro Matoso nickel project saw a $264 million impairment due to market volatility and operational difficulties. Additionally, South32 reported a 14% decline in copper production. However, the company is progressing with the sale of its Australian coking coal assets to a consortium led by Golden Energy and Resources for $850 million.
July 22, 2024 | 4:01 pm
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South32 shares fell sharply after the company announced an $818 million impairment charge for its alumina and nickel assets. The Worsley alumina project faces significant environmental challenges, leading to a $554 million impairment, while the Cerro Matoso nickel project saw a $264 million impairment due to market volatility and operational difficulties. Additionally, South32 reported a 14% decline in copper production.
The significant impairment charges and decline in copper production are likely to negatively impact investor sentiment and the stock price in the short term. The environmental challenges and market volatility add to the uncertainty surrounding South32's key projects.
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