Australian miner South 32 slips; Macquarie upbeat on Illawara coal divestment

Almana

04/03/2024 24:19

** Shares of Australia's South32  S32.AX  dip 1.7% to
A$2.97, underperforming the broader mining sub-index  .AXMM     
    ** Analysts at Macquarie upbeat on South32's slated
divestment of metallurgical coal operations, transforming the
diversified miner into a 100% base metals-focussed producer
    ** South32 to sell its flagship Illawarra Metallurgical Coal
project to an entity owned by Golden Energy and Resources and M
Resources for up to $1.65 bln
    ** Macquarie assumes completion of the Illawarra coal
divestment by the end of September 2024
    ** We cut FY25-28E earnings 15-21% to reflect the transfer
of economic rights of IMC to the acquirers - Macquarie 
    ** Says post-transaction 2H FY24 operational improvements
are key catalysts 
    ** Stock down 9.3% this year, as of last close, vs a 2.04%
increase in the benchmark S&P/ASX 200 index  .AXJO  


 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))