Australia's South32 slips; Macquarie cuts EPS view on Cannington output miss

South32

Tue 05:26

** Shares of Australia's South32 S32.AX extend decline, falling 2.7% to A$4.395 and hitting their lowest level since July 22
** The diversified miner reported a 2% rise in first-quarter payable copper production on Monday from its Sierra Gorda project in Chile to 18,700 metric tons 
** First-quarter payable zinc-equivalent production at Queensland's Cannington mine fell 13% to 59.2 kt, with silver and lead output also lower
** Analysts at Macquarie said Cannington silver, lead and zinc production missed Visble Alpha estimates by 19% to 20%, due to technical constraints 
** Broker cuts FY27 EPS forecast by 4% after incorporating  quarterly production results, keeps neutral rating and A$5.00 target price
** South32 has identified copper and zinc as key focus metals following the planned divestment of its aluminium portfolio
** Stock up over 23%, YTD 


 (Reporting by Shruti Agarwal in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com;))