Australia's South32 rises as Morningstar says Alcoa deal boosts growth funding

South32

03/07/2026 05:15

Updates
** South32 S32.AX rises as much as 2.4% to A$4.26
** Morningstar analysts view the miner's asset sale to Alcoa favourably, noting proceeds will help bankroll growth projects
** On Wednesday, co said it would sell its bauxite, alumina and the bulk of its aluminium assets to Alcoa for an enterprise value of up to $5.6 billion
** Morningstar says proceeds will place S32 in good stead to fund remaining development costs for its Taylor zinc-lead-silver project in Arizona
** Co also announced its Chile Sierra Gorda joint venture approved a fourth grinding line expansion to lift processing capacity by about 25%
** Morningstar lifts its fair value estimate for co to A$4.10/share, up by 5%

    ** Stock up 8.2% through Friday, set for best week in over a month if trend holds
  
** YTD, stock up 18.9%



 (Reporting by Shruti Agarwal and Aamir Sheik Khalid in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com;
Aamir.SheikKhalid@thomsonreuters.com))