Australia's South32 set for weekly loss; UBS cuts PT on high capex, delayed ops at US mine

South32

01/05/2026 06:13

** South32 S32.AX falls more than 4% so far this week

** UBS cuts PT to A$4.50/share; maintains "buy"

** Trims net asset value estimate by $2.2 billion to $3.4 billion for co's mining project Hermosa in Tucson, Arizona

** Higher capex, delayed operations at Hermosa mean investors will have to wait until FY29-FY30 before co generates strong cash returns

** Says "risk-reward" remains attractive due to commodity mix

** S32 rises as much as 3% to A$4.15; marks steepest intraday pct rise since April 8

** YTD, stock up 40%

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com;))