“South32 (S32) has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile,” Raymond said.

“Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore.”

“Instead, it offers a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength).”

“We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”

“We see it as an ADD to an investor’s portfolio,” Raymond concluded. 

South 32 (S32) – last 12 months

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