South32’s Profitable Year, But at What Cost?

South32 Ltd, a metals and mining behemoth, has finally managed to turn a profit for the fiscal year 2025. But don’t be fooled by the company’s improved financial performance - the underlying revenue has taken a staggering 8% hit. This is a stark reminder that South32’s success is not without its costs.

The company’s shares have taken a beating, trading lower in London despite the improved financials. This is a clear indication that investors are not convinced by South32’s strategy. And who can blame them? The company’s focus on critical minerals has come at the expense of production at some of its operations, due to underground challenges.

• Key statistics:
  • Revenue from continuing operations: up, but only just
  • Underlying revenue: down 8%
  • Share price: trading lower in London
  • Production: scaled back at some operations due to underground challenges

South32’s financial results for the year ended June 30, 2025, have been announced, but the details are sketchy. It’s clear that the company is trying to spin its results in a positive light, but the numbers don’t lie. The company’s underlying revenue decline is a major concern, and investors would do well to take a closer look at the company’s strategy before jumping on the bandwagon.

The question on everyone’s mind is: can South32 sustain its profitability in the face of declining revenue? Only time will tell, but one thing is certain - the company’s investors will be watching its every move with bated breath.