By Rhiannon Hoyle


South32 slashed its midyear payout as it reported a 92% plunge in first-half profit, but said it has approved the $2.16 billion development of the Taylor deposit at its Hermosa project in southern Arizona.

The Australia-based miner said it made a net profit of $53 million for the six months through December, compared to a profit of $685 million a year earlier. It said lower commodity prices and weaker production of metallurgical coal had driven the profit decline.

Underlying earnings were down by 93%, to $40 million.

The company said it would pay an interim dividend of 0.4 cents a share. Last year, the company paid investors 4.9 cents a share.

"Looking forward, we remain focused on driving operating performance and cost efficiencies across our business," said Chief Executive Graham Kerr. "This focus, combined with our expected 7% production uplift in the second half, places us in a strong position to capture higher margins as market conditions improve."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

02-14-24 1755ET