South32 Ltd.'s earnings and cash flow should materially improve in the second half of 2024 (year ending June 30). This is due to higher volume, lower unit operating costs for most of its businesses, and an improved working capital position. Furthermore, South32's proposed sale of its Illawarra metallurgical coal (IMC) business for up to US$1.65 billion should bolster the company's balance sheet and funding flexibility for its zinc-lead-silver Taylor project at Hermosa. An improved net debt position and earnings outlook will sustain credit headroom at the current rating level over the next two to three years as South32 undertakes the Taylor project. This will be supported by initial IMC sale proceeds of US$1.05 billion by the end of calendar year
