South32 will maintain robust credit metrics over the next two years, with support from proceeds from its Illawarra coal sale. Reported net debt decreased to US$47 million against drawn debt of US$692 million as of Dec. 31, 2024. Working capital will likely be better in the second fiscal half ending June 30, 2025. Earnings from fiscal 2026 will benefit from sales resumption at the GEMCO manganese mine. South32 has also reinstated production guidance for Mozal, following better stability in Mozambique. Alumina production at Worsley is also more certain following approval for mine extension and future development. South32's credit ratios could be under risk in fiscals 2026-2027 if its Taylor deposit (Hermosa project) runs into cost/time issues during construction and cannot
