The South32 Ltd (ASX: S32) share price went up by 4% today, helping it reach a multi-year high.
Shareholders of South32 hasn’t seen the shares this high since the middle of 2019.
What has been helping the South32 share price?
It has been a buoyant time for investors in the ASX 200 resource share. The last month has seen it rise by 20.2%, it has risen by almost 30% over the last six months and it has gone up 62.50% over the past 12 months.
Growth in revenue or profit are often what investors look at when deciding what to value a business at.
Just under a month ago, South32 reported a “strong” operating result with record production at Worsley Alumina, Brazil Alumina and Australia Manganese. It also beat its production guidance that it initially gave for South Africa Manganese, Cerro Matoso and Cannington.
FY21 numbers
South32 saw a slight 4% increase of revenue to US$6.34 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 32% to US$1.56 billion, underlying earnings before interest and tax (EBIT) grew 89% to US$844 million and underlying ‘earnings’ increased 153% to US$489 million.
However, various items unrelated to the underlying performance of the business, such as impairment charges totalling US$764 million (primarily relating to coal), resulted in a loss after tax of US$195 million.
Another element of the result was that the board decided to pay a full year ordinary dividend of US 4.9 cents per share, an increase of 133%,...
Read Full Story: https://www.fool.com.au/2021/09/16/the-south32-asxs32-share-price-just-hit-a-multi-year-high/
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