LONDON (ShareCast) - (ShareCast News) - Australian base metal and coal miner South32, in its first full financial year since being spun from BHP Billiton, reported a large net loss due to impairments and low commodity prices but paid a maiden dividend.
In the 12 months ended 30 June, the company reported a loss after tax of $1.62bn, a 76% increase from the year earlier due to a non-cash impairment charge in December 2015 of £1.7bn.

Revenue fell by 25% to $5.81m and underlying earnings fell to $138m from a pro-form of $575m in 2015.

The FTSE listed company said the average paid for commodities was down 21% from the previous year reflecting the industry-wide low price, yet despite this and the net loss, the company still paid a final dividend of one cent.

Cost restructuring has been a chief focus for the company since it was spun out from BHP Billiton in May 2015 with most of the ex-parent company's non-core industrial metals, manganese mines and aluminum smelters.

Annual costs were cut by $386m, with corporate costs now half the level envisaged at the time of listing, and by the year end there was still net cash of $312m compared to $402m over the 12 months.

Chief executive Graham Kerr, said: "We will continue to unlock the potential of our portfolio, identify opportunities and pursue investments where we see value, but will not compromise our strong balance sheet and investment grade credit rating."

Looking to the new financial year, Kerr maintained production guidance for the majority of our upstream operations and said performance would be stretched to meet cost targets.

A year on from separating, he said South32 "is a much stronger company with significantly lower costs and a balance sheet that provides flexibility".

Broker Shore Capital said the profit and loss was "ugly as expected", but operating cash inflows exceeding investing and financing outflows was a "bright side", with cash and equivalents increased to £1.23bn from £0.64bn to leave the balance sheet looking "reasonably healthy, with current assets handily outweighing current liabilities".

Shares in South32 were down 2.36% to 113.75p at 1216 BST.

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