Decision inline with the slide that was presented at the time of 2025 Strategy Update - Reduces complexity as S32 can pack up operations from Colombia where they have no other assets but need a presence and overheads that go with it . Reduce exposure to environmental issues at this site, reduced exposure to currency and jurisdiction.
- Focus on high margin business. These operations in Colombia are a drain on cash. Low Operating margin, falling grades, falling production and requires high sustaining capex as its a 40 year old site.
- At $5.3 cash cost - This operation isnt really economic is low nickel price environment that is going to be around for years to come unless there are reforms in Indonesia
- Happy to get rid of this and clean out $120M rehab liabilities on top of $100M cash inflow.
S32 in 2015 was literally called "crap co" as it was a packaging of all the crap assets that BHP didnot wanted. 10 years later S32 is actively pursuing higher quality assets like "Hermosa the monster" and getting rid of legacy problematic assets like this. I support this move!!!
(20min delay)