Interesting discussion and thank you all.Selling Illawarra was...

Interesting discussion and thank you all.

Selling Illawarra was the right thing to do. The arguments about political correctness were quaint. Both sides wrongly overlooked the significance of the unceasing heavy capex in coal mining. Sure it made money, yet equally required big SIB investment so net-net was always less than headline. S32 now has $US1.5b flowing its way in coming periods to spend on 'future facing commodities', if it can find a worthwhile deal.

I restate my view S32 is a multi-mineral miner, agnostic on where it invests and able to build out where opportunity presents. A very powerful feature.

Another overlooked reality is that half the asset base is in the Aluminium chain. This is barely breaking even at this stage of the cycle. Any price improvement goes straight to the bottom line. I do fret about Hillside - South Africa is corrupt, dangerous and governed by fools doing nothing on electricity supply. Its grid weakens more every week.

It is easy to sneer and jeer at Hermosa-Taylor 1a and its low IRR. It carries the burden of so many initial costs - power supply, roads, facilities, community and permits. Later developments will be flattered by their relatively modest add-on cost. Meanwhile, GK & team have to grit their teeth and endure the short-term costs and criticism.

We have seen S32 print money in better times. It will again, we just dont know when.

Ash