Never a good idea to let emotions run your buying and selling decisions. There is bit to unpack from the quarterly report as well as Worsley write-down.
My 2 cents:-
The quarterly was underwhelming: S32 has failed to manage the investor expectation ahead of releasing these underwhelming set of numbers. The street was expecting a free kick from high commodity prices in Q4 which S32 clearly could not convert. The downgrade of FY25 production numbers is like rubbing salt on the wound.
The write down of Worsley is likely a tactic to put pressure on state govt which is already under pressure from nickel and lithium miners throwing in the towel. They would baulk at the hint of another major operation shutting down due to uncertainty. I am not too worried about this one not getting EPA approvals.
Overall its good S32 got a well deserved flogging today. I am however of the view that this is a good stock to have in portfolio due to exposure to base metals and cash coming in from sale of coal assets. $3 is not a bad entry point.
Good luck!
S32 Price at posting:
$2.99 Sentiment: Buy Disclosure: Held
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