At time of writing, South32 Ltd [ASX:S32] shares are hitting a record high of $4.21 apiece, with a 6.3% gain today on the back of some encouraging news.
Below, you’ll see how South32 has performed since it was created as a spinoff from BHP Billiton:
South32 is a mining company with interests that include alumina/aluminum and coal.
Alumina/aluminum price is good for South32
They have received recent good news on both of these fronts.
The price of alumina has recently increased dramatically as Norsk Hydro has announced it will halt output at its Alunorte alumina refinery.
Alumina is the raw material necessary to produce aluminum.
This lead to a spike in aluminum’s price over the last month.
Take a look at aluminum’s one month chart:
Good news for South32’s coal operations
In addition to improved alumina/aluminum prices, South32’s South African coal operations could be bought for a significant sum.
Two South African organisations, Exxaro Resources and Seriti Resources, are among the groups looking at shelling out $800 million for the project.
This move was prompted by South Africa’s state power utility Eskom Holdings being pushed by the South African government to source more energy from South African based companies.
Looks like for now, South32’s share price could continue to move north.
For Markets & Money
PS: If you are interested in mining stocks, check out our free report on the 2018 Mining Boom. Could these 10 cheap, top-quality Aussie mining stocks lead this year’s commodities comeback? Find out here.