0115 GMT - South32's improved scale, mine life and resource confidence at its Taylor development is overshadowed by a roughly $1.1 billion capex increase and one-year delay, says RBC Capital Markets analyst Kaan Peker. The miner's update on the project "is a clear capital reset," he says. Peker says returns remain acceptable, with an estimated internal rate of return around 19%, albeit on higher commodity prices. "While remaining capital risk is lower from here, the damage to capital efficiency and returns is already done, shifting Hermosa firmly into the higher-risk, longer-dated category," he says. RBC has an outperform rating and A$4.70 target on South32. Shares are down 7.5% at A$3.94. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

April 29, 2026 21:15 ET (01:15 GMT)

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