0202 GMT - South32's higher-than-anticipated capital expenditure estimate for its Hermosa project is the "key drag" from the miner's project update, according to Citi analyst Ephrem Ravi. Otherwise, "revised timelines, unit costs and sustaining capex are largely in line to conservative assumptions we had baked in our model," he says. Ravi reckons there remains potential for higher production at Hermosa following upgrades to reserves and resources. As a result, the bank keeps its net present value estimate for Hermosa largely unchanged. It also leaves its price target unchanged at A$5.40/share and reiterates a buy rating. "We remain buyers of the stock as aluminum tailwinds in the near-term driving earnings, while long term growth prospects are underpinned by the attractive valuations," says Ravi. Shares are up 2.5% at A$4.13. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

April 30, 2026 22:05 ET (02:05 GMT)

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