We assume no change to S32 earnings guidance but will review commentary on 5 December when S32 is set to host a capital markets day in Perth.
We expect management to update production guidance for its core operations for FY18.
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FY18 revenue should be flat on FY17 at $7b and EBIT will also be in-line at $1.7b. We have S32 trading on a 4% forward yield
We see the potential for earnings upgrades should spot metal prices stay at current levels. Strength in alumina, manganese, coking coal and thermal coal is helping to underpin our outlook.
