Sydney, June 9, 2026, 23:01 AEST
- Shares of South32 dropped 2.16% to A$4.53 in Sydney. About 14.79 million shares changed hands.
- Citi put South32 at the top of its mining picks after raising its copper and aluminium forecasts, but the stock was hit along with the rest of the resources sector.
- ASX 200 slipped 0.24% to finish at 8,604.2 as trading resumed after the King’s Birthday holiday on Monday.
South32 Ltd shares fell Tuesday, as mining stocks sold off and erased copper-driven gains sparked by broker calls. Heavy selling dragged on the Australian market after the long weekend.
The Perth-based miner settled at A$4.53, losing 10 cents, or 2.16%. Shares moved between A$4.44 and A$4.56 during the day. Trading came in at 14.79 million shares, close to its usual level.
Bulls got hit with bad timing. Citi had just called South32 its top mining pick, saying the stock gives better copper and aluminium exposure than rivals focused on iron ore. The broker bumped its target on South32’s London shares up to 320 pence from 300 pence.
ASX shares lost ground. The S&P/ASX 200 slipped 20.9 points, or 0.24%, to close at 8,604.2. Basic materials weighed on the index, according to ABC’s market wrap.
Tuesday’s ASX session had to catch up after the cash market was closed Monday for the King’s Birthday holiday. Traders faced offshore moves, swings in commodities, and the Citi note all at once. ASX’s normal trading hours are until 4 p.m. Sydney time on business days.
Miners slumped in the morning. The S&P/ASX 200 Materials index dropped 4.0% at 10:16 a.m., Market Index reported, with three-session losses reaching 9.0% before the wider market recovered most earlier losses.
BHP dropped 1.89% to A$60.08 and Rio Tinto slipped 1.81% to A$181.23, Google Finance data showed, as miners saw pressure across the board. The move suggests weakness wasn’t just about South32.
Citi is forecasting copper to reach $15,000 a tonne within a year. The bank said South32 could be among the bigger winners from rising commodity prices over the next two years. Citi pointed to the group’s exposure to aluminium and copper, as well as its Hermosa project in Arizona.
Citi’s Tom Mulqueen says copper may find support even as shipping risks in the Middle East last through July. The bank added that “U.S. copper tariff fears can remain supportive through June.” Citi highlighted slower growth from mine and scrap supply and said a market deficit could show up in 2027. Investing
South32 dropped on Tuesday, but the stock is still up almost 30% in 2026 and up nearly 56% for the financial year, according to Intelligent Investor. The shares have fallen 5.82% since their close a week ago.
South32’s March quarter update left investors with mixed signals. CEO Graham Kerr said the company’s balance sheet is “well placed to manage short-term volatility” after South32 pulled in US$121 million net cash and got a record US$135 million quarterly payout from its Sierra Gorda copper project in Chile. Investegate
But there was a catch. South32 cut its Australia Manganese output guidance 6% to 3.0 million wet metric tonnes. Wet metric tonnes count moisture in the ore. The company blamed heavy rain and Tropical Cyclone Narelle for the hit to operations. Reuters said South32 also warned freight and raw material costs are climbing because of Middle East tensions.
Hermosa is still South32’s big long-term option. Reuters said in March that the U.S. Forest Service gave a draft OK for the Arizona site to move onto federal land. A final decision is still set for July. South32 says Hermosa has silver, zinc, and manganese, and is in the FAST-41 permitting process, which is supposed to speed up review of key U.S. projects.
But the trade can go in either direction. Copper’s tariff premium could shrink, Middle East shipping issues might keep costs up, and if South32’s manganese recovery or Hermosa spending miss the mark, Tuesday’s drop could look like more than just noise. Right now, Citi gave investors something to latch onto. The market wanted clearer signals.
