Australia's South32 largely met expectations in first quarter, Jefferies says

By Reuters News

** Jefferies says South32 S32.AX largely met expectations across the portfolio in its first quarter

** The diversified miner on Monday posted a 2% rise in first-quarter copper production at its Sierra Gorda project, slightly below market expectations

** Quarterly manganese production at S32's GEMCO exceeded market expectations as the operation capitalised on benign seasonal weather, brokerage says

** "S32 has a clear, demonstrated pathway to material base metal production growth while the Aluminium exit has

cleared a structural multiple overhang," Jefferies says

** Brokerage remains constructive on S32, world's biggest manganese producer, as a diversified growth vehicle, with disciplined capital management and improved portfolio clarity

** Jefferies reiterates "buy" rating and price target of A$6.00

** 7 of 15 analysts rate the stock "buy" or higher and 8 "hold"; their median PT is A$5 – LSEG data

** Stock up 26.7% this year, as of last close

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