First Impression: South 32 (S32) FY16 result

The Group generated Underlying EBITDA of US$1.1B in FY16, for an operating margin of 21.5%- in line with our estimates | Reported a net loss of US$1.6 billion, compared to a US$919 million loss in FY15(Charges included write-downs against assets, exchange rate losses and restructuring costs) | Net operating cash flow up 53.8% to US$1030m.