South32 could be interesting

South32 could be interesting. The break up of BHP is a significant event in the mining industry. It signals the end of the diversified mining model and, perhaps the beginning of a new profit driven strategy. This is a welcome change from the past 15 years when success was measured by size and output rather than profit and returns to shareholders. South32, which will include manganese, silver, base metals, aluminum, alumina and coal, will be a significant business, about $12bn worth, and it is more than just waste from its parent... South32's mines have been neglected for years. Its reserves base has shrunk from a lack of drilling and BHP has skimped on capital expenditure as it focused cash and attention on is trophy assets. By lavishing attention on neglected mines, the new miner should improve profitability and rates of return but it will also have to plough more cash into exploration and capital expenditure than BHP has done in the recent past. Read the full article at the following link: (VIEW LINK)