The South32 Ltd (ASX: S32) share price is up 5% to $2.86 in afternoon trade as global commodity prices lifted overnight to the benefit of the coal, nickel, silver, aluminum, bauxite, lead and zinc miner.
The stock is now up 55% over the past year as the election of President Trump in the U.S, improving Chinese growth, and renewed optimism over the outlook for the global economy combine to lift key commodity prices.
For the six-month period ending December 31 2016 the diversified miner posted underlying earnings of US$497 million and last month announced plans to return US$500 of capital to shareholders via a share buyback, with US$211 million already put to work.
The company has three listings on the ASX, LSE and JSE that reflects its diverse geographical operations and heritage as a spin-off from mining giant BHP Billiton Limited (ASX: BHP). Today BHP shares are up 3.6% to $25.44 to post their best day in three months.
Elsewhere, iron ore miner Rio Tinto Limited (ASX: RIO) is 2.6% higher to $64.66 on the back of strong Chinese economic data and rising iron ore prices.
For South32 investors much will depend on the future of the prices of the core commodities it commonly sells to Chinese customers. The company has a market value around $14 billion and sells for 10x analysts' estimates for 29 cents in earnings per share in FY 2018.
