South32 Ltd (ASX: S32) shares are trading in the red on Friday afternoon. At the time of writing, the shares are down 4.35% to $4.40 a piece.
For the year-to-date, the miners' shares have jumped 23.94% and they're also trading 26.8% above levels this time last year. The share price dropped to a four-year low in September but quickly recovered, soaring 72.55% higher over the past five months alone. It was also one of the best performers on the ASX 200 index in January.
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What pushed South32 shares so high?
A broad metal and mining market rally, particularly for copper and silver, has flowed through to mining stocks and their shares.
Strong central bank buying, falling US interest rates, and dwindling expectations for the US dollar's outlook are driving investors to safe-haven commodities like gold and silver.
Meanwhile, there is strong demand for copper due to its use in green energy technologies. Copper is used in wiring, electric vehicles (EVs), wind turbines, solar energy systems, telecommunications, and electronic products.
The prices of copper, silver and gold have reached all-time highs this year. This momentum has helped pull South32's shares up toward a multi-year high last month.
South32 mines and produces commodities, including bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese, and metallurgical coal, so it is well positioned to absorb excess demand across several minerals and metals.
But it wasn't just the commodities boom driving South32's shares higher. The miner has also posted some fantastic financial results over the past six months.
In October, the miner released its quarterly report for the three months to September. Its production highlights included a 12% increase in payable copper at Sierra Gorda and a 33% uplift in manganese volumes. Its FY26 production guidance was unchanged across all operations.
The good news also flowed through to the December quarter. Last month, the miner announced that it had exceeded expectations for first-half production. Alumina production was up 3% in the first half; aluminium production was up 2%; zinc was up 13%; and manganese was up 58%. Overall, the company's results were ahead of consensus. And investors were delighted with the news.
What do the experts expect from South32 shares this year?
Analysts are pretty bullish on the outlook for S32 shares. And it looks like it's not too late for investors to get in on the action either.
TradingView data shows that 11 out of 15 analysts have a buy or strong buy rating on the stock. The average target price is $4.66 a piece, which implies a potential 6.06% upside at the time of writing. But some think the shares could climb another 20.05% to $5.28 this year.
The team at Morgans have a buy rating and $5.00 price target on South32 shares. The broker said it was pleased with the miner's latest results and thinks it is well-placed to benefit from strong commodity prices.
