South32 Ltd (ASX: S32) shares are jumping higher into the green in Thursday morning trade.
At the time of writing, the shares are up around 1% to a fresh four-year high, and are changing hands for $4.94 a piece.
The latest increase means the shares have jumped around 26% in the past three weeks alone, and they're up nearly 8% for the month of August so far.
It's been a great year for the ASX mining stock. Its shares have leapt 39% higher for the year to date and are 66% higher than 12 months ago.
There have been several peaks and troughs, with the share price fluctuating anywhere between $3.55 in early January to today's four-year high of $4.94. But overall, South32 shares have been among the strongest performers on the ASX so far in 2026.
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Why are South32 shares climbing higher again now?
Later last month, South32 revealed its FY26 operating results. The miner announced that it had exceeded several production guidance targets with higher output across several of its key operations.
South32 also announced the sale of its aluminium value chain (excluding Mozal) to Alcoa Corporation Ltd (ASX: AAI) for up to US$5.6 billion, plus around US$1.2 billion in rehabilitation provisions. The landmark deal is expected to be finalised in the second half of FY27, pending shareholder approval.
The miner said the move accelerates South32's strategic shift towards becoming a leading producer of base and precious metals.
With the pending sale of its aluminium value chain, South32 expects about 85% of pro-forma earnings to come from base and precious metals. The business is targeting 55% production growth from approved projects, with expanded copper capacity at Sierra Gorda and further construction at the Hermosa project.
The results and sale announcements were well received by the market and investors rushed to buy South32 shares ahead of the deal.
Are the mining shares a buy, sell, or hold now?
It looks like the experts are pretty optimistic about the outlook for South32 shares over the next year.
Market Index shows the majority of brokers have a buy rating on the mining stock. But the $4.94 average target price is flat on the current trading price.
Sentiment is also mostly positive on TradingView. The data shows that the majority of analysts (eight out of 14) have a buy/strong buy rating on the shares. Another five rate South32 shares as a hold.
But after the latest rally, the average $4.84 target price now implies a potential downside of around 1.5%, at the time of writing. However, the more bullish of the bunch expect the shares to jump another 21% to $5.95 over the next 12 months.
The team at Morgans reaffirmed their accumulate rating and $4.70 target price following South32's announcement.
Morgan Stanley has a buy rating on the shares and a $4.75 target price.
