It's been a relatively healthy month for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares over the past four weeks or so. Since this time last month, the ASX 200 has lifted by a happy 2.55% (including today's 0.77% gain so far).
But let's talk about what's happened with the South32 Ltd (ASX: S32) share price.
South32 shares have had a far better month than the ASX 200. And it's not even close.
Back in mid-September, shares of this ASX 200 mining stock were swapping hands at $3.23 each. But today, those same shares will set an investor back $3.82.
This means that South32 shares have rocketed a whopping 18.1% over just the past month. That includes the stunning 3.95% surge the company has enjoyed over just today's trading so far.
So what on earth is going on here? After all, a near-18% leap in just one month isn't a normal move for any ASX share, let alone a $17 billion mining giant like South32.
Image source: Getty Images
Why has the South32 share price rocketed 18% in a month?
This move might be a little surprising for investors. South32 reported its latest earnings not that long ago, and they were not exactly warmly received at the time.
As we went through back in late August, South32 announced that its FY2024 revenues fell 3% year-on-year to US$5.5 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by an even greater 29% to US$1.8 billion, leading to South32 reporting a US$205 million net loss for the year, an 18% rise over last year's loss.
After these results, the South32 share price stagnated for a while. But it didn't take too long for the shares to start recovering.
Perhaps investors are getting excited over the miner's upcoming quarterly update. South32 is scheduled to release its latest three-month report card next Monday, 21 October. Many of South32's key commodities, including copper, aluminium, and zinc, have been ticking up in price lately. It's possible that investors are betting on a rosier report card next week compared to the one we saw back in August.
We can see the impact of rising commodity prices in other ASX mining shares too. BHP Group Ltd (ASX: BHP) shares have risen by more than 10% over the past month, as have Rio Tinto Ltd (ASX: RIO) shares. Whitehaven Coal Ltd (ASX: WHC) stock is up close to 20%, while Sandfire Resources Ltd (ASX: SFR) has rocketed more than 25%.
So it could be a combination of these factors that have enabled the South32 share price to have such a successful month over the past four weeks. Let's see what the miner has to say on Monday.
