Reducing South32's FVE by 4% on Lower Forecast Near-Term Alumina, Copper Sales; Shares Undervalued

South32 is a diversified midtier global mining company spun out from BHP in 2015. South32 has commodity diversification and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.