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South32 Limited remains a 'Buy,' as the recent aluminum asset divestment unlocks value and sets the stage for further portfolio optimization. The stock is deserving of a higher EV/EBITDA multiple benchmarked with base metal peers, following the shift to a more concentrated portfolio post-disposal. Looking ahead, SOUHY's low-margin manganese assets are likely to be sold as well, which should enhance its overall…

Alcoa CEO William Oplinger discusses the rationale behind the company's deal to buy Australian aluminum producer South32, as well as global demand and production in the face of rising energy costs.

South32 Limited (SOUHY) M&A Call Transcript

The deal includes stakes in a bauxite mine, alumina refinery, and aluminum smelter operations, Alcoa said.

South32 Ltd (LSE:S32, ASX:S32, OTC:SHTLF) is Citi's preferred mining stock as the bank becomes more bullish on copper and aluminium prices, while Glencore PLC (LSE:GLEN) is its favoured way to play the copper theme among the major diversified miners. The US bank has raised its long-term copper forecasts and now expects prices to reach $15,000 a tonne within the next year, versus a current LME price below $13,800.