South32's Hermosa Trip Highlights Debottlenecking Plans and Modest Capex

South32's plans to remove bottlenecks at its Hermosa processing plant project are a key highlight, according to RBC. The expansion to 5.0 million metric tons per annum from 4.3 million tons would require modest capital expenditure of around $30 million, mainly for pump upgrades. The potential installation of a small copper circuit to process copper from the Peake copper deposit could cost around $50 million. RBC maintains an outperform rating and A$5.50/share price target for the stock, which is down 1.3% at A$4.865.