The company posted a loss of $1.6 billion due to impairment charges of $1.7 billion recorded in the December half.

Underlying earnings were $138 million, down 76%.

Revenue was down by 25% to $5.8 billion, while underlying earnings before interest, tax, depreciation and amortisation dropped by 39% to $1.1 billion.

South32 CEO Graham Kerr said the company had generated controllable cost savings of $386 million and reduced capital expenditure by $306 million.

“By optimising our operations and maintaining a core focus on value, we generated free cashflow of $597 million and finished the year with net cash of $312 million,” he said.

“We will continue to unlock the potential of our portfolio, identify opportunities and pursue investments where we see value, but will not compromise our strong balance sheet and investment grade credit rating.”

For FY17, guidance has been maintained for the bulk of South32’s operations, aside from Cannington, which was revised down by 2-3%.

Cost guidance for the Australian operations was lifted to reflect commodity prices and exchange rates.

Kerr said the company would stretch performance to meet cost targets.

“Our functions are lean, with corporate costs now half the level envisaged at the time of listing,” he said.

“12 months on, South32 is a much stronger company with significantly lower costs and a balance sheet that provides flexibility.”

Yesterday, South32 shares closed at $A2.05, the same as its first day back in May 2015, but were down 9c this morning to $1.96.