Jefferies reiterates 'buy' on Australia's South32

** Analysts at Jefferies reiterate "buy" rating on Australia's South32 S32 at a price target of A$3.40

** The diversified miner on Monday flagged impairment to its Mozal aluminium smelter in Mozambique, saying production was under review on not securing affordable power prices after March 2026

** While a potential Mozal closure would diminish leverage to upside aluminium pricing, it is non-core to our thesis - Jefferies

** Company's portfolio distils toward base metals, with critical minerals project Hermosa remaining the core long-term valuation anchor, brokerage says

** S32 might be forced to cease pot relining and operate for cash through to contract expiry in March 2026, a move that could trigger early wind-down for smelter - brokerage

** Eight of 16 analysts rate the stock "buy" or higher, eight "hold"; median PT is A$3.48 - data compiled by LSEG

** Stock down 13.2% YTD, as of last close