Wrap Text
Quarterly Report
South32 Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
(ACN 093 732 597)
ASX / LSE / JSE Share Code: S32; ADR: SOUHY
ISIN: AU000000S320
QUARTERLY REPORT
SEPTEMBER 2024
South32 Chief Executive Officer, Graham Kerr: "We were devastated by the loss of Mr José Luis Pérez, who was fatally injured in an incident at
Cerro Matoso on 17 September and we express our sincere and deepest sympathies to his family, friends and colleagues.
"We remain committed to improving our safety performance. We continue to implement our Safety Improvement Program, which will help us to
achieve a step change in our performance so that everyone goes home safe and well every day.
"We have maintained annual production guidance for all of our operations with a strong start to the year in aluminium and a 20 per cent uplift in
copper equivalent volumes from Sierra Gorda.
"Completing the sale of Illawarra Metallurgical Coal is a major milestone in our portfolio transformation which has unlocked significant value and
streamlined our business toward commodities critical for a low-carbon future.
"The sale has also lowered our sustaining capital intensity and strengthened our financial position, enabling us to self fund our growth in base
metals and deliver returns to shareholders via our on-market share buy-back.
"At Hermosa, construction of our large-scale, long-life Taylor zinc-lead-silver project is progressing as planned and we are continuing to unlock
value across our broader land package.
"During the quarter, Hermosa was selected for a US$166 million award negotiation from the US Department of Energy, which recognises Clark's
potential to supply battery-grade manganese for the emerging North American market.
"Our transformed portfolio, focused on copper, zinc and our aluminium value chain, leaves us well placed to capitalise on the global energy
transition and stronger market conditions to start the year."
• Completed the sale of Illawarra Metallurgical Coal and received upfront cash proceeds of US$964M1.
• Expanded our capital management program by US$200M and commenced our on-market share buy-back.
• Maintained FY25 production guidance for all operations.
• Aluminium production increased by 5% as Hillside Aluminium continued to test its maximum technical capacity, and low-carbon aluminium2
production from Brazil Aluminium and Mozal Aluminium increased by 12%.
• Worsley Alumina saleable production declined by 7% as planned calciner maintenance was undertaken and we managed constrained
bauxite supply. The Western Australian Environment Minister is expected to consider approval of new bauxite mining areas in December
2024, with Federal approvals expected shortly thereafter.
• Brazil Alumina saleable production was largely unchanged as plant availability continued to improve. A preliminary environmental license for
the MRN West Zone mine life extension project was issued during the September 2024 quarter.
• Sierra Gorda payable copper equivalent production3 increased by 20% due to higher planned copper grades and a significant increase in
molybdenum recoveries as a result of improved ore quality.
• Cannington payable zinc equivalent production4 declined by 34% due to challenging ground conditions, resulting in the deferral of a higher
grade stope to the December 2024 quarter.
• South Africa Manganese production increased by 12% as the operation delivered strong mining performance and continued to sell
secondary products to maximise margins.
• Australia Manganese continued a substantial dewatering program and remains on track to resume production in the December 2024
quarter. Initial external insurance recoveries of US$100M (100% basis) were received during the quarter.
• Continued construction of Hermosa's Taylor zinc-lead-silver project as planned. Clark was selected for a US$166M award negotiation from
the US Department of Energy for a potential commercial-scale battery-grade manganese facility5.
• Entered into a strategic alliance to explore for copper in the Kalahari copper belt in Namibia and an earn-in agreement for a zinc-lead-silver
prospect in Nevada, USA.
South32 Quarterly Report September 2024 Page 1 of 9
Production summary
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 QoQ
Alumina production (kt) 1,290 1,184 (8%) 1,290 1,249 1,184 (5%)
Aluminium production (kt) 288 298 3% 288 285 298 5%
Payable copper production (kt) 16.0 17.6 10% 16.0 15.3 17.6 15%
Payable silver production (koz) 3,375 2,066 (39%) 3,375 3,224 2,066 (36%)
Payable lead production (kt) 28.5 19.3 (32%) 28.5 28.8 19.3 (33%)
Payable zinc production (kt) 13.2 12.1 (8%) 13.2 17.4 12.1 (30%)
Payable nickel production (kt) 8.3 8.6 4% 8.3 11.5 8.6 (25%)
Manganese ore production (kwmt) 1,518 597 (61%) 1,518 534 597 12%
Unless otherwise noted: percentage variance relates to performance during the September 2024 quarter compared with the September 2023 quarter (YoY), or the September 2024 quarter compared with the June
2024 quarter (QoQ); production and sales volumes are reported on an attributable basis.
CORPORATE UPDATE
Safety
• On 17 September 2024, Mr José Luis Pérez was fatally injured in an incident at Cerro Matoso, our ferronickel operation in Colombia. Our
deepest sympathies are with Mr Pérez's family and colleagues to whom we are providing support and counselling. An investigation into the
incident is underway and we are engaging with the relevant authorities.
• We remain united by our belief that everyone can go home safe and well every day. We are continuing to implement our global multi-year
Safety Improvement Program to deliver improved safety performance, including investment in safety leadership through our LEAD Safely
Every Day Program which has been completed by more than 1,500 leaders, employees and contractors in our business.
Sustainability
• Worsley Alumina achieved performance standard certification against the Aluminium Stewardship Initiative (ASI), a certification organisation
which aims to foster responsible production, sourcing and stewardship of aluminium. With Mozal Aluminium also having ASI certification, we
can now deliver aluminium with full value chain certification from the mining and refining of bauxite to alumina at Worsley Alumina, to the
production of aluminium at Mozal Aluminium.
Portfolio
• On 29 August 2024, we completed the sale of Illawarra Metallurgical Coal (the Transaction) to an entity owned by Golden Energy and
Resources Pte Ltd and M Resources Pty Ltd, receiving upfront cash proceeds of US$964M1. The total Transaction consideration also includes
deferred cash consideration of US$250M, payable in March 2030, and contingent price-linked cash consideration of up to US$350M6.
• On 12 August 2024, we completed the sale of our 50% interest in the Eagle Downs metallurgical coal project to a subsidiary of Stanmore
Resources Limited, for US$18M7 in cash, a contingent payment of US$20M8 and a price-linked royalty of up to US$100M9.
Financial
• Net debt10 decreased by US$723M to US$39M in the September 2024 quarter as we completed the sale of Illawarra Metallurgical Coal,
continued our investment in growth at Hermosa, and experienced a temporary build in working capital.
• Working capital increased by approximately US$150M during the September 2024 quarter, primarily related to a temporary increase in work
in progress and finished goods inventories in our aluminium value chain.
• We provided funding of US$63M to our manganese equity accounted investment (EAI) during the September 2024 quarter to support the
operational recovery plan at Australia Manganese following the impacts of Tropical Cyclone Megan.
• Our manganese EAI received initial recoveries of US$100M (100% basis) from external insurers and a one-off recovery of US$50M (100%
basis) under the Group's captive insurance program during the September 2024 quarter. We are continuing to work with our insurers to
assess the timing and value of further recoveries under property damage and business interruption policies.
• We received net distributions11 of US$32M (South32 share) from our Sierra Gorda EAI during the September 2024 quarter, with a further
distribution anticipated in the December 2024 quarter.
• We invested US$135M in Group capital expenditure (excluding EAIs and Hermosa) during the September 2024 quarter, including US$57M
at Illawarra Metallurgical Coal prior to completion of the Transaction.
• We made Group tax payments of US$47M (excluding EAIs) during the September 2024 quarter.
• Reflecting our strengthened financial position and disciplined approach to capital allocation, we expanded our capital management program
by US$200M, and commenced our on-market share buy-back in September 2024. We spent US$3M purchasing 1M shares at an average
price of A$3.26 per share in September 2024, leaving US$197M remaining to be returned to shareholders ahead of extension or expiry of
the program on 12 September 202512.
• Following the end of the September 2024 quarter, we paid a fully-franked ordinary dividend of US$140M in respect of the June 2024 half
year.
South32 Quarterly Report September 2024 Page 2 of 9
DEVELOPMENT AND EXPLORATION UPDATE
Hermosa project
• We invested US$123M in growth capital expenditure at Hermosa during the September 2024 quarter, as we progressed construction of the
Taylor zinc-lead-silver project and an exploration decline for the Clark battery-grade manganese deposit.
• All critical path dewatering wells for both Taylor and Clark were commissioned during the September 2024 quarter.
• Construction of Taylor progressed as planned. The main shaft headframe has been completed and commissioning of the hoisting system for the
ventilation shaft is underway. Shaft sinking is on track to commence in the December 2024 quarter.
• Clark was selected for an award negotiation of up to US$166M from the US Department of Energy under the Battery Materials Processing
and Battery Manufacturing program5, to support the potential development of a commercial-scale battery-grade manganese production
facility.
• We directed US$7M to capitalised exploration during the September 2024 quarter as we continued to test the potential for a continuous
copper system connecting Peake and Taylor Deeps.
Greenfield exploration
• We invested US$7M in our greenfield exploration opportunities during the September 2024 quarter as we progressed multiple exploration
programs targeting base metals in Australia, USA, Canada, Argentina and Ireland.
• We added to our portfolio of prospective exploration options, forming a strategic alliance with Noronex Limited to explore for copper in the
Kalahari copper belt in Namibia, and signed an earn-in agreement with Ridgeline Minerals for the Selena zinc-lead-silver carbonate
replacement deposit style prospect in Nevada, USA.
Other exploration
• We invested US$15M (US$13M capitalised) in exploration programs at our existing operations and development options during the
September 2024 quarter, including US$7M at the Hermosa project (noted above, all capitalised), US$3M for our Sierra Gorda EAI (all
capitalised) and US$2M for our manganese EAI (nil capitalised).
PRODUCTION SUMMARY
Production guidance (South32 share)
FY24 YTD FY25 FY25e(a) %(b) Comments
Worsley Alumina
Alumina production (kt) 3,777 850 3,750 23% Planned calciner maintenance in Q1 FY25
Brazil Alumina (non-operated)
Alumina production (kt) 1,286 334 1,350 25%
Brazil Aluminium (non-operated)
Smelter continues to ramp-up in accordance with
Aluminium production (kt) 104 30 130 23%
guidance
Hillside Aluminium13
Aluminium production (kt) 720 180 720 25%
Mozal Aluminium13
Aluminium production (kt) 314 88 360 24%
Sierra Gorda (non-operated)
Payable copper equivalent production (kt)3 73.5 22.1 84.8 26%
Payable copper production (kt) 60.8 17.6 70.0 25%
Payable molybdenum production (kt) 0.9 0.4 1.3 31%
Payable gold production (koz) 24.6 7.7 25.0 31%
Payable silver production (koz) 607 151 550 27%
Cannington
Payable zinc equivalent production (kt)4 302.5 50.7 265.4 19% Challenging ground conditions in Q1 FY25
Payable silver production (koz) 12,666 1,915 11,300 17%
Payable lead production (kt) 112.4 19.3 100.0 19% Higher metal grades and throughput expected across
Payable zinc production (kt) 60.7 12.1 50.0 24% the remainder of FY25
Cerro Matoso
Payable nickel production (kt) 40.6 8.6 35.0 25%
Australia Manganese
Manganese ore production (kwmt) 2,324 — 1,000 N/A On track to resume production in Q2 FY25
South Africa Manganese
South32 Quarterly Report September 2024 Page 3 of 9
Manganese ore production (kwmt) 2,175 597 2,000 30%
Illawarra Metallurgical Coal14
Total coal production (kt) 4,938 766 N/A N/A
Results represent ownership period July to August 2024
Metallurgical coal production (kt) 4,305 676 N/A N/A
Energy coal production (kt) 633 90 N/A N/A
a. The denotation (e) refers to an estimate or forecast year.
b. Reflects percentage of achieved production for YTD FY25 compared to current FY25e.
WORSLEY ALUMINA (86% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Alumina production (kt) 972 850 (13%) 972 916 850 (13%) (7%)
Alumina sales (kt) 913 824 (10%) 913 974 824 (10%) (15%)
Worsley Alumina saleable production decreased by 7% (or 66kt) to 850kt in the September 2024 quarter as planned calciner maintenance was
undertaken, and we managed constrained bauxite supply due to delayed approvals for new mining areas. FY25 production guidance remains
unchanged at 3,750kt with the refinery to convert excess hydrate stocks to calcined alumina across the remainder of the year.
Sales decreased by 15% in the September 2024 quarter due to lower product availability and the timing of shipments. We realised a circa 8%
discount to the Platts Alumina index15 on a volume weighted M-1 basis for alumina sales in the September 2024 quarter, which reflected market
based prices with the exception of a legacy supply contract with Mozal Aluminium which is linked to the LME aluminium price.
On 8 July 2024, the Western Australian Environmental Protection Authority (WA EPA) published its recommendation that the Worsley Mine
Development Project (the Project) be approved, subject to conditions. If imposed in their current form, several conditions would create significant
operating challenges. We have lodged an appeal in relation to the WA EPA assessment report.
On 15 October 2024, the Western Australian State Government announced that it would defer regulation of greenhouse gas emissions to the
Federal Government's Safeguard Mechanism. The change will remove policy inconsistencies that currently exist between the State and Federal
Government with regard to greenhouse gas emissions, and is expected to be addressed as part of the appeals process for the Project.
We continue to work collaboratively with the Western Australian Government to enable Worsley Alumina to continue to meet the State's robust
environmental standards. The Western Australian Environment Minister is expected to consider approval of the Project in December 2024, with
required Federal approvals expected shortly thereafter.
BRAZIL ALUMINA (36% SHARE, NON-OPERATED)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Alumina production (kt) 318 334 5% 318 333 334 5% 0%
Alumina sales (kt) 272 326 20% 272 358 326 20% (9%)
Brazil Alumina saleable production was largely unchanged at 334kt in the September 2024 quarter as the refinery continued to benefit from
improved plant availability. FY25 production guidance remains unchanged at 1,350kt.
A preliminary environmental license for MRN's West Zone project, which has the potential to extend the life of the bauxite mine by more than
20 years16, was issued during the September 2024 quarter. A final investment decision for an enabling transmission line to connect MRN to the
Brazilian power grid is expected during the December 2024 quarter.
BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Aluminium production (kt) 24 30 25% 24 28 30 25% 7%
Aluminium sales (kt) 8 25 213% 8 30 25 213% (17%)
Brazil Aluminium saleable production increased by 7% (or 2kt) to 30kt in the September 2024 quarter as the smelter continued to ramp-up all
three potlines. FY25 production guidance remains unchanged at 130kt.
South32 Quarterly Report September 2024 Page 4 of 9
HILLSIDE ALUMINIUM (100% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Aluminium production (kt) 180 180 0% 180 180 180 0% 0%
Aluminium sales (kt) 170 175 3% 170 184 175 3% (5%)
Hillside Aluminium saleable production was unchanged at 180kt in the September 2024 quarter as the smelter continued to test its maximum
technical capacity, despite the impact of load-shedding. FY25 production guidance remains unchanged at 720kt13.
MOZAL ALUMINIUM (63.7% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Aluminium production (kt) 84 88 5% 84 77 88 5% 14%
Aluminium sales (kt) 77 86 12% 77 101 86 12% (15%)
Mozal Aluminium saleable production increased by 14% (or 11kt) to 88kt in the September 2024 quarter as the smelter achieved improved process
stability following completion of its operational recovery plan, despite the impact of load-shedding. FY25 production guidance remains unchanged at
360kt13.
The smelter sources all of its alumina from our Worsley Alumina refinery with approximately 50% priced as a percentage of the LME aluminium
index under a legacy contract and the remainder linked to the Platts Alumina index on a M-1 basis, with caps and floors that reset every calendar
year. As a result, the smelter's cost of alumina was at a discount to the index in the September 2024 quarter.
As previously disclosed, we continue to work with Eskom and the Government of the Republic of Mozambique to extend the smelter's hydro-
electric power supply beyond March 2026, as there are currently no viable alternative suppliers of renewable energy at the required scale.
SIERRA GORDA (45% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Payable copper equivalent production (kt)3 20.1 22.1 10% 20.1 18.4 22.1 10% 20%
Payable copper production (kt) 16.0 17.6 10% 16.0 15.3 17.6 10% 15%
Payable copper sales (kt) 15.3 17.9 17% 15.3 15.3 17.9 17% 17%
Sierra Gorda payable copper equivalent production3 increased by 20% (or 3.7kt) to 22.1kt in the September 2024 quarter with higher planned
copper grades and a significant increase in molybdenum recoveries due to improved ore quality. FY25 production guidance remains unchanged
at 84.8kt payable copper equivalent (copper 70.0kt, molybdenum 1.3kt, gold 25.0koz and silver 550koz).
A feasibility study and final investment decision by the joint venture partners for the fourth grinding line expansion is now expected in the second
half of calendar year 2025, to enable additional detailed engineering and study work on the tailings thickeners to be completed.
CANNINGTON (100% SHARE)
South32 Quarterly Report September 2024 Page 5 of 9
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Payable zinc equivalent production (kt)4 74.7 50.7 (32%) 74.7 77.3 50.7 (32%) (34%)
Payable silver production (koz) 3,230 1,915 (41%) 3,230 3,065 1,915 (41%) (38%)
Payable silver sales (koz) 2,873 2,342 (18%) 2,873 3,054 2,342 (18%) (23%)
Payable lead production (kt) 28.5 19.3 (32%) 28.5 28.8 19.3 (32%) (33%)
Payable lead sales (kt) 25.6 25.1 (2%) 25.6 27.9 25.1 (2%) (10%)
Payable zinc production (kt) 13.2 12.1 (8%) 13.2 17.4 12.1 (8%) (30%)
Payable zinc sales (kt) 13.9 12.6 (9%) 13.9 20.2 12.6 (9%) (38%)
Cannington payable zinc equivalent production4 decreased by 34% (or 26.6kt) to 50.7kt in the September 2024 quarter, as the operation managed
increased underground activity and complexity which is expected to continue to drive variability in quarterly performance.
Ore mined decreased by 24% during the September 2024 quarter as additional dewatering and ground rehabilitation was required to access
stoping fronts. Average metal grades also declined as the processing of a higher grade stope was deferred to the December 2024 quarter.
FY25 production guidance remains unchanged at 265.4kt payable zinc equivalent (silver 11,300koz, lead 100.0kt, zinc 50.0kt), with dewatering
completed in the September 2024 quarter expected to benefit underground performance and access to higher grade stopes across the remainder
of the year.
CERRO MATOSO (99.9% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Payable nickel production (kt) 8.3 8.6 4% 8.3 11.5 8.6 4% (25%)
Payable nickel sales (kt) 8.5 8.8 4% 8.5 12.1 8.8 4% (27%)
Cerro Matoso payable nickel production decreased by 25% (or 2.9kt) to 8.6kt in the September 2024 quarter due to lower planned nickel grades.
FY25 production guidance remains unchanged at 35.0kt.
Sales decreased by 27% during the September 2024 quarter due to lower product availability. The discount for our ferronickel product narrowed
to ~14% to the LME Nickel Index17 (FY24: ~25% discount) in the September 2024 quarter, reflecting tighter global supply of class two nickel.
We continued to progress our strategic review of Cerro Matoso and expect to provide an update in the June 2025 half year.
AUSTRALIA MANGANESE (60% SHARE)
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Manganese ore production (kwmt) 890 — N/A 890 — — N/A N/A
Manganese ore sales (kwmt) 940 — N/A 940 — — N/A N/A
Australia Manganese continued to implement the operational recovery plan following the impacts of Tropical Cyclone Megan in the March 2024
quarter. We progressed a substantial dewatering program and a phased mining restart during the September 2024 quarter and remain on track
to resume production from the primary concentrator during the December 2024 quarter.
We also continued our investment in mine repairs and infrastructure, including a critical bridge and the wharf. Wharf construction activity during
the September 2024 quarter prioritised stabilisation of existing infrastructure and safe demolition of undersea structures.
FY25 production guidance remains unchanged at 1,000kwmt. Subject to maintaining construction productivity during the upcoming wet season,
sales volumes are expected to progressively increase over the June 2025 quarter.
SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)
South32 Quarterly Report September 2024 Page 6 of 9
1Q25 1Q25
South32 share YTD FY24 YTD FY25 YoY 1Q24 4Q24 1Q25 vs vs
1Q24 4Q24
Manganese ore production (kwmt) 628 597 (5%) 628 534 597 (5%) 12%
Manganese ore sales (kwmt) 518 590 14% 518 549 590 14% 7%
South Africa Manganese saleable production increased by 12% (or 63kwmt) to 597kwmt in the September 2024 quarter as the operation
delivered strong mining performance and continued to sell secondary products to maximise margins. We will continue to optimise our product
mix and use of higher cost trucking in response to market conditions, with FY25 production guidance remaining unchanged at 2,000kwmt. Planned
maintenance is scheduled for the June 2025 half year.
NOTES
1. Upfront cash consideration of US$1,050M less the already received deposit (US$40M) and a provisional adjustment for working capital, net debt and capital expenditure (US$46M).
A final adjustment to the purchase price is expected to be determined in the December 2024 quarter.
2. Refers to aluminium produced in a process that results in less than 4t CO2-e Scope 1 and Scope 2 GHG emissions per tonne of aluminium.
3. Payable copper equivalent production (kt) was calculated by aggregating revenues from copper, molybdenum, gold and silver, and dividing the total Revenue by the price of copper. FY24 realised prices for copper
(US$3.86/lb), molybdenum (US$20.60/lb), gold (US$2,129/oz) and silver (US$24.8/oz) have been used for FY24, Q1 FY25 and FY25e.
4. Payable zinc equivalent production (kt) was calculated by aggregating revenues from payable silver, lead and zinc, and dividing the total Revenue by the price of zinc. FY24 realised prices for zinc (US$2,230/t), lead
(US$2,002/t) and silver (US$24.8/oz) have been used for FY24, Q1 FY25 and FY25e.
5. Refer to market release "US Department of Energy Grant for Clark Battery-Grade Manganese" dated 20 September 2024.
6. Applicable for five years from the date of completion with no annual cap. The first two years will be calculated and paid on the second anniversary of completion and annually thereafter. The contingent price-linked
consideration will be calculated as 50% of incremental metallurgical coal revenue from equity production, net of royalties, based on the following metallurgical coal price thresholds: Year 1: US$200/t, Year 2: US$200/t,
Year 3: US$190/t, Year 4: US$180/t, Year 5: US$180/t.
7. Upfront consideration of US$15M and completion adjustments of US$3M.
8. Subject to the Eagle Downs project reaching metallurgical coal production of 100,000 tonnes.
9. Price-linked royalty calculated based on potential future metallurgical coal production and a metallurgical coal index price of at least US$170/t.
10. Net debt number is unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.
11. Net distributions from our material equity accounted investments (EAI) (manganese and Sierra Gorda) includes dividends, capital contributions and net repayments/drawdowns of shareholder loans, which are
unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.
12. Since inception, US$1.7B has been allocated to our on-market share buy-back (796M shares at an average price of A$3.05 per share) and US$525M returned in the form of special dividends.
13. Production guidance for Hillside Aluminium and Mozal Aluminium does not assume any load-shedding impact on production.
14. Reflects the period from 1 July 2024 to completion of the Transaction.
15. The sales volume weighted average of the Platts Alumina index (FOB) on the basis of a one-month lag to published pricing (Month minus one or "M-1") was US$495/t in the September 2024 quarter.
16. The information in this announcement that refers to Production Target and forecast financial information for MRN is based on Proved (8%) and Probable (1%) Ore Reserves and Measured (91%) Mineral Resources.
The Mineral Resources and Ore Reserves underpinning the Production Target have been prepared by Competent Persons in accordance with the requirement of the JORC Code and is available to view in South32's
2024 Annual Report (www.south32.net) published on 29 August 2024. South32 confirms that all material assumptions underpinning the Production Target and forecast financial information derived from the
Production Target continues to apply and have not materially changed.
17. Our realised price for nickel sales during the September 2024 quarter was US$6.34/lb, which represented a ~14% discount to the average LME Nickel Index price of US$7.37/lb.
18. Illawarra Metallurgical Coal sales are adjusted for moisture and will not reconcile directly to Illawarra Metallurgical Coal production.
The following abbreviations have been used throughout this report: US$ million (US$M); US$ billion (US$B); grams per tonne (g/t); tonnes (t); thousand tonnes (kt);
thousand tonnes per annum (ktpa); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); thousand ounces (koz); million ounces (Moz); thousand wet metric tonnes (kwmt);
million wet metric tonnes (Mwmt); million wet metric tonnes per annum (Mwmt pa); dry metric tonne unit (dmtu); thousand dry metric tonnes (kdmt); Mineração Rio do Norte (MRN).
Figures in Italics indicate that an adjustment has been made since the figures were previously reported. The denotation (e) refers to an estimate or forecast year.
OPERATING PERFORMANCE
South32 share YTD FY24 YTD FY25 1Q24 2Q24 3Q24 4Q24 1Q25
Worsley Alumina (86% share)
Alumina hydrate production (kt) 973 932 973 961 926 919 932
Alumina production (kt) 972 850 972 962 927 916 850
Alumina sales (kt) 913 824 913 985 895 974 824
Brazil Alumina (36% share)
Alumina production (kt) 318 334 318 322 313 333 334
Alumina sales (kt) 272 326 272 375 277 358 326
Brazil Aluminium (40% share)
South32 Quarterly Report September 2024 Page 7 of 9
Aluminium production (kt) 24 30 24 26 26 28 30
Aluminium sales (kt) 8 25 8 32 32 30 25
Hillside Aluminium (100% share)
Aluminium production (kt) 180 180 180 179 181 180 180
Aluminium sales (kt) 170 175 170 157 209 184 175
Mozal Aluminium (63.7% share)
Aluminium production (kt) 84 88 84 82 71 77 88
Aluminium sales (kt) 77 86 77 90 58 101 86
Sierra Gorda (45% share)
Ore mined (Mt) 5.9 6.4 5.9 6.0 3.1 4.9 6.4
Ore processed (Mt) 5.5 5.6 5.5 5.4 5.5 5.5 5.6
Copper ore grade processed (%, Cu) 0.37 0.41 0.37 0.38 0.34 0.37 0.41
Payable copper equivalent production (kt)3 20.1 22.1 20.1 18.3 16.7 18.4 22.1
Payable copper production (kt) 16.0 17.6 16.0 15.6 13.9 15.3 17.6
Payable copper sales (kt) 15.3 17.9 15.3 17.2 13.1 15.3 17.9
Payable molybdenum production (kt) 0.4 0.4 0.4 0.1 0.2 0.2 0.4
Payable molybdenum sales (kt) 0.4 0.2 0.4 0.3 0.4 0.2 0.2
Payable gold production (koz) 6.3 7.7 6.3 7.1 5.3 5.9 7.7
Payable gold sales (koz) 6.3 7.8 6.3 7.5 5.2 5.9 7.8
Payable silver production (koz) 145 151 145 150 153 159 151
Payable silver sales (koz) 140 157 140 160 141 164 157
Cannington (100% share)
Ore mined (kwmt) 551 438 551 599 529 573 438
Ore processed (kdmt) 562 440 562 577 525 557 440
Silver ore grade processed (g/t, Ag) 206 163 206 216 200 199 163
Lead ore grade processed (%, Pb) 5.8 5.1 5.8 6.2 5.6 5.9 5.1
Zinc ore grade processed (%, Zn) 3.2 3.7 3.2 3.6 3.8 4.1 3.7
Payable zinc equivalent production (kt)4 74.7 50.7 74.7 81.6 68.8 77.3 50.7
Payable silver production (koz) 3,230 1,915 3,230 3,474 2,897 3,065 1,915
Payable silver sales (koz) 2,873 2,342 2,873 3,656 2,210 3,054 2,342
Payable lead production (kt) 28.5 19.3 28.5 30.3 24.8 28.8 19.3
Payable lead sales (kt) 25.6 25.1 25.6 31.0 17.9 27.9 25.1
Payable zinc production (kt) 13.2 12.1 13.2 15.8 14.3 17.4 12.1
Payable zinc sales (kt) 13.9 12.6 13.9 14.4 11.6 20.2 12.6
Cerro Matoso (99.9% share)
Ore mined (kwmt) 940 1,338 940 1,243 1,486 1,526 1,338
Ore processed (kdmt) 594 664 594 723 711 746 664
Ore grade processed (%, Ni) 1.57 1.46 1.57 1.53 1.61 1.70 1.46
Payable nickel production (kt) 8.3 8.6 8.3 10.0 10.8 11.5 8.6
Payable nickel sales (kt) 8.5 8.8 8.5 9.5 10.8 12.1 8.8
South32 Quarterly Report September 2024 Page 8 of 9
Australia Manganese (60% share)
Manganese ore production (kwmt) 890 — 890 789 645 — —
Manganese ore sales (kwmt) 940 — 940 924 709 — —
Ore grade sold (%, Mn) 42.9 — 42.9 42.2 42.2 — —
South Africa Manganese (54.6% share)
Manganese ore production (kwmt) 628 597 628 483 530 534 597
Manganese ore sales (kwmt) 518 590 518 564 485 549 590
Ore grade sold (%, Mn) 39.0 38.9 39.0 38.4 38.7 39.1 38.9
Illawarra Metallurgical Coal (100% share)14
Total coal production (kt) 1,168 766 1,168 877 1,405 1,488 766
Total coal sales (kt)18 1,196 540 1,196 900 1,238 1,537 540
Metallurgical coal production (kt) 1,043 676 1,043 744 1,244 1,274 676
Metallurgical coal sales (kt) 996 507 996 763 1,053 1,360 507
Energy coal production (kt) 125 90 125 133 161 214 90
Energy coal sales (kt) 200 33 200 137 185 177 33
Forward-looking statements
This release contains forward-looking statements, including statements about trends in commodity prices and currency exchange rates; demand
for commodities; production forecasts; plans, strategies and objectives of management; capital costs and scheduling; operating costs; anticipated
productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations
at the date of this release, however they are not guarantees or predictions of future performance. They involve known and unknown risks,
uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those
expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. Except
as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any forward-looking
statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.
South32 cautions against reliance on any forward-looking statements or guidance.
FURTHER INFORMATION
INVESTOR RELATIONS MEDIA RELATIONS
Ben Baker Jamie Macdonald Miles Godfrey
M +61 403 763 086 M +61 408 925 140 M +61 415 325 906
E Ben.Baker@south32.net E Jamie.Macdonald@south32.net E Miles.Godfrey@south32.net
Approved for release to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
21 October 2024
South32 Quarterly Report September 2024 Page 9 of 9
Date: 21-10-2024 07:11:00
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