Wrap Text
Quarterly Report June 2025
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
south32.net
QUARTERLY REPORT
June 2025
South32 Chief Executive Officer, Graham Kerr: "We delivered another strong quarter of operating performance, exceeding the Group's FY25
production guidance, driven by annual production growth of 20% in copper and 6% in aluminium.
"Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical
Cyclone Megan.
"We continued to streamline our portfolio toward higher-returning businesses, completing the sale of Illawarra Metallurgical Coal in the first half and
agreeing to divest Cerro Matoso in July.
"We invested US$517M in our regional scale Hermosa project in FY25 to grow our future base metals production. This quarter, we achieved key milestones at Hermosa's Taylor
zinc-lead-silver project, starting the main shaft sink and construction activities for the process plant.
"With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns."
• Achieved 102% of current Group FY25 production guidance1.
• Increased Group sales volumes2 by 21% in the quarter, supporting a working capital unwind of ~US$225M in H2 FY25.
• Expect to deliver FY25 Operating unit costs in line with current guidance.
• Aluminium production increased by 6% in FY25, as Brazil Aluminium continued to ramp-up, while Mozal Aluminium operated near nameplate
capacity in the quarter, having successfully mitigated the impacts of civil unrest in Mozambique.
• Alumina production was in line with FY25 guidance. Worsley Alumina commenced mining new bauxite areas under the Worsley Mine Development
Project, which is expected to sustain production to at least FY363.
• Sierra Gorda payable copper equivalent production4 increased by 20% in FY25, exceeding guidance by 4%. We received US$54M in
distributions from Sierra Gorda in the quarter, bringing total returns to US$176M (South32 share) in FY25.
• Cannington achieved revised FY25 production guidance, supported by improved mining rates in the quarter. We are reviewing the mine plan in
response to increasing underground complexity and will provide an update with our FY25 results.
• Manganese production exceeded FY25 production guidance by 9%, as Australian Manganese successfully completed its operational recovery
plan and South Africa Manganese had a strong finish to the year.
• Returned US$350M to shareholders in FY25 via fully-franked ordinary dividends and our on-market share buy-back.
• Entered into a binding agreement to divest Cerro Matoso5, which will further streamline our portfolio toward minerals and metals critical to
the world's energy transition.
• Continued to engage with stakeholders on securing affordable electricity supply to enable Mozal Aluminium to operate beyond March 2026.
As previously announced, we will recognise an impairment expense with our FY25 results6.
Production summary
3Q25 4Q25 FY25 FY25e(a) % of FY25e(a)
Worsley Alumina (kt) 941 936 3,727 3,750 99%
Brazil Alumina (non-operated) (kt) 324 334 1,340 1,350 99%
Brazil Aluminium (non-operated) (kt) 36 38 138 130 106%
Hillside Aluminium (kt)7 175 181 718 720 100%
Mozal Aluminium (kt)7 87 90 355 350 101%
Sierra Gorda (non-operated) (CuEq) (kt)4 19.8 21.9 88.1 84.8 104%
Cannington (ZnEq) (kt)8 50.2 61.8 241.9 239.2 101%
Cerro Matoso (kt) 8.9 9.7 37.1 35.0 106%
Australia Manganese (kwmt) — 467 1,106 1,000 111%
South Africa Manganese (kwmt) 476 593 2,151 2,000 108%
(a) The denotation (e) refers to an estimate or forecast year.
CORPORATE UPDATE
• We continue to implement our multi-year Safety Improvement Program, including investment in safety leadership through our Lead Safely
Every Day (LSED) program, to deliver measurable improvements in safety performance. In FY25, more than 95% of our frontline employees
completed the LSED program.
• On 3 June 2025, Samancor Manganese Proprietary Limited completed the divestment of the Metalloys manganese alloy smelter9. We will
recognise a gain on sale of ~US$44M (~US$46M post-tax) (South32 share) in our FY25 results as a result of the transaction, which will be
excluded from Underlying earnings.
• On 7 July 2025, we announced a binding agreement to divest Cerro Matoso for nominal upfront consideration and future cash payments of
up to US$100M5. The transaction is expected to complete in late H1 FY26, subject to the satisfaction or waiver of certain conditions. We will
recognise an impairment expense of ~US$130M (same amount post-tax) in our FY25 results as a result of the transaction, which will be excluded
from Underlying earnings.
• On 14 July 2025, we announced that we would recognise an impairment expense for Mozal Aluminium in our FY25 results due to increased
uncertainty regarding future electricity supply to the smelter6. We will provide the quantum of the impairment expense when the
assessment is completed.
• We delivered a strong sales result in the June 2025 quarter, drawing down inventory in our aluminium value chain. We expect to record a
working capital unwind of ~US$225M in H2 FY25 (H1 FY25: build of US$267M).
• We received distributions10 of US$176M (South32 share) from our Sierra Gorda equity accounted investment (EAI) in FY25, including
US$54M (South32 share) in the June 2025 quarter, as the operation increased annual production volumes4 by 20%.
• We provided net funding of US$110M (South32 share) to our manganese EAI in FY25, including US$47M (South32 share) in the June 2025
quarter, primarily to support the operational recovery plan at Australia Manganese.
• Australia Manganese received US$350M (100% basis) of external insurance payments in FY25, following the impacts of Tropical Cyclone
Megan. We continue to work with our insurers regarding further insurance recoveries.
• FY25 Group capital expenditure (excluding EAIs and Hermosa) is expected to be US$400M, including US$57M at Illawarra Metallurgical Coal
prior to its divestment in August 202411.
• We made Group tax payments (excluding EAIs) of US$236M in FY25.
• We returned US$350M to shareholders during FY25, including US$294M12 in fully-franked ordinary dividends and US$56M via our on-market
share buy-back13. Our US$2.5B capital management program is 94% complete with US$144M to be returned to shareholders ahead of its
extension or expiry on 12 September 202514.
• FY25 Group and unallocated expense in Underlying EBIT is expected to be ~US$150M, primarily reflecting the impact of inter-group
inventory adjustments in our aluminium value chain.
• FY25 Group Underlying effective tax rate (ETR) (including EAIs) is expected to be ~35%, reflecting the corporate tax rates15 and royalty related
taxes16 of the jurisdictions in which we operate and our geographical earnings mix.
DEVELOPMENT AND EXPLORATION UPDATE
Hermosa project
• We invested US$517M17 of growth capital expenditure at Hermosa in FY25, as we progressed construction of the Taylor zinc-lead-silver
project and an exploration decline for the Clark battery-grade manganese deposit. Lease payments for self generated power assets were
US$19M in FY25.
• A key milestone in the FAST-41 federal permitting process for Hermosa was achieved during the June 2025 quarter, with the US Forest Service
releasing a Draft Environmental Impact Statement (EIS). A Final EIS remains on track for H2 FY26.
• At Taylor, we commenced sinking the main shaft and continued sinking the ventilation shaft during the June 2025 quarter. We also commenced
construction activities for the process plant during the June 2025 quarter.
• Construction of the exploration decline for Clark remains on track to be completed by the end of CY25.
• We invested US$35M in capitalised exploration in FY25 as we continued to test the potential for a continuous mineralised system connecting
the Peake copper deposit and Taylor Deeps. We reported an updated Exploration Target for Peake of 35Mt18 (mid case) during the June 2025
quarter, highlighting the potential for a large copper system. Exploration drilling and concept study work for Peake will continue in FY26.
Greenfield exploration
• We invested US$35M in our greenfield exploration opportunities in FY25 as we progressed multiple exploration programs targeting base
metals in highly prospective regions.
Other exploration
South32 Quarterly Report June 2025 Page 2 of 10
• We invested US$63M (US$53M capitalised) in exploration programs at our existing operations and development options in FY25, including
US$35M at the Hermosa project (noted above, all capitalised), US$13M for our Sierra Gorda EAI (all capitalised) and US$5M for our manganese
EAI (nil capitalised).
MARKETING UPDATE
The average realised prices achieved for our commodities are summarised below. Provisionally priced sales were revalued at 30 June 2025 with
the final price of these to be determined in the December 2025 half year.
Realised prices19
FY25 2H25
FY24 1H25 2H25 FY25 vs vs
FY24 1H25
Worsley Alumina
Alumina (US$/t) 360 512 524 518 44% 2%
Brazil Alumina (non-operated)(a)
Alumina (US$/t) 378 590 518 555 47% (12%)
Brazil Aluminium (non-operated)(a)
Aluminium (US$/t) 2,373 2,508 2,623 2,572 8% 5%
Hillside Aluminium
Aluminium (US$/t) 2,389 2,687 2,748 2,717 14% 2%
Mozal Aluminium
Aluminium (US$/t) 2,491 2,805 2,774 2,789 12% (1%)
Sierra Gorda (non-operated)20(a)
Payable copper (US$/lb) 3.86 3.83 4.56 4.18 8% 19%
Payable molybdenum (US$/lb) 20.60 21.68 20.44 21.12 2% (6%)
Payable gold (US$/oz) 2,129 2,593 3,252 2,877 35% 25%
Payable silver (US$/oz) 24.8 31.5 31.9 31.7 28% 1%
Cannington20
Payable silver (US$/oz) 24.8 29.4 34.2 31.9 29% 16%
Payable lead (US$/t) 2,002 1,823 1,956 1,883 (6%) 7%
Payable zinc (US$/t) 2,230 2,739 2,555 2,648 19% (7%)
Cerro Matoso21
Payable nickel (US$/lb) 6.17 6.12 5.87 5.99 (3%) (5%)
Australia Manganese22
Manganese ore (US$/dmtu, FOB) 3.77 — 3.68 3.68 (2%) N/A
South Africa Manganese22
Manganese ore (US$/dmtu, FOB) 3.53 3.85 3.57 3.71 5% (7%)
a. While Brazil Alumina and Brazil Aluminium are non-operated, South32 owns the marketing rights for our share of production. While Sierra Gorda is also non-operated, the Joint
Venture is responsible for marketing our share of production.
OPERATING UNIT COST UPDATE
FY25 Operating unit costs are expected to be in line with guidance, driven by strong operating performance and our continued focus on delivering
cost efficiencies.
The below commentary reflects our current expectations for FY25 Operating unit costs. We will report FY25 Operating unit costs with our FY25
results announcement.
South32 Quarterly Report June 2025 Page 3 of 10
Operating unit cost(a)
Current Guidance
FY25 Operating unit cost commentary
FY25e(b)(c)
Worsley Alumina
(US$/t) 305 FY25: expected to be in line with FY25 guidance.
Brazil Alumina (non-operated)
Not
FY25: expected to be largely consistent with H1 FY25 (US$320/t).
provided
Brazil Aluminium (non-operated)
Not FY25e: expected to be ~5% below H1 FY25 Operating unit costs (US$3,377/t), as the
provided smelter continued to ramp-up all three potlines.
Hillside Aluminium
The cost profile of Hillside Aluminium and Mozal Aluminium is heavily influenced
by the South African rand, and the price of raw materials and energy.
Not Hillside Aluminium FY25: expected to be ~7% above H1 FY25 (US$2,351/t) due
Mozal Aluminium to higher priced alumina from Worsley Alumina in H2 FY25.
provided
Mozal Aluminium FY25: expected to be largely consistent with H1 FY25
(US$2,425/t).
Sierra Gorda (non-operated)
(US$/t)(d) 16.0 FY25: expected to be in line with FY25 guidance.
Cannington
(US$/t)(d) 195 FY25: expected to be in line with FY25 guidance.
Cerro Matoso
(US$/lb) 5.35 FY25: expected to be ~5% below FY25 guidance.
Australia Manganese
Australia Manganese is expected to report an Underlying EBITDA loss of
~US$100M to ~US$120M (South32 share) in FY25, as the operation restarted
Not following the impacts of Tropical Cyclone Megan.
provided Separately, idle capacity and remediation related costs of ~US$135M (South32
share) will be excluded from Underlying earnings in FY25 as an earnings
adjustment.
South Africa Manganese
(US$/dmtu, FOB) 3.00 FY25: expected to be in line with FY25 guidance.
a. Operating unit cost is Revenue less Underlying EBITDA, excluding third party sales, divided by sales volumes.
b. FY25e Operating unit cost guidance includes royalties (where appropriate) and commodity price and foreign exchange rate forward curves or our internal expectations (refer to
footnote 23).
c. The denotation (e) refers to an estimate or forecast year.
d. US dollar per tonne of ore processed. Periodic movements in finished product inventory may impact Operating unit costs.
WORSLEY ALUMINA (86% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Alumina production (kt) 3,777 3,727 (1%) 916 941 936 2% (1%)
Alumina sales (kt) 3,767 3,699 (2%) 974 910 1,000 3% 10%
Worsley Alumina saleable production decreased by 1% (or 50kt) to 3,727kt in FY25, as the operation managed constrained bauxite supply ahead
of receiving environmental approvals for the Worsley Mine Development Project (Project)24. We commenced mining new bauxite areas under
the Project, near our existing operations, in the June 2025 quarter, leading to improved bauxite availability. FY26 production guidance remains
unchanged at 3,750kt. The refinery is expected to operate near nameplate capacity (4.6Mtpa, 100% basis) from FY27, with improved access to
bauxite enabled by the Project.
BRAZIL ALUMINA (36% SHARE, NON-OPERATED)
South32 Quarterly Report June 2025 Page 4 of 10
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Alumina production (kt) 1,286 1,340 4% 333 324 334 0% 3%
Alumina sales (kt) 1,282 1,349 5% 358 323 335 (6%) 4%
Brazil Alumina saleable production increased by 4% (or 54kt) to 1,340kt in FY25, as the refinery benefitted from improved plant availability.
Despite lower feed rates due to wet weather impacts in H2 FY25, the refinery achieved 99% of FY25 production guidance. Production volumes
are expected to be largely unchanged in FY26 with guidance revised to 1,360kt (from 1,380kt).
BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Aluminium production (kt) 104 138 33% 28 36 38 36% 6%
Aluminium sales (kt) 102 138 35% 30 31 46 53% 48%
Brazil Aluminium saleable production increased by 33% (or 34kt) to 138kt in FY25, exceeding guidance by 6%, as the smelter continued to ramp-
up all three potlines. FY26 production guidance remains unchanged at 160kt.
Sales increased by 48% in the June 2025 quarter due to a carry-over export shipment from the prior quarter.
HILLSIDE ALUMINIUM (100% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Aluminium production (kt) 720 718 (0%) 180 175 181 1% 3%
Aluminium sales (kt) 720 732 2% 184 171 194 5% 13%
Hillside Aluminium saleable production was largely unchanged at 718kt in FY25, as the smelter continued to test its maximum technical capacity,
despite the impact of load-shedding. FY26 production guidance remains unchanged at 720kt7.
Sales increased by 13% in the June 2025 quarter as we drew down inventory.
MOZAL ALUMINIUM (63.7% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Aluminium production (kt) 314 355 13% 77 87 90 17% 3%
Aluminium sales (kt) 326 351 8% 101 72 105 4% 46%
Mozal Aluminium saleable production increased by 13% (or 41kt) to 355kt in FY25, as the smelter completed its operational recovery plan and
operated near nameplate capacity in the June 2025 quarter, having successfully managed the impacts of civil unrest in Mozambique.
Sales increased by 46% in the June 2025 quarter as improved product availability supported a planned draw down of inventory.
We are continuing to engage with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora Bassa and Eskom on securing
affordable electricity supply to enable Mozal Aluminium to operate beyond March 2026 and maintain its substantial contribution to the economy
of Mozambique6. Given the uncertainty of operating beyond March 2026, FY26 production guidance remains under review.
SIERRA GORDA (45% SHARE, NON-OPERATED)
South32 Quarterly Report June 2025 Page 5 of 10
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Payable copper equivalent production (kt)4 73.5 88.1 20% 18.4 19.8 21.9 19% 11%
Payable copper production (kt) 60.8 71.4 17% 15.3 17.0 17.7 16% 4%
Payable copper sales (kt) 60.9 72.9 20% 15.3 16.9 18.1 18% 7%
Sierra Gorda payable copper equivalent production4 increased by 20% (or 14.6kt) to 88.1kt in FY25, exceeding guidance by 4%, as the operation
realised higher copper grades and improved molybdenum recoveries.
FY26 payable copper equivalent production4 guidance is revised to 84.7kt (from 86.1kt) reflecting expected metal grades25.
CANNINGTON (100% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Payable zinc equivalent production (kt)8 302.5 241.9 (20%) 77.3 50.2 61.8 (20%) 23%
Payable silver production (koz) 12,666 10,292 (19%) 3,065 2,099 2,578 (16%) 23%
Payable silver sales (koz) 11,793 11,019 (7%) 3,054 2,494 3,056 0% 23%
Payable lead production (kt) 112.4 92.4 (18%) 28.8 17.7 25.1 (13%) 42%
Payable lead sales (kt) 102.4 99.3 (3%) 27.9 19.8 25.2 (10%) 27%
Payable zinc production (kt) 60.7 44.5 (27%) 17.4 11.0 10.6 (39%) (4%)
Payable zinc sales (kt) 60.1 45.7 (24%) 20.2 9.6 13.1 (35%) 36%
Cannington payable zinc equivalent production8 decreased by 20% (or 60.6kt) to 241.9kt in FY25, as the operation continued to manage increased
underground activity and complexity. Average metal grades also declined in accordance with the mine plan. Production increased by 23% in the
June 2025 quarter, supported by improved underground mining rates following weather related disruptions in the prior quarter, in line with
revised FY25 production guidance.
During the June 2025 quarter, we progressed work to assess the optimal mine plan to manage increased underground complexity and deliver
sustainable production volumes over the remaining mine life. We will provide an update on this work and revised FY26 production guidance with
our FY25 results announcement.
CERRO MATOSO (99.9% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Payable nickel production (kt) 40.6 37.1 (9%) 11.5 8.9 9.7 (16%) 9%
Payable nickel sales (kt) 40.9 36.7 (10%) 12.1 9.2 9.8 (19%) 7%
Cerro Matoso payable nickel production decreased by 9% (or 3.5kt) to 37.1kt in FY25 due to lower planned nickel grades. Production improved
by 9% in the June 2025 quarter and the operation exceeded FY25 production guidance by 6% as it achieved higher plant utilisation and recoveries.
Sales increased by 7% in the June 2025 quarter. Price realisations for our ferronickel product in FY25 reflected a discount of ~16% to the LME
Nickel Index26.
The divestment of Cerro Matoso is expected to complete in late H1 FY26, subject to the satisfaction or waiver of certain conditions5. Payable
nickel production in H1 FY26 is expected to be approximately 16.0kt.
AUSTRALIA MANGANESE (60% SHARE)
South32 Quarterly Report June 2025 Page 6 of 10
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Manganese ore production (kwmt) 2,324 1,106 N/A — — 467 N/A N/A
Manganese ore sales (kwmt) 2,573 253 N/A — — 253 N/A N/A
Australia Manganese saleable production was 1,106kwmt in FY25, as we successfully resumed operations following the impacts of Tropical
Cyclone Megan in the March 2024 quarter. The operation exceeded FY25 production guidance by 11% with the primary concentrator restarting
in the June 2025 quarter. The operation is expected to deliver normalised production rates in FY26, with production guidance unchanged at
3,200kwmt.
Export shipments recommenced in the quarter as planned, following completion of the wharf construction in May 2025. Shipping rates are
expected to reach full capacity in the September 2025 quarter.
During the quarter, we finalised a new enterprise agreement to December 2027 for covered employees of Groote Eylandt Mining Company.
SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)
4Q25 4Q25
South32 share FY24 FY25 YoY 4Q24 3Q25 4Q25 vs vs
4Q24 3Q25
Manganese ore production (kwmt) 2,175 2,151 (1%) 534 476 593 11% 25%
Manganese ore sales (kwmt) 2,116 2,096 (1%) 549 407 601 9% 48%
South Africa Manganese saleable production was largely unchanged at 2,151kwmt in FY25. The operation delivered a strong finish to the year,
with production increasing by 25% in the June 2025 quarter following the prior period's planned maintenance shut, exceeding FY25 production
guidance by 8%. While we will continue to monitor and respond to market conditions, FY26 production guidance remains unchanged at 2,000kwmt.
Sales increased by 48% in the June 2025 quarter due to carry-over shipments from the prior quarter. We realised a ~11% premium to the
medium grade 37% manganese lump ore index27 as we optimised our sales mix.
NOTES
South32 Quarterly Report June 2025 Page 7 of 10
1. Group FY25 and current FY25e payable copper equivalent production, calculated by applying FY24 realised prices for all operations.
2. Group 4Q25 as compared to 3Q25 payable copper equivalent sales, calculated by applying FY24 realised prices for all operations.
3. Subject to receipt of any necessary secondary approvals. The information in this announcement that refers to Production Target and forecast financial information for Worsley Alumina is based on Proved (84%) and
Probable (16%) Ore Reserves. The Ore Reserves underpinning the Production Target have been prepared by U Sandilands and reported in accordance with the JORC Code and is available to view in the South32 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.
4. Payable copper equivalent production (CuEq) (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, FY25, FY25e and FY26e.
5. Refer to market release "Agreement to Divest Cerro Matoso" dated 7 July 2025.
6. Refer to market release "Mozal Aluminium Update" dated 14 July 2025.
7. Production guidance for Hillside Aluminium and Mozal Aluminium does not assume any load-shedding impact on production.
8. Payable zinc equivalent production (ZnEq) (kt) was calculated by aggregating revenues from 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, FY25 and FY25e.
9. Refer to media release "Completion of Metalloys Manganese Alloy Smelter Divestment" dated 3 June 2025.
10. 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.
11. Refer to market release "Completion of Illawarra Metallurgical Coal Sale" dated 29 August 2024.
12. Comprised of US$140M in respect of the June 2024 half year paid in the December 2024 quarter and US$154M in respect of the December 2024 half year paid in the June 2025 quarter.
13. We returned US$56M via the on-market share buy-back in FY25, purchasing 26M shares at an average price of A$3.39 per share.
14. Since inception of our capital management program, US$1.8B has been allocated to our on-market share buy-back (820M shares at an average price of A$3.06 per share) and US$525M returned in the form of special
dividends.
15. The corporate tax rates of the geographies where the Group operates include: Australia 30%, South Africa 27%, Colombia 35%, Mozambique 0%, Brazil 34%, and Chile 27%.
The Mozambique operations are subject to a royalty on revenues instead of income tax.
16. Australia Manganese is subject to a royalty related tax equal to 20% of adjusted EBIT. Sierra Gorda is subject to a royalty related tax based on the amount of copper sold and
the mining operating margin, the rate is between 5% and 14% for annual sales over 50kt of refined copper. These royalties are included in Underlying tax expense.
17. Hermosa growth capital expenditure excludes lease payments for self generated power assets directly attributable to construction of infrastructure at the Taylor deposit. These self generated power costs were
included in our capital cost estimate provided in market release "Final Investment Approval to Develop Hermosa's Taylor Deposit" dated 15 February 2024.
18. Exploration Target ranges from a low case of 23Mt to a high case of 55Mt. The information in this announcement that relates to Exploration Target for the Peake deposit is based on information compiled by R Wilson
which was originally disclosed in the "Strategy and Business Update" dated 13 May 2025 and is available to view in www.south32.net. South32 confirms that it is not aware of any new information or data that
materially affects the information included in the original announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified
from the original announcement.
19. Realised prices are unaudited. Volumes and prices do not include any third party trading that may be undertaken independently of equity production. Realised sales price is
calculated as sales Revenue divided by sales volume unless otherwise stated.
20. Realised prices for Sierra Gorda and Cannington are net of treatment and refining charges.
21. Realised nickel sales prices are inclusive of by-products.
22. Realised ore prices are calculated as external sales Revenue less freight and marketing costs, divided by external sales volume.
23. FY25 Operating unit cost guidance includes royalties (where appropriate) and the influence of exchange rates, and includes various assumptions for FY25, including: an alumina price of US$520/t; a manganese ore price
of US$5.10/dmtu for 44% manganese product; a nickel price of US$7.10/lb; a silver price of US$30.5/oz; a lead price of US$2,070/t (gross of treatment and refining charges); a zinc price of US$3,000/t (gross of treatment
and refining charges); a copper price of US$4.30/lb (gross of treatment and refining charges); a molybdenum price of US$20.50/lb (gross of treatment and refining charges); a gold price of US$2,550/oz; an AUD:USD
exchange rate of 0.64; a USD:ZAR exchange rate of 18.50; a USD:COP exchange rate of 4,200; USD:CLP exchange rate of 950; and a reference price for caustic soda; which reflect forward markets as at February 2025 or
our internal expectations.
24. Refer to market release "Worsley Mine Development Project Receives State Approval" dated 20 December 2024 and "Worsley Mine Development Project Receives Federal Approval" dated 12 February 2025.
25. FY26 production guidance of ore processed 21.8Mt, copper 72.0kt, molybdenum 1.2kt, gold 18.0koz and silver 600koz (from ore processed 22.0Mt, copper 74.0kt, molybdenum 1.0kt, gold 20.0koz and silver 600koz).
26. Our realised price for nickel sales in FY25 was US$5.99/lb, which represented a ~16% discount to the average LME Nickel Index price of US$7.14/lb.
27. The sales volume weighted average of the Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa) was US$3.33/dmtu in FY25.
The following abbreviations have been used throughout this report: US$ 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).
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 Quarterly Report June 2025 Page 8 of 10
South32 share FY24 FY25 4Q24 1Q25 2Q25 3Q25 4Q25
Worsley Alumina (86% share)
Alumina hydrate production (kt) 3,779 3,725 919 932 940 931 922
Alumina production (kt) 3,777 3,727 916 850 1,000 941 936
Alumina sales (kt) 3,767 3,699 974 824 965 910 1,000
Brazil Alumina (36% share)
Alumina production (kt) 1,286 1,340 333 334 348 324 334
Alumina sales (kt) 1,282 1,349 358 326 365 323 335
Brazil Aluminium (40% share)
Aluminium production (kt) 104 138 28 30 34 36 38
Aluminium sales (kt) 102 138 30 25 36 31 46
Hillside Aluminium (100% share)
Aluminium production (kt) 720 718 180 180 182 175 181
Aluminium sales (kt) 720 732 184 175 192 171 194
Mozal Aluminium (63.7% share)
Aluminium production (kt) 314 355 77 88 90 87 90
Aluminium sales (kt) 326 351 101 86 88 72 105
Sierra Gorda (45% share)
Ore mined (Mt) 19.9 23.0 4.9 6.4 6.2 4.9 5.5
Ore processed (Mt) 21.9 21.7 5.5 5.6 5.5 5.2 5.4
Copper ore grade processed (%, Cu) 0.36 0.42 0.37 0.41 0.44 0.42 0.40
Payable copper equivalent production (kt)4 73.5 88.1 18.4 22.1 24.3 19.8 21.9
Payable copper production (kt) 60.8 71.4 15.3 17.6 19.1 17.0 17.7
Payable copper sales (kt) 60.9 72.9 15.3 17.9 20.0 16.9 18.1
Payable molybdenum production (kt) 0.9 1.5 0.2 0.4 0.5 0.2 0.4
Payable molybdenum sales (kt) 1.3 1.3 0.2 0.2 0.5 0.3 0.3
Payable gold production (koz) 24.6 27.9 5.9 7.7 8.2 5.7 6.3
Payable gold sales (koz) 24.9 28.5 5.9 7.8 8.4 6.0 6.3
Payable silver production (koz) 607 584 159 151 150 131 152
Payable silver sales (koz) 605 599 164 157 160 130 152
South32 Quarterly Report June 2025 Page 9 of 10
Cannington (100% share)
Ore mined (kwmt) 2,252 1,960 573 438 561 457 504
Ore processed (kdmt) 2,221 1,944 557 440 542 427 535
Silver ore grade processed (g/t, Ag) 205 191 199 163 241 176 175
Lead ore grade processed (%, Pb) 5.9 5.6 5.9 5.1 6.5 5.0 5.6
Zinc ore grade processed (%, Zn) 3.7 3.1 4.1 3.7 2.8 3.4 2.8
Payable zinc equivalent production (kt)8 302.5 241.9 77.3 50.7 79.2 50.2 61.8
Payable silver production (koz) 12,666 10,292 3,065 1,915 3,700 2,099 2,578
Payable silver sales (koz) 11,793 11,019 3,054 2,342 3,127 2,494 3,056
Payable lead production (kt) 112.4 92.4 28.8 19.3 30.3 17.7 25.1
Payable lead sales (kt) 102.4 99.3 27.9 25.1 29.2 19.8 25.2
Payable zinc production (kt) 60.7 44.5 17.4 12.1 10.8 11.0 10.6
Payable zinc sales (kt) 60.1 45.7 20.2 12.6 10.4 9.6 13.1
Cerro Matoso (99.9% share)
Ore mined (kwmt) 5,195 4,853 1,526 1,338 1,310 1,076 1,129
Ore processed (kdmt) 2,774 2,785 746 664 732 675 714
Ore grade processed (%, Ni) 1.60 1.48 1.70 1.46 1.49 1.48 1.47
Payable nickel production (kt) 40.6 37.1 11.5 8.6 9.9 8.9 9.7
Payable nickel sales (kt) 40.9 36.7 12.1 8.8 8.9 9.2 9.8
Australia Manganese (60% share)
Manganese ore production (kwmt) 2,324 1,106 — — 639 — 467
Manganese ore sales (kwmt) 2,573 253 — — — — 253
Ore grade sold (%, Mn) 42.5 41.7 — — — — 41.7
South Africa Manganese (54.6% share)
Manganese ore production (kwmt) 2,175 2,151 534 597 485 476 593
Manganese ore sales (kwmt) 2,116 2,096 549 590 498 407 601
Ore grade sold (%, Mn) 38.8 38.9 39.1 38.9 39.1 38.9 38.7
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
M +61 403 763 086 M +61 408 925 140
E Ben.Baker@south32.net E Jamie.Macdonald@south32.net
South32 Quarterly Report June 2025 Page 10 of 10
Approved for release to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
21 July 2025
South32 Quarterly Report June 2025 Page 11 of 10
Date: 21-07-2025 07:05:00
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