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South32 Strategy and Business update presentation
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
SOUTH32 STRATEGY AND BUSINESS UPDATE PRESENTATION
South32 Limited (ASX, LSE, JSE: S32, ADR: SOUHY) (South32) management will meet with
equity analysts and investors today in Perth, Australia to discuss its strategy and operational
performance.
Speaking at the event, Chief Executive Officer, Graham Kerr said, “Our investor day provides
another opportunity to reiterate the core elements of our strategy, following on from our Annual
General meeting two weeks ago. I am pleased to reaffirm prior FY18 production guidance for our
operations and provide production and unit cost guidance for Illawarra Metallurgical Coal for the
first time, having restarted one longwall at the Appin colliery in October 2017. I can also confirm
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that Sustaining capital expenditure of US$470M is now expected in FY18 (versus prior
expectations of US$500M), with two thirds of the reduction associated with the deferral of
underground development at Appin.”
A copy of the presentation slides is available on our website www.south32.net and will be
submitted to the National Storage Mechanism and available for inspection at
www.hemscott.com/nsm.do.
Illawarra Metallurgical Coal guidance update
Saleable production of 4.5Mt (3.35Mt metallurgical coal, 1.15Mt energy coal) is now projected for
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Illawarra Metallurgical Coal in FY18 at an operating unit cost of US$130/t . Production will be
weighted to the second half of FY18 given the recent outage at the Appin colliery.
We expect to return the Appin colliery to its prior two longwall configuration in the December
2018 quarter, after which we intend to ramp-up Illawarra Metallurgical Coal production safely and
sustainably towards historical rates of more than 8Mtpa.
Sustaining capital expenditure for Illawarra Metallurgical Coal is now expected to be US$120M in
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FY18 (previously US$150M) .
About South32
South32 is a globally diversified mining and metals company with high quality operations in
Australia, Southern Africa and South America. Our purpose is to make a difference by
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FY18e Sustaining capital guidance includes the influence of exchange rates, and is predicated on various
assumptions for FY18, including: an AUD:USD exchange rate of 0.74; a USD:ZAR exchange rate of 14.17;
a USD:COP exchange rate of 2,961 and a USD:BRL exchange rate of 3.33; all of which reflected forward
markets as at May 2017 or our internal expectations. Total Sustaining capital expenditure includes equity
accounted investments.
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FY18 operating unit cost guidance includes royalties and the influence of exchange rates, and is
predicated on various assumptions, including an average blended coal price of US$119/t and an AUD:USD
exchange rate of 0.74.
Registered Office: Level 35, 108 St Georges Terrace, Perth Western Australia 6000, Australia
ABN 84 093 732 597 Registered in Australia
developing natural resources, improving people’s lives now and for generations to come. We are
trusted by our owners and partners to realise the potential of their resources. We have a simple
strategy to maximise the potential of our assets and shareholder returns by optimising our
existing operations, unlocking their potential and identifying new opportunities to compete for
capital.
FURTHER INFORMATION
INVESTOR RELATIONS
Alex Volante Rob Ward
T +44 20 7798 1778 T +61 8 9324 9340
M +44 74 6853 3005 M +61 431 596 831
E Alex.Volante@south32.net E Robert.Ward@south32.net
MEDIA RELATIONS
Hayley Cardy James Clothier
T +61 8 9324 9008 T +61 8 9324 9697
M +61 409 448 288 M +61 413 319 031
E Hayley.Cardy@south32.net E James.Clothier@south32.net
Further information on South32 can be found at www.south32.net.
JSE Sponsor: UBS South Africa (Pty) Ltd
5 December 2017
Forward-looking statements
This release contains forward-looking statements, including statements about currency exchange
rates, commodity prices, production forecasts, plans, development decisions, exploration and
capital expenditure. 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, South32
Limited 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.
Registered Office: Level 35, 108 St Georges Terrace, Perth Western Australia 6000, Australia
ABN 84 093 732 597 Registered in Australia
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