Wrap Text
Quarterly Report - December 2017
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 - DECEMBER 2017
“A record quarter of performance and supportive market dynamics have allowed us to increase FY18 production guidance at
South Africa Manganese by eight per cent, while production guidance for all other operations remains unchanged.
“At the Appin colliery, we successfully restarted one underground longwall on 13 October and remain committed to our
ramp-up plan as we seek to reset the operation’s culture and drive productivity to an acceptable level.
“We are also actively reshaping our portfolio with South Africa Energy Coal to be managed as a stand-alone business
from April 2018. This strategic initiative will significantly simplify our organisation and unlock additional value for
shareholders.
“In accordance with our disciplined capital management framework we distributed US$333M in shareholder dividends during
the December 2017 half year and purchased a further 37M shares for a cash consideration of US$93M.”
Graham Kerr, South32 CEO
- Maintained FY18 guidance for all operations with the exception of South Africa Manganese where strong market demand and
record performance has underpinned an 8% increase to our prior estimate.
- Achieved record ore production at Australia Manganese in the December 2017 half year as the performance of our high grade
circuit improved and the PCO2 circuit continued to operate at capacity.
- Delivered another production record at Mozal Aluminium in the December 2017 half year while South Africa Aluminium remains
on track to increase production in FY18, despite an electric arc incident which impacted 36 pots on 30 November 2017.
- Established a substantial alumina hydrate inventory position as the Worsley Alumina input circuit continued to operate at
a rate of 4.5Mtpa (100% basis) and scheduled calciner maintenance was undertaken.
- Increased payable nickel production at Cerro Matoso by 23% in the December 2017 half year as ore grades improved with the
successful ramp-up of La Esmeralda.
- Restarted a single longwall at the Appin colliery on 13 October and remain on track to produce 4.5Mt of coal at Illawarra
Metallurgical Coal in FY18.
- Commenced the process to manage South Africa Energy Coal as a stand-alone business from April 2018 [1] and approved a
4.3 billion South African Rand (US$301M) investment to extend the life of the Klipspruit colliery by at least 20 years[2].
Production summary
South32’s share 1H17 1H18 HoH 2Q17 1Q18 2Q18 QoQ
Alumina production (kt) 2,613 2,541 (3%) 1,320 1,279 1,262 (1%)
Aluminium production (kt) 492 495 1% 249 249 246 (1%)
Energy coal production (kt) 15,709 14,001 (11%) 7,518 7,014 6,987 (0%)
Metallurgical coal production (kt) 2,829 1,282 (55%) 1,392 494 788 60%
Manganese ore production (kwmt) 2,433 2,830 16% 1,253 1,304 1,526 17%
Manganese alloy production (kt) 115 118 3% 56 56 62 11%
Payable nickel production (kt) 17.7 21.8 23% 9.0 11.7 10.1 (14%)
Payable silver production (koz) 8,729 5,175 (41%) 4,035 2,763 2,412 (13%)
Payable lead production (kt) 73.9 49.4 (33%) 35.5 25.8 23.6 (9%)
Payable zinc production (kt) 42.1 20.2 (52%) 24.4 11.0 9.2 (16%)
Unless otherwise noted: percentage variance relates to performance during the half year ended December 2017 compared with the
half year ended December 2016 (HoH) or the December 2017 quarter compared with the September 2017 quarter (QoQ); production
and sales volumes are reported on an attributable basis.
CORPORATE UPDATE
- Industry cost curves steepened during the December 2017 half year as a result of US dollar weakness, rising
commodity prices and the environmental policy response in China. As highlighted in our December 2017 strategy
and business update, our unit costs are being affected by these external factors despite generally good cost control
across our operations. This pressure is most notable in our smelters and refineries as a result of broad-based
strength in commodity markets (price-linked power, alumina, pitch and coke), of which we are a net beneficiary.
Updated unit cost guidance for FY18 will be provided with our December 2017 half year results.
- Timing differences for receivables and rising commodity prices have also contributed to a further build in working
capital from the US$284M increase reported for the four months to 31 October 2017 in our December 2017 strategy
and business update. We expect the component related to timing differences to unwind in the March 2018 quarter.
- We received net distributions of US$238M[3] (South32 share) from our equity accounted investments in the December
2017 half year and our strong balance sheet was recognised by both Standard & Poor’s and Moody’s when they
reaffirmed their respective BBB+ and Baa1 credit ratings.
- In accordance with our disciplined capital management framework we paid our US$333M final dividend in respect of
FY17 in October 2017 and purchased a further 37M shares for a cash consideration of US$93M during the December
2017 half year. To 31 December 2017, we have purchased 143M shares at an average price of A$2.80 per share for a
cash consideration of US$305M, representing 41% of our approved US$750M capital management program.
- In the December 2017 half year we made tax payments totalling US$180M (net, excluding equity accounted
investments) across the various jurisdictions in which we operate. Our Underlying Effective Tax Rate (ETR), which
excludes tax associated with equity accounted investments, largely reflects the geographic distribution of the Group’s
profit. The corporate tax rates applicable to the Group for the December 2017 half year include: Australia 30%, South
Africa 28%, Colombia 40% and Brazil 34%. Permanent differences have a disproportionate effect on the Group’s tax
rate when profit margins are low.
- We invested US$23.9M in brownfield and greenfield exploration programs during the December 2017 half year
(US$1.1M capitalised). This included US$1.1M for our equity accounted investments (US$0.6M capitalised) and
expenditure associated with our portfolio of high quality, early stage exploration opportunities.
Production guidance FY17 H1 FY18 FY18e Comments
(South32’s share)
Worsley Alumina
Alumina production (kt) 3,892 1,865 3,975
South Africa Aluminium
Aluminium production (kt) 714 358 720
Mozal Aluminium
Aluminium production (kt) 271 137 269
Brazil Alumina
Alumina production (kt) 1,329 676 1,345
South Africa Energy Coal[4]
Energy coal production (kt) 28,913 13,423 27,500
Domestic coal production (kt) 16,717 7,426 16,000 Subject to market demand
Export coal production (kt) 12,196 5,997 11,500
Illawarra Metallurgical Coal
Total coal production (kt) 7,073 1,860 4,500
Metallurgical coal production (kt) 5,697 1,282 3,350
Energy coal production (kt) 1,376 578 1,150
Australia Manganese
Manganese ore production (kwmt) 2,994 1,701 3,125 Subject to market demand
South Africa Manganese
Manganese ore production[5](kwmt) 2,038 1,129 2,040 Subject to market demand
Cerro Matoso
Payable nickel production (kt) 36.5 21.8 41.6
Cannington
Payable silver production (koz) 15,603 5,175 14,360
Payable lead production (kt) 132 49 115
Payable zinc production (kt) 70 20 45
WORSLEY ALUMINA
(86% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Alumina production (kt) 1,940 1,865 (4%) 973 942 923 (5%) (2%)
Alumina sales (kt) 1,909 1,886 (1%) 949 966 920 (3%) (5%)
Worsley Alumina hydrate production was largely unchanged at 1.95Mt in the December 2017 half year as the refinery’s
input circuit continued to operate at a rate of 4.5Mtpa (100% basis). In contrast, calcined alumina production declined by
4% (or 75kt) to 1.87Mt in the December 2017 half year as scheduled calciner maintenance was undertaken and a
substantial hydrate inventory position was established. FY18 production guidance remains unchanged at 4.0Mt with
additional calciner maintenance scheduled for the March 2018 quarter.
SOUTH AFRICA ALUMINIUM
(100%)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Aluminium production (kt) 356 358 1% 181 180 178 (2%) (1%)
Aluminium sales (kt) 347 344 (1%) 169 162 182 8% 12%
South Africa Aluminium saleable production increased by 1% (or 2kt) to 358kt in the December 2017 half year and
remains on track to increase in FY18 despite an electric arc incident which impacted 36 pots on 30 November 2017. The
pots are being progressively returned to service during the March 2018 quarter. A temporary increase in finished goods
inventory related to our shipping schedule is expected to unwind in the March 2018 quarter.
MOZAL ALUMINIUM
(47.1% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Aluminium production (kt) 136 137 1% 68 69 68 0% (1%)
Aluminium sales (kt) 134 147 10% 70 65 82 17% 26%
Mozal Aluminium saleable production increased by 1% (or 1kt) to a record 137kt in the December 2017 half year as the
smelter continued to operate at its maximum technical capability. Aluminium sales increased by 10% as our inventory position
returned to more normal levels, however the timing of those sales ensures that our aluminium working capital position
remained elevated at 31 December 2017. FY18 production guidance remains unchanged at 269kt.
BRAZIL ALUMINA
(36% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Alumina production (kt) 673 676 0% 347 337 339 (2%) 1%
Alumina sales (kt) 638 649 2% 339 333 316 (7%) (5%)
Brazil Alumina saleable production increased by 3kt to 676kt in the December 2017 half year as the refinery continued to
operate at capacity. FY18 production guidance remains unchanged at 1.3Mt with Phase I of the refinery
debottlenecking project nearing completion.
SOUTH AFRICA ENERGY COAL
(100%)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Energy coal production (kt) 14,825 13,423 (9%) 7,081 6,689 6,734 (5%) 1%
Domestic sales (kt) 8,918 7,334 (18%) 4,472 3,788 3,546 (21%) (6%)
Export sales (kt) 5,856 5,865 0% 2,952 2,748 3,117 6% 13%
As anticipated, South Africa Energy Coal saleable production decreased by 9% (or 1.4Mt) to 13.4Mt in the December
2017 half year. Export coal production exceeded expectations as productivity lifted at both the Klipspruit mine and the
export oriented areas of the Wolvekrans-Middelburg Complex (WMC). In contrast, domestic production was impacted by
a reduction in demand from the Duvha power station and scheduled maintenance in the domestically focused areas of
the WMC. The continued build of inventory across the December 2017 half year reflects ongoing constraint in the supply
chain and weather related delays at Richards Bay Coal Terminal (RBCT).
While the development of new mining areas at the WMC is progressing according to plan and FY18 production guidance
remains unchanged at 27.5Mt (11.5Mt export; 16.0Mt domestic), the potential for weaker demand to persist in the June
2018 half year does imply a degree of downside risk for loss making domestic volumes.
During the period, we also commenced the process to manage South Africa Energy Coal as a stand-alone business
from April 2018[1] and approved a 4.3 billion South African Rand (US$301M) investment to extend the life of the Klipspruit
colliery by at least 20 years[2].
ILLAWARRA METALLURGICAL COAL
(100%)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Total coal production (kt) 3,713 1,860 (50%) 1,829 819 1,041 (43%) 27%
Total coal sales (kt) 3,605 1,660 (54%) 1,412 778 882 (38%) 13%
Metallurgical coal production (kt) 2,829 1,282 (55%) 1,392 494 788 (43%) 60%
Metallurgical coal sales (kt) 2,788 1,057 (62%) 1,065 403 654 (39%) 62%
Energy coal production (kt) 884 578 (35%) 437 325 253 (42%) (22%)
Energy coal sales (kt) 817 603 (26%) 347 375 228 (34%) (39%)
Illawarra Metallurgical Coal saleable production decreased by 50% (or 1.9Mt) to 1.9Mt in the December 2017 half year
as the Appin colliery recovered from an extended outage and the Dendrobium longwall progressed through a faulted
zone. FY18 production guidance of 4.5Mt remains unchanged with a longwall move scheduled for Dendrobium in the
March 2018 quarter. The depreciation and amortisation charge for Illawarra Metallurgical Coal is expected to decline by
approximately 15% from the prior period (H1 FY17: US$93M) as a result of the lower extraction rates.
Our average realised price in the December 2017 half year will reflect a modest premium to the low-volatile hard coking
coal index[6] on a volume weighted M-1 basis. The timing of shipments and a higher proportion of sales with pricing
linked to the month of shipment (i.e. M) combined to offset a temporary product quality discount associated with a higher
proportion of Dendrobium product in the sales mix. Sales volumes were impacted by the deferral of one shipment at the
end of the period.
AUSTRALIA MANGANESE
(60% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Manganese ore production (kwmt) 1,499 1,701 13% 736 808 893 21% 11%
Manganese ore sales (kwmt) 1,500 1,612 7% 743 790 822 11% 4%
Manganese alloy production (kt) 78 82 5% 40 39 43 8% 10%
Manganese alloy sales (kt) 82 78 (5%) 28 36 42 50% 17%
Australia Manganese achieved record performance in the December 2017 quarter and half year as saleable ore
production increased to 893kwmt and 1,701kwmt, respectively. Lower than expected rainfall in the December 2017
quarter underpinned higher throughput in the primary circuit while favourable market conditions allowed the PC02 circuit
to operate at full capacity. The PC02 circuit contributed 8% of total manganese ore production in the December 2017 half
year (5% H1 FY17; 6% FY17). FY18 production guidance remains unchanged at 3,125kwmt with the wet season expected to
impact production across the remainder of the financial year.
Our low cost PC02 fines product has a manganese content of approximately 40%, which leads to both grade and
product-type discounts when referenced to the high grade 44% manganese lump ore index. Given the contribution of the
PC02 circuit to our sales profile, our average realised price for external ore sales in the December 2017 half year will
reflect the high grade 44% manganese lump ore index[7] on a volume weighted M-1 basis. Internal sales continue to
occur on commercial terms.
Saleable Manganese alloy production increased by 5% (4kt) to 82kt in the December 2017 half year.
SOUTH AFRICA MANGANESE
(60% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Manganese ore production (kwmt) 934 1,129 21% 517 496 633 22% 28%
Manganese ore sales (kwmt) 928 1,067 15% 511 528 539 5% 2%
Manganese alloy production (kt) 37 36 (3%) 16 17 19 19% 12%
Manganese alloy sales (kt) 40 28 (30%) 20 14 14 (30%) 0%
South Africa Manganese achieved record performance in the December 2017 quarter as saleable ore production
increased by 22% to 633kwmt. A continuation of higher cost trucking and the sale of lower quality fines products enabled
us to take advantage of favourable market conditions while the Wessels central block, which was successfully
commissioned in the March 2017 quarter, also operated at maximum capacity ahead of planned maintenance in the
June 2018 quarter. Given the record start to the year, we have increased FY18 ore production guidance by 8% to
2,040kwmt with this projection remaining subject to continued strong market demand. The increase in ore inventory in
the December 2017 quarter is also expected to unwind in the June 2018 half year.
The average realised price for external ore sales in the December 2017 half year is expected to reflect the medium grade
37% manganese lump ore index[8] on a volume weighted M-1 basis. Wessels concentrate and other fines products
receive a substantial discount when referenced to index prices and accounted for 17% of sales across the December
2017 half year (15% H1 FY17; 9% FY17). Favourable negotiated price outcomes for our primary products, as well as a
temporary increase in the proportion of sales priced in the month of shipping (i.e. M, as opposed to M-1) offset the impact
of these discounts. Internal sales continue to occur on commercial terms.
Manganese alloy saleable production decreased by 3% (or 1kt) to 36kt in the December 2017 half year as Metalloys
continued to operate one of its four furnaces.
CERRO MATOSO
(99.9% share)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Payable nickel production (kt) 17.7 21.8 23% 9.0 11.7 10.1 12% (14%)
Payable nickel sales (kt) 17.6 21.3 21% 9.4 11.4 9.9 5% (13%)
Cerro Matoso payable nickel production increased by 23% (or 4.1kt) to 21.8kt in the December 2017 half year as ore
grades improved following the ramp-up of production at La Esmeralda. Production was 14% lower in the December 2017
quarter as planned maintenance was undertaken in the furnace. FY18 production guidance remains unchanged at
41.6kt with additional maintenance planned for the furnace in the March 2018 quarter.
CANNINGTON
(100%)
2Q18 2Q18
South32's share 1H17 1H18 HoH 2Q17 1Q18 2Q18 vs vs
2Q17 1Q18
Payable silver production (koz) 8,729 5,175 (41%) 4,035 2,763 2,412 (40%) (13%)
Payable silver sales (koz) 8,860 5,429 (39%) 3,797 2,926 2,503 (34%) (14%)
Payable lead production (kt) 73.9 49.4 (33%) 35.5 25.8 23.6 (34%) (9%)
Payable lead sales (kt) 73.3 48.6 (34%) 33.2 25.9 22.7 (32%) (12%)
Payable zinc production (kt) 42.1 20.2 (52%) 24.4 11.0 9.2 (62%) (16%)
Payable zinc sales (kt) 40.8 25.7 (37%) 22.3 13.6 12.1 (46%) (11%)
As anticipated, Cannington silver, lead and zinc payable production decreased by 41%, 33% and 52% in the December
2017 half year, respectively, due to lower ore grades and a reduction in mill throughput. Mining rates remained
constrained in the December 2017 quarter as additional underground development was prioritised in preference to the
planned replenishment of above ground stocks. Throughput is expected to improve with the ramp-up of the replacement
underground crusher which is on schedule to be commissioned in March 2018. FY18 production guidance (silver
14,360koz, lead 115kt, zinc 45kt) remains unchanged and is predicated on a significant improvement in silver and lead
ore grades as determined by the sequence of stope extraction with production weighted towards the June 2018 quarter.
We remain focussed on the safe extraction of the remaining underground ore reserves at Cannington with the optimal
stope sequence designed to reduce geotechnical risk and maximise value. A significant increase in underground activity
and complexity will drive greater variability of mine performance as the underground mine progresses towards the end of
its life.
Finalisation adjustments and the provisional pricing of Cannington concentrates will increase Underlying EBIT[9] by
US$5.5M in the December 2017 half year (US$4.1M FY17; US$0.5M H1 FY17). Outstanding concentrate sales
(containing 1.8Moz of silver, 21.1kt of lead and 3.9kt of zinc) were revalued at 31 December 2017. The final price of
these sales will be determined in the June 2018 half year.
Notes:
1. Refer to market announcement dated 27 November 2017 “South Africa Energy Coal to Become a Stand-alone Business”.
2. Refer to market announcement dated 27 November 2017 “South32 Approves Klipspruit Life Extension Project”.
3. Net distributions from equity accounted investments includes net debt movements and dividends.
4. 8% of South Africa Energy Coal is owned by a Broad-Based Black Economic Empowerment (B-BBEE) consortium. The interests
owned by the B-BBEE consortium were acquired using vendor finance, with the loans repayable to South32 via distributions
attributable to these parties, pro rata to their share in South Africa Energy Coal. Until these loans are repaid, South32’s
interest in South Africa Energy Coal is accounted at 100%.
5. Consistent with the presentation of South32’s segment information, South Africa Manganese ore production and sales have
been reported at 60%. The Group’s financial statement will continue to reflect a 54.6% interest in South Africa Manganese ore.
6. Platts Low-Vol Hard Coking Coal Index FOB Australia.
7. Metal Bulletin 44% manganese lump ore index (CIF Tianjin, China).
8. Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa).
9. Underlying EBIT is earnings before net finance costs, taxation and any earnings adjustments. Underlying EBIT is reported
net of South32’s share of net finance costs and taxation of equity accounted investments.
10. The following abbreviations have been used throughout this report: grams per tonne (g/t); tonnes (t); thousand tonnes (kt);
thousand tonnes per annum (ktpa); million tonnes (Mt); million tonnes per annum (Mtpa); thousand ounces (koz); million
ounces (Moz); thousand wet metric tonnes (kwmt); million wet metric tonnes (Mwmt); million wet metric tonnes per annum (Mwmt pa);
thousand dry metric tonnes (kdmt).
OPERATING PERFORMANCE
South32’s share 1H17 1H18 2Q17 3Q17 4Q17 1Q18 2Q18
Worsley Alumina
(86% share)
Alumina hydrate production (kt) 1,946 1,947 966 993 959 974 973
Alumina production (kt) 1,940 1,865 973 964 988 942 923
Alumina sales (kt) 1,909 1,886 949 1,018 920 966 920
South Africa Aluminium
(100%)
Aluminium production (kt) 356 358 181 178 180 180 178
Aluminium sales (kt) 347 344 169 163 203 162 182
Mozal Aluminium
(47.1% share)
Aluminium production (kt) 136 137 68 67 68 69 68
Aluminium sales (kt) 134 147 70 66 73 65 82
Brazil Alumina
(36% share)
Alumina production (kt) 673 676 347 324 332 337 339
Alumina sales (kt) 638 649 339 356 322 333 316
South Africa Energy Coal
(100%)
Energy coal production (kt) 14,825 13,423 7,081 6,675 7,413 6,689 6,734
Domestic sales (kt) 8,918 7,334 4,472 4,056 3,948 3,788 3,546
Export sales (kt) 5,856 5,865 2,952 2,873 3,068 2,748 3,117
Illawarra Metallurgical Coal
(100%)
Total coal production (kt) 3,713 1,860 1,829 1,614 1,746 819 1,041
Total coal sales (kt) 3,605 1,660 1,412 1,980 1,711 778 882
Metallurgical coal production (kt) 2,829 1,282 1,392 1,431 1,437 494 788
Metallurgical coal sales (kt) 2,788 1,057 1,065 1,694 1,470 403 654
Energy coal production (kt) 884 578 437 183 309 325 253
Energy coal sales (kt) 817 603 347 286 241 375 228
Australia Manganese
(60% share)
Manganese ore production (kwmt) 1,499 1,701 736 719 776 808 893
Manganese ore sales (kwmt) 1,500 1,612 743 749 838 790 822
Ore grade sold (%, Mn) 46.4 46.0 46.1 46.0 46.2 46.1 46.0
Manganese alloy production (kt) 78 82 40 28 41 39 43
Manganese alloy sales (kt) 82 78 28 37 36 36 42
South Africa Manganese
(60% share)
Manganese ore production (kwmt) 934 1,129 517 566 538 496 633
Manganese ore sales (kwmt) 928 1,067 511 554 542 528 539
Ore grade sold (%, Mn) 40.3 40.3 40.8 40.1 39.8 40.7 39.9
Manganese alloy production (kt) 37 36 16 19 17 17 19
Manganese alloy sales (kt) 40 28 20 14 20 14 14
South32’s share 1H17 1H18 2Q17 3Q17 4Q17 1Q18 2Q18
Cerro Matoso
(99.9% share)
Ore mined (kwmt) 2,347 2,087 1,109 1,044 1,056 1,051 1,036
Ore processed (kdmt) 1,289 1,340 644 648 624 696 644
Ore grade processed (%, Ni) 1.53 1.83 1.55 1.60 1.69 1.91 1.75
Payable nickel production (kt) 17.7 21.8 9.0 9.1 9.7 11.7 10.1
Payable nickel sales (kt) 17.6 21.3 9.4 9.2 9.8 11.4 9.9
Cannington
(100%)
Ore mined (kwmt) 1,639 1,209 859 675 595 647 562
Ore processed (kdmt) 1,669 1,168 841 739 628 593 575
Silver ore grade processed (g/t, Ag) 198 165 182 183 196 175 155
Lead ore grade processed (%, Pb) 5.5 5.1 5.2 5.3 5.2 5.2 4.9
Zinc ore grade processed (%, Zn) 3.7 2.6 4.2 3.0 3.1 2.8 2.3
Payable silver production (koz) 8,729 5,175 4,035 3,548 3,326 2,763 2,412
Payable silver sales (koz) 8,860 5,429 3,797 3,544 3,866 2,926 2,503
Payable lead production (kt) 73.9 49.4 35.5 31.3 26.9 25.8 23.6
Payable lead sales (kt) 73.3 48.6 33.2 32.5 32.3 25.9 22.7
Payable zinc production (kt) 42.1 20.2 24.4 15.1 13.2 11.0 9.2
Payable zinc sales (kt) 40.8 25.7 22.3 16.8 9.8 13.6 12.1
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.
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
17 January 2018
JSE Sponsor: UBS South Africa (Pty) Ltd
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