Wrap Text
Quarterly report, June 2018
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 June 2018
• Achieved record performance at Australia Manganese and a “We delivered record annual production at
10% increase in total manganese ore production in FY18 as Australia Manganese and Mozal Aluminium,
we continued to take advantage of stronger demand and increased payable nickel production at Cerro
pricing. Matoso by 20 per cent and finished the year on a
strong note at the remainder of our operations.
• Delivered another production record at Mozal Aluminium in
FY18 while South Africa Aluminium finished the year strongly,
testing its maximum technical capacity in the June 2018
quarter. “We are actively reshaping our portfolio and are
now managing South Africa Energy Coal as a
• Increased payable nickel production at Cerro Matoso by 20% stand-alone business, allowing us to simplify the
in FY18 as ore grades temporarily improved following the Group, lower overhead costs and fundamentally
successful ramp up of La Esmeralda. change the way we work.
• Progressed through a higher grade stope sequence at
Cannington in the June 2018 quarter with payable silver, lead
and zinc production increasing by 37%, 33% and 45%, “We also entered into conditional agreements to
respectively. acquire the remaining 83 per cent of Arizona
Mining Inc. that we don’t already own and a 50 per
• Benefitted from an uplift in calciner availability and a cent interest in the Eagle Downs metallurgical
drawdown of hydrate stocks at Worsley Alumina with coal project.
production increasing by 7% in the June 2018 quarter.
• Exceeded revised FY18 production guidance at Illawarra “In accordance with our disciplined capital
Metallurgical Coal with an annualised mining rate of more management framework, we purchased a further
than 6Mt achieved throughout the month of June. 98 million shares in FY18 for a cash consideration
of US$254 million. At year end we had completed
• Started managing South Africa Energy Coal as a stand-alone US$620 million of our approved US$1 billion
business in the June 2018 quarter with the associated capital management program.”
restructuring costs to be recorded in our FY18 financial
results. Graham Kerr, South32 CEO
• Entered into conditional agreements to acquire Arizona
Mining Inc. (TSX:AZ) and a 50% interest in the Eagle Downs
metallurgical coal project, with both transactions expected to
close in the December 2018 half year.
Production summary
South32’s share FY17 FY18 YoY 4Q17 3Q18 4Q18 QoQ
Alumina production (kt) 5,221 5,068 (3%) 1,320 1,232 1,295 5%
Aluminium production (kt) 985 983 (0%) 248 242 246 2%
Energy coal production (kt) 30,289 28,350 (6%) 7,722 7,096 7,253 2%
Metallurgical coal production (kt) 5,697 3,165 (44%) 1,437 794 1,089 37%
Manganese ore production (kwmt) 5,032 5,541 10% 1,314 1,369 1,342 (2%)
Manganese alloy production (kt) 220 244 11% 58 62 64 3%
Payable nickel production (kt) 36.5 43.8 20% 9.7 10.7 11.3 6%
Payable silver production (koz) 15,603 12,491 (20%) 3,326 3,082 4,234 37%
Payable lead production (kt) 132.1 104.4 (21%) 26.9 23.6 31.4 33%
Payable zinc production (kt) 70.4 41.3 (41%) 13.2 8.6 12.5 45%
1
Unless otherwise noted: percentage variance relates to performance during the financial year ended June 2018 compared with the
financial year ended June 2017 (YoY) or the June 2018 quarter compared with the March 2018 quarter (QoQ); production and sales
volumes are reported on an attributable basis.
2
Corporate Update
• We started managing South Africa Energy Coal as a stand-alone business in the June 2018 quarter. This important milestone
has allowed us to simplify the Group and will deliver a meaningful reduction in functional costs, further
mitigating industry-wide cost inflation. We expect to be in a position to disclose the expected savings when we report
our FY18 financial results, with the full run-rate to be achieved from FY20. The process to broaden and transform the ownership
of South Africa Energy Coal is expected to commence in the September 2018 quarter.
• One-off redundancy and restructuring charges of approximately US$60M (post-tax ~US$40M) are expected to be recorded in our FY18
financial results. These charges will be excluded from Underlying earnings, and relate to redundancies associated with the
simplification of the Group’s functional structures and the voluntary redundancy program undertaken at Illawarra Metallurgical
Coal during the March 2018 quarter.
• On 29 May we signed a conditional agreement to acquire a 50% interest in the Eagle Downs metallurgical coal project in the
Bowen Basin, Queensland for an upfront payment of approximately US$106M (excluding transaction costs), a deferred
payment of US$27M due three years after completion and a coal price linked production royalty which is capped at US$80M[Note 1].
• On 18 June we entered into an agreement to acquire the remaining 83% of issued and outstanding shares of Arizona Mining
Inc. that we don’t already own via a statutory plan of arrangement, representing a fully funded, all cash offer of US$1.3B[Note 2]
(C$1.8B). The transaction is subject to a vote of Arizona Mining shareholders on 2 August and a limited number of conditions as
disclosed in the transaction announcement.
• We bought back a further 98M shares for a cash consideration of US$254M during FY18. To 30 June 2018 we had completed
US$620M of our approved US$1B capital management program, comprising the purchase of 204M shares at an average price
of A$2.99 per share (US$466M) and a US$154M special dividend which was paid on 5 April 2018.
• We invested US$41.3M in exploration programs during FY18 (US$2.3M capitalised). This included US$1.2M for our Equity
Accounted Investments (EAI, US$0.6M capitalised) and US$21.3M to expand our exploration footprint and progress 18 early
stage greenfield partnerships.
• We received net distributions[Note 3] of US$561M (South32 share) from our manganese EAI in FY18, including US$165M in the June
2018 quarter.
• Our Underlying Effective Tax Rate (ETR), which excludes tax associated with our EAI, largely reflects the geographic
distribution of the Group’s profit. The corporate tax rates applicable to the Group include: Australia 30%, South Africa 28%,
Colombia 37%[Note 4], Mozambique 0%[Note 4] and Brazil 34%.
FY17 FY18 FY18 %[a]
Production guidance (South32’s share)
Actual Actual Guidance
Worsley Alumina
Alumina production (kt) 3,892 3,764 3,975 95%
South Africa Aluminium
Aluminium production (kt) 714 712 20 99%
Mozal Aluminium
Aluminium production (kt) 271 271 269 101%
Brazil Alumina
Alumina production (kt) 1,329 1,304 1,345 97%
South Africa Energy Coal[Note 5]
Energy coal production (kt) 28,913 27,271 27,500 99%
Domestic coal production (kt) 16,717 15,154 16,000 95%
Export coal production (kt) 12,196 12,117 11,500 105%
Illawarra Metallurgical Coal
Total coal production (kt) 7,073 4,244 4,100 104%
Metallurgical coal production (kt) 5,697 3,165 2,950 107%
Energy coal production (kt) 1,376 1,079 1,150 94%
Australia Manganese
Manganese ore production (kwmt) 2,994 3,396 3,300 103%
South Africa Manganese
Manganese ore production [Note 6] (kwmt) 2,038 2,145 2,150 100%
Cerro Matoso
Payable nickel production (kt) 36.5 43.8 41.6 105%
Cannington
Payable silver production (koz) 15,603 12,491 12,200 102%
Payable lead production (kt) 132.1 104.4 102.0 102%
Payable zinc production (kt) 70.4 41.3 39.0 106%
a. Percentage difference to latest production guidance. Australia Manganese, South Africa Manganese, Cannington and Illawarra
Metallurgical Coal restated FY18 production guidance during the 2018 financial year. FY18 guidance as at FY17 results:
Australia Manganese (manganese ore 3,125kt), South Africa Manganese (manganese ore 1,885kt), Cannington (payable silver,
lead and zinc 14,360koz, 115kt and 45kt, respectively). Illawarra Metallurgical Coal FY18 guidance (metallurgical coal 3,350kt,
energy coal 1,150kt) was provided with the Strategy and Business Update (5 December 2017).
3
Worsley Alumina
(86% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Alumina production (kt) 3,892 3,764 (3%) 988 918 981 (1%) 7%
Alumina sales (kt) 3,847 3,763 (2%) 920 910 967 5% 6%
Worsley Alumina saleable production decreased by 3% (or 128kt) to 3.8Mt in FY18. The refinery did, however, finish the year on a
strong note as an increase in calciner availability underpinned a 7% increase in production in the June 2018 quarter. Calcined
alumina production is expected to approach nameplate capacity of 4.6Mtpa (100% basis) in FY19 as the refinery processes excess
hydrate stocks that were established in FY18. Calciner maintenance is planned for the September 2018 and March 2019 quarters.
The average realised price for alumina sales in FY18 is expected to reflect a modest discount to the Platts alumina index[Note 7]
on a volume weighted M-1 basis. This discount reflects the temporary increase in the alumina to aluminium price ratio recorded in
the spot market throughout H2 FY18 and the structure of specific Mozal Aluminium supply contracts that are linked to the LME
aluminium price, which in this case reduces the price paid by our smelter.
South Africa Aluminium
(100%)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Aluminium production (kt) 714 712 (0%) 180 175 179 (1%) 2%
Aluminium sales (kt) 713 711 (0%) 203 184 183 (10%) (1%)
South Africa Aluminium saleable production decreased by 2kt to 712kt in FY18 as the smelter progressively returned all pots to
service following an electric arc incident in the December 2017 quarter. Notwithstanding the smelter’s continued strong operating
performance, higher prices for alumina and aluminium price-linked power, and still elevated prices for pitch and coke have
impacted the cost base in H2 FY18.
Mozal Aluminium
(47.1% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Aluminium production (kt) 271 271 0% 68 67 67 (1%) 0%
Aluminium sales (kt) 273 274 0% 73 51 76 4% 49%
Mozal Aluminium saleable production increased marginally to a record 271kt in FY18 as the smelter continued to test its maximum
technical capacity. Notwithstanding the smelters continued strong operating performance, higher prices for alumina and still
elevated prices for pitch and coke have impacted the cost base in H2 FY18. The increase in quarterly sales reflects the scheduling of
shipments between periods.
SOUTH32 QUARTERLY REPORT JUNE 2018 4
Brazil Alumina
(36% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Alumina production (kt) 1,329 1,304 (2%) 332 314 314 (5%) 0%
Alumina sales (kt) 1,316 1,341 2% 322 314 378 17% 20%
Brazil Alumina saleable production decreased by 2% (or 25kt) to 1,304kt in FY18 as unplanned maintenance and power outages
impacted performance. The increase in quarterly sales reflects the scheduling of shipments between periods.
South Africa Energy Coal
(100%)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Energy coal production (kt) 28,913 27,271 (6%) 7,413 6,741 7,107 (4%) 5%
Domestic sales (kt) 16,922 15,396 (9%) 3,948 3,835 4,227 7% 10%
Export sales (kt) 11,797 12,518 6% 3,068 3,472 3,181 4% (8%)
South Africa Energy Coal saleable production decreased by 6% (or 1,642kt) to 27.3Mt in FY18 as domestic demand remained
subdued and sales volumes were reweighted towards the export market. The Wolverkrans-Middelburg Complex (WMC) continued
to exceed expectations as it benefitted from the ongoing investment that is providing access to higher margin export tonnes.
Domestic sales decreased by 9% in FY18 as a result of lower demand from the Duvha power station. The commencement of a
long term contract to sell lower quality stockpiles to a domestic customer underpinned the 10% increase in domestic sales in the
June 2018 quarter.
The redirection of volumes towards export markets, whilst margin accretive, has added washing and logistics costs and is
expected to contribute to a modest increase in Operating unit costs from our prior FY18 guidance of US$34/t.
Illawarra Metallurgical Coal
(100%)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Total coal production (kt) 7,073 4,244 (40%) 1,746 1,149 1,235 (29%) 7%
Total coal sales (kt) 7,296 4,116 (44%) 1,711 1,091 1,365 (20%) 25%
Metallurgical coal production (kt) 5,697 3,165 (44%) 1,437 794 1,089 (24%) 37%
Metallurgical coal sales (kt) 5,952 2,937 (51%) 1,470 760 1,120 (24%) 47%
Energy coal production (kt) 1,376 1,079 (22%) 309 355 146 (53%) (59%)
Energy coal sales (kt) 1,344 1,179 (12%) 241 331 245 2% (26%)
Illawarra Metallurgical Coal saleable production decreased by 40% (or 2,829kt) to 4.2Mt in FY18 as the Appin colliery recovered
from an extended outage in H1 FY18. Notwithstanding longwall moves at both Appin and Dendrobium during the June 2018
quarter, metallurgical coal production increased by 37% (or 295kt) to 1.1Mt as we achieved an annualised mining rate of more than
6Mt throughout the month of June.
Our metallurgical coal continues to be sold with reference to market indices and we achieved a realised price equivalent to the
premium low-volatile hard coking coal index[Note 8] on a volume weighted M-1 basis in FY18.
5
Australia Manganese
(60% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Manganese ore production (kwmt) 2,994 3,396 13% 776 830 865 11% 4%
Manganese ore sales (kwmt) 3,087 3,290 7% 838 803 875 4% 9%
Manganese alloy production (kt) 147 165 12% 41 41 42 2% 2%
Manganese alloy sales (kt) 155 170 10% 36 37 55 53% 49%
Australia Manganese saleable ore production increased by 13% (or 402kwmt) to a record 3.4Mwmt in FY18 as the Premium
Concentrate Ore (PC02) circuit operated at approximately 107% of its design capacity, contributing 9% of total production (6%
FY17).
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. Notwithstanding the contribution of the PC02 circuit
to our sales profile, our average realised price for external sales of Australian ore will reflect a modest premium to the
high grade 44% manganese lump ore index on a volume weighted M-1 basis[Note 9] in FY18. Internal sales continue to occur on commercial
terms.
Manganese alloy saleable production increased by 12% (or 18kt) to 165kt in FY18 as all four furnaces continued to operate.
The increase in quarterly sales reflects a permanent change to the shipping schedule for a specific customer.
South Africa Manganese
(60% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Manganese ore production (kwmt) 2,038 2,145 5% 538 539 477 (11%) (12%)
Manganese ore sales (kwmt) 2,024 2,082 3% 542 476 539 (1%) 13%
Manganese alloy production (kt) 73 79 8% 17 21 22 29% 5%
Manganese alloy sales (kt) 74 67 (9%) 20 21 18 (10%) (14%)
South Africa Manganese saleable ore production increased by 5% (or 107kwmt) to 2.1Mwmt in FY18 as we continued to take
advantage of favourable market conditions by selling lower quality fines product and utilising higher cost trucking. Planned
major maintenance at the Wessels underground mine remains on track for completion in July 2018 with the impact on production in
the June 2018 quarter mitigated by a draw down of inventory established in advance of the outage.
Our fine grained Wessels concentrate product, which accounted for 13% of sales across FY18 (9% FY17), receives a product
discount when referenced to index prices. As a result, our average realised price for external sales of South African ore will reflect
a modest discount to the medium grade 37% manganese lump ore index (FOB Port Elizabeth, South Africa) on a volume weighted
M-1 basis[Note 10]. Internal sales continue to occur on commercial terms.
Manganese alloy saleable production increased by 8% (or 6kt) to 79kt in FY18 as Metalloys continued to operate one of its four
furnaces.
6
Cerro Matoso
(99.9% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Payable nickel production (kt) 36.5 43.8 20% 9.7 10.7 11.3 16% 6%
Payable nickel sales (kt) 36.6 43.3 18% 9.8 10.8 11.2 14% 4%
Cerro Matoso payable nickel production increased by 20% (or 7.3kt) to 43.8kt in FY18 as ore grades temporarily improved with the
ramp up of La Esmeralda and the operation continued to benefit from an improvement in plant utilisation and throughput rates.
The improvement in the nickel market during H2 FY18 has resulted in higher price-linked royalties being paid by our operation
and is expected to contribute to a modest increase in Operating unit costs from our prior FY18 guidance of US$3.61/lb.
Cannington
(100% share)
4Q18 4Q18
South32's share FY17 FY18 YoY 4Q17 3Q18 4Q18 vs vs
4Q17 3Q18
Payable silver production (koz) 15,603 12,491 (20%) 3,326 3,082 4,234 27% 37%
Payable silver sales (koz) 16,270 11,985 (26%) 3,866 3,014 3,542 (8%) 18%
Payable lead production (kt) 132.1 104.4 (21%) 26.9 23.6 31.4 17% 33%
Payable lead sales (kt) 138.1 97.9 (29%) 32.3 23.5 25.8 (20%) 10%
Payable zinc production (kt) 70.4 41.3 (41%) 13.2 8.6 12.5 (5%) 45%
Payable zinc sales (kt) 67.4 45.0 (33%) 9.8 6.3 13.0 33% 106%
Cannington silver, lead and zinc payable production increased by 37%, 33% and 45%, respectively, in the June 2018 quarter to
marginally exceed revised FY18 guidance. This significant improvement in performance was achieved as the mine moved through
a higher grade stope sequence, as planned. Annual and quarterly grade variability is expected to persist over the remaining life of
the operation as the stope sequence is optimised to maximise long term value. Metal production declined in FY18 as mining and
processing rates were reset in order to deliver greater predictability and stability in the underground mine[Note 11] .
Finalisation adjustments and the provisional pricing of Cannington concentrates will increase Underlying EBIT[Note 12] by US$0.1M in
FY18 (US$4.1M: FY17, US$5.5M: H1 FY18). Outstanding concentrate sales (containing 2.2Moz of silver, 18.8kt of lead and 4.9kt
of zinc) were revalued at 30 June 2018. The final price of these sales will be determined in the December 2018 half year.
7
Notes:
1. Refer to media release on 29 May 2018 “South32 to acquire 50% interest in Eagle Downs and assume operatorship”.
2. Based on a CAD/USD exchange rate of 0.7574 as of 15 June 2018.
3. Net distributions from equity accounting investments includes net debt movements and dividends, which are unaudited.
4. The Colombian corporate tax rate was 40% until 31 December 2017. The Mozambique operations are subject to a royalty on revenues
instead of income tax.
5. 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%.
6. 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.
7. The quarterly sales volume weighted average of the Platts Alumina Index (PAX) (FOB Australia) on the basis of a one month lag to
published pricing (Month minus one or “M-1”) was US$403/t in FY18.
8. The quarterly sales volume weighted average of the premium low-volatile hard coking coal Platts index (FOB Australia) on the
basis of a one month lag to published pricing (Month minus one or “M-1”) was US$202/t in FY18.
9. The quarterly sales volume weighted average of the Metal Bulletin 44% manganese lump ore index (CIF Tianjin, China) on the basis
of a one month lag to published pricing (Month minus one or “M-1”) was US$6.45/dmtu in FY18.
10. The quarterly sales volume weighted average of the Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa)
on the basis of a one month lag to published pricing (Month minus one or “M-1”) was US$5.46/dmtu in FY18.
11. Underground mine plan as per the current life of operation plan reflecting lower mining rates and consequentially longer mine
life.
12. 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.
13. 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).
8
Operating Performance
South32’s share FY17 FY18 4Q17 1Q18 2Q18 3Q18 4Q18
Worsley Alumina
(86% share)
Alumina hydrate production (kt) 3,898 3,796 959 974 973 938 911
Alumina production (kt) 3,892 3,764 988 942 923 918 981
Alumina sales (kt) 3,847 3,763 920 966 920 910 967
South Africa Aluminium
(100%)
Aluminium production (kt) 714 712 180 180 178 175 179
Aluminium sales (kt) 713 711 203 162 182 184 183
Mozal Aluminium
(47.1% share)
Aluminium production (kt) 271 271 68 69 68 67 67
Aluminium sales (kt) 273 274 73 65 82 51 76
Brazil Alumina
(36% share)
Alumina production (kt) 1,329 1,304 332 337 339 314 314
Alumina sales (kt) 1,316 1,341 322 333 316 314 378
South Africa Energy Coal
(100%)
Energy coal production (kt) 28,913 27,271 7,413 6,689 6,734 6,741 7,107
Domestic sales (kt) 16,922 15,396 3,948 3,788 3,546 3,835 4,227
Export sales (kt) 11,797 12,518 3,068 2,748 3,117 3,472 3,181
Illawarra Metallurgical Coal
(100%)
Total coal production (kt) 7,073 4,244 1,746 819 1,041 1,149 1,235
Total coal sales (kt) 7,296 4,116 1,711 778 882 1,091 1,365
Metallurgical coal production (kt) 5,697 3,165 1,437 494 788 794 1,089
Metallurgical coal sales (kt) 5,952 2,937 1,470 403 654 760 1,120
Energy coal production (kt) 1,376 1,079 309 325 253 355 146
Energy coal sales (kt) 1,344 1,179 241 375 228 331 245
Australia Manganese
(60% share)
Manganese ore production (kwmt) 2,994 3,396 776 808 893 830 865
Manganese ore sales (kwmt) 3,087 3,290 838 790 822 803 875
Ore grade sold (%, Mn) 46.2 45.7 46.2 46.1 46.0 45.0 45.7
Manganese alloy production (kt) 147 165 41 39 43 41 42
Manganese alloy sales (kt) 155 170 36 36 42 37 55
9
South Africa Manganese
South32’s share FY17 FY18 4Q17 1Q18 2Q18 3Q18 4Q18
(60% share)
Manganese ore production (kwmt) 2,038 2,145 538 496 633 539 477
Manganese ore sales (kwmt) 2,024 2,082 542 528 539 476 539
Ore grade sold (%, Mn) 40.1 39.9 39.8 40.7 39.9 40.1 39.1
Manganese alloy production (kt) 73 79 17 17 19 21 22
Manganese alloy sales (kt) 74 67 20 14 14 21 18
Cerro Matoso
(99.9% share)
Ore mined (kwmt) 4,447 3,741 1,056 1,051 1,036 831 823
Ore processed (kdmt) 2,561 2,722 624 696 644 672 710
Ore grade processed (%, Ni) 1.59 1.79 1.69 1.91 1.75 1.76 1.73
Payable nickel production (kt) 36.5 43.8 9.7 11.7 10.1 10.7 11.3
Payable nickel sales (kt) 36.6 43.3 9.8 11.4 9.9 10.8 11.2
Cannington
(100%)
Ore mined (kwmt) 2,909 2,463 595 647 562 571 683
Ore processed (kdmt) 3,036 2,355 628 593 575 544 643
Silver ore grade processed (g/t, Ag) 194 194 196 175 155 207 237
Lead ore grade processed (%, Pb) 5.4 5.3 5.2 5.2 4.9 5.2 5.8
Zinc ore grade processed (%, Zn) 3.4 2.6 3.1 2.8 2.3 2.5 2.8
Payable silver production (koz) 15,603 12,491 3,326 2,763 2,412 3,082 4,234
Payable silver sales (koz) 16,270 11,985 3,866 2,926 2,503 3,014 3,542
Payable lead production (kt) 132.1 104.4 26.9 25.8 23.6 23.6 31.4
Payable lead sales (kt) 138.1 97.9 32.3 25.9 22.7 23.5 25.8
Payable zinc production (kt) 70.4 41.3 13.2 11.0 9.2 8.6 12.5
Payable zinc sales (kt) 67.4 45.0 9.8 13.6 12.1 6.3 13.0
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 sundertake 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 Media Relations
Alex Volante James Clothier Jenny White
T +61 8 9324 9029 T +61 8 9324 9697 T +44 20 7798 1773
M +61 403 328 408 M +61 413 319 031 M +44 7900 046 758
E Alex.Volante@south32.net E James.Clothier@south32.net E Jenny.White@south32.net
19 July 2018
JSE Sponsor: UBS South Africa (Pty) Ltd
10
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