Wrap Text
Quarterly Report September 2020
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 2020
- Delivered a US$70M increase in our net cash position to “Our priority remains keeping our people safe
US$368M (note 1), despite a build in working capital as and well, maintaining safe and reliable
commodity markets improved. operations and supporting our communities
- Lifted the suspension of our on-market share buy-back through the COVID-19 pandemic. We continue to
following another period of strong operating performance and adjust our response based on the various
further strengthening of our financial position. phases of the pandemic in the jurisdictions
- Maintained FY21 production guidance for all operations. where we operate.
- Achieved record hydrate production at Worsley Alumina in the “Despite the health crisis, we have maintained
quarter and remain on-track to sustainably increase alumina annual production guidance at all operations.
production to nameplate capacity in FY21. We delivered a 19 per cent increase in
manganese ore production and a 22 per cent
- Continued to operate our aluminium smelters at their maximum increase in metallurgical coal production.
technical capacity despite the impact of load-shedding.
- Increased metallurgical coal production by 22% with
Illawarra Metallurgical Coal benefitting from “With another quarter of strong operating
the successful return to a three longwall performance behind us and the further
configuration during the prior quarter. strengthening of our financial position, we have
lifted the suspension of our on-market share
- Delivered a 19% increase in manganese ore production as buy-back. Our capital management program has
South Africa Manganese returned to full production following US$121 million remaining and recommencing our
the nationwide COVID-19 restrictions in the prior quarter. buy-back will deliver immediate value to our
shareholders.
- Progressed the sale of South Africa Energy Coal during the “During the quarter we continued our work to
quarter, receiving a key approval and advancing discussions reshape and improve our portfolio, progressing
with Eskom to meet the material outstanding conditions. the divestment of South Africa Energy Coal and
entering into a binding agreement to divest our
interest in the TEMCO manganese alloy smelter.”
- Advanced study work for a potentially unconstrained
development of the Hermosa project’s Taylor deposit, Graham Kerr, South32 CEO
including its integration with the Clark deposit.
We expect to provide an update, including the
expected capital profile, permitting route and timeline
to first production following conclusion of the
Taylor pre-feasibility study in the June 2021 half year.
Production summary
South32 share YTD FY20 YTD FY21 YoY 1Q20 4Q20 1Q21 QoQ
Alumina production (kt) 1,308 1,315 1% 1,308 1,358 1,315 (3%)
Aluminium production (kt) 248 248 0% 248 245 248 1%
Energy coal production (kt) 6,723 6,771 1% 6,723 5,657 6,771 20%
Metallurgical coal production (kt) 1,651 1,863 13% 1,651 1,523 1,863 22%
Manganese ore production (kwmt) 1,415 1,461 3% 1,415 1,228 1,461 19%
Manganese alloy production (kt) 44 27 (39%) 44 34 27 (21%)
Payable nickel production (kt) 10.6 10.0 (6%) 10.6 9.7 10.0 3%
Payable silver production (koz) 2,97 2,863 (4%) 2,972 3,195 2,863 (10%)
Payable lead production (kt) 26.5 26.4 (0%) 26.5 30.1 26.4 (12%)
Payable zinc production (kt) 18.4 12.4 (33%) 18.4 16.9 12.4 (27%)
Unless otherwise noted: percentage variance relates to performance during the September 2020 quarter compared
with the June 2020 quarter (QoQ); production and sales volumes are reported on an attributable basis.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
1
Corporate Update
- We continue to respond to COVID-19, adjusting to the different phases of the pandemic across the jurisdictions
where we operate, focussing on keeping our people well, maintaining safe and reliable operations and supporting
our communities.
- We further simplified our functional support structures by reorganising the accountabilities of our leadership
team and will reduce its size to align to our planned portfolio changes. In support of this initial step towards
delivering a further US$50M in annualised savings from FY22, we have commenced the staged reduction of our office
footprint, including the downsizing of our offices in Singapore and London.
- Net cash (note 1) increased by US$70M to US$368M, despite a build in working capital during the quarter. Subsequent
to the end of the period, we paid a fully-franked ordinary dividend of US$48M in respect of the June 2020 half year.
- We received net distributions (note 2) of US$21M (South32 share) from our manganese equity accounted investments
(EAI) in the September 2020 quarter following the payment of US$73M (100% share) in royalties at Australia Manganese
in respect of the prior 6 month period.
- Following another quarter of strong operating performance and the further strengthening of our financial position
we have lifted our on-market share buy-back suspension. Our US$1.43B capital management program is 92% complete with
US$121M remaining to be returned to shareholders, ahead of its extension or expiry on 3 September 2021(note 3).
- We continued to progress the sale of our shareholding in South Africa Energy Coal to Seriti Resources Holdings
Proprietary Limited (Seriti Resources) (note 4) receiving final approval under Section 11 of the Mineral and Petroleum
Resources Development Act in the period. Separately the Competition Commission of South Africa recommended the
Competition Tribunal conditionally approve the transaction with the Competition Tribunal hearings expected to be finalized
in the December 2020 quarter. While the transaction remains subject to material conditions including approvals from Eskom
Holdings SOC Limited (note 5) we expect to agree a resolution for the future of our South Africa Energy Coal business by
no later than 31 December 2020.
- GEMCO entered into a binding agreement to divest the TEMCO manganese alloy smelter, which is subject to approval from
Australia’s Foreign Investment Review Board. Our Metalloys manganese alloy smelter remains on care and maintenance.
Development and Exploration Update
- We progressed our pre-feasibility study for the Hermosa project’s Taylor Deposit and scoping study for the Clark Deposit.
Study work to date supports a potential unconstrained development of Taylor, including its integration with Clark. All options
under consideration have different cost, permitting and schedule implications. To allow finalisation of this work, the Taylor
pre-feasibility study is now expected to be concluded in the June 2021 half year at which time we will provide an update on our
preferred configuration, expected capital profile and timeline to first production.
- We remain on-track to consider a final investment decision with our joint venture partner for the Eagle Downs Metallurgical
Coal project by the end of this calendar year.
- At our Ambler Metals joint venture, permitting of the proposed industrial access road progressed, with the signing of the
Record of Decision by the United States Bureau of Land Management and issuance of the Clean Water Act Section 404 permit
by the United States Army Corp. of Engineers. The joint venture also appointed Ramzi Fawaz as its President and CEO during
the quarter. Mr. Fawaz brings extensive leadership experience in North American project development to the role.
- We completed a pre-feasibility study for the Eastern Leases at Australia Manganese during the period, progressing the project
to feasibility stage. The Eastern Leases has the potential to extend the mine life at our low-cost GEMCO mine. Exploration
drilling in the Southern Areas is expected to recommence in the December 2020 quarter.
- Consistent with our strategy to partner with companies to fund early stage greenfield exploration opportunities, we invested
US$5M during the September 2020 quarter. Our greenfield exploration activity continues to be impacted by COVID-19
restrictions on the movement of people and equipment, which has limited the ability to execute exploration work programs in
certain jurisdictions. We continue to review the evolving environment and work with our partners to optimise our exploration
programs to maximise the benefit of the US$18M we plan to spend in FY21.
- We directed US$8M towards exploration programs at our existing operations and development options in the September 2020
quarter (US$7M capitalised), including US$2M at Hermosa (all capitalised).
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
2
Production Summary
Production guidance
FY20 3M YTD FY21 FY21e (note a)
(South32 share)
Worsley Alumina
Alumina production (kt) 3,886 963 3,965
Brazil Alumina
Alumina production (kt) 1,383 352 1,370
Hillside Aluminium (note 6)
Aluminium production (kt) 718 180 720
Mozal Aluminium (note 6)
Aluminium production (kt) 268 68 273
South Africa Energy Coal
Energy coal production (kt) 22,672 6,263 10,500 – 12,500
Domestic coal production (kt) 12,552 3,536 6,500 – 7,800
Export coal production (kt) 10,120 2,727 4,000 – 4,700
Illawarra Metallurgical Coal
Total coal production (kt) 7,006 2,371 7,700
Metallurgical coal production (kt) 5,549 1,863 6,400
Energy coal production (kt) 1,457 508 1,300
Australia Manganese
Manganese ore production (kwmt) 3,470 880 3,500
South Africa Manganese
Manganese ore production (note 7) (kwmt) 1,878 581 2,000
Cerro Matoso
Payable nickel production (kt) 40.6 10.0 33.5
Cannington
Payable zinc equivalent production (note 8) (kt) 332.6 76.6 330.8
Payable silver production (koz) 11,792 2,863 11,800
Payable lead production (kt) 110.4 26.4 113.9
Payable zinc production (kt) 66.7 12.4 60.7
a. The denotation (e) refers to an estimate or forecast year. All guidance is subject to further potential impacts from
COVID-19. South Africa Energy Coal guidance is provided for H1 FY21.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
3
Worsley Alumina
(86% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21 1Q20 4Q20
Alumina production (kt) 952 963 1% 952 1,017 963 1% (5%)
Alumina sales (kt) 918 1,001 9% 918 1,031 1,001 9% (3%)
Worsley Alumina saleable alumina production decreased by 5% (or 54kt) to 963kt in the September 2020
quarter as a scheduled calciner shut was completed. Hydrate production increased by 4% (or 43kt) to
1,010kt with the hydrate circuit operating at a record annualised rate of 4.65mtpa (100% basis).
FY21 production guidance remains unchanged at 3,965kt with the refinery on track to sustainably achieve
nameplate capacity.
Brazil Alumina
(36% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Alumina production (kt) 356 352 (1%) 356 341 352 (1%) 3%
Alumina sales (kt) 304 340 12% 304 378 340 12% (10%)
Brazil Alumina saleable production increased by 3% (or 11kt) to 352kt in the September 2020 quarter
as the refinery benefitted from increased plant availability. FY21 production guidance remains unchanged
at 1,370kt with planned maintenance scheduled in the December 2020 quarter.
Hillside Aluminium
(100%)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Aluminium production (kt) 181 180 (1%) 181 178 180 (1%) 1%
Aluminium sales (kt) 174 175 1% 174 199 175 1% (12%)
Hillside Aluminium saleable production increased by 1% (or 2kt) to 180kt in the September 2020 quarter
as the smelter continued to test its maximum technical capacity, despite the impact from load-shedding.
FY21 production guidance (note 6) remains unchanged at 720kt.
Mozal Aluminium
(47.1% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Aluminium production (kt) 67 68 1% 67 67 68 1% 1%
Aluminium sales (kt) 64 64 0% 64 78 64 0% (18%)
Mozal Aluminium saleable production increased by 1% (or 1kt) to 68kt in the September 2020 quarter as the
smelter continued to test its maximum technical capacity, despite the impact from load-shedding.
FY21 production guidance (note 5) remains unchanged at 273kt.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
4
South Africa Energy Coal
(100%)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Energy coal production (kt) 6,292 6,263 (0%) 6,292 5,228 6,263 (0%) 20%
Domestic sales (kt) 3,726 3,607 (3%) 3,726 3,006 3,607 (3%) 20%
Export sales (kt) 1,977 2,487 26% 1,977 2,180 2,487 26% 14%
South Africa Energy Coal saleable production increased by 20% (or 1.0Mt) to 6.3Mt in the September 2020
quarter as production ramped up following the disruption to operations caused by the nationwide COVID-19
restrictions in the prior quarter. Export sales benefitted as additional volumes were delivered from new pits
at the Klipspruit colliery, ahead of mechanical completion of the life extension project, which was achieved
subsequent to the end of the period.
Domestic sales increased by 20% during the September 2020 quarter, as improved
demand from Eskom following the easing of COVID-19 restrictions was met by higher production volumes from our
Khutala colliery and a drawdown in finished goods inventory.
As we continue to maximise margins and suspend production from loss-making pits, we now expect H1 FY21 saleable
production to be at the lower end of our 10.5 to 12.5Mt guidance range.
Illawarra Metallurgical Coal
(100%)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Total coal production (kt) 2,082 2,371 14% 2,082 1,952 2,371 14% 21%
Total coal sales (note 9) (kt) 1,848 1,940 5% 1,848 2,071 1,940 5% (6%)
Metallurgical coal production (kt) 1,651 1,863 13% 1,651 1,523 1,863 13% 22%
Metallurgical coal sales (kt) 1,482 1,468 (1%) 1,482 1,644 1,468 (1%) (11%)
Energy coal production (kt) 431 508 18% 431 429 508 18% 18%
Energy coal sales (kt) 366 472 29% 366 427 472 29% 11%
Illawarra Metallurgical Coal saleable production increased by 21% (or 419kt) to 2.4Mt in the September 2020 quarter
with the operation’s successful return to a three longwall configuration in April 2020 supporting a 22% increase in
metallurgical coal saleable production. Energy coal saleable production increased by 18% to a record 508kt in the period
as we monetized low-margin coal wash material.
FY21 production guidance remains unchanged at 7.7Mt as we plan for lower volumes of energy coal sales over the remainder
of the year and longwall moves are scheduled for the December 2020 and June 2021 quarters.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
5
Australia Manganese
(60% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Manganese ore production (kwmt) 868 880 1% 868 854 880 1% 3%
Manganese ore sales (kwmt) 852 994 17% 852 928 994 17% 7%
Manganese alloy production (kt) 28 27 (4%) 28 29 27 (4%) (7%)
Manganese alloy sales (kt) 32 26 (19%) 32 27 26 (19%) (4%)
Australia Manganese saleable ore production increased by 3% (or 26kwmt) to 880kwmt in the September 2020 quarter
as favourable ore characteristics supported an improvement in primary concentrator output, more than offsetting
lower volumes of our Premium Concentrate Ore (PC02) fines product. PC02 fines contributed 9% of total production
in the period. With its lower relative price realisations, PC02 contributed to an overall modest discount for our
manganese ore sales to the high grade 44% index (note 10) during the September 2020 quarter.
While we continue to monitor market conditions and the potential impact from the wet season across the remainder of
the year,FY21 production guidance remains unchanged at 3,500kwmt.
Manganese alloy saleable production decreased by 7% (or 2kt) to 27kt in the September 2020 quarter as one of the four
furnaces at TEMCO remained offline.
South Africa Manganese
(60% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Manganese ore production (note 7) (kwmt) 547 581 6% 547 374 581 6% 55%
Manganese ore sales (note 7) (kwmt) 544 517 (5%) 544 316 517 (5%) 64%
Manganese alloy production (kt) 16 - (100%) 16 - (100%) (100%)
Manganese alloy sales (kt) 13 8 (38%) 13 7 8 (38%) 14%
South Africa Manganese saleable ore production increased by 55% (or 207kwmt) to 581kwmt in the September 2020 quarter
as the operation returned to full capacity, following the nationwide COVID-19 lockdown in the prior quarter.
We took advantage of favourable market conditions by utilising higher cost trucking as an alternate route to market
while rail logistics continued to normalise. While we continue to monitor market conditions and the attractiveness
of higher cost trucking, FY21 production guidance remains unchanged at 2,000kwmt.
We did not produce any manganese alloy in the September 2020 quarter as our Metalloys manganese alloy smelter remained
on care and maintenance.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
6
Cerro Matoso
(99.9% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Payable nickel production (kt) 10.6 10.0 (6%) 10.6 9.7 10.0 (6%) 3%
Payable nickel sales (kt) 10.0 10.4 4% 10.0 10.0 10.4 4% 4%
Cerro Matoso payable nickel production increased by 3% (or 0.3kt) to 10.0kt in the September 2020 quarter as the operation
continued to achieve higher rates of plant utilisation and throughput. FY21 production guidance is unchanged at 33.5kt with
the operation scheduled to undertake a major refurbishment of one of its furnaces in the December 2020 quarter.
Sales increased 4% during the September 2020 quarter. Our ferronickel product sells with reference to the LME Nickel index price
on a M or M+1 basis and often attracts product discounts.
Cannington
(100% share)
1Q21 1Q21
YTD YTD
South32 share YoY 1Q20 4Q20 1Q21 vs vs
FY20 FY21
1Q20 4Q20
Payable zinc equivalent production (note 8)
83.9 76.6 (9%) 83.9 89.2 76.6 (9%) (14%)
(kt)
Payable silver production (koz) 2,972 2,863 (4%) 2,972 3,195 2,863 (4%) (10%)
Payable silver sales (koz) 2,363 2,967 26% 2,363 3,571 2,967 26% (17%)
Payable lead production (kt) 26.5 26.4 (0%) 26.5 30.1 26.4 (0%) (12%)
Payable lead sales (kt) 20.6 29.5 43% 20.6 33.5 29.5 43% (12%)
Payable zinc production (kt) 18.4 12.4 (33%) 18.4 16.9 12.4 (33%) (27%)
Payable zinc sales (kt) 18.9 11.8 (38%) 18.9 19.0 11.8 (38%) (38%)
Cannington payable zinc equivalent production decreased by 14% (or 12.6kt) to 76.6kt in the September 2020 quarter as planned
surface maintenance led to a 15% reduction in ore processed. Ore mined volumes declined by a lesser 4% during the period as
continued strong underground performance supported the establishment of run of mine inventory.
Processed silver, lead and zinc grades met our expectations during the September 2020 quarter and FY21 production guidance
remains unchanged (silver 11,800koz, lead 113.9kt and zinc 60.7kt).
Notes:
1. Net cash number is unaudited and should not be considered as an indication of or alternative to an IFRS measure of
profitability, financial performance or liquidity.
2. Net distributions from equity accounted investments includes net debt movements and dividends, which are unaudited
and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance
or liquidity.
3. Since inception, US$1.0B has been allocated to the on-market share buy-back (477M shares at an average price of A$2.94
per share) and US$292M returned in the form of special dividends.
4. Purchaser includes two trusts for the benefit of employees and communities.
5. Refer to the market announcement “Agreement to Divest South Africa Energy Coal” dated 6 November 2019.
6. Production guidance for Hillside Aluminium and Mozal Aluminium does not assume any load-shedding impact on production.
7. 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 statements will continue to reflect a 54.6% interest in South Africa
Manganese ore.
8. 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. FY20 realised prices for zinc (US$1,416/t), lead (US$1,648/t) and
silver (US$16.5/oz) have been used for FY20, YTD FY21 and FY21e. Prior quarters have been restated to this baseline.
9. Illawarra Metallurgical Coal sales are adjusted for moisture and will not reconcile directly to Illawarra Metallurgical
Coal production.
10. 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$4.55/dmtu in the September 2020
quarter.
The following abbreviations have been used throughout this report: US$ 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); thousand dry metric tonnes (kdmt).
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
7
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.
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
8
Operating Performance
YTD YTD
South32 share 1Q20 2Q20 3Q20 4Q20 1Q21
FY20 FY21
Worsley Alumina (86% share)
Alumina hydrate production (kt) 967 1,010 967 943 963 967 1,010
Alumina production (kt) 952 963 952 981 936 1,017 963
Alumina sales (kt) 918 1,001 918 973 860 1,031 1,001
Brazil Alumina (36% share)
Alumina production (kt) 356 352 356 346 340 341 352
Alumina sales (kt) 304 340 304 374 336 378 340
Hillside Aluminium (100%)
Aluminium production (kt) 181 180 181 181 178 178 180
Aluminium sales (kt) 174 175 174 176 174 199 175
Mozal Aluminium (47.1% share)
Aluminium production (kt) 67 68 67 67 67 67 68
Aluminium sales (kt) 64 64 64 72 65 78 64
South Africa Energy Coal (100%)
Energy coal production (kt) 6,292 6,263 6,292 5,493 5,659 5,228 6,263
Domestic sales (kt) 3,726 3,607 3,726 2,962 2,944 3,006 3,607
Export sales (kt) 1,977 2,487 1,977 2,877 2,681 2,180 2,487
Illawarra Metallurgical Coal (100%)
Total coal production (kt) 2,082 2,371 2,082 1,613 1,359 1,952 2,371
Total coal sales (note 9) (kt) 1,848 1,940 1,848 1,771 1,594 2,071 1,940
Metallurgical coal production (kt) 1,651 1,863 1,651 1,208 1,167 1,523 1,863
Metallurgical coal sales (kt) 1,482 1,468 1,482 1,318 1,398 1,644 1,468
Energy coal production (kt) 431 508 431 405 192 429 508
Energy coal sales (kt) 366 472 366 453 196 427 472
Australia Manganese (60% share)
Manganese ore production (kwmt) 868 880 868 907 841 854 880
Manganese ore sales (kwmt) 852 994 852 885 775 928 994
Ore grade sold (%, Mn) 45.6 44.3 45.6 44.4 44.4 43.9 44.3
Manganese alloy production (kt) 28 27 28 29 24 29 27
Manganese alloy sales (kt) 32 26 32 26 31 27 26
South Africa Manganese (60% share)
Manganese ore production (note 7) (kwmt) 547 581 547 491 466 374 581
Manganese ore sales (note 7) (kwmt) 544 517 544 529 476 316 517
Ore grade sold (%, Mn) 40.4 39.7 40.4 39.6 39.8 40.8 39.7
Manganese alloy production (kt) 16 - 16 18 14 5 -
Manganese alloy sales (kt) 13 8 13 15 20 7 8
SOUTH32 QUARTERLY REPORT SEPTEMBER 2020
9
YTD YTD
South32 share 1Q20 2Q20 3Q20 4Q20 1Q21
FY20 FY21
Cerro Matoso (99.9% share)
Ore mined (kwmt) 668 735 668 732 641 798 735
Ore processed (kdmt) 712 698 712 677 693 679 698
Ore grade processed (%, Ni) 1.65 1.58 1.65 1.67 1.67 1.59 1.58
Payable nickel production (kt) 10.6 10.0 10.6 10.0 10.3 9.7 10.0
Payable nickel sales (kt) 10.0 10.4 10.0 10.4 10.2 10.0 10.4
Cannington (100%)
Ore mined (kwmt) 694 700 694 666 706 726 700
Ore processed (kdmt) 656 630 656 738 701 744 630
Silver ore grade processed (g/t, Ag) 168 169 168 162 134 161 169
Lead ore grade processed (%, Pb) 4.9 5.0 4.9 4.8 4.5 4.8 5.0
Zinc ore grade processed (%, Zn) 3.8 2.9 3.8 2.8 3.6 3.2 2.9
Payable zinc equivalent production (note 8)(kt) 83.9 76.6 83.9 84.8 74.7 89.2 76.6
Payable silver production (koz) 2,972 2,863 2,972 3,192 2,433 3,195 2,863
Payable silver sales (koz) 2,363 2,967 2,363 3,549 2,626 3,571 2,967
Payable lead production (kt) 26.5 26.4 26.5 28.8 25.0 30.1 26.4
Payable lead sales (kt) 20.6 29.5 20.6 31.2 22.8 33.5 29.5
Payable zinc production (kt) 18.4 12.4 18.4 14.1 17.3 16.9 12.4
Payable zinc sales (kt) 18.9 11.8 18.9 16.4 14.4 19.0 11.8
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, particularly in light of the current economic climate and the significant
volatility, uncertainty and disruption arising in connect with COVID-19.
Further information
Investor Relations Media Relations
Alex Volante Rebecca Keenan Jenny White
T +61 8 9324 9029 T +61 8 9324 9364 T +44 20 7798 1773
M +61 403 328 408 M +61 402 087 055 M +44 7900 046 758
E Alex.Volante@south32.net E Rebecca.Keenan@south32.net E Jenny.White@south32.net
19 October 2020
JSE Sponsor: UBS South Africa (Pty) Ltd
10
Date: 19-10-2020 08:30:00
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