QUARTERLY REPORT

March 2025

South32 Chief Executive Officer, Graham Kerr: "Another strong quarter of operating performance saw our net cash position increase by US$299M to US$252M.   

"Production highlights year to date include an 18 per cent increase in copper and a six per cent increase in aluminium as Mozal Aluminium managed the impacts of civil unrest in Mozambique and approached nameplate capacity in the quarter.

"We continue to unlock value at our operations, commencing our Worsley Mine Development Project following environmental approval by the Australian Government, and progressing toward the resumption of export sales from Australia Manganese, which remains on track for the June 2025 quarter.

"At Hermosa, construction of our large-scale, long-life Taylor zinc-lead-silver project continues to progress, with sinking of the main shaft on track to commence in the June 2025 quarter.

"Looking ahead, our focus on operating discipline, active cost management and a strong balance sheet leaves us well positioned to manage a period of potential uncertainty in global markets."

CORPORATE UPDATE

DEVELOPMENT AND EXPLORATION UPDATE

Hermosa project

Greenfield exploration

Other exploration

WORSLEY ALUMINA (86% SHARE)

Worsley Alumina saleable production decreased by 2% (or 70kt) to 2,791kt in the nine months ended March 2025, as we completed planned calciner maintenance in the September 2024 and March 2025 quarters, and managed constrained bauxite supply to the refinery. We commenced work on the Worsley Mine Development Project in the March 2025 quarter following the receipt of primary environmental approvals¹¹, which will provide improved access to bauxite and is expected to sustain production to at least FY36². FY25 production guidance remains unchanged at 3,750kt.

Sales decreased by 6% in the March 2025 quarter due to lower product availability. Our realised price for alumina sales in the March 2025 quarter was in line with the Platts Alumina index¹², following the annual reset of a cap and floor mechanism embedded in a legacy supply contract with Mozal Aluminium.

BRAZIL ALUMINA (36% SHARE, NON-OPERATED)

Brazil Alumina saleable production increased by 6% (or 53kt) to 1,006kt in the nine months ended March 2025 as improved plant availability more than offset lower feed rates to the refinery due to wet weather in the March 2025 quarter.  FY25 production guidance remains unchanged at 1,350kt.

BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)

Brazil Aluminium saleable production increased by 32% (or 24kt) to 100kt in the nine months ended March 2025 as the smelter continued to ramp-up all three potlines. FY25 production guidance remains unchanged at 130kt.

Sales decreased by 14% in the March 2025 quarter as an export shipment slipped to the June 2025 quarter due to weather related delays at port.  

HILLSIDE ALUMINIUM (100% SHARE)

Hillside Aluminium saleable production decreased by 1% (or 3kt) to 537kt in the nine months ended March 2025 as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding.  FY25 production guidance remains unchanged at 720kt⁴.

Sales decreased by 11% in the March 2025 quarter following a planned drawdown of inventory in the prior quarter.

MOZAL ALUMINIUM (63.7% SHARE)

Mozal Aluminium saleable production increased by 12% (or 28kt) to 265kt in the nine months ended March 2025 as the operation delivered its recovery plan and subsequently mitigated the impacts of civil unrest in Mozambique from the December 2024 quarter. Operating conditions in Mozambique improved during the March 2025 quarter, enabling the smelter to approach nameplate production rates to finish the period. FY25 production guidance remains unchanged at 350kt⁴.

Sales decreased by 18% in the March 2025 quarter as the operation  managed product availability following the decision in the prior quarter to temporarily reduce amperage to the smelter to manage raw material stocks. We expect to drawdown inventory in the June 2025 quarter.

We continue to work with Eskom and the Government of the Republic of Mozambique to extend the smelter's hydro-electric power supply beyond March 2026, as there are currently no viable alternative suppliers of renewable energy at the required scale. We remain focused on finalising a new energy supply agreement during CY25 to enable the smelter to continue to operate and maintain its substantial contribution to the economy of Mozambique.

SIERRA GORDA (45% SHARE NON-OPERATED)

Sierra Gorda payable copper equivalent production³ increased by 20% (or 11.1kt) to 66.2kt in the nine months ended March 2025 due to higher planned copper grades and improved molybdenum recoveries. Production decreased by 19% in the March 2025 quarter as milling rates were impacted by planned maintenance and a national power outage in February 2025, whilst molybdenum volumes declined as we mined an area with higher clay content.

FY25 production guidance remains unchanged at 84.8kt payable copper equivalent³ (copper 70.0kt, molybdenum 1.3kt, gold 25.0koz and silver 550koz).

CANNINGTON (100% SHARE)

Cannington payable zinc equivalent production⁵ decreased by 20% (or 45.0kt) to 180.1kt in the nine months ended March 2025 as the operation continued to manage increased underground activity and complexity.

Production decreased by 37% in the March 2025 quarter as challenging geotechnical conditions delayed access to higher grade stopes and mining productivity was impacted by lower operator availability due to weather related disruptions. As a result, FY25 production guidance has been revised lower by 10% to 239.2kt payable zinc equivalent⁵ (ore processed 1,900kdmt, silver 10,200koz, lead 90.0kt and zinc 45.0kt). 

Looking forward, we are completing work to assess optimal underground mining rates and stope sequencing to manage continued geotechnical challenges and unlock value over the remaining mine life at Cannington.

FY25 Operating unit cost guidance has been revised to US$195/t ore processed (from US$175/t) due to lower ore processed.

CERRO MATOSO (99.9% SHARE)

Cerro Matoso payable nickel production decreased by 6% (or 1.7kt) to 27.4kt in the nine months ended March 2025 due to lower planned nickel grades. FY25 production guidance remains unchanged at 35.0kt.

Sales increased by 3% in the March 2025 quarter. Price realisations for our ferronickel product in the nine months ended March 2025 reflected a discount of ~16% to the LME Nickel Index¹³, as structural changes in the nickel market continued to place pressure on both nickel prices and discounts for our ferronickel product.

We are continuing a process in relation to the potential divestment of Cerro Matoso. In parallel, we are targeting further cost efficiencies to mitigate the impact of lower planned nickel grades.  

AUSTRALIA MANGANESE (60% SHARE)

Australia Manganese continued its operational recovery plan following the impacts of Tropical Cyclone Megan in the    March 2024 quarter and remains on track to resume export sales in the June 2025 quarter. 

We continued a substantial dewatering program, and completed construction of a critical bridge that connects the northern pits of the Western Leases mining area and the process plant during the quarter. Mining continued at limited rates in line with the operational recovery plan and dewatering requirements. The primary concentrator was paused having established stockpiles ahead of the wet season. FY25 production guidance remains unchanged at 1,000kwmt, with the primary concentrator to restart in the June 2025 quarter. 

Construction of all major structures for the wharf was completed following the end of the quarter. Export sales are on track to recommence in May 2025, subject to no further impacts over the remainder of the wet season, and return to normalised rates over FY26.

SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)

South Africa Manganese saleable production decreased by 5% (or 83kwmt) to 1,558kwmt in the nine months ended March 2025, following planned maintenance at Mamatwan in the March 2025 quarter and a temporary shut at Wessels in the prior quarter. FY25 production guidance remains unchanged at 2,000kwmt.

Sales decreased by 18% in the March 2025 quarter as port congestion impacted the timing of shipments.

NOTES

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

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

Approved for release to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited

17 April 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