QUARTERLY REPORT

June 2025

South32 Chief Executive Officer, Graham Kerr: "We delivered another strong quarter of operating performance, exceeding the Group's FY25 production guidance, driven by annual production growth of 20% in copper and 6% in aluminium.

"Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan. 

"We continued to streamline our portfolio toward higher-returning businesses, completing the sale of Illawarra Metallurgical Coal in the first half and agreeing to divest Cerro Matoso in July.

"We invested US$517M in our regional scale Hermosa project in FY25 to grow our future base metals production. This quarter, we achieved key milestones at Hermosa's Taylor zinc-lead-silver project, starting the main shaft sink and construction activities for the process plant.

"With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns."  

CORPORATE UPDATE

DEVELOPMENT AND EXPLORATION UPDATE

Hermosa project

Greenfield exploration

Other exploration

MARKETING UPDATE

The average realised prices achieved for our commodities are summarised below. Provisionally priced sales were revalued at 30 June 2025 with the final price of these to be determined in the December 2025 half year.

a.         While Brazil Alumina and Brazil Aluminium are non-operated, South32 owns the marketing rights for our share of production. While Sierra Gorda is also non-operated, the Joint Venture is responsible for marketing our share of production.

OPERATING UNIT COST UPDATE

FY25 Operating unit costs are expected to be in line with guidance, driven by strong operating performance and our continued focus on delivering cost efficiencies.

The below commentary reflects our current expectations for FY25 Operating unit costs. We will report FY25 Operating unit costs with our FY25 results announcement.

a.         Operating unit cost is Revenue less Underlying EBITDA, excluding third party sales, divided by sales volumes.

b.         FY25e Operating unit cost guidance includes royalties (where appropriate) and commodity price and foreign exchange rate forward curves or our

internal expectations (refer to footnote 23).

c.         The denotation (e) refers to an estimate or forecast year.

d.         US dollar per tonne of ore processed. Periodic movements in finished product inventory may impact Operating unit costs.

WORSLEY ALUMINA (86% SHARE)

Worsley Alumina saleable production decreased by 1% (or 50kt) to 3,727kt in FY25, as the operation managed constrained bauxite supply ahead of receiving environmental approvals for the Worsley Mine Development Project (Project)²⁴.  We commenced mining new bauxite areas under the Project, near our existing operations, in the June 2025 quarter, leading to improved bauxite availability. FY26 production guidance remains unchanged at 3,750kt. The refinery is expected to operate near nameplate capacity (4.6Mtpa, 100% basis) from FY27, with improved access to bauxite enabled by the Project.

BRAZIL ALUMINA (36% SHARE, NON-OPERATED)

Brazil Alumina saleable production increased by 4% (or 54kt) to 1,340kt in FY25, as the refinery benefitted from improved plant availability. Despite lower feed rates due to wet weather impacts in H2 FY25, the refinery achieved 99% of FY25 production guidance. Production volumes are expected to be largely unchanged in FY26 with guidance revised to 1,360kt (from 1,380kt).

BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)

Brazil Aluminium saleable production increased by 33% (or 34kt) to 138kt in FY25, exceeding guidance by 6%, as the smelter continued to ramp-up all three potlines. FY26 production guidance remains unchanged at 160kt.

Sales increased by 48% in the June 2025 quarter due to a carry-over export shipment from the prior quarter.

HILLSIDE ALUMINIUM (100% SHARE)

Hillside Aluminium saleable production was largely unchanged at 718kt in FY25, as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding. FY26 production guidance remains unchanged at 720kt⁷.

Sales increased by 13% in the June 2025 quarter as we drew down inventory.

MOZAL ALUMINIUM (63.7% SHARE)

Mozal Aluminium saleable production increased by 13% (or 41kt) to 355kt in FY25, as the smelter completed its operational recovery plan and operated near nameplate capacity in the June 2025 quarter, having successfully managed the impacts of civil unrest in Mozambique.  

Sales increased by 46% in the June 2025 quarter as improved product availability supported a planned draw down of inventory.

We are continuing to engage with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora Bassa and Eskom on securing affordable electricity supply to enable Mozal Aluminium to operate beyond March 2026 and maintain its substantial contribution to the economy of Mozambique⁶. Given the uncertainty of operating beyond March 2026, FY26 production guidance remains under review.

SIERRA GORDA (45% SHARE, NON-OPERATED)

Sierra Gorda payable copper equivalent production⁴ increased by 20% (or 14.6kt) to 88.1kt in FY25, exceeding guidance by 4%, as the operation realised higher copper grades and improved molybdenum recoveries.

FY26 payable copper equivalent production⁴ guidance is revised to 84.7kt (from 86.1kt) reflecting expected metal grades²⁵. 

CANNINGTON (100% SHARE)

Cannington payable zinc equivalent production⁸ decreased by 20% (or 60.6kt) to 241.9kt in FY25, as the operation continued to manage increased underground activity and complexity. Average metal grades also declined in accordance with the mine plan. Production increased by 23% in the June 2025 quarter, supported by improved underground mining rates following weather related disruptions in the prior quarter, in line with revised FY25 production guidance. 

During the June 2025 quarter, we progressed work to assess the optimal mine plan to manage increased underground complexity and deliver sustainable production volumes over the remaining mine life. We will provide an update on this work and revised FY26 production guidance with our FY25 results announcement.

CERRO MATOSO (99.9% SHARE)

Cerro Matoso payable nickel production decreased by 9% (or 3.5kt) to 37.1kt in FY25 due to lower planned nickel grades. Production improved by 9% in the June 2025 quarter and the operation exceeded FY25 production guidance by 6% as it achieved higher plant utilisation and recoveries.

Sales increased by 7% in the June 2025 quarter. Price realisations for our ferronickel product in FY25 reflected a discount of ~16% to the LME Nickel Index²⁶.

The divestment of Cerro Matoso is expected to complete in late H1 FY26, subject to the satisfaction or waiver of certain conditions⁵. Payable nickel production in H1 FY26 is expected to be approximately 16.0kt.

AUSTRALIA MANGANESE (60% SHARE)

Australia Manganese saleable production was 1,106kwmt in FY25, as we successfully resumed operations following the impacts of Tropical Cyclone Megan in the March 2024 quarter. The operation exceeded FY25 production guidance by 11% with the primary concentrator restarting in the June 2025 quarter. The operation is expected to deliver normalised production rates in FY26, with production guidance unchanged at 3,200kwmt.  

Export shipments recommenced in the quarter as planned, following completion of the wharf construction in May 2025. Shipping rates are expected to reach full capacity in the September 2025 quarter.

During the quarter, we finalised a new enterprise agreement to December 2027 for covered employees of Groote Eylandt Mining Company.

SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)

South Africa Manganese saleable production was largely unchanged at 2,151kwmt in FY25. The operation delivered a strong finish to the year, with production increasing by 25% in the June 2025 quarter following the prior period's planned maintenance shut, exceeding FY25 production guidance by 8%. While we will continue to monitor and respond to market conditions, FY26 production guidance remains unchanged at 2,000kwmt.

Sales increased by 48% in the June 2025 quarter due to carry-over shipments from the prior quarter. We realised a ~11% premium to the medium grade 37% manganese lump ore index²⁷ as we optimised our sales mix.

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

21 July 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