QUARTERLY REPORT

June 2026

South32 delivers strong operating results and accelerates its portfolio transition to base metals

South32 Chief Executive Officer, Matt Daley: "We continued to deliver strong operating results, exceeding Group production guidance for FY26. We increased quarterly sales volumes by 15%, capturing the benefit of strong market conditions across many of our commodities, and releasing working capital which added to the Group's cash generation.

"On 1 July, we announced a step change for South32, with the sale of our aluminium value chain business to Alcoa. Once complete, this sale will unlock significant value for shareholders and reposition South32 as a leading upstream base metals focused company.

"Our portfolio will be built around high-margin, long-life assets in favourable jurisdictions, with approximately 85% of pro-forma earnings from base and precious metals and approximately 55% production growth from approved projects.

"We achieved significant milestones for our copper and zinc development projects during the period. At Sierra Gorda, the fourth grinding line project was approved for execution, which is expected to increase our share of copper equivalent production by approximately 30%. At Hermosa, we continued construction of the Taylor zinc-lead-silver project in line with our recent project update, and a Final Record of Decision was received on 7 July, completing the federal permitting process under the National Environmental Policy Act.

"Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders."

CORPORATE UPDATE

DEVELOPMENT AND EXPLORATION UPDATE

Hermosa project

Ambler Metals project

Exploration

MARKETING UPDATE

The average realised prices achieved for our commodities are summarised below. Provisionally priced sales were revalued at 30 June 2026 with the final price of these to be determined in H1 FY27.

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

As previously announced, the conflict in the Middle East has resulted in higher raw material input prices and freight rates. Despite these impacts and stronger producer currencies, Operating unit costs have been well controlled in FY26, supported by stable production results and a continued focus on cost efficiencies.

The below commentary reflects our current expectations for FY26 Operating unit costs. We will report FY26 Operating unit costs with our FY26 results.

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

b.         FY26e 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.

SIERRA GORDA (45% SHARE, NON-OPERATED)

Sierra Gorda payable copper equivalent production³ was 87.1kt in FY26, exceeding guidance by 2%, despite lower grades in Q4 FY26, reflecting the processing of lower grade material to supplement ore feed following weather-related impacts to mine access. FY27 production guidance remains unchanged at 90.2kt.

Sales increased by 13% in Q4 FY26 as weather-related port congestion eased.

On 30 June 2026, the Sierra Gorda joint venture approved execution of the fourth grinding line project². This high-returning brownfield plant expansion project is expected to increase processing capacity by approximately 25% to ~60Mtpa (100% basis), with growth capital expenditure of ~US$725M (100% basis) over FY27 to FY30²⁴.

On 8 June 2026, Sierra Gorda and BHP's Minera Spence signed a non-binding memorandum of understanding for the purpose of identifying and evaluating opportunities for operational collaboration.

CANNINGTON (100% SHARE)

Cannington payable zinc equivalent production⁶ was 205.4kt in FY26, exceeding guidance by 2%, supported by an 11% increase in ore processed as lower grade stockpiled material was milled. Production increased by 29% (or 13.0kt) in Q4 FY26, reflecting improved underground mining rates following weather-related disruptions in Q3 FY26, and higher average metal grades. FY27 production guidance remains unchanged at 204.7kt.

Zinc, lead and silver sales increased in Q4 FY26 as third-party rail access was restored following weather-related outages in the prior quarter. 

Cannington continued to progress underground and open pit development studies to extend mine life. A final investment decision for the open pit development is targeted for H1 FY28.

AUSTRALIA MANGANESE (60% SHARE)

Australia Manganese saleable production was 3,031kwmt in FY26, in line with revised guidance, as the operation managed significant wet season impacts and elevated site water levels.

Water management remains a focus for the operation, with work ongoing to progress approvals, infrastructure investment and mine planning to manage elevated water volumes. Revised FY27 production guidance will be provided with our FY26 results, as this work is completed.

Sales were 3,598kwmt in FY26, as the operation drew down inventory.

SOUTH AFRICA MANGANESE (54.6% SHARE)

South Africa Manganese saleable production was 2,085kwmt in FY26, exceeding guidance by 4%, with production increasing by 6% (or 28kwmt) in Q4 FY26 following planned maintenance in the prior quarter. FY27 production guidance remains unchanged at 2,000kwmt, subject to our continued use of higher cost trucking.

WORSLEY ALUMINA (86% SHARE)

Worsley Alumina saleable production was largely unchanged at 3,722kt in FY26, with improved bauxite availability offset by a temporary, weather-related disruption to third-party gas supply in Q3 FY26. FY27 production guidance remains unchanged at 3,900kt.

BRAZIL ALUMINA (36% SHARE, NON-OPERATED)

Brazil Alumina saleable production increased by 5% (or 71kt) to a record 1,411kt in FY26, exceeding guidance by 4%, as the refinery operated above nameplate capacity driven by improved plant availability. FY27 production guidance remains unchanged at 1,360kt.

BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)

Brazil Aluminium saleable production increased by 4% (or 6kt) to 144kt in FY26, exceeding revised guidance by 7%, as the smelter continued to ramp-up all three potlines. Production increased by 12% (or 4kt) in Q4 FY26 as the smelter embedded measures to deliver improved process stability. FY27 production guidance remains unchanged at 140kt.

Sales increased by 56% in Q4 FY26, reflecting the timing of export shipments.

HILLSIDE ALUMINIUM (100% SHARE)

Hillside Aluminium saleable production was largely unchanged at 717kt in FY26, as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding. FY27 production guidance remains unchanged at 720kt⁷.

Sales increased by 10% in Q4 FY26 due to a carry-over shipment from the prior quarter.

MOZAL ALUMINIUM (63.7% SHARE, CARE & MAINTENANCE)

Mozal Aluminium saleable production was 248kt in the period to March 2026, when the smelter was placed on care and maintenance²⁵.     

Sales were 46kt in Q4 FY26 as remaining finished goods inventories were sold.

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 Matt Daley, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited

20 July 2026

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