Wrap Text
Quarterly Report June 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
south32.net
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."
• Announced the sale of our aluminium value chain assets (excluding Mozal Aluminium) to Alcoa Corporation for an implied enterprise value of up to US$5.6B plus
~US$1.2B of related rehabilitation provisions. The transaction is expected to complete in H2 FY271.
• Aluminium production exceeded FY26 guidance by 1%, while alumina production was in line with guidance.
• Sierra Gorda exceeded FY26 production guidance by 2% and delivered record annual distributions of US$401M (South32 share).
• Sierra Gorda joint venture approved execution of the fourth grinding line project2, a high-returning plant expansion that is expected to
increase copper equivalent production3 by ~30%4 from FY31.
• Cannington had a strong finish to the year, delivering a 29% increase in quarterly production and exceeding FY26 guidance by 2%.
• Invested ~US$710M at Hermosa in FY26 as we advanced construction of the Taylor zinc-lead-silver project.
• Announced a project update for Taylor on 30 April 2026, which reaffirmed Taylor's potential to deliver attractive returns from its long-
life, low-cost production of zinc, silver and lead5.
• Ambler Metals commenced summer field season drilling and advanced development studies for the high-grade Arctic deposit.
• Manganese production exceeded FY26 guidance by 2%, with South Africa Manganese increasing quarterly production by 6%.
• Australia Manganese continued 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.
• All other FY27 production guidance remains unchanged.
Production summary
3Q26 4Q26 FY26 FY26e(a) % of FY26e(a)
Sierra Gorda (non-operated) (CuEq) (kt)3 20.2 19.9 87.1 85.7 102%
Cannington (ZnEq) (kt)6 44.8 57.8 205.4 200.6 102%
Australia Manganese (kwmt) 589 782 3,031 3,000 101%
South Africa Manganese (kwmt) 500 528 2,085 2,000 104%
Worsley Alumina (kt) 886 943 3,722 3,750 99%
Brazil Alumina (non-operated) (kt) 351 351 1,411 1,360 104%
Brazil Aluminium (non-operated) (kt) 33 37 144 135 107%
Hillside Aluminium (kt)7 176 179 717 720 100%
South32 Quarterly Report June 2026 Page 1 of 9
Mozal Aluminium (kt)7 65 — 248 240(b) 103%
(a) The denotation (e) refers to an estimate or forecast year.
(b) FY26e production guidance for Mozal Aluminium reflects the period ending March 2026, with the smelter transitioning to care and maintenance as planned.
CORPORATE UPDATE
• On 1 July 2026, Mr. Matt Daley commenced as Chief Executive Officer (CEO) and Managing Director of South32, marking the completion of
the previously announced CEO transition plan with Mr. Graham Kerr1.
• On 1 July 2026, we announced a binding conditional agreement to sell our aluminium value chain assets (excluding Mozal Aluminium) to
Alcoa Corporation for an implied enterprise value of up to US$5.6B, plus related rehabilitation provisions of approximately US$1.2B (the
Transaction). The Transaction is expected to complete in H2 FY27, subject to satisfaction or waiver of conditions precedent, including
South32 shareholder approval1.
• Group sales volumes increased by 15% in Q4 FY26, as we sold final inventories at Mozal Aluminium and third-party rail access was restored
at Cannington following weather-related outages in the prior quarter. We expect to record a working capital unwind of ~US$200M in H2
FY26 (H1 FY26: build of US$130M), reflecting a draw down of inventories.
• We received US$503M (South32 share) of net distributions8 from equity accounted investments (EAI) in FY26 (US$401M from Sierra Gorda
and US$102M from our manganese business), including US$128M (South32 share) of net distributions in Q4 FY26 (US$86M from Sierra
Gorda and US$42M from our manganese business).
• We invested ~US$325M in Group capital expenditure (excluding EAIs and Hermosa) in FY26.
• We made Group tax payments (excluding EAIs) of US$285M in FY26.
• We returned US$327M to shareholders during FY26, including US$292M9 in fully-franked ordinary dividends and US$35M via our on-market share
buy-back10. Our US$2.6B capital management program is 92% complete, with US$209M remaining to be returned to shareholders ahead of its
extension or expiry on 26 February 202711.
• FY26 Group and unallocated expense in Underlying EBIT is expected to be ~US$60M, primarily reflecting favourable inter-group inventory
adjustments in our aluminium value chain.
• Additional lease liabilities with a value of ~US$115M were added to the Group's balance sheet in FY26.
• We expect to recognise costs related to Mozal Aluminium's transition to care and maintenance, including employee separation costs and termination of
contractual arrangements (US$33M), and non-cash write-down of raw materials and consumables and work in progress inventories (US$89M) in our FY26
results. These one-off costs will be excluded from Underlying earnings as significant items.
• Our FY26 Group Underlying effective tax rate (ETR) (including EAIs) is expected to be ~33%, reflecting the corporate tax rates12 and royalty related
taxes13 of the jurisdictions in which we operate and our geographical earnings mix.
DEVELOPMENT AND EXPLORATION UPDATE
Hermosa project
• We invested ~US$710M14 of growth capital expenditure at Hermosa in FY26, continuing construction of the Taylor zinc-lead-silver project
(Taylor), and completing the exploration decline at the Clark battery-grade manganese deposit in Q2 FY26. In addition, lease payments for
self generated power and other assets were ~US$50M in FY26.
• On 30 April 2026, we announced an update on the Taylor project5. This included an increase in Taylor's initial operating life by 5 years to ~33 years15,
first production expected in H2 FY28, and growth capital expenditure updated to US$3.3B. Based on updated assumptions, Taylor is expected to
deliver steady-state EBITDA of ~US$650M16 per annum and a net present value of ~US$3.1B17.
• Underground development and surface infrastructure construction progressed in accordance with the Taylor project update. Lateral
development and shaft station construction at the first underground mining level from the main shaft was completed during the quarter, while
the ventilation shaft is on track to reach the primary production level in Q1 FY27.
• On 7 July 2026, the United States Forest Service released the Final Record of Decision for Hermosa18, completing the federal permitting process under
the National Environmental Policy Act. A subsequent Notice to Proceed is on track for Q1 FY27.
• We invested US$30M in capitalised exploration in FY26, with ongoing exploration drilling at the Peake copper deposit to test the potential
for a continuous mineralised system connecting Peake and Taylor Deeps.
Ambler Metals project
• Ambler Metals joint venture (50% South32 share) commenced summer field season work during the quarter, including geotechnical and
condemnation drilling to support development studies for the high-grade Arctic polymetallic deposit.
• On 14 May 2026, Arctic was accepted as a covered project under FAST-4119, with the permitting timetable published following the end of
the quarter.
Exploration
• We invested US$34M in our greenfield exploration opportunities in FY26, progressing multiple exploration programs targeting base metals
in highly prospective regions.
South32 Quarterly Report June 2026 Page 2 of 9
• We invested US$60M (US$44M capitalised) in exploration programs at our existing operations and development options in FY26, including
US$30M at our Hermosa project (noted above, all capitalised), US$12M for our Sierra Gorda EAI (US$6M capitalised) and US$5M for our
manganese EAI (US$1M capitalised).
MARKETING UPDATE
The average realised prices achieved for our commodities are summarised below. Provisionally priced sales were revalued at 30 June 2026 with
the final price of these to be determined in H1 FY27.
Realised prices20
FY26 2H26
FY25 1H26 2H26 FY26 vs vs
FY25 1H26
Sierra Gorda (non-operated)21(a)
Payable copper (US$/lb) 4.18 5.55 6.33 5.92 42% 14%
Payable molybdenum (US$/lb) 21.12 23.31 30.16 25.90 23% 29%
Payable gold (US$/oz) 2,877 4,107 5,000 4,462 55% 22%
Payable silver (US$/oz) 31.7 55.2 84.0 70.6 123% 52%
Cannington21
Payable silver (US$/oz) 31.9 58.4 75.2 66.4 108% 29%
Payable lead (US$/t) 1,883 1,897 1,995 1,944 3% 5%
Payable zinc (US$/t) 2,648 2,840 3,128 3,000 13% 10%
Australia Manganese22
Manganese ore (US$/dmtu, FOB) 3.68 3.81 4.66 4.23 15% 22%
South Africa Manganese22
Manganese ore (US$/dmtu, FOB) 3.71 3.36 3.95 3.65 (2%) 18%
Worsley Alumina
Alumina (US$/t) 518 400 324 363 (30%) (19%)
Brazil Alumina (non-operated)(a)
Alumina (US$/t) 555 371 341 356 (36%) (8%)
Brazil Aluminium (non-operated)(a)
Aluminium (US$/t) 2,572 2,757 3,435 3,084 20% 25%
Hillside Aluminium
Aluminium (US$/t) 2,717 2,868 3,660 3,250 20% 28%
Mozal Aluminium (care & maintenance)
Aluminium (US$/t) 2,789 2,920 3,691 3,237 16% 26%
a. While Brazil Alumina and Brazil Aluminium are non-operated, South32 owns the marketing rights for our share of production. While Sierra Gorda is also non-operated, the joint
venture is responsible for marketing our share of production.
OPERATING UNIT COST UPDATE
As previously announced, the conflict in the Middle East has resulted in higher raw material input prices and freight rates. Despite these impacts
and stronger producer currencies, Operating unit costs have been well controlled in FY26, supported by stable production results and a continued
focus on cost efficiencies.
The below commentary reflects our current expectations for FY26 Operating unit costs. We will report FY26 Operating unit costs with our FY26
results.
Operating unit cost(a)
Current Guidance
FY26 Operating unit cost commentary
FY26e(b)(c)
Sierra Gorda (non-operated)
FY26: expected to be ~10% above FY26 guidance, reflecting the timing of a
(US$/t)(d) 17.0
previously announced one-off workforce payment, and higher diesel prices.
Cannington
FY26: expected to be ~10% below FY26 guidance, with higher ore processed
(US$/t)(d) 205
more than offsetting higher price-linked royalties and a stronger Australian dollar.
Australia Manganese
South32 Quarterly Report June 2026 Page 3 of 9
FY26: expected to be ~10% above FY26 guidance, reflecting higher diesel prices
(US$/dmtu, FOB) 2.40
and a stronger Australian dollar.
South Africa Manganese
FY26: expected to be ~5% above FY26 guidance, with improved access to cost-
(US$/dmtu, FOB) 3.10
efficient rail logistics more than offset by a stronger South African rand.
Worsley Alumina
(US$/t) 310 FY26: expected to be in line with FY26 guidance.
Brazil Alumina (non-operated)
(US$/t) Not provided FY26: expected to be in line with H1 FY26 Operating unit costs (US$320/t).
Brazil Aluminium (non-operated)
(US$/t) Not provided FY26: expected to be in line with H1 FY26 Operating unit costs (US$2,919/t).
Hillside Aluminium
The cost profile of Hillside Aluminium is heavily influenced by the South African
(US$/t) Not provided rand, and the price of raw materials and energy.
FY26: expected to be in line with H1 FY26 Operating unit costs (US$2,295/t).
Mozal Aluminium (care & maintenance)
(US$/t) Not provided FY26: expected to be in line with H1 FY26 Operating unit costs (US$2,556/t).
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Payable copper equivalent production (kt)3 89.7 87.1 (3%) 22.3 20.2 19.9 (11%) (1%)
Payable copper production (kt) 71.4 69.2 (3%) 17.7 16.9 16.0 (10%) (5%)
Payable copper sales (kt) 72.9 69.1 (5%) 18.1 15.3 17.3 (4%) 13%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Payable zinc equivalent production (kt)6 234.2 205.4 (12%) 59.5 44.8 57.8 (3%) 29%
Payable silver production (koz) 10,292 8,906 (13%) 2,578 1,913 2,506 (3%) 31%
Payable silver sales (koz) 11,019 8,693 (21%) 3,056 882 3,241 6% 267%
Payable lead production (kt) 92.4 82.9 (10%) 25.1 17.8 22.8 (9%) 28%
South32 Quarterly Report June 2026 Page 4 of 9
Payable lead sales (kt) 99.3 82.8 (17%) 25.2 9.3 30.8 22% 231%
Payable zinc production (kt) 44.5 39.2 (12%) 10.6 9.1 11.4 8% 25%
Payable zinc sales (kt) 45.7 38.0 (17%) 13.1 8.8 12.3 (6%) 40%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Manganese ore production (kwmt) 1,106 3,031 174% 467 589 782 67% 33%
Manganese ore sales (kwmt) 253 3,598 — 253 868 921 264% 6%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Manganese ore production (kwmt) 2,151 2,085 (3%) 593 500 528 (11%) 6%
Manganese ore sales (kwmt) 2,096 2,181 4% 601 501 586 (2%) 17%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Alumina production (kt) 3,727 3,722 (0%) 936 886 943 1% 6%
Alumina sales (kt) 3,699 3,630 (2%) 1,000 836 931 (7%) 11%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Alumina production (kt) 1,340 1,411 5% 334 351 351 5% 0%
South32 Quarterly Report June 2026 Page 5 of 9
Alumina sales (kt) 1,349 1,409 4% 335 333 357 7% 7%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Aluminium production (kt) 138 144 4% 38 33 37 (3%) 12%
Aluminium sales (kt) 138 143 4% 46 27 42 (9%) 56%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Aluminium production (kt) 718 717 (0%) 181 176 179 (1%) 2%
Aluminium sales (kt) 732 688 (6%) 194 158 174 (10%) 10%
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)
4Q26 4Q26
South32 share FY25 FY26 YoY 4Q25 3Q26 4Q26 vs vs
4Q25 3Q26
Aluminium production (kt) 355 248 (30%) 90 65 — N/A N/A
Aluminium sales (kt) 351 275 (22%) 105 67 46 (56%) (31%)
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
1. Refer to market release "Agreement to sell aluminium value chain assets to Alcoa for up to US$5.6B and Chief Executive Officer transition" dated 1 July 2026.
2. Refer to market release "Final investment approval for Sierra Gorda's fourth grinding line" dated 1 July 2026.
3. Payable copper equivalent production (CuEq) (kt) was calculated by aggregating revenues from copper, molybdenum, gold and silver, and dividing the total Revenue by the price of copper. FY25 realised prices for copper
(US$4.18/lb), molybdenum (US$21.12/lb), gold (US$2,877/oz) and silver (US$31.7/oz) have been used for FY25, FY26 and FY27e.
4. Compared to FY26 guidance of 190kt CuEq (copper 160kt, molybdenum 2.7kt, gold 40.0koz and silver 1,333koz) (100% basis). The information in this announcement that refers to Production Target and forecast financial
information for Sierra Gorda is based on 309Mt of Proved (27%) and 399Mt of Probable (35%) Ore Reserves and 18Mt of Indicated (2%) and 426Mt Inferred (37%) Mineral Resources which was originally disclosed in "South32
FY25 Annual Report" dated 29 August 2025. The Mineral Resources and Ore Reserves underpinning the Production Target have been prepared by Competent Persons in accordance with the JORC Code. South32 confirms that all
the material assumptions underpinning the Production Target in the initial public report referred to in ASX Listing Rule 5.16 continue to apply and have not materially changed. There is low level of geological confidence associated
with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target will be realised. South32 confirms that inclusion
of 37% of tonnage (37% Inferred Mineral Resources) is not the determining factor of the Project viability, and the Project forecasts a positive financial performance when using 63% tonnage (27% Proved and 35% Probable Ore
Reserves and 2% Indicated Mineral Resources). South32 is satisfied, therefore, that the use of Inferred Mineral Resources in the Production Target and forecast financial information reporting is reasonable.
5. Refer to market release "Hermosa project update" dated 30 April 2026.
6. Payable zinc equivalent production (ZnEq) (kt) was calculated by aggregating revenues from silver, lead and zinc, and dividing the total Revenue by the price of zinc.FY25 realised prices for zinc (US$2,648/t), lead
(US$1,883/t) and silver (US$31.9/oz) have been used for FY25, FY26 and FY27e.
7. Production guidance for Hillside Aluminium and Mozal Aluminium does not assume any load-shedding impact on production.
South32 Quarterly Report June 2026 Page 6 of 9
8. Net distributions from our material equity accounted investments (EAI) (manganese and Sierra Gorda) include dividends, capital contributions/redemptions and net repayments/drawdowns of shareholder loans,
which are unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial
performance or liquidity.
9. Comprised of US$117M in respect of H2 FY25 paid in Q2 FY26 and US$175M in respect of H1 FY26 paid in Q4 FY26.
10. We returned US$35M via the on-market share buy-back in FY26, purchasing 17M shares at an average price of A$3.08 per share.
11. Since inception of our capital management program, US$1.8B has been allocated to our on-market share buy-back (837M shares at an average price of A$3.06 per share) and US$525M returned in the form of special
dividends.
12. The corporate tax rates of the geographies where the Group operates include: Australia 30%, South Africa 27%, Colombia 35%, Mozambique 0%, Brazil 34%, and Chile 27%. The Mozambique operations are subject
to a royalty on revenues instead of income tax.
13. Australia Manganese is subject to a royalty related tax equal to 20% of adjusted EBIT. Sierra Gorda is subject to a royalty related tax based on the amount of copper sold and the mining operating margin, the rate is
between 5% and 14% for annual sales over 50kt of refined copper. These royalties are included in Underlying tax expense.
14. Hermosa growth capital expenditure excludes lease payments for self generated power and other assets directly attributable to construction of infrastructure at the Taylor project. These costs were included in our
capital cost estimate provided in market release "Hermosa project update" dated 30 April 2026.
15. The information in this announcement that refers to the Production Target and forecast financial information for the Taylor deposit is based on Proved (41Mt, 32%) and Probable (58Mt, 44%) Ore Reserves and
Measured (1.1Mt, 1%), Indicated (4.2Mt, 3%), Inferred (13Mt, 10%) Mineral Resources and Exploration Target (13Mt, 10%). The Ore Reserves, Mineral Resources and Exploration Target underpinning the Production
Target were declared as part of the "Hermosa Project Update" (www.south32.net) dated 30 April 2026 and have been prepared by Competent Persons and reported in accordance with the JORC Code. All material
assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. South32 confirms that the form and context in which
the Competent Persons' findings are presented have not been materially modified from the original market announcement. There is low level of geological confidence associated with Inferred Mineral Resources
and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target will be realised. The potential quantity and grade of the Exploration
Target is conceptual in nature. In respect of the Exploration Target used in the Production Target, there has been insufficient exploration to determine a Mineral Resource and there is no certainty that further
exploration work will result in the determination of Mineral Resources or that the Production Target itself will be realised. The stated Production Target is based on South32's current expectations of future results or
events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this Production Target
will be met. South32 confirms that inclusion of 20% of tonnage (10% Inferred Mineral Resources and 10% Exploration Target) is not the determining factor of the project viability and the project forecasts a positive
financial performance when using 80% tonnage (32% Proved and 44% Probable Ore Reserves and 1% Measured and 3% Indicated Mineral Resources). South32 is satisfied, therefore, that the use of Inferred Mineral
Resources, the Exploration Target in the Production Target and forecast financial information reporting is reasonable.
16. Average EBITDA calculated over the steady state production years (FY31-FY59).
17. Based on a valuation date of 1 July 2026.
18. Refer to Hermosa news release "U.S. Forest Service issues Final Record of Decision for South32 Hermosa" dated 7 July 2026.
19. Refer to news release by Trilogy Metals Inc. "Trilogy Metals Announces Acceptance of Alaska's High-Grade Arctic Copper-Zinc-Lead-Gold-Silver Project into the FAST-41 Federal Permitting Program" dated 15 May
2026 (https://trilogymetals.com/news-and-media/news/trilogy-metals-announces-acceptance-of-alaskas-high-grade-arctic-copper-zinc-lead-gold-silver-project-into-the-fast-41-federal-permitting-program/).
20. Realised prices are unaudited. Volumes and prices do not include any third party trading that may be undertaken independently of equity production. Realised sales price is calculated as sales Revenue divided by
sales volume unless otherwise stated.
21. Realised prices for Sierra Gorda and Cannington are net of treatment and refining charges.
22. Realised Manganese ore prices are calculated as external sales Revenue less freight and marketing costs, divided by external sales volume.
23. FY26e Operating unit cost guidance includes royalties (where appropriate), the influence of exchange rates, and includes various assumptions for FY26, including: an alumina price of US$340/t; a manganese ore price
of US$4.40/dmtu for 44% manganese product; a silver price of US$47.0/oz; a lead price of US$2,000/t (gross of treatment and refining charges); a zinc price of US$2,980/t (gross of treatment and refining charges); a
copper price of US$4.80/lb (gross of treatment and refining charges); a molybdenum price of US$22.00/lb (gross of treatment and refining charges); a gold price of US$3,900/oz; an AUD:USD exchange rate of 0.66;
a USD:ZAR exchange rate of 17.50; a USD:COP exchange rate of 3,940; USD:CLP exchange rate of 950; and a reference price for caustic soda; which reflect forward markets as at February 2026 or our internal
expectations.
24. US dollars (real). Based on a USD:CLP exchange rate of 900. Reflects ~US$190M in FY27, ~US$290M in FY28, ~US$200M in FY29 and ~US$45M in FY30.
25. Refer to market release "Mozal Aluminium placed on care and maintenance" dated 16 March 2026.
The following abbreviations have been used throughout this report: US$ 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
South32 share FY25 FY26 4Q25 1Q26 2Q26 3Q26 4Q26
Sierra Gorda (45% share)
Ore mined (Mt) 23.0 19.6 5.5 5.5 6.1 4.5 3.5
Ore processed (Mt) 21.7 21.0 5.4 5.5 5.4 4.9 5.2
Copper ore grade processed (%, Cu) 0.42 0.42 0.40 0.42 0.42 0.45 0.41
Payable copper equivalent production (kt)3 89.7 87.1 22.3 24.9 22.1 20.2 19.9
Payable copper production (kt) 71.4 69.2 17.7 18.3 18.0 16.9 16.0
Payable copper sales (kt) 72.9 69.1 18.1 17.2 19.3 15.3 17.3
Payable molybdenum production (kt) 1.5 1.9 0.4 0.8 0.4 0.3 0.4
Payable molybdenum sales (kt) 1.3 2.1 0.3 0.6 0.7 0.3 0.5
Payable gold production (koz) 27.9 18.5 6.3 6.3 4.6 3.7 3.9
South32 Quarterly Report June 2026 Page 7 of 9
Payable gold sales (koz) 28.5 18.6 6.3 5.9 5.3 3.2 4.2
Payable silver production (koz) 584 741 152 159 189 204 189
Payable silver sales (koz) 599 737 152 151 193 186 207
Cannington (100% share)
Ore mined (kwmt) 1,960 2,113 504 585 503 461 564
Ore processed (kdmt) 1,944 2,163 535 504 505 545 609
Silver ore grade processed (g/t, Ag) 191 150 175 148 170 133 151
Lead ore grade processed (%, Pb) 5.6 4.6 5.6 5.0 5.1 4.1 4.4
Zinc ore grade processed (%, Zn) 3.1 2.6 2.8 2.3 2.9 2.4 2.8
Payable zinc equivalent production (kt)6 234.2 205.4 59.5 48.3 54.5 44.8 57.8
Payable silver production (koz) 10,292 8,906 2,578 2,067 2,420 1,913 2,506
Payable silver sales (koz) 11,019 8,693 3,056 2,149 2,421 882 3,241
Payable lead production (kt) 92.4 82.9 25.1 21.3 21.0 17.8 22.8
Payable lead sales (kt) 99.3 82.8 25.2 21.0 21.7 9.3 30.8
Payable zinc production (kt) 44.5 39.2 10.6 8.3 10.4 9.1 11.4
Payable zinc sales (kt) 45.7 38.0 13.1 7.3 9.6 8.8 12.3
Australia Manganese (60% share)
Manganese ore production (kwmt) 1,106 3,031 467 854 806 589 782
Manganese ore sales (kwmt) 253 3,598 253 944 865 868 921
Ore grade sold (%, Mn) 41.7 41.6 41.7 41.4 41.4 41.7 41.9
South Africa Manganese (54.6% share)
Manganese ore production (kwmt) 2,151 2,085 593 551 506 500 528
Manganese ore sales (kwmt) 2,096 2,181 601 548 546 501 586
Ore grade sold (%, Mn) 38.9 38.5 38.7 38.3 38.4 38.8 38.5
Worsley Alumina (86% share)
Alumina hydrate production (kt) 3,725 3,741 922 940 955 899 947
Alumina production (kt) 3,727 3,722 936 934 959 886 943
Alumina sales (kt) 3,699 3,630 1,000 878 985 836 931
Brazil Alumina (36% share)
Alumina production (kt) 1,340 1,411 334 354 355 351 351
Alumina sales (kt) 1,349 1,409 335 332 387 333 357
Brazil Aluminium (40% share)
Aluminium production (kt) 138 144 38 37 37 33 37
Aluminium sales (kt) 138 143 46 29 45 27 42
Hillside Aluminium (100% share)
Aluminium production (kt) 718 717 181 181 181 176 179
Aluminium sales (kt) 732 688 194 169 187 158 174
Mozal Aluminium (63.7% share, care & maintenance)
Aluminium production (kt) 355 248 90 93 90 65 —
Aluminium sales (kt) 351 275 105 100 62 67 46
South32 Quarterly Report June 2026 Page 8 of 9
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
INVESTOR RELATIONS MEDIA RELATIONS
Ben Baker Jamie Macdonald
M +61 403 763 086 M +61 408 925 140
E Ben.Baker@south32.net E Jamie.Macdonald@south32.net
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 Quarterly Report June 2026 Page 9 of 9
Date: 20-07-2026 07:43:00
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