REG - South32 Limited - Acquisition of Additional Shareholding in Mozal

South32Announcement

31/05/2022 14:45

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RNS Number : 4397N  South32 Limited  31 May 2022

31 May 2022

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

 

SOUTH32 COMPLETES ACQUISITION OF ADDITIONAL SHAREHOLDING IN MOZAL ALUMINIUM

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to
announce that today we successfully completed the acquisition of an additional
16.6% shareholding and related rights in Mozal Aluminium from MCA Metals
Holding GmbH (Mitsubishi) 1  (#_ftn1) . The final cash consideration of
~US$200 2  (#_ftn2) million reflects elevated cash and working capital
adjustments at acquisition date as the business continues to benefit from
strong aluminium prices. Following completion, our shareholding in Mozal
Aluminium will increase to 63.7%, with our equity share of aluminium
production now expected to be 281kt for FY22e and 370kt for FY23e.

South32 Chief Executive Officer, Graham Kerr said: "Our acquisition of an
additional interest in Mozal Aluminium is another major milestone and comes 22
years following the commissioning of the hydro-powered smelter. It further
integrates our position along the aluminium value chain with the smelter a
major customer of our Worsley Alumina refinery.

"We are continuing to increase our exposure to metals important to a low
carbon future. Following today's completion and the progress with the Alumar
aluminium smelter restart in Brazil using 100% renewable power 3  (#_ftn3) ,
we remain on track to grow our annualised equity share of green aluminium
production by more than 100% before the end of FY23, taking the Group's total
aluminium production next year to 1,230kt."

About us

South32 is a globally diversified mining and metals company. Our purpose is to
make a difference by developing natural resources, improving people's lives
now and for generations to come. We are trusted by our owners and partners to
realise the potential of their resources. We produce commodities including
bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical
coal and manganese from our operations in Australia, Southern Africa and South
America. With a focus on growing our base metals exposure, we also have two
development options in North America and several partnerships with junior
explorers around the world.

 Investor Relations
 Alex Volante                                          Tom Gallop

T          +61 8 9324 9029
T          +61 8 9324 9030

M        +61 403 328 408
M        +61 439 353 948

E          Alex.Volante@south32.net
E          Tom.Gallop@south32.net
 Media Relations
 Jamie Macdonald                                       Miles Godfrey

T          +61 8 9324 9000                           T          +61 8 9324 9000

M        +61 408 925 140                             M        +61 415 325 906

E          Jamie.Macdonald@south32.net
E          Miles.Godfrey@south32.net

Further information on South32 can be found at www.south32.net
(http://www.south32.net) .

Approved for release by Graham Kerr, Chief Executive Officer

JSE Sponsor:  The Standard Bank of South Africa Limited

31 May 2022

 

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
connection with COVID-19.

 

 1  (#_ftnref1) Refer to market release "South32 to acquire up to an
additional 25% of Mozal Aluminium" dated 30 September 2021.

 2  (#_ftnref2) The final cash consideration reflects a headline purchase
price of US$166M adjusted for working capital, net debt, and joint profit
sharing on our        increased shareholding with Mitsubishi for the
period from 1 July 2021 until completion.

 3  (#_ftnref3) Refer to market release "Restart of Brazil Aluminium using
renewable power" dated 6 January 2022.

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