REG - South32 Limited - December 2025 Quarterly Report
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RNS Number : 8549P South32 Limited 22 January 2026
QUARTERLY REPORT
December 2025
South32 Chief Executive Officer, Graham Kerr: "We continued to deliver
consistent operating results, with FY26 production guidance maintained across
our operated assets and first half operating unit costs tracking in line with
guidance.
"Our consistent operating performance, combined with strengthening market
conditions, enabled the Group to maintain a strong financial position while
investing in our high-returning growth options and delivering returns to
shareholders.
"Completing the divestment of Cerro Matoso during the quarter further
simplified our business, consistent with our strategy to focus our portfolio
on high-quality operations and growth options in base metals.
"We also progressed construction of Hermosa's large-scale, long-life, Taylor
zinc-lead-silver project, and completed the exploration decline for the Clark
battery-grade manganese deposit.
"Sierra Gorda delivered strong copper volumes and cash returns, and we are
pursuing further copper growth through our pipeline of development options and
exploration prospects.
"During the quarter, our Ambler Metals joint venture approved a ~US$35M work
program to advance the high-grade Arctic polymetallic deposit and test
exploration targets within this underexplored, regional land package in
Alaska."
· FY26 production guidance remains unchanged for all operated assets. Guidance
for non-operated Brazil Aluminium is under review as we await the operator's
revised ramp-up profile, following lower than planned quarterly volumes.
· H1 FY26 Operating unit costs are tracking in line with or below FY26 guidance
across the majority of operations.
· Alumina production increased by 3% in the December 2025 half year, as Brazil
Alumina achieved record half year production and Worsley Alumina delivered
planned volumes while completing scheduled calciner maintenance.
· Aluminium production increased by 2% in the December 2025 half year, as
Hillside Aluminium continued to test its maximum technical capacity, while
Mozal Aluminium ceased pot relining ahead of its transition to care and
maintenance from March 2026(1).
· Sierra Gorda continued to perform ahead of FY26 guidance, delivering copper
production to plan and strong first half volumes of molybdenum, gold and
silver. Distributions of US$180M (South32 share) were received from Sierra
Gorda in the first half.
· Cannington payable zinc equivalent production(2) increased by 13% in the
December 2025 quarter, as the operation exceeded planned processing rates and
realised higher silver and zinc grades in accordance with the mine plan.
· Manganese production increased by 58% in the December 2025 half year, as
Australia Manganese returned to normalised production rates, while South
Africa Manganese completed planned maintenance.
· Invested US$338M at Hermosa in the December 2025 half year, progressing
construction of the shafts and surface infrastructure for the Taylor
zinc-lead-silver project, and completing the decline for the Clark
battery-grade manganese deposit.
· Returned US$152M to shareholders in the December 2025 half year, with US$117M
in fully-franked ordinary dividends and US$35M via our on-market share
buy-back.
Production summary
1Q26 2Q26 1H26 FY26e((a)) % of FY26e((a))
Worsley Alumina (kt) 934 959 1,893 3,750 50%
Brazil Alumina (non-operated) (kt) 354 355 709 1,360 52%
Brazil Aluminium (non-operated) (kt) 37 37 74 160((b)) 46%
Hillside Aluminium (kt)(3) 181 181 362 720 50%
Mozal Aluminium (kt)(3) 93 90 183 240((c)) 76%
Sierra Gorda (non-operated) (CuEq) (kt)(4) 24.9 22.1 47.0 85.7 55%
Cannington (ZnEq) (kt)(2) 48.3 54.5 102.8 200.6 51%
Australia Manganese (kwmt) 854 806 1,660 3,200 52%
South Africa Manganese (kwmt) 551 506 1,057 2,000 53%
(a) The denotation (e) refers to an estimate or forecast year.
(b) FY26e production guidance for Brazil Aluminium is under review.
(c) FY26e production guidance for Mozal Aluminium reflects the period ending
March 2026.
CORPORATE UPDATE
· We continue to implement our global Safety Improvement Program, including
investment in safety leadership through our LEAD Safely Every Day program,
together with further simplification of our systems and improved effectiveness
of controls.
· A non-binding advisory resolution in relation to our second Climate Change
Action Plan was passed by shareholders at our Annual General Meeting in
October 2025, with 90% of the votes cast in favour of the resolution.
· On 16 December 2025, we announced that Mozal Aluminium would be placed on care
and maintenance on or around 15 March 2026 due to the inability to secure
sufficient and affordable electricity supply(1).
· On 1 December 2025, we completed the divestment of Cerro Matoso to a
subsidiary of CoreX Holding B.V.(5).
· Higher commodity prices and timing of sales contributed to a temporary
increase in working capital in the December 2025 quarter, with a total working
capital build of ~US$130M expected in H1 FY26. A drawdown of inventory at
Mozal Aluminium is expected to add to the Group's cash generation in H2
FY26.
· We received net distributions(6) of US$240M (South32 share) from our equity
accounted investments (EAI) in H1 FY26 (US$180M from Sierra Gorda and US$60M
from our manganese business), including US$123M (South32 share) in the
December 2025 quarter (US$99M from Sierra Gorda and US$24M from our manganese
business).
· We invested US$160M in Group capital expenditure (excluding EAIs and Hermosa)
in H1 FY26.
· We made Group tax payments (excluding EAIs) of US$129M in H1 FY26.
· We returned US$117M in fully-franked ordinary dividends in respect of the June
2025 half year during the December 2025 quarter.
· We also returned US$35M via our on-market share buy-back in H1 FY26,
purchasing 17M shares at an average price of A$3.08 per share. Our US$2.5B
capital management program is 96% complete, with US$109M to be returned to
shareholders ahead of its extension or expiry on 11 September 2026(7).
· Additional lease liabilities with a value of ~US$63M were added to the Group's
balance sheet in H1 FY26.
· Our H1 FY26 Group Underlying effective tax rate (ETR) (including EAIs) is
expected to be ~34%, reflecting the corporate tax rates(8) and royalty related
taxes(9) of the jurisdictions in which we operate and our geographical
earnings mix.
DEVELOPMENT AND EXPLORATION UPDATE
Hermosa project
· We invested US$338M(10) of growth capital expenditure at Hermosa in H1 FY26,
as we progressed construction of the Taylor zinc-lead-silver project, and
completed the exploration decline for the Clark battery-grade manganese
deposit. In addition, lease payments for self generated power assets were
US$24M in H1 FY26.
· At Taylor, we continued sinking the ventilation and main shafts. Lateral
development and shaft station construction at the first underground mining
level from the ventilation shaft commenced during the December 2025 quarter.
This work is on track for completion in the March 2026 quarter, after which
ventilation shaft sinking will resume.
· Surface infrastructure construction also progressed, with major components of
the primary mill and flotation circuit delivered to site during the December
2025 quarter.
· We invested US$14M in capitalised exploration in H1 FY26 as we continued
exploration drilling at the Peake copper deposit. Concept studies are
progressing on the potential to develop Peake, leveraging the infrastructure
established for Taylor.
Ambler Metals project
· In October 2025, the Alaska Industrial Development and Export Authority
(AIDEA) executed the right-of-way permits for the Ambler Access Road(11). This
followed the decision by the President of the United States to direct his
administration to reissue authorisations necessary for the establishment of
the Ambler Access Road(12).
· The Ambler Metals joint venture (50% South32 share) has approved a ~US$35M
(100% basis) budget for CY26 work programs, focused on exploration and
development activities for the high-grade Arctic polymetallic deposit(13).
· Our sale of ~8.2M shares in Trilogy Metals Inc., our 50% joint venture partner
in Ambler Metals, to the United States Government for ~US$17.8M(14) is
expected to complete in H2 FY26.
Exploration
· We invested US$15M in our greenfield exploration opportunities in H1 FY26 as
we progressed multiple exploration programs targeting base metals in highly
prospective regions.
· We invested US$30M (US$20M capitalised) in exploration programs at our
existing operations and development options in H1 FY26, including US$14M at
our Hermosa project (noted above, all capitalised), US$7M for our Sierra Gorda
EAI (US$4M capitalised) and US$3M for our manganese EAI (nil capitalised).
MARKETING UPDATE
The average realised prices achieved for our commodities are summarised below.
Provisionally priced sales were revalued at 31 December 2025 with the final
price of these to be determined in the June 2026 half year.
Realised prices(15)
1H25 2H25 1H26 1H26 1H26
vs vs
1H25 2H25
Worsley Alumina
Alumina (US$/t) 512 524 400 (22%) (24%)
Brazil Alumina (non-operated)((a))
Alumina (US$/t) 590 518 371 (37%) (28%)
Brazil Aluminium (non-operated)((a))
Aluminium (US$/t) 2,508 2,623 2,757 10% 5%
Hillside Aluminium
Aluminium (US$/t) 2,687 2,748 2,868 7% 4%
Mozal Aluminium
Aluminium (US$/t) 2,805 2,774 2,920 4% 5%
Sierra Gorda (non-operated)(16,(a))
Payable copper (US$/lb) 3.83 4.56 5.55 45% 22%
Payable molybdenum (US$/lb) 21.68 20.44 23.31 8% 14%
Payable gold (US$/oz) 2,593 3,252 4,107 58% 26%
Payable silver (US$/oz) 31.5 31.9 55.2 75% 73%
Cannington(16)
Payable silver (US$/oz) 29.4 34.2 58.4 99% 71%
Payable lead (US$/t) 1,823 1,956 1,897 4% (3%)
Payable zinc (US$/t) 2,739 2,555 2,840 4% 11%
Cerro Matoso(17)
Payable nickel (US$/lb) 6.12 5.87 5.72 (7%) (3%)
Australia Manganese(18)
Manganese ore (US$/dmtu, FOB) - 3.68 3.81 N/A 4%
South Africa Manganese(18)
Manganese ore (US$/dmtu, FOB) 3.85 3.57 3.36 (13%) (6%)
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
H1 FY26 Operating unit costs are expected to be in line with or below current
FY26 guidance across the majority of operations, driven by strong operating
performance and a continued focus on cost management.
The below commentary reflects our current expectations for H1 FY26 Operating
unit costs. We will report H1 FY26 Operating unit costs and provide updated
FY26 guidance with our December 2025 half year financial results.
Operating unit cost((a))
Current Guidance FY26e((b)(c)) H1 FY26 Operating unit cost commentary
Worsley Alumina
(US$/t) 310 H1 FY26: expected to be 3% above current FY26 guidance.
Brazil Alumina (non-operated)
(US$/t) Not provided H1 FY26: expected to be 4% below H2 FY25 Operating unit costs (US$332/t) due
to higher volumes, partially offset by a stronger Brazilian real.
Brazil Aluminium (non-operated)
(US$/t) Not provided H1 FY26: expected to be 7% below H2 FY25 Operating unit costs (US$3,130/t) due
to lower alumina prices.
Hillside Aluminium Not provided
(US$/t) The cost profiles of Hillside Aluminium and Mozal Aluminium are heavily
influenced by the South African rand, and the price of raw materials and
energy.
Hillside Aluminium H1 FY26: expected to be 14% below H2 FY25 Operating unit
costs (US$2,663/t) due to lower alumina prices, partially offset by a stronger
South African rand.
Mozal Aluminium H1 FY26: expected to be 5% above H2 FY25 Operating unit costs
(US$2,441/t) due to a stronger South African rand and higher priced alumina
from Worsley Alumina under a legacy supply contract.
Mozal Aluminium
(US$/t)
Sierra Gorda (non-operated)
(US$/t)((d)) 17.0 H1 FY26: expected to be in line with current FY26 guidance.
Cannington
(US$/t)((d)) 205 H1 FY26: expected to be 10% below current FY26 guidance driven by improved
underground mining performance.
Cerro Matoso
(US$/lb) 5.30 H1 FY26: expected to be 3% below current FY26 guidance.
Australia Manganese
(US$/dmtu, FOB) 2.40 H1 FY26: expected to be 4% below current FY26 guidance.
South Africa Manganese
(US$/dmtu, FOB) 3.10 H1 FY26: expected to be in line with current FY26 guidance.
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 19).
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)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Alumina production (kt) 1,850 1,893 2% 1,000 934 959 (4%) 3%
Alumina sales (kt) 1,789 1,863 4% 965 878 985 2% 12%
Worsley Alumina saleable production increased by 2% (or 43kt) to 1,893kt in
the December 2025 half year, with quarterly production growth of 3% (or 25kt)
following completion of planned calciner maintenance in the September 2025
quarter. FY26 production guidance remains unchanged at 3,750kt.
BRAZIL ALUMINA (36% SHARE, NON-OPERATED)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Alumina production (kt) 682 709 4% 348 354 355 2% 0%
Alumina sales (kt) 691 719 4% 365 332 387 6% 17%
Brazil Alumina saleable production increased by 4% (or 27kt) to a record 709kt
in the December 2025 half year, as the refinery operated above nameplate
capacity. FY26 production guidance remains unchanged at 1,360kt.
BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Aluminium production (kt) 64 74 16% 34 37 37 9% 0%
Aluminium sales (kt) 61 74 21% 36 29 45 25% 55%
Brazil Aluminium saleable production increased by 16% (or 10kt) to 74kt in the
December 2025 half year, as the smelter continued to ramp-up all three
potlines. Despite this growth, production in the December 2025 quarter was
below plan due to unplanned pot outages in potlines two and three and external
energy disruptions late in the period. The smelter's operator is implementing
measures to improve stability and continue the ramp-up of all three potlines.
Production guidance is under review as we await the operator's revised ramp-up
profile. We will provide revised production guidance with our December 2025
half year financial results.
Sales increased by 55% in the December 2025 quarter due to a carry-over export
shipment from the prior quarter.
HILLSIDE ALUMINIUM (100% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Aluminium production (kt) 362 362 0% 182 181 181 (1%) 0%
Aluminium sales (kt) 367 356 (3%) 192 169 187 (3%) 11%
Hillside Aluminium saleable production was unchanged at 362kt in the December
2025 half year, as the smelter continued to test its maximum technical
capacity, despite the impact of load-shedding. FY26 production guidance
remains unchanged at 720kt(3).
Sales increased by 11% in the December 2025 quarter due to a carry-over
shipment from the prior quarter.
MOZAL ALUMINIUM (63.7% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Aluminium production (kt) 178 183 3% 90 93 90 0% (3%)
Aluminium sales (kt) 174 162 (7%) 88 100 62 (30%) (38%)
Mozal Aluminium saleable production increased by 3% (or 5kt) to 183kt in the
December 2025 half year. Production decreased by 3% (or 3kt) in the December
2025 quarter as we stopped pot relining and commenced work to place the
smelter on care and maintenance in March 2026, when the current electricity
supply agreement expires(1). FY26 production guidance for the period to March
2026 remains unchanged at 240kt(3).
Sales decreased by 38% in the December 2025 quarter, as a shipment slipped to
the March 2026 quarter, and we managed customer commitments ahead of the
smelter transitioning to care and maintenance. Inventory will be drawn down
during the June 2026 half year.
SIERRA GORDA (45% SHARE, NON-OPERATED)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Payable copper equivalent production (kt)(4) 47.2 47.0 (0%) 24.7 24.9 22.1 (11%) (11%)
Payable copper production (kt) 36.7 36.3 (1%) 19.1 18.3 18.0 (6%) (2%)
Payable copper sales (kt) 37.9 36.5 (4%) 20.0 17.2 19.3 (4%) 12%
Sierra Gorda payable copper equivalent production(4) was largely unchanged at
47.0kt in the December 2025 half year, as the operation achieved planned plant
throughput and copper production, and increased molybdenum production by 33%
due to higher recoveries in the current mining phase.
Strong first half molybdenum, gold and silver volumes position the operation
to potentially exceed current FY26 payable copper equivalent production of
85.7kt, if these by-product trends continue through the remainder of the year.
Sierra Gorda is nearing completion of the feasibility study for the fourth
grinding line project, which has the potential to increase plant throughput by
~20% to ~58Mtpa (100% basis), for review by the joint venture partners.
CANNINGTON (100% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Payable zinc equivalent production (kt)(2) 125.8 102.8 (18%) 76.9 48.3 54.5 (29%) 13%
Payable silver production (koz) 5,615 4,487 (20%) 3,700 2,067 2,420 (35%) 17%
Payable silver sales (koz) 5,469 4,570 (16%) 3,127 2,149 2,421 (23%) 13%
Payable lead production (kt) 49.6 42.3 (15%) 30.3 21.3 21.0 (31%) (1%)
Payable lead sales (kt) 54.3 42.7 (21%) 29.2 21.0 21.7 (26%) 3%
Payable zinc production (kt) 22.9 18.7 (18%) 10.8 8.3 10.4 (4%) 25%
Payable zinc sales (kt) 23.0 16.9 (27%) 10.4 7.3 9.6 (8%) 32%
Cannington payable zinc equivalent production(2) decreased by 18% (or 23.0kt)
to 102.8kt in the December 2025 half year, while quarterly production improved
by 13% (or 6.2kt) as the operation exceeded planned processing rates and
realised higher silver and zinc grades in accordance with the mine plan. FY26
payable zinc equivalent production guidance remains unchanged at 200.6kt.
CERRO MATOSO (99.9% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Payable nickel production (kt) 18.5 15.0 (19%) 9.9 9.4 5.6 (43%) (40%)
Payable nickel sales (kt) 17.7 15.3 (14%) 8.9 10.3 5.0 (44%) (51%)
Cerro Matoso payable nickel production was 15.0kt in the five months prior to
its divestment on 1 December 2025.
AUSTRALIA MANGANESE (60% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Manganese ore production (kwmt) 639 1,660 160% 639 854 806 26% (6%)
Manganese ore sales (kwmt) - 1,809 N/A - 944 865 N/A (8%)
Australia Manganese saleable production increased to 1,660kwmt in the December
2025 half year, as the operation delivered planned volumes after executing its
recovery plan following the impacts of Tropical Cyclone Megan. FY26 production
guidance remains unchanged at 3,200kwmt, subject to potential impacts from the
wet season.
Sales increased to 1,809kwmt in the December 2025 half year, as shipping rates
reached full capacity following the commissioning of new wharf infrastructure,
enabling a planned drawdown of inventory.
SOUTH AFRICA MANGANESE (54.6% SHARE)
South32 share 1H25 1H26 HoH 2Q25 1Q26 2Q26 2Q26 2Q26
vs vs
2Q25 1Q26
Manganese ore production (kwmt) 1,082 1,057 (2%) 485 551 506 4% (8%)
Manganese ore sales (kwmt) 1,088 1,094 1% 498 548 546 10% (0%)
South Africa Manganese saleable production decreased by 2% (or 25kwmt) to
1,057kwmt in the December 2025 half year, reflecting planned maintenance and
underground development at Wessels. FY26 production guidance remains unchanged
at 2,000kwmt, with further planned maintenance scheduled in the March 2026
quarter.
NOTES
1. Refer to market release "Mozal Aluminium Update" dated 16 December 2025.
2. 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, H1 FY26 and FY26e.
3. Production guidance for Hillside Aluminium and Mozal Aluminium does not assume
any load-shedding impact on production.
4. 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, H1 FY26 and FY26e.
5. Refer to market release "Completion of Cerro Matoso divestment" dated 1
December 2025.
6. 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.
7. 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.
8. 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.
9. 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.
10. Hermosa growth capital expenditure excludes lease payments for self generated
power assets directly attributable to construction of infrastructure at the
Taylor deposit. These self generated power costs were included in our capital
cost estimate provided in market release "Final Investment Approval to Develop
Hermosa's Taylor Deposit" dated 15 February 2024.
11. Refer to news release by Trilogy Metals Inc. "Trilogy Metals Provides Update
on the Issuance of Federal Right-of-Way Permits for the Ambler Access Project
in Alaska" dated 24 October 2025
(https://trilogymetals.com/news-and-media/news/trilogy-metals-provides-update-on-the-issuance-of-federal-right-of-way-permits-for-the-ambler-access-project-in-alaska/
(https://trilogymetals.com/news-and-media/news/trilogy-metals-provides-update-on-the-issuance-of-federal-right-of-way-permits-for-the-ambler-access-project-in-alaska/)
).
12. Refer to news release by Trilogy Metals Inc. "Trilogy Metals Applauds
President Trump's Decision to Grant Permits for the Ambler Access Project to
Enable the Development of Critical Minerals in Alaska" dated 6 October 2025
(https://trilogymetals.com/news-and-media/news/trilogy-metals-applauds-president-trumps-decision-to-grant-permits-for-the-ambler-access-project-to-enable-the-development-of/
(https://trilogymetals.com/news-and-media/news/trilogy-metals-applauds-president-trumps-decision-to-grant-permits-for-the-ambler-access-project-to-enable-the-development-of/)
).
13. Refer to news release by Trilogy Metals Inc. "Trilogy Metals Announces 2026
Program and Budget for Ambler Metals and the Corporate Budget for the Company"
dated 17 December 2025
(https://trilogymetals.com/news-and-media/news/trilogy-metals-announces-dec-17-2025/).
14. Refer to media release "South32 backs U.S. Government move to advance critical
minerals in Alaska" dated 7 October 2025.
15. 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.
16. Realised prices for Sierra Gorda and Cannington are net of treatment and
refining charges.
17. Realised nickel sales prices are inclusive of by-products.
18. Realised Manganese ore prices are calculated as external sales Revenue less
freight and marketing costs, divided by external sales volume.
19. FY26e Operating unit cost guidance includes royalties (where appropriate) and
the influence of exchange rates, and includes various assumptions for FY26,
including: an alumina price of US$350/t; a manganese ore price of US$4.40/dmtu
for 44% manganese product; a nickel price of US$7.00/lb; a silver price of
US$36.0/oz; a lead price of US$2,000/t (gross of treatment and refining
charges); a zinc price of US$2,650/t (gross of treatment and refining
charges); a copper price of US$4.40/lb (gross of treatment and refining
charges); a molybdenum price of US$19.00/lb (gross of treatment and refining
charges); a gold price of US$3,300/oz; an AUD:USD exchange rate of 0.66; a
USD:ZAR exchange rate of 18.20; a USD:COP exchange rate of 4,250; USD:CLP
exchange rate of 950; and a reference price for caustic soda; which reflect
forward markets as at August 2025 or our internal expectations.
The following abbreviations have been used throughout this report: US$ 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 1H25 1H26 2Q25 3Q25 4Q25 1Q26 2Q26
Worsley Alumina (86% share)
Alumina hydrate production (kt) 1,872 1,895 940 931 922 940 955
Alumina production (kt) 1,850 1,893 1,000 941 936 934 959
Alumina sales (kt) 1,789 1,863 965 910 1,000 878 985
Brazil Alumina (36% share)
Alumina production (kt) 682 709 348 324 334 354 355
Alumina sales (kt) 691 719 365 323 335 332 387
Brazil Aluminium (40% share)
Aluminium production (kt) 64 74 34 36 38 37 37
Aluminium sales (kt) 61 74 36 31 46 29 45
Hillside Aluminium (100% share)
Aluminium production (kt) 362 362 182 175 181 181 181
Aluminium sales (kt) 367 356 192 171 194 169 187
Mozal Aluminium (63.7% share)
Aluminium production (kt) 178 183 90 87 90 93 90
Aluminium sales (kt) 174 162 88 72 105 100 62
Sierra Gorda (45% share)
Ore mined (Mt) 12.6 11.6 6.2 4.9 5.5 5.5 6.1
Ore processed (Mt) 11.1 10.9 5.5 5.2 5.4 5.5 5.4
Copper ore grade processed (%, Cu) 0.42 0.42 0.44 0.42 0.40 0.42 0.42
Payable copper equivalent production (kt)(4) 47.2 47.0 24.7 20.2 22.3 24.9 22.1
Payable copper production (kt) 36.7 36.3 19.1 17.0 17.7 18.3 18.0
Payable copper sales (kt) 37.9 36.5 20.0 16.9 18.1 17.2 19.3
Payable molybdenum production (kt) 0.9 1.2 0.5 0.2 0.4 0.8 0.4
Payable molybdenum sales (kt) 0.7 1.3 0.5 0.3 0.3 0.6 0.7
Payable gold production (koz) 15.9 10.9 8.2 5.7 6.3 6.3 4.6
Payable gold sales (koz) 16.2 11.2 8.4 6.0 6.3 5.9 5.3
Payable silver production (koz) 301 348 150 131 152 159 189
Payable silver sales (koz) 317 344 160 130 152 151 193
South32 share 1H25 1H26 2Q25 3Q25 4Q25 1Q26 2Q26
Cannington (100% share)
Ore mined (kwmt) 999 1,088 561 457 504 585 503
Ore processed (kdmt) 982 1,009 542 427 535 504 505
Silver ore grade processed (g/t, Ag) 206 159 241 176 175 148 170
Lead ore grade processed (%, Pb) 5.9 5.1 6.5 5.0 5.6 5.0 5.1
Zinc ore grade processed (%, Zn) 3.2 2.6 2.8 3.4 2.8 2.3 2.9
Payable zinc equivalent production (kt)(2) 125.8 102.8 76.9 48.9 59.5 48.3 54.5
Payable silver production (koz) 5,615 4,487 3,700 2,099 2,578 2,067 2,420
Payable silver sales (koz) 5,469 4,570 3,127 2,494 3,056 2,149 2,421
Payable lead production (kt) 49.6 42.3 30.3 17.7 25.1 21.3 21.0
Payable lead sales (kt) 54.3 42.7 29.2 19.8 25.2 21.0 21.7
Payable zinc production (kt) 22.9 18.7 10.8 11.0 10.6 8.3 10.4
Payable zinc sales (kt) 23.0 16.9 10.4 9.6 13.1 7.3 9.6
Cerro Matoso (99.9% share)
Ore mined (kwmt) 2,648 1,636 1,310 1,076 1,129 1,041 595
Ore processed (kdmt) 1,396 1,175 732 675 714 736 439
Ore grade processed (%, Ni) 1.48 1.39 1.49 1.48 1.47 1.40 1.37
Payable nickel production (kt) 18.5 15.0 9.9 8.9 9.7 9.4 5.6
Payable nickel sales (kt) 17.7 15.3 8.9 9.2 9.8 10.3 5.0
Australia Manganese (60% share)
Manganese ore production (kwmt) 639 1,660 639 - 467 854 806
Manganese ore sales (kwmt) - 1,809 - - 253 944 865
Ore grade sold (%, Mn) - 41.4 - - 41.7 41.4 41.4
South Africa Manganese (54.6% share)
Manganese ore production (kwmt) 1,082 1,057 485 476 593 551 506
Manganese ore sales (kwmt) 1,088 1,094 498 407 601 548 546
Ore grade sold (%, Mn) 39.0 38.3 39.1 38.9 38.7 38.3 38.4
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 +61 408 925 140
M +61 403 763 086
E Jamie.Macdonald@south32.net
E Ben.Baker@south32.net
Approved for release to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
22 January 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
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