South32 Ltd. · ASX:S32
South32 — Technical Presentation (November 2024)
38 slides from South32's technical presentation, Nov 21, 2024
Slide 1: Sierra Gorda Site Visit
21 November 2024 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 SIERRA GORDA SITE VISIT South32 Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32) will today host an equit
Slide 2: Sierra Gorda Site Visit Presentation
SIERRA GORDA SITE VISIT PRESENTATION 21 November 2024
Slide 3: Important Notices
IMPORTANT NOTICES • This presentation should be read in conjunction with the “2024 Full Year Financial Results” presentation released on 29 August 2024, which is available on South32’s website (www.south32.net). • FORWARD-LOOKING STATEMENTS • This presentation contains forward-looking statements, in
Slide 4: Sierra Gorda Highlights
SIERRA GORDA HIGHLIGHTS Large scale, long-life copper mine Record plant throughput achieved Improved ore quality to support in the prolific Antofagasta region following de-bottlenecking project higher near-term metal production Potential to expand capacity by Highly prospective land package with Unl
Slide 5: Our Portfolio
OUR PORTFOLIO Our portfolio is leveraged to commodities critical for a low-carbon future A streamlined portfolio focused on base metals Pipeline of high-quality growth options Illustrative FY24 Group Underlying revenue(a) Potential to grow our future copper production Sierra Gorda fourth grinding li
Slide 6: Our Portfolio
OUR PORTFOLIO A globally diversified portfolio with a growing presence in the Americas Sierra Gorda is our cornerstone Regional scale Hermosa project in Arizona, Pipeline of attractive copper exploration copper asset in the Americas(a) underpinned by Taylor as the first stage options in North Americ
Slide 7: Increasing Our Exposure to Attractive Copper Markets
INCREASING OUR EXPOSURE TO ATTRACTIVE COPPER MARKETS Copper will play a critical role in the global energy transition Long-term demand outlook underpinned by renewable Strong primary demand outlook requiring new mine supply energy additions and rising electric vehicle penetration despite scrap recyc
Slide 8: Our Acquisition of Sierra Gorda
OUR ACQUISITION OF SIERRA GORDA Acquisition of Sierra Gorda has improved our portfolio and embedded options for future copper growth Transaction overview Capital intensity of historical and forecast copper projects(c) US$/tpa CuEq, CY24 real • Acquired a 45% interest in February 2022 for upfront con
Slide 9: Welcome to Sierra Gorda
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Slide 10: Sustainability
SUSTAINABILITY Strong track record of safety and environmental performance Safety People Energy Leading safety performance 50% representation of women High pressure grinding rolls consume 20% with a TRIF of 0.7 in FY24 on the Sierra Gorda leadership team(a) less energy than traditional SAG mills Dec
Slide 11: Location and Infrastructure
LOCATION AND INFRASTRUCTURE Located in a prolific copper producing region supported by dedicated, high quality infrastructure Patillos Collahuasi N Location Patillos • Low altitude at 1,700m above sea level Chanabaya Quebrada Blanca • 5km from national highway, providing access to the port city of A
Slide 12: Resource and Reserve
RESOURCE AND RESERVE Large, long-life reserve at the Catabela open pit Sulphide Mineral Resource of 24 year operating life(a) with 1.8Bt @ 0.41% CuEq(a), open at depth significant extension potential Sierra Gorda Mineral Resource (looking northeast) Sierra Gorda Total Ore Reserves as at 30 June 2024
Slide 13: Operation Overview
OPERATION OVERVIEW A conventional open pit mine and processing operation, producing copper and molybdenum concentrates Pit to port flow chart 1 Mining operations 2 Dry processing operations High pressure 4 Tailings storage grinding rolls Direct feed Primary Secondary Catabela pit to crusher or crush
Slide 14: Mining
MINING A highly productive open pit mining operation Continuous mining using Low mining costs in the industry’s first quartile(a) large scale, modern equipment underpinned by high equipment utilisation Catabela pit Load and haul Notes: a. Refers to the mining cost per tonne of material moved in CY23
Slide 15: Processing
PROCESSING Plant de-bottlenecking has delivered record throughput and established a foundation for further growth Ore processed De-bottlenecking project (Mt, 100% basis) • ~30% increase in throughput to ~49Mtpa enabled by a series of 60 improvements to the concentrator ~20% • Capital efficient proje
Slide 16: Improving Metal Production
IMPROVING METAL PRODUCTION Improved ore quality in next phase of the mine plan to underpin near term production growth Catabela pit mining phases Payable copper production and copper head grade (kt, 100% basis (LHS); % Cu (RHS)) N Higher clay content in phase 6 impacted recoveries Phase 8 250 0.5% P
Slide 17: Costs and Capital Expenditure
COSTS AND CAPITAL EXPENDITURE Investment in plant de-bottlenecking is expected to drive improved financial performance Operating unit costs(a) Capital expenditure(a) (US$/t ore processed (LHS); US$/lb Cu, net of by-product credits (RHS)) (US$M, South32 45% share) US$25M: Includes fourth line 20 2.0
Slide 18: Unlocking Value and Growing Future Copper Production
UNLOCKING VALUE AND GROWING FUTURE COPPER PRODUCTION
Slide 19: Fourth Grinding Line Expansion
FOURTH GRINDING LINE EXPANSION Potential to increase processing capacity by ~20% via a capital efficient plant expansion Fourth grinding line proposed plant layout (facing east)(a) Project overview Wet screens • Addition of a fourth grinding line, flotation line and associated infrastructure to the
Slide 20: Regional Scale Copper Exploration Potential
REGIONAL SCALE COPPER EXPLORATION POTENTIAL Potential for regional upside within a large land package that has a number of identified opportunities Highly prospective porphyry Priority drill targets Potential to extend life of operation by related mineralisation corridor identified using geophysics
Slide 21: Significant copper results from Catabela Northeast
CATABELA NORTHEAST EXPLORATION RESULTS Significant copper results returned from recent drilling at Catabela Northeast Copper porphyry related prospect located All 18 diamond drill holes intersected Future drilling to explore potential continuity in close proximity to the Catabela pit significant cop
Slide 22: Brownfield Oxide Stockpile Project Potential
BROWNFIELD OXIDE STOCKPILE PROJECT POTENTIAL Opportunity to unlock further value from stockpiled oxide material Oxide stockpiles location Project overview • ~110Mt of previously mined stockpiled oxide material(a) at surface BHP’s Spence operation • Feasibility study underway for a low-cost heap leac
Slide 23: South32
SOUTH32
Slide 24: Annexure 1 – Joint Venture Overview
ANNEXURE 1 – JOINT VENTURE OVERVIEW Partnered with an experienced operator, with joint control and governance rights South32 influence and control • Ownership structure Equal representation with KGHM on Owners Council(a) and subcommittees (sustainability, technical, finance, marketing, tailings an
Slide 25: Annexure 2 – Sierra Gorda Ore Reserve and Mineral Resource
ANNEXURE 2 – SIERRA GORDA ORE RESERVE AND MINERAL RESOURCE Table A: Ore Reserve estimate for the Sierra Gorda deposit as at 30 June 2024 in 100% terms1,2 Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Ore Type Mt3 % TCu % Mo g/t Au Mt3 % TCu % Mo g/t Au Mt3 % TCu % Mo g/t Au Sulphide 3
Slide 26: Annexure 3: JORC Code Table 1: Catabela Northeast prospect
Annexure 3: JORC Code Table 1: Catabela Northeast (NE) prospect The following tables provide a summary of important assessment and reporting criteria used for the reporting of exploration results for the Catabela NE prospect located in the Antofagasta region of Chile (Figure 1). Sections 1 and 2 bel
Slide 27: JORC Table 1: Quality of assay data
Criteria Commentary • Samples taken at 2m intervals, were longitudinally cut into halves with one half used for sampling, with exception for hole KSG22-1821 where the practice was to sample quarter core. • GeoAssay, ISO9001:2000 certified laboratory, was contracted for sample preparation and chemica
Slide 28: JORC Table 1: Location of data points
Criteria Commentary • No adjustment has been made to the analytical data. For reviewing purposes, values reported as less than the detection limit by the laboratory were assigned a value of half of the detection limit. Location of data • The mining concessions allow for mining exploitation and explo
Slide 29: Section 2: Reporting of Exploration Results
Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Commentary Mineral • SGSCM is owned by KGHM Polska Miedź SA (55%) and South32 Ltd (45%). tenement and • The Catabela NE prospect is located within the Sierra Gorda mining tenur
Slide 30: JORC Table 1: Geology and drill hole information
Criteria Commentary • The Sierra Gorda district is situated within the Palaeocene-Early Eocene metallogenic belt, located at the western edge of the Domeyko range in the Antofagasta region. This belt includes Guanaco, Lomas Bayas and Spence in Northern Chile, and Toquepala, Cuajone and Cerro Verde i
Slide 31: JORC Table 1: Relationship between mineralisation widths
Criteria Commentary • % CuEq accounts for the combined value of TCu, TMo and Au. Metals are converted to % CuEq via unit value calculations using long-term consensus metal price assumptions agreed by the joint venture partners and relative metallurgical recovery assumptions from the Catabela mine. T
Slide 32: Figure 1: Regional location plan
Figure 1: Regional location plan (Country location and tenement boundary) SIERRA GORDA SITE VISIT PRESENTATION – CATABELA NORTHEAST EXPLORATION RESULTS
Slide 33: Figure 2: Sierra Gorda regional geology
Figure 2: Sierra Gorda regional geology SIERRA GORDA SITE VISIT PRESENTATION – CATABELA NORTHEAST EXPLORATION RESULTS
Slide 34: Figure 3: Plan view of Catabela NE; Figure 4: Long section
Figure 3: Plan view of Catabela NE, Catabela pit and Exploration Results collar locations. Figure 4: Long section SIERRA GORDA SITE VISIT PRESENTATION – CATABELA NORTHEAST EXPLORATION RESULTS
Slide 35: Table 1: Hole ID, collar location, dip, azimuth, drill depth
Table 1: Hole ID, collar location, dip, azimuth, and drill depth of Catabela NE prospect Elevation Hole ID East (Local) North (Local) Azimuth Dip TD Depth (m) Year Company (m) KSG22-1821 167327.54 4473005.98 1631.67 135 -85 1350.5 2022 SGSCM KSG23-1839 167355.16 4472700.98 1631.62 135 -80 1822.5 202
Slide 36: Table 2: Significant intersections – Catabela NE prospect
Table 2: Significant intersections – Catabela NE prospect Exploration Results From To Width TCu TMo Au CuEq Hole ID Cut Off (m) (m) (m) (%) (%) (g/t) (%) 312.0 356.0 0.20% CuEq 44.0 0.25 0.004 0.03 0.26 538.0 1350.5 0.20% CuEq 812.5 0.61 0.025 0.03 0.68 KSG22-1821 Including 1010.0 1350.5 0.75% CuEq
Slide 37: Significant intersections (continued)
From To Width TCu TMo Au CuEq Hole ID Cut Off (m) (m) (m) (%) (%) (g/t) (%) 908.0 1000.0 0.75% CuEq 92.0 0.78 0.021 0.025 0.84 648.0 900.0 0.20% CuEq 252.0 0.34 0.008 0.026 0.37 924.0 1150.0 0.20% CuEq 226.0 0.57 0.025 0.03 0.64 KSG23-1909 Including 1004.0 1082.0 0.75% CuEq 78.0 0.76 0.020 0.04 0.82
Slide 38: Significant intersections (continued)
From To Width TCu TMo Au CuEq Hole ID Cut Off (m) (m) (m) (%) (%) (g/t) (%) 834.0 870.0 0.75% CuEq 36.0 0.86 0.035 0.04 0.95 922.0 980.0 0.75% CuEq 58.0 0.70 0.023 0.04 0.76 1160.0 1358.0 0.75% CuEq 198.0 0.87 0.066 0.04 1.03 14.0 78.0 0.20% CuEq 64.0 0.20 0.002 0.22 0.28 KSG24-1970 96.0 222.0 0.20%