South32 Ltd. · ASX:S32
South32 — BMO Capital Markets Global Metals & Mining Conference 2019
15 slides from South32's conference presentation, Feb 25, 2019
Slide 1: BMO Capital Markets Global Metals & Mining Conference Presentation 2019
25 February 2019 South32 Limited For personal use only (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 BMO CAPITAL MARKETS GLOBAL METALS & MINING CONFERENCE PRESENTATION 2019 South32 Limited
Slide 2: BMO Capital Markets Global Metals and Mining Conference
For personal use only BMO Capital Markets Global Metals and Mining Conference • 25 February 2019
Slide 3: Important notices
Important notices • This presentation should be read in conjunction with the “Financial results and outlook – half year ended 31 December 2018” announcement released on 14 February 2019, which is available on South32’s website (www.south32.net). Figures in italics indicate that an adjustment has bee
Slide 4: H1 FY19 Overview
For personal use only H1 FY19 Overview Underlying EBITDA Underlying earnings ↑18% to US$642M Free cash flow(a) US$718M US$1.3B Underlying earnings per share Net cash balance US$678M Operating margin 38% ↑20% to US 12.6 cents per share Ordinary dividend US 5.1 cents per share Reshaping our portfolio
Slide 5: Sustainability performance
For personal use only Sustainability performance 1 Fatalities(a)(b) 1 0 (d) FY17 FY18 H1 FY19 6.1 5.1 4.8 TRIF(a)(b) (d) FY17 FY18 H1 FY19 2.8 Employee 2.0 1.7 Occupational Illness(a)(b) (d) FY17 FY18 H1 FY19 22.6 22.9 11.8 GHG emissions(a)(b) (Mt CO2-e) (d) FY17 FY18 H1 FY19 20.4 14.3 16.3 Communit
Slide 6: Operating margin analysis
Operating margin analysis H1 FY19 Underlying EBITDA contribution Group operating margin(c) by commodity(a)(b) Production guidance For personal use only Record ore production at increased at 8% Australia Manganese 39% Illawarra Metallurgical Coal 36% 38% 19% 35% Aluminium & alumina Manganese ore & al
Slide 7: Manganese market
Manganese market • Manganese ore trade flows • Kalahari basin routes to market (Mt, Mn content unadjusted) For personal use only • MECA rail CY16 CY17 CY18 Other rail Johannesburg 32 Road Exports Imports Kalahari basin 28 Chinese 24 imports have Richards Bay increased by Durban 20 ~60% since CY16 16
Slide 8: Manganese market
Manganese market Manganese cost curve CY19 Manganese ore price and China port stocks For personal use only (US$/dmtu, 44% Mn ore normalised, CIF China) (US$/dmtu; Mt) 12 12 Higher grade (44%) ore Low to medium grade (30-37%) High grade index historically primarily from low cost ore primarily from 2Q
Slide 9: Alumina market
Alumina market Alumina: price and % of LME aluminium price FY19e alumina book For personal use only (US$/t; %) (5.3Mt including sales to own smelters) FOB Australia price traded higher than historical linkage rates Vast majority of our 3.4Mt Aluminium LME price linkage and in CY18 in response to sup
Slide 10: Our portfolio and exploration footprint
Our portfolio and exploration footprint Acquisitions of Hermosa and Life extension Pipeline of exploration South Africa Energy Coal For personal use only Eagle Downs completed options advanced partnerships established divestment on-track Upper Kobuk Mineral Projects Option to earn a 50% interest in
Slide 11: Hermosa project
Hermosa project Taylor deposit outline(c) Large regional land package For personal use only High grade Progressing studies, Open zinc-lead-silver resource drilling and resource(a) infrastructure build Open Open Open On track to declare a maiden Regional exploration Mineral Resource targets identifie
Slide 12: Eagle Downs Metallurgical Coal project
Eagle Downs Metallurgical Coal project Eagle Downs location map For personal use only 50% interest and 1.1Bt(a) coal resource in the operating control Bowen Basin, Queensland Review of existing Fully permitted, development plan completed partially developed mine in H1 FY19 Initial capital expenditur
Slide 13: Shareholder returns
Shareholder returns Our capital management framework has allowed us to return US$2.4B to shareholders For personal use only in respect of the last three years, equivalent to 20% of our market capitalisation(a) Shareholder returns (paid and committed) US$2.4B shareholder ROIC 13.9% (US$M) returns by
Slide 14: H1 FY19 Summary
For personal use only H1 FY19 Summary Underlying EBITDA Underlying earnings ↑18% to US$642M Free cash flow(a) US$718M US$1.3B Underlying earnings per share Net cash balance US$678M Operating margin 38% ↑20% to US 12.6 cents per share Ordinary dividend US 5.1 cents per share Reshaping our portfolio U
Slide 15: South32
For personal use only SOUTH32
South32 — BMO Capital Markets Global Metals & Mining Conference 2019 on 6ix