South32 Ltd. · ASX:S32
South32 — Merger or Acquisition (July 2026)
41 slides from South32's merger presentation, Jul 1, 2026
Slide 1: Agreement to Sell Aluminium Value Chain Assets
AGREEMENT TO SELL ALUMINIUM VALUE CHAIN ASSETS POSITIONING SOUTH32 AS AN UPSTREAM BASE METALS FOCUSED COMPANY WITH TRANSFORMATIONAL GROWTH 1 July 2026
Slide 2: Important Notices
IMPORTANT NOTICES FORWARD-LOOKING STATEMENTS This presentation 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 sched
Slide 3: Important Notices: Mineral Resources and Ore Reserves
IMPORTANT NOTICES MINERAL RESOURCES AND ORE RESERVES Measured Indicated Inferred Total Proved Probable Total Reserve Operation Mineral Resources Mineral Resources Mineral Resources Mineral Resources Ore Reserves Ore Reserves Ore Reserves life 347Mt @ 0.40% TCu, 507Mt @ 0.34% TCu, 897Mt @ 0.37% TCu,
Slide 4: Transaction Highlights
TRANSACTION HIGHLIGHTS Sale unlocks significant value for shareholders and repositions South32 as a focused, upstream supplier of base metals with transformational growth 1 Sale of aluminium value chain assets for up to US$5.6B(a), realising significant upfront value and retaining upside price parti
Slide 5: Transaction Summary
TRANSACTION SUMMARY Transaction value of up to US$5.6B plus ~US$1.2B in rehabilitation provisions assumed by Alcoa • Alcoa has signed a binding conditional agreement to acquire South32’s interests in Worsley Alumina (86%), Hillside Aluminium (100%), MRN bauxite mine (33%), Brazil Alumina refinery (3
Slide 6: Transaction Summary (cont.)
TRANSACTION SUMMARY (CONT.) Transaction expected to complete in H2 FY27 • Completion of the Transaction is subject to satisfaction (or waiver where permitted) of conditions precedent by 29 June 2027 (or an agreed later date), which include: — South32 shareholder approval Conditions — Australian Fore
Slide 7: Transaction Value and Proceeds
TRANSACTION VALUE AND PROCEEDS Transaction realises significant value to be directed into near-term growth and shareholder returns Transaction value (US$B) 7.0 6.0 1.2 • US$3.1B upfront cash to strengthen balance sheet, providing flexibility to fund near-term growth and shareholder returns 0.75 5.0
Slide 8: South32 Post-Transaction
SOUTH32 SOUTH32 POST-TRANSACTION
Slide 9: Investment Highlights
INVESTMENT HIGHLIGHTS Transaction repositions South32 as a leading base metals focused company with high-margin producing assets and transformational growth • Long-life, high-margin copper, zinc, silver and lead operations, and a large producer of manganese Higher quality portfolio • Life extension
Slide 10: Our Portfolio
OUR PORTFOLIO A portfolio of upstream base metals assets and growth projects, backed by our deep operating and project development capability Australia Manganese (60%) Ambler Metals JV (50%) Sierra Gorda (45%) High-grade open pit manganese mine High-grade copper and zinc growth Large-scale, long-lif
Slide 11: Our Portfolio: Commodity and Regional Exposure
OUR PORTFOLIO Attractive commodity exposures in favourable jurisdictions Underlying EBITDA by commodity Underlying EBITDA by region Capital expenditure by region 1% 3% 16% 13% 44% 55% 55% 29% 84% Copper Zinc-silver-lead Manganese Australia Americas Africa Australia Americas Africa Notes: • Pro-forma
Slide 12: Our Growth Profile
OUR GROWTH PROFILE On a pathway towards transformational growth, with further life extension opportunities and greenfield options that offer additional upside A substantial embedded production growth profile… …with life extension and growth options to deliver further value Group copper equivalent pr
Slide 13: Our Commodity Exposures
OUR COMMODITY EXPOSURES Exposed to numerous, structurally attractive critical minerals markets Designated critical mineral(a) by: Copper A key metal for power transmission in vehicles, data centres and electrical grids • Increased mine supply is required to meet an ~8Mt shortfall by 2035 (~30% of ma
Slide 14: Our Business
OUR BUSINESS Higher returns expected from a simplified business with greater near-term growth Higher margins Higher growth Group Operating margin(a) Potential for further margin expansion Copper equivalent production growth(b) from overhead reduction and Additional potential from copper (%) Taylor c
Slide 15: Our Business
OUR BUSINESS Unlocking value through a simple, lower-cost operating model and a relentless focus on operational excellence Streamlined, higher margin portfolio of upstream operations, with reduced complexity and A simpler, more focused business greater resilience Less jurisdictions and a complet
Slide 16: Our Operations and Development Projects
OUR OPERATIONS AND DEVELOPMENT PROJECTS Our highest-margin operations have large, expandable resource bases or options to pursue life extension Cost Curve Position(a) H1 FY26 1st 4th EBITDA Margin Reserve(b) Reserve life(c) Resource(b) Sierra Gorda 68% 730Mt 15 years 1,804Mt (Cu, Mo, Au) Producing a
Slide 17: Sierra Gorda
SIERRA GORDA Long-life, open pit copper mine with significant near-term growth potential from brownfield plant expansion H1 FY26 EBITDA US$393M(b) at an operating margin of 68% High-returning fourth grinding line project approved for execution Catabela Northeast Exploration Target 1.1-2.9Bt, adjacen
Slide 18: Hermosa Project
HERMOSA PROJECT Large-scale, expandable base and precious metals project under construction Taylor project initial 33-year operating life(b) First production expected H2 FY28 with steady-state ZnEq volumes of 346ktpa(c) Expected to deliver annual steady-state EBITDA of~US$650M(c) Future potential co
Slide 19: Cannington
CANNINGTON High-margin zinc-lead-silver underground mine with life extension potential H1 FY26 EBITDA US$211M at an operating margin of 53% Ore Reserve increased by 28%(a) in H1 FY26, for a reserve life of 7.5 years Investing in underground infrastructure to support further extensions Open pit devel
Slide 20: Our Manganese Business
OUR MANGANESE BUSINESS World’s largest manganese producer H1 FY26 EBITDA US$115M at an operating margin of 24% High-grade manganese ore to Asia AUSTRALIA MANGANESE (60%) Progressing approvals, infrastructure investment and mine planning SOUTH AFRICA MANGANESE (54.6%(a)) Manganese ore to manage incre
Slide 21: Ambler Mining District
AMBLER MINING DISTRICT District-scale base and precious metals opportunity, with an existing high-grade resource in Alaska, USA Extensive landholding in the highly prospective Ambler mining district Commenced federal permitting for the Arctic deposit, with FAST-41 coverage US$42M CY26 work program(b
Slide 22: Our Exploration Portfolio
OUR EXPLORATION PORTFOLIO Advancing exploration options in highly prospective mineral belts Ambler mining district, USA: high-grade base metals options 1 1 within an underexplored, district scale landholding British Columbia, Canada: equity exposure to large-scale NAK 2 copper project in a copper-go
Slide 23: Royalty & Equity Interests
ROYALTY & EQUITY INTERESTS Significant value exists in our royalty and equity exposures to multiple copper projects We hold 32 royalties in Four current royalties offer Balance of the portfolio our portfolio following two exposure to operating and contains a mix of royalties over ~US$220M value in s
Slide 24: Balance Sheet and Capital Management Framework
BALANCE SHEET AND CAPITAL MANAGEMENT FRAMEWORK
Slide 25: Our Capital Management Framework
OUR CAPITAL MANAGEMENT FRAMEWORK An updated framework to apply post completion Committed to a strong balance sheet and disciplined capital allocation to support our strategy and grow per-share value Delivering long-term shareholder value Competition for excess capital Dividends Acquisitions • Compet
Slide 26: Balance Sheet
BALANCE SHEET A strong balance sheet to deliver our growth pipeline and shareholder returns Pro-forma net cash/(debt) (US$B) Pro-forma net cash US$3.8B Assumes repayment of US$700M of senior unsecured notes, with remaining debt primarily leases and cash managed for manganese EAIs 3.1 3.8 ~US$1B of A
Slide 27: Summary
SUMMARY Sale realises significant upfront Unlocks and captures Creates a focused upstream value and retains upside with our share of material base metals company price participation synergies from WA alumina with transformational growth Portfolio of high-quality A simplified business operations, att
Slide 28: Asset Profiles
SOUTH32 ASSET PROFILES
Slide 29: Sierra Gorda
SIERRA GORDA Large-scale, long-life copper mine with multiple growth options Key Highlights • 45% interest with joint control and governance rights, supported by an experienced independent operator • 1.8Bt Mineral Resource with a modern, large-scale 49Mtpa process plant and a highly efficient open p
Slide 30: Sierra Gorda – Driving Growth and Value
SIERRA GORDA – DRIVING GROWTH AND VALUE Embedded operational improvements are flowing through to asset performance Operational improvements Ore processed (Mt, 100% basis) ~25% 60 • De-bottlenecking project delivered a ~30% increase in throughput to ~49Mtpa enabled by a series of improvements to the
Slide 31: Sierra Gorda – Fourth Grinding Line
SIERRA GORDA – FOURTH GRINDING LINE High-returning fourth grinding line project approved for execution Fourth grinding line proposed plant layout(a) 25% increase in processing capacity to ~60Mtpa First production in mid FY30 Growth capital expenditure ~US$725M, for a capital intensity ~US$21k/t CuEq
Slide 32: Sierra Gorda – Regional Exploration
SIERRA GORDA – REGIONAL EXPLORATION Significant life extension opportunity within a highly prospective mineralised corridor Regional land package BHP’s Spence N operation • Extensive land package with multiple high-potential opportunities • Priority drill targets defined through geophysical analysis
Slide 33: Hermosa – Taylor Project
HERMOSA – TAYLOR PROJECT Significant leverage to structurally attractive markets Key Highlights • Future top 10 global zinc producer(c) with annual average steady-state production of ~346kt ZnEq(b) 33 years(a) • Modern, highly efficient underground mine with multiple independent areas Initial operat
Slide 34: Hermosa – Taylor Project
HERMOSA – TAYLOR PROJECT A modern, highly efficient operation with significant shared infrastructure to support future growth phases Design features Ventilation shaft • Small footprint underground mine with efficient water use and dry-stack tailings • Dual shaft underground mine with decline access
Slide 35: Hermosa – Peake Deposit
HERMOSA – PEAKE DEPOSIT Potential source of future copper production and mine life extension within the Taylor development Peake deposit (looking east) Peake Mineral Resource estimate increased by 32% to 33Mt @ 1.78% CuEq(a) Exploration drilling to continue to test size and extent of mineralised sys
Slide 36: Hermosa – Regional Exploration
HERMOSA – REGIONAL EXPLORATION Highly prospective regional land package, demonstrating high-grade copper and zinc mineralisation Hermosa land package Hermosa high priority corridor Patented Unpatented Doubled our land tenure in the most prospective areas Original land package Prospects Flux Prospect
Slide 37: Cannington
CANNINGTON High-margin zinc-lead-silver operation Key Highlights Overview Cannington geological model 7.5 years(a) • High-grade, silver-rich underground mine in production Reserve life since 1997 Zn-Pb-Ag • Ore Reserve increased by 28% to 13Mt(a) in H1 FY26, Sulphide deposit for a reserve life to FY
Slide 38: Our Manganese Business
OUR MANGANESE BUSINESS Joint Venture with Anglo American, supplying ~17% of the world's seaborne manganese market Key Highlights Australia Manganese (60%) Operating unit cost and realised price Australia Manganese • One of the largest operations in the world (US$/dmtu, FOB) Operations suspended 6.00
Slide 39: Ambler Metals
AMBLER METALS District-scale base and precious metals project in Alaska, USA Key Highlights Overview Ambler Metals JV, Alaska Ambler Metals JV (50% owned) 50% Joint Venture interest • Highly prospective land package comparable to the best VMS belts globally 43Mt @ 5.05% CuEq(a) • ~190Mt(b) of high-g
Slide 40: Greenfield Exploration Portfolio
GREENFIELD EXPLORATION PORTFOLIO An extensive portfolio from which to discover our next generation of base metals mines Project Partner Metals Location Structure Thesis NAK American Eagle Gold 19.7% equity Large-scale copper porphyry target in British Columbia Altar Aldebaran 13.6% equity PEA st
Slide 41: South32
SOUTH32