South32 Ltd. · ASX:S32
South32 — BofA Securities Global Metals, Mining & Steel Conference 2021
46 slides from South32's conference presentation, May 18, 2021
Slide 1: South32 Strategy and Business Update
18 May 2021 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 STRATEGY AND BUSINESS UPDATE South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to prov
Slide 2: Strategy and Business Update
EGY AN ESS UPDAT 18 May 2021
Slide 3: Important Notices
IMPORTANT NOTICES This presentation should be read in conjunction with the “Financial Results and Outlook ~ half year ended 31 December 2020" announcement released on 18 February 2021, which is available on South32's website (www.south32.net) and any other disclosures made to the stock exchanges sin
Slide 4: Delivering on our strategy
FRING ON OUR F GY
Slide 5: Our Strategy
OUR STRATEGY @ OPTIMISE our business by working safely, minimising our impact, consistently delivering stable and predictable performance and continually improving our competitiveness. (3 UNLOCK the full value of our business through our people, innovation, projects and technology. IDENTIFY and purs
Slide 6: Health & Safety Performance
HEALTH & SAFETY PERFORMANCE We are committed to con’ g our systems, processes and safety performance at all our operations Fatalities TRIF?2 TRILF+2 4 17 15 14 13 1a FY16 FY17 FY18 FY19 FY20 YTD FY16 FY17 FY18 FY19 FY20 H1 FY16 FY17 FY18 FY19 FY20 Hi FY21® FY21 FY21 Notes: a. Incidents are included
Slide 7: Our Response to COVID-19
OUR RESPONSE TO COVID-19 We remain focused on three areas: KEEPING OUR PEOPLE MAINTAINING SAFE AND SAFE AND WELL RELIABLE OPERATIONS We continue to uphold COVID-19 controls More than 1 million pre-shift screening that help protect people in our workplace assessments completed across 18 locations and
Slide 8: Inclusion and Diversity Progress
INCLUSION AND DIVERSITY PROGRESS Percentage of total employees who are women 19% 19% 1m 18% 16% Targeting continuing improvement FY17 FY18 =FY19.«-FY20 ~H1FY21 FY21 + Weare targeting continuous improvement for the representation of: v Employees and leaders who are women ¥ Diversity? in our workforce
Slide 9: Delivering on Our Strategy
j DELIVERING ON OUR STRATEGY Optimise our business Unlock the full value of our business Continued strong operating performance: + Record year to date production at two operations (Brazil Alumina and Australia Manganese) * FY21 production guidance increased at four operations (Cannington, Cerro Mato
Slide 10: Business Update
BUSINESS UPDATE Our operations continue to perform strongly as we navigate different stages of the pandemic across our portfolio FY21 production guidance (South32 share) Worsley Alumina Our production and Operating unit costs are tracking to plan at all operations” idance | Operating performance cre
Slide 11: Commodity Price Update
COMMODITY PRICE UPDATE We are well placed to convert the stronger commodity price outlook into higher earnings South32 commodity basket reference prices® (Q3 FY21 to H1 FY21 average prices for reference index) Average prices 440 through Q3 FY21 130 120 Manganese (+20%) Nickel (+17%) Aluminium & meta
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Slide 13: South32 operations and projects
AMBLER METALS CANNINGTON HERMOSA CERRO MATOSO BRAZIL ALUMINA - MRN SOUTH AFRICA ENERGY COAL BRAZIL ALUMINA - ALUMAR GEMCO MOZAL HOTAZEL ALUMINIUM MANGANESE MINES WORSLEY ALUMINA HILLSIDE ALUMINIUM ILLAWARRA METALLURGICAL COAL
Slide 14: Reshaping Our Portfolio
RESHAPING OUR PORTFOLIO = leveraged to the green economy transition Revenue contribution by commodity@») (FY16 to H1 FY21) Bi Aluminium Bringing forward production volumes at I Alumina | Cannington Progressing greenfield development {| Manganese ore studies at Hermosa ff Metallurgical coal 8 Zinc-le
Slide 15: Reshaping Our Portfolio
:Ill RESHAPING OUR PORTFOLIO Ill: SOUTH32 The divestments of South Africa Energy Coal and TEMCO will significantly simplify and improve our portfolio Fewer operating sites Less complexity, greater focus Substantially lower Scope 3 footprint Operating sites<a> Employee headcount<a> Scope 3 emissions<
Slide 16: Unlocking Opportunities Across Our Portfolio
UNLOCKING OPPORTUNITIES ACROSS OUR PORTFOLIO We remain focused on identifying our next options to unlock further value We continue to unlock opportunities across our operations today Eastern Leases mine life extension Alumina study at refineries return Australia to nameplate Manganese AP3XLE eneray
Slide 17: Hermosa Project
HERMOSA PROJECT Hermosa land package > Patented | Unpatented ee Ss 0 Notes: ie mineralised land package hos‘ Over 153km? of tenure in Arizona, USA Establishment of initial on-site infrastructure and ‘ing underway Potential for multiple long life developments a. Refer to important notices (Slide 2 an
Slide 18: Hermosa Project
HERMOSA PROJECT Taylor and Clark Mineral Resources Studies to examine capital efficiency benefits offered by a Taylor Deposit dual shaft development and a potentially integrated permitting approach Mineralised from surface with a separate processing circuit to the Taylor Deposit expected Scoping stu
Slide 19: Hermosa Project
HERMOSA PROJECT = sting our most prospective targets to prioritise a re: 15 regional prospects identified using surface geophysics, soil sampling, mapping and historic data integration Flux identified as a priority regional prospect: : - Immediately downdip of historic mining area in Taylor-like min
Slide 20: Ambler Metals Joint Venture (50% South32)
j AMBLER METALS JOINT VENTURE (50% SOUTH32) = Regional scale, base and precious metals project with supportive local partner, NANA Regional Corporation® CY21 exploration program focused on targets along the Arctic belt Ambler Metals JV location map Arctic Deposit Mineral Resource® NSR cut-off US$63.
Slide 21: Ambler Metals Access Road
AMBLER METALS ACCESS ROAD 340km access road has the Agreement in place with AIDEA to fund potential to unlock the region pre-development activities Region includes Ambler Metals JV and 100% owned Roosevelt prospect . He Ambler Metals sv Federal permits received by Alaska Industrial Brags posttoee ©
Slide 22: Ambler Metals Regional
AMBLER METALS REGIONAL FREEGOLD VENTURES JUPITER PROJECT ADVENTUS MINING CORPORATION ROOSEVELT PROJECT EMX ROYALTY CORP SILVER BULL RESOURCES HERMOSA REGIONAL IFFLEY PROJECT NORTH QUEENSLAND RESOURCES HARRY’S LAKE PROJECT AUSQUEST AUSQUEST AUSQUEST SABLE RESOURCES MINSUD RESOURCES PEGMONT MINES AUSQ
Slide 23: Managing our balance sheet
MANAG RAM BALANC EWO
Slide 24: Cash flow priorities
Maximise cash flow ROIC Cash flow priorities
Slide 25: Capital Expenditure Priorities
CAPITAL EXPENDITURE PRIORITIES = We allocate capital expenditure in accordance with our strategy and capital m Our strategy Capital expenditure categories * Regulatory compliance Sustaining capital expenditure of between US$420M and US$520M expected across our operations in + Sustain performance the
Slide 26: Our Balance Sheet
OUR BALANCE SHEET We will continue to target an Divestment of lower returning, Capital management program investment grade credit rating capital intensive businesses will increased today by a further through the cycle increase our flexibility US$200M to US$1.88B Net cash and capital committed throug
Slide 27: Returns to Shareholders
RETURNS TO SHAREHOLDERS Our capital management program is flexible and seeks to return excess capital efficiently The benefit of US$1.3B returned through our on-market share buy-back has accumulated through time We have returned US$1.7B through ordinary and special dividends Cumulative EPS" and Sout
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Slide 29: New Emissions Reduction Target
NEW EMISSIONS REDUCTION TARGET = A plan to respond to the carbon intensity of our business and reshape our portfolio for a low carbon future 50% reduction in operational emissions (Scope 1 and 2) by FY35® Aligned to the Paris Agreement and net zero by 2050 Changes already made to reshape our portfol
Slide 30: Our Progress on Climate Change
j OUR PROGRESS ON CLIMATE CHANGE Committed to supporting the Paris Agreement and net zero emissions by 2050 v Set first 5-year climate change target v Published Our Approach to Climate Change - aligned to TCFD reporting v Started managing South Africa Energy Coalasa standalone business, to progress
Slide 31: Current Carbon Emissions Profile
CURRENT CARBON EMISSIONS PROFILE ~90% of our operational Electricity and energy sources emissions are from four sites” are our major levers Process efficiency, low carbon energy alternatives and technology opportunities have been identified across our portfolio Scope 1 & 2 emissions‘ (%, FY20) H Ele
Slide 32: Alignment of Our Approach to Our Strategy
ALIGNMENT OF OUR APPROACH TO OUR STRATEGY N= We have a plan eting the delivery of signi @ Optimise our business Emissions abatement Energy efficiency Physical resilience 5) Unlock the full value of our business Low carbon design Deployment of in projects technology Green energy studies Shift our com
Slide 33: Approach on Climate Change
APPROACH ON CLIMATE CHANGE © Optimise our business Unlock the full value of our business Identify and pursue opportunities to create value Energy efficiency Physical resilience Green energy studies Low carbon design in projects Deployment of technology Shift our commodity portfolio Partner with cust
Slide 34: Summary
SUMMARY We are tran: Our operations are performing strongly and are positioned to take advantage of improved commodity markets We have announced our intent to achieve a 50% reduction i operational e' (Scope 1 and 2) by FY35@ Notes: a. Compared with FY21 Baseline. The baseline will be adjusted for an
Slide 35: Footnotes
FOOTNOTES ills 1, Metrics describing sustainability and health, safety, environment and community performance apply to operations that have been wholly owned and operated by South32, or that have been operated by South32 in ajoint arrangement, 2, Total Recordable injury Frequency (TRIF) per million
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Slide 37: Appendix 1: JORC Code Table
APPENDIX 1 JORC Code Table 1 The following table provides a summary of the important assessment and reporting criteria used at the Flux Prospect (Hermosa project) for reporting of the exploration results, in accordance with the Table 1 Checklist in The Australasian Code for the Reporting of Explorat
Slide 38: Section 2: Reporting of Exploration Results
CRITERIA COMMENTARY Data spacing and • Soil sampling lines are oriented north-south. Sample locations are 50 m apart along the line. The distribution soil sampling lines are 200 m apart in the east and west directions. • The data spacing is deemed sufficient noting that the company is still at an ea
Slide 39: Criteria Commentary
CRITERIA COMMENTARY • The mineralization at Flux Prospect is hosted by a tabular limestone unit that dips northwest at approximately 45 degrees and immediately south of the historic workings. Zn-Pb-Ag mineralization is hosted by the limestone, which is structurally bound to the west, east and south
Slide 40: Figure 1: Regional Location Plan
Figure 1: Regional Location Plan 39
Slide 41: Figure 2: Hermosa Project Tenement Map
Figure 2: Hermosa Project Tenement Map 40
Slide 42: Figure 3: Hermosa Project Regional Geology
Figure 3: Hermosa Project Regional Geology 41
Slide 43: Figure 4: Regional Geology Map Legend
Figure 4: Hermosa Project Regional Geology Map Legend 42
Slide 44: Figure 5: Map of Soil Sample Location
Figure 5: Map of Soil Sample Location 43
Slide 45: Competent Person Statement
Figure 6: A Section of the Chargeability Map Figure 7: Section of Planned Drilling Competent Person Statement: The information in this presentation that relates to exploration results for Flux Prospect (Hermosa project) is based on information and supporting documentation compiled by David Bertuch.
Slide 46: Appendix 2: Mineral Resource Estimates for Hermosa and Ambler
APPENDIX 2 Mineral Resource estimates for Hermosa and Ambler projects as at 30 June 2020 (Refer to South32’s Annual report released on 4 September 2020) As at 30 June 2020 As at 30 June 2019 South32 Measured Resources Indicated Resources Inferred Resources Total Resources Interest Total Resources %
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