South32 Ltd. · ASX:S32
South32 — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2017
13 slides from South32's conference presentation, May 16, 2017
Slide 1: Bank of America Merrill Lynch Global Metals, Mining & Steel Conference Presentation 2017
16 May 2017 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 BANK OF AMERICA MERRILL LYNCH GLOBAL METALS, MINING & STEEL CONFERENCE PRESENTATION 2017 South32 Limited Chief Execu
Slide 2: Media Relations
MEDIA RELATIONS Diana Wearing Smith Hayley Cardy T +61 8 9324 9198 T +61 8 9324 9008 M +61 436 482 290 M +61 409 448 288 E Diana.Smith@south32.net E Hayley.Cardy@south32.net Further information on South32 can be found at www.south32.net. JSE Sponsor: UBS South Africa (Pty) Ltd 16 May 2017
Slide 3: Bank of America Merrill Lynch Global Metals, Mining & Steel Conference
BANK OF AMERICA MERRILL LYNCH GLOBAL METALS, MINING & STEEL CONFERENCE • 16 MAY 2017
Slide 4: Important Notices
• IMPORTANT NOTICES • THIS PRESENTATION SHOULD BE READ IN CONJUNCTION WITH THE “FINANCIAL RESULTS AND OUTLOOK – HALF YEAR ENDED 31 DECEMBER 2016” ANNOUNCEMENT RELEASED ON 16 FEBRUARY 2017, WHICH IS AVAILABLE ON SOUTH32’S WEBSITE (WWW.SOUTH32.NET). • • FORWARD LOOKING STATEMENTS • This presentation c
Slide 5: Overview
• OVERVIEW Operations focused on Reset costs and Unlocked internal safety, volume, costs sustaining capital options for value and capital Increased Creating Maintaining shareholder returns future options financial discipline 16 MAY 2017 BANK OF AMERICA MERRILL LYNCH – GLOBAL METALS, MINING & STEEL C
Slide 6: Our Operations
OUR OPERATIONS H1 FY17 Underlying EBITDA1 Operating CY17 cost curve position by operation3 by commodity Margin2 1st quartile 2nd quartile 3rd quartile 4th quartile Manganese Australia Manganese US$294M 52% South Africa Manganese Base & Cerro Matoso Precious metals 39% US$234M Cannington Metallurgica
Slide 7: Optimising Performance
• OPTIMISING PERFORMANCE Operating unit costs, including Sustaining capital expenditure H1 H1 Unit FY15 FY16 FY17 FY17e Unit FY15 FY16 FY17 FY17e AUSTRALIA MANGANESE (FOB) US$/dmtu 2.40 ↓ 28% ILLAWARRA METALLURGICAL COAL US$/t 104 TBC2 1.72 88 SOUTH AFRICA MANGANESE (FOB) US$/dmtu ↓ 1% SOUTH AFRICA
Slide 8: FY17 Production Performance
• FY17 PRODUCTION PERFORMANCE Investing in our operations Production by upstream operation¹ 9M YTD17 Q4 FY17 guidance WORSLEY ALUMINA Nearing completion of the first panel at Illawarra BRAZIL ALUMINA Metallurgical Coal‘s Appin Area 9 SOUTH AFRICA ENERGY COAL – DOMESTIC COAL Delivered first ore from
Slide 9: Reserve and Resource Life
RESERVE AND RESOURCE LIFE Reserve Life Project in study phase Resource Life Exploration potential Khutala life West Marradong extension project mining area Planeta Rica exploration exploration Dendrobium 67 98 43 91 53 Bauxite potential next domain extension project 34 34 Southern Areas 30 Canningto
Slide 10: Identifying New Opportunities
• IDENTIFYING NEW OPPORTUNITIES Focused opportunity set that is continually assessed Cu, Pb, Zn, Trilogy Northern Shield Resources Partnerships with juniors provides access Cu, Ni Au, Ag Bornite & Arctic Huckleberry Greenfield exploration offers attractive to attractive opportunities and reduces ris
Slide 11: Identifying New Opportunities
• IDENTIFYING NEW OPPORTUNITIES Concept Resource Drilling Feasibility AusQuest Strategic Alliance1 Trilogy Metals Option Agreement Arizona Mining Strategic Investment Cu, Pb, Zn Zn (±Cu,Pb) Bluebilly JV Bornite & Arctic Zn, Pb, Ag Hermosa Project Au, Ag • Polymetallic district in Alaska at relativel
Slide 12: Balance Sheet and Capital Management
• BALANCE SHEET AND CAPITAL MANAGEMENT Quarterly net cash movements and shareholder returns ROIC (US$M) 700 US$1.5B Net Cash 645 600 as at 31 March 2017 Competition for 500 excess capital 500 Maximise cash flow 400 Cash flow priorities 294 308 Distribute a minimum 300 239 40% of Underlying 206 earni
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