[Ferro-Alloys.com] South32: Quarterly Report June 2025

South32 Chief Executive Officer, Graham Kerr: “We delivered another strong quarter of operating performance, exceeding the Group's FY25 production guidance, driven by annual production growth of 20% in copper and 6% in aluminium.

“Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan.

“We continued to streamline our portfolio toward higher-returning businesses, completing the sale of Illawarra Metallurgical Coal in the first half and agreeing to divest Cerro Matoso in July.

"We invested US$517M in our regional scale Hermosa project in FY25 to grow our future base metals production. This quarter, we achieved key milestones at Hermosa's Taylor zinc-lead-silver project, starting the main shaft sink and construction activities for the process plant.

“With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns.”

Manganese production exceeded FY25 production guidance by 9%, as Australia Manganese successfully completed its operational recovery plan and South Africa Manganese had a strong finish to the year.

CORPORATE UPDATE

In FY25, more than 95% of our frontline employees completed the LSED program.

• On 3 June 2025, Samancor Manganese Proprietary Limited completed the divestment of the Metalloys manganese alloy smelter9. We will recognise a gain on sale of ~US$44M (~US$46M post-tax) (South32 share) in our FY25 results as a result of the transaction, which will be excluded from Underlying earnings.

• Australia Manganese received US$350M (100% basis) of external insurance payments in FY25, following the impacts of Tropical Cyclone Megan. We continue to work with our insurers regarding further insurance recoveries.

MARKETING UPDATE

The average realised prices achieved for our commodities are summarised below. Provisionally priced sales were revalued at 30 June 2025 with the final price of these to be determined in the December 2025 half year.

Operating unit cost(a)

AUSTRALIA MANGANESE (60% SHARE)

Australia Manganese saleable production was 1,106kwmt in FY25, as we successfully resumed operations following the impacts of Tropical Cyclone Megan in the March 2024 quarter. The operation exceeded FY25 production guidance by 11% with the primary concentrator restarting in the June 2025 quarter. The operation is expected to deliver normalised production rates in FY26, with production guidance unchanged at 3,200kwmt.

Export shipments recommenced in the quarter as planned, following completion of the wharf construction in May 2025. Shipping rates are expected to reach full capacity in the September 2025 quarter.

During  the  quarter,  we  finalised  a  new  enterprise  agreement  to  December  2027  for  covered  employees  of e Eylandt Mining Company.

SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)

South Africa Manganese saleable production was largely unchanged at 2,151kwmt in FY25. The operation delivered a strong finish to the year, with production increasing by 25% in the June 2025 quarter following the prior period’s planned maintenance shut, exceeding FY25 production guidance by 8%. While we will continue to monitor and respond to market conditions, FY26 production guidance remains unchanged at 2,000kwmt.

Sales increased by 48% in the June 2025 quarter due to carry-over shipments from the prior quarter. We realised a ~11% premium to the medium grade 37% manganese lump ore index27 as we optimised our sales mix.

• [Editor:tianyawei]