South32 Ltd. · ASX:S32
South32 — BMO Global Metals, Mining and Critical Minerals Conference 2023
18 slides from South32's conference presentation, Feb 27, 2023
Slide 1: BMO Global Metals, Mining and Critical Minerals Conference
BMO GLOBAL METALS, MINING AND CRITICAL MINERALS CONFERENCE 27 February 2023
Slide 2: Important Notices
IMPORTANT NOTICES • This presentation should be read in conjunction with the “Financial Results and Outlook – half year ended 31 December 2022” announcement released on 16 February 2023, which is available on South32’s website (www.south32.net). Figures in italics indicate that an adjustment has bee
Slide 3: Our Strategy
OUR STRATEGY U N LO C K OPTIMISE IDENTIFY the full value of our business our business by working through our people, and pursue opportunities to safely, minimising our impact, innovation, projects and sustainably reshape our consistently delivering stable technology. business for the future, and and
Slide 4: Working Safely
WORKING SAFELY The most important commitment we make at South32 is that everyone goes home safe and well Fatalities1,(a) 2 1 1 • In November 2022, we were devastated by the loss of two of our colleagues, Mr Cristovão Alberto Tonela and Mr Alfredo Francisco Domingos João, who FY21 FY22 H1 FY23 were f
Slide 5: Our Portfolio
OUR PORTFOLIO We have an attractive commodity mix and a growth pipeline in metals critical to a low-carbon future Portfolio improvements have Our next phase of growth We are investing to discover increased our volumes of metals is expected to come from our our next generation of mines with critical
Slide 6: H1 FY23 Financial Scorecard
H1 FY23 FINANCIAL SCORECARD Our financial performance remains strong, underpinned by our stable operating performance, portfolio improvements and continued capital discipline H1 FY23 Underlying EBITDA contribution by commodity(b)(c)(d) Profit after tax Returned to shareholders during H1 FY23(a) US$6
Slide 7: Commodity Price and Foreign Exchange Analysis
COMMODITY PRICE AND FOREIGN EXCHANGE ANALYSIS China’s re-opening and global supply disruptions have underpinned a commodity price rebound to start H2 FY23 EBIT sensitivity(a) +/- 10% South32 commodity basket reference prices5 Commodity US$M H1 FY23 vs. H1 FY22 average prices Spot (10 February 2023)
Slide 8: Capital Management Framework
CAPITAL MANAGEMENT FRAMEWORK Our framework is designed to Our capital management We have a balanced approach reward shareholders as our framework is unchanged to capital allocation financial performance improves Capital management framework Capital allocation since FY16 Shareholder returns(a) (US$M)
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Our program has returned US$2.1B to Our on-market share buy-back Our flexible capital management date and has been expanded by a has reduced shares on issue by program has been active since FY17 further US$50M, leaving US$158M 14% since inception to be returned by September 2023
Slide 10: Capital Expenditure Guidance (including EAI)
CAPITAL EXPENDITURE GUIDANCE (INCLUDING EAI) We have reduced FY23 guidance by US$105M, as we continue to allocate capital that prioritises safe and reliable operations and invest to unlock value through our improvement, life extension and growth options Capital expenditure(a) (US$M) Includes intangi
Slide 11: Cerro Matoso
CERRO MATOSO We have allocated capital at Cerro Matoso to unlock value and create options for potential supply into new nickel markets Cerro Matoso’s recent high-returning investments … and sets a strong platform to unlock further value have helped to re-position the operation ... following its mini
Slide 12: Hermosa Project
HERMOSA PROJECT Unlocking multiple sources of value to deliver future supply of metals critical to a low-carbon future Taylor zinc-lead-silver Clark battery-grade manganese- Regional resource development option zinc-silver development option growth potential Targeting a sustainable, Confirmed the op
Slide 13: Hermosa Project – Taylor
HERMOSA PROJECT – TAYLOR Orebody dewatering, studies and early site works progressing in-line with our Taylor PFS capital estimate WTP2 and dewatering well construction FY23e Growth capital expenditure (US$M) INITIAL MINING INFRASTRUCTURE US$80M DEWATERING Engineering and initial construction ahead
Slide 14: Hermosa Project – Clark
HERMOSA PROJECT – CLARK Ideally positioned to provide secure, localised supply of battery-grade manganese into rapidly expanding North American supply chain Battery chemistry for a standard lithium, nickel, cobalt and manganese battery (NCM-622)… Battery-grade manganese is a critical metal for EV su
Slide 15: Creating Value Through Exploration
CREATING VALUE THROUGH EXPLORATION Investing in our portfolio of exploration options to discover our next generation of mines ALASKA NORTHERN AUSTRALIA Ambler Metals Jupiter Adventus Mining Corporation Roosevelt Maguire (multiple projects) Encounter Resources Iffley EMX Royalty Corp (Jessica & Carra
Slide 16: Outlook
OUTLOOK We are in a strong position to continue our returns to shareholders and unlock value in our growth pipeline in metals critical for a low-carbon future We will continue to reward Volume growth, lower costs shareholders via our We are investing to unlock and commodity price tailwinds 40% minim
Slide 17: Footnotes
FOOTNOTES 1. Metrics describing health, safety, environment, people and community related performance in this presentation apply to ‘operated operations’ that have been wholly owned and operated by South32, or that have been operated by South32 in a joint arrangement. 2. Total Recordable Injury Freq
Slide 18: South32
SOUTH32
South32 — BMO Global Metals, Mining and Critical Minerals Conference 2023 on 6ix