South32 Ltd. · ASX:S32
South32 — BMO Global Metals, Mining and Critical Minerals Conference 2024
17 slides from South32's conference presentation, Feb 26, 2024
Slide 1: BMO Global Metals, Mining and Critical Minerals Conference
BMO GLOBAL METALS, MINING AND CRITICAL MINERALS CONFERENCE 26 February 2024
Slide 2: Important Notices
IMPORTANT NOTICES This presentation should be read in conjunction with the “Financial Results and Outlook – half year ended 31 December 2023” announcement released on 15 February 2024, which is available on South32’s website (www.south32.net). FORWARD-LOOKING STATEMENTS This presentation contains fo
Slide 3: Overview
OVERVIEW Our purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources We produce commodities critical for a low-carbon future Portfolio of high-qual
Slide 4: Our Strategy
OUR STRATEGY Our purpose is underpinned by a simple strategy UNLOCK OPTIMISE the full value of our business IDENTIFY through our people, our business by working innovation, projects and and pursue opportunities to safely, minimising our impact, technology sustainably reshape our consistently deliver
Slide 5: Our Portfolio
OUR PORTFOLIO An attractive commodity mix and growth pipeline in commodities critical for a low-carbon future Investing to discover our next Embedded near term growth Unlocking value from our high-quality generation of base metal mines in copper and low-carbon aluminium1 development options in the A
Slide 6: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY Final investment approval for Taylor is the next step in our portfolio transformation towards critical commodities Underlying revenue by commodity(a) South32 at demerger2 Illustrative Group3 Divested low returning, capital intensive businesses 11% Doubled our low-carbon al
Slide 7: Our Growth Pipeline
OUR GROWTH PIPELINE We are unlocking significant value from our growth pipeline in commodities critical for a low-carbon future Copper equivalent production5 Projects in further study phases and exploration (a) ~10% Hermosa Hermosa Sierra Gorda Cerro Matoso Ambler Metals Chita Valley and 25+ greenfi
Slide 8: Taylor Investment Highlights
TAYLOR INVESTMENT HIGHLIGHTS Taylor is expected to strengthen our portfolio, deliver attractive returns and underpin additional growth at Hermosa Increased exposure to With global zinc demand growth expected to outpace production by ~3Mt to 2031, we expect higher 1 attractive zinc markets incentive
Slide 9: Increased Exposure to Attractive Zinc Markets
1 INCREASED EXPOSURE TO ATTRACTIVE ZINC MARKETS Zinc supply is declining due to falling ore grades, a lack of new discoveries and lower Chinese supply Production grades have almost halved since the early 2000s and China's supply is constrained by rising Taylor has been the only major zinc discovery
Slide 10: Increased Exposure to Attractive Zinc Markets
1 INCREASED EXPOSURE TO ATTRACTIVE ZINC MARKETS Global demand growth expected to outpace production by ~3Mt to 2031, an industry challenge similar in magnitude to copper Total mine production capability versus zinc demand(a) (kt Zn) The equivalent of three Taylor-sized projects(b) required to be dev
Slide 11: A Long-Life Operation Producing Critical Metals
2 A LONG-LIFE OPERATION PRODUCING CRITICAL METALS Taylor is expected to be one of the world's largest, lowest cost zinc producers Payable annual average ZnEq production ktpa ~290kt ZnEq Highly efficient underground mine and conventional ~253kt ZnEq process plant with nameplate capacity of 4.3Mtpa(a)
Slide 12: A Low-Cost Operation in the Industry's First Quartile
3 A LOW-COST OPERATION IN THE INDUSTRY'S FIRST QUARTILE Taylor is expected to sustainably increase Group margins due to its first quartile cost position Zinc total cash and sustaining costs curve CY30 (USc/lb, real 1 January 2024, net of credits) A low-cost operation in the industry's first quartile
Slide 13: Expected to Deliver Attractive Returns for Decades to Come
4 EXPECTED TO DELIVER ATTRACTIVE RETURNS FOR DECADES TO COME Taylor's feasibility study has confirmed the potential for attractive returns from Hermosa's first development stage Feasibility study highlights Annual average production ~290kt ZnEq in the steady state years Initial operating life(a) Inc
Slide 14: Unlocks Hermosa's Regional Scale Potential
5 UNLOCKS HERMOSA'S REGIONAL SCALE POTENTIAL Infrastructure established at Taylor will unlock value for potential development stages at Hermosa Hermosa land package Taylor zinc-lead-silver deposit Development approved with first production expected H2 FY27(a) Clark battery-grade A second planned gro
Slide 15: Summary
SUMMARY We continue to execute our strategy and our portfolio is well positioned to capitalise on the increasing demand for commodities required for the global energy transition We remain focused on driving operating performance and cost efficiencies across our business Production uplift and commodi
Slide 16: Footnotes
FOOTNOTES 1. Refers to aluminium produced using renewable power. 2. South32 demerged in FY15. Normalised revenue based on FY23 average realised prices at all our operations except for South Africa Energy Coal (SAEC), Tasmanian Electro Metallurgical Company (TEMCO) and Metalloys. For these exceptions
Slide 17: South32
SOUTH32
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