Wrap Text
Quarterly Report September 2018
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
Quarterly Report
September 2018
- Maintained annual production guidance for all operations. “Annual production guidance is maintained for all
- Ended the quarter with a net cash position of US$679M, of our operations with Australia Manganese
having acquired Arizona Mining and a 50% interest in Eagle achieving another quarterly record and total
Downs while continuing our US$1B capital management manganese ore production increasing by eight per
program. cent. Illawarra Metallurgical Coal also enjoyed a
- Achieved record quarterly performance at Australia strong start to the year as an improvement in
Manganese and an 8% increase in total manganese ore longwall productivity underpinned an annualised
production as we continued to take advantage of stronger production rate of 7.6Mt in the quarter.
demand and pricing.
“We finished the period with a net cash balance of
- Increased Illawarra Metallurgical Coal production by 54% to US$679 million and additional funds in our
1.9Mt with a significant increase in development rates still manganese joint venture as our key commodity
required to sustain the operation of two longwalls in parallel markets benefitted from robust demand and
at the Appin colliery from H2 FY20. pricing. This strong financial position enabled us to
- Continued to operate our aluminium smelters at their acquire Arizona Mining and Eagle Downs, and to
maximum technical capacity and upgraded the first pot at continue our US$1 billion capital management
Mozal Aluminium with the AP3XLE energy efficiency program.
technology.
- Took advantage of current market dynamics by finalising a “We continued to make excellent progress in
number of agreements to ship stockpiled alumina hydrate in reshaping our portfolio. In addition to the two
the December 2018 quarter as Worsley Alumina continues acquisitions, we continued to advance our 18
to be impacted by planned and unplanned calciner greenfield exploration projects and commenced the
maintenance. process to broaden and transform the ownership of
- Commenced the process to broaden and transform the South Africa Energy Coal.”
ownership of South Africa Energy Coal, receiving formal
expressions of interest from prospective parties. Graham Kerr, South32 CEO
Production summary
South32’s share YTD FY18 YTD FY19 YoY 1Q18 4Q18 1Q19 QoQ
Alumina production (kt) 1,279 1,159 (9%) 1,279 1,295 1,159 (11%)
Aluminium production (kt) 249 248 (0%) 249 246 248 1%
Energy coal production (kt) 7,014 6,560 (6%) 7,014 7,253 6,560 (10%)
Metallurgical coal production (kt) 494 1,515 207% 494 1,089 1,515 39%
Manganese ore production (kwmt) 1,304 1,447 11% 1,304 1,342 1,447 8%
Manganese alloy production (kt) 56 52 (7%) 56 64 52 (19%)
Payable nickel production (kt) 11.7 10.7 (9%) 11.7 11.3 10.7 (5%)
Payable silver production (koz) 2,763 3,185 15% 2,763 4,234 3,185 (25%)
Payable lead production (kt) 25.8 25.8 0% 25.8 31.4 25.8 (18%)
Payable zinc production (kt) 11.0 13.2 20% 11.0 12.5 13.2 6%
Unless otherwise noted: percentage variance relates to performance during the September 2018 quarter compared with the
June 2018 quarter (QoQ); production and sales volumes are reported on an attributable basis.
1
Corporate Update
- On 10 August we completed the acquisition of Arizona Mining[Note 1] and immediately commenced development of the Hermosa
project’s twin exploration declines and a comprehensive review of their development plans. The twin exploration declines will
allow us to increase our geological understanding of this high grade resource, while work is also being undertaken on the
existing foreign estimate[Note 2] so that we can declare a Mineral Resource in accordance with the JORC Code in CY19.
- On 14 September we completed the acquisition of a 50% interest in the Eagle Downs metallurgical coal project in
Queensland’s Bowen Basin[Note 3] and assumed operating control. We have since appointed a project director and commenced a
review of the project’s development plan.
- Our net cash[Note 4] balance decreased by US$1,362M to US$679M during the September 2018 quarter following completion of
the Arizona Mining[Note 1] and Eagle Downs[Note 3] acquisitions for a combined US$1,457M, and the continuation of our US$1B
capital management program. To the end of the September 2018 quarter we had completed 65% of this program, having paid a
US$154M special dividend on 5 April 2018 and purchased 216M shares at a volume weighted average price of
A$3.03 per share. Subsequent to the end of the September 2018 quarter we also paid a US$316M fully-franked dividend in
respect of the June 2018 half year.
- We received net distributions[Note 5] of US$24M (South32 share) from our manganese equity accounted investments (EAI) during
the September 2018 quarter. The combination of strong operating performance and pricing has seen additional cash build in
our manganese joint venture, despite Australia Manganese paying US$134M (100% share) in royalties in respect of the prior
6 month period. Any excess cash within the joint venture is expected to be distributed to partners in the December 2018
half year.
- The formal process to broaden and transform the ownership of South Africa Energy Coal commenced during the September
2018 quarter and several expressions of interest have been received. Given the likely timeline for this process, we expect to
continue to consolidate the operation in our financial results for the December 2018 half year.
- We invested US$12.1M in exploration programs during the September 2018 quarter of which US$3.9M was capitalised
(including US$0.1M for our EAI’s) and US$3.8M was directed to our 18 early stage greenfield exploration projects.
- Our Underlying Effective Tax Rate (ETR), which excludes tax associated with our EAI, largely reflects the geographic
distribution of the Group’s profit. The corporate tax rates applicable to the Group include: Australia 30%, South Africa 28%,
Colombia 37%[Note 6], Mozambique 0%[Note 6] and Brazil 34%. The Group’s ETR will rise should profits within our
aluminium value chain continue to transfer upstream to our refineries, which are located in higher tax paying jurisdictions.
Production guidance (South32’s share) FY18 3M YTD FY19 FY19e
Worsley Alumina
Alumina production (kt) 3,764 854 3,965
Hillside Aluminium
Aluminium production (kt) 712 180 720
Mozal Aluminium
Aluminium production (kt) 271 68 269
Brazil Alumina
Alumina production (kt) 1,304 305 1,355
South Africa Energy Coal[Note 7]
Energy coal production (kt) 27,271 6,170 29,000
Domestic coal production (kt) 15,154 4,064 17,500
Export coal production (kt) 12,117 2,106 11,500
Illawarra Metallurgical Coal
Total coal production (kt) 4,244 1,905 6,100
Metallurgical coal production (kt) 3,165 1,515 4,900
Energy coal production (kt) 1,079 390 1,200
Australia Manganese
Manganese ore production (kwmt) 3,396 932 3,350
South Africa Manganese
Manganese ore production[Note 8] (kwmt) 2,145 515 2,050
Cerro Matoso
Payable nickel production (kt) 43.8 10.7 40.5
Cannington
Payable zinc equivalent production (kt)[Note 9] 187.2 49.7 188.1
Payable silver production (koz) 12,491 3,185 11,750
Payable lead production (kt) 104.4 25.8 98.0
Payable zinc production (kt) 41.3 13.2 51.0
2
Worsley Alumina
(86% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Alumina production (kt) 942 854 (9%) 942 981 854 (9%) (13%)
Alumina sales (kt) 966 850 (12%) 966 967 850 (12%) (12%)
Worsley Alumina hydrate production increased by 5% (or 48kt) to 959kt in the September 2018 quarter while calcined alumina
production decreased by 13% (or 127kt) to 854kt as further maintenance was undertaken and the refinery re-established a
substantial hydrate inventory position. We took advantage of current market dynamics and agreed multiple contracts, at alumina
equivalent rates, to sell opportunistic volumes of hydrate for shipment during the December 2018 quarter. Additional calciner
maintenance is scheduled for the March 2019 quarter and FY19 production guidance remains unchanged at 3,965kt.
The average realised price for alumina sales in the September 2018 quarter is expected to reflect a moderate discount to the Platts
Alumina Index (PAX)[Note 10] on a volume weighted M-1 basis. This discount reflects the elevated alumina to aluminium price ratio in the
spot market and the structure of specific Mozal Aluminium supply contracts that are linked to the LME aluminium price, which in this
case reduces the price paid by our smelter.
Hillside Aluminium
(100%)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Aluminium production (kt) 180 180 0% 180 179 180 0% 1%
Aluminium sales (kt) 162 178 10% 162 183 178 10% (3%)
Hillside Aluminium saleable production increased by 1% (or 1kt) to 180kt in the September 2018 quarter as the smelter continued
to test its maximum technical capacity. FY19 production guidance remains unchanged at 720kt. Notwithstanding the smelter’s
continued strong operating performance, higher prices for alumina and aluminium price-linked power, and still elevated prices for
pitch and coke continue to impact its cost base.
Mozal Aluminium
(47.1% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Aluminium production (kt) 69 68 (1%) 69 67 68 (1%) 1%
Aluminium sales (kt) 65 59 (9%) 65 76 59 (9%) (22%)
Mozal Aluminium saleable production increased by 1% (or 1kt) to 68kt in the September 2018 quarter as the smelter continued to
test its maximum technical capacity. The US$18M (South32 share) AP3XLE energy efficiency project commenced the roll out of its
pot relining program ahead of schedule during the September 2018 quarter. The project is expected to deliver a circa 5%
(or 10kt pa) increase in annual production for no associated increase in power consumption, with the full benefit expected to be
realised by FY24. FY19 production guidance remains unchanged at 269kt.
Notwithstanding the smelters continued strong operating performance, higher prices for alumina and still elevated prices for pitch
and coke continue to impact its cost base. The smelter sources alumina from our Worsley Alumina refinery with approximately 50%
of its requirements priced as a percentage of the LME aluminium index, providing it with some cost relief at current alumina prices.
3
Brazil Alumina
(36% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Alumina production (kt) 337 305 (9%) 337 314 305 (9%) (3%)
Alumina sales (kt) 333 302 (9%) 333 378 302 (9%) (20%)
Brazil Alumina saleable production decreased by 3% (or 9kt) to 305kt in the September 2018 quarter as unplanned maintenance
and power outages impacted performance. FY19 production guidance remains unchanged at 1,355kt with the refinery expected to
creep production over the remainder of the year following the completion of the De-bottlenecking Phase One project in March 2018.
South Africa Energy Coal
(100%)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Energy coal production (kt) 6,689 6,170 (8%) 6,689 7,107 6,170 (8%) (13%)
Domestic sales (kt) 3,788 4,103 8% 3,788 4,227 4,103 8% (3%)
Export sales (kt) 2,748 1,923 (30%) 2,748 3,181 1,923 (30%) (40%)
South Africa Energy Coal saleable production decreased by 13% (or 937kt) to 6.2Mt in the September 2018 quarter. Export
production was impacted by an incident that caused damage to the dragline at Klipspruit in August 2018, while domestic production
declined in response to lower demand, despite the commencement of a new contract to sell additional lower quality stockpiled
product in the June 2018 quarter.
The extended dragline outage at Klipspruit which will reduce export coal production by approximately 2Mt was already included
in annual guidance of 29Mt (17.5Mt domestic, 11.5Mt Export). The incident has been confirmed as an insurable event and we expect
to recover certain losses. We are currently working with our insurers on a schedule for the dragline’s repair and
recommissioning.
Illawarra Metallurgical Coal
(100%)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Total coal production (kt) 819 1,905 133% 819 1,235 1,905 133% 54%
Total coal sales (kt) 778 1,504 93% 778 1,365 1,504 93% 10%
Metallurgical coal production (kt) 494 1,515 207% 494 1,089 1,515 207% 39%
Metallurgical coal sales (kt) 403 1,178 192% 403 1,120 1,178 192% 5%
Energy coal production (kt) 325 390 20% 325 146 390 20% 167%
Energy coal sales (kt) 375 326 (13%) 375 245 326 (13%) 33%
Illawarra Metallurgical Coal saleable production increased by 54% (or 670kt) to 1.9Mt in the September 2018 quarter as the Appin
and Dendrobium longwalls performed strongly following moves in the June 2018 quarter. Notwithstanding the improvement in
longwall productivity at Appin, an uplift in development rates is required to sustain the operation of two longwalls in parallel from
H2 FY20. We also reached agreement with the employees covered by the Appin Deputies Enterprise Agreement (EA), following
agreement of a new Dendrobium Deputies EA in the June 2018 quarter. We continue to renegotiate several other labour
agreements at Illawarra Metallurgical Coal and this process is being closely managed.
Production guidance remains unchanged at 6.1Mt with development rates to become an even greater focus and two longwall
moves to be completed over the remainder of FY19.
4
Australia Manganese
(60% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Manganese ore production (kwmt) 808 932 15% 808 865 932 15% 8%
Manganese ore sales (kwmt) 790 884 12% 790 875 884 12% 1%
Manganese alloy production (kt) 39 41 5% 39 42 41 5% (2%)
Manganese alloy sales (kt) 36 29 (19%) 36 55 29 (19%) (47%)
Australia Manganese achieved record ore performance in the September 2018 quarter, increasing saleable ore production by 8%
(or 67kwmt) to 932kwmt. The primary circuit continued to achieve high utilisation rates while the Premium Concentrate Ore (PC02)
circuit operated at approximately 120% of its design capacity, contributing 9% of total production in the quarter. FY19 production
guidance remains unchanged at 3,350kwmt with preparation underway for the upcoming wet season.
Manganese alloy saleable production decreased by 2% (or 1kt) to 41kt in the September 2018 quarter.
South Africa Manganese
(60% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Manganese ore production (kwmt) 496 515 4% 496 477 515 4% 8%
Manganese ore sales (kwmt) 528 487 (8%) 528 539 487 (8%) (10%)
Manganese alloy production (kt) 17 11 (35%) 17 22 11 (35%) (50%)
Manganese alloy sales (kt) 14 16 14% 14 18 16 14% (11%)
South Africa Manganese saleable ore production increased by 8% (or 38kwmt) to 515kwmt in the September 2018 quarter as
production ramped up at Wessels following a planned shutdown that commenced in May 2018. We continued to take advantage of
favourable market conditions by selling lower quality secondary product and utilising higher cost trucking. FY19 production
guidance remains unchanged at 2,050kwmt.
Manganese alloy saleable production decreased by 50% (or 11kt) to 11kt in the September 2018 quarter as a planned furnace
shutdown was completed during the quarter.
Cerro Matoso
(99.9% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Payable nickel production (kt) 11.7 10.7 (9%) 11.7 11.3 10.7 (9%) (5%)
Payable nickel sales (kt) 11.4 10.9 (4%) 11.4 11.2 10.9 (4%) (3%)
Cerro Matoso payable nickel[Note 9] production decreased by 5% (or 0.6kt) to 10.7kt in the September 2018 quarter as record ore
throughput was achieved with an increase in lower grade stockpiled ore feed.
On 24 September, we announced that the Constitutional Court of Colombia had issued its final ruling on our application to annul its
decision regarding the alleged health and environmental impacts of our Cerro Matoso operation on the surrounding communities.
The Court annulled those orders requiring Cerro Matoso to pay direct financial compensatory damages to community members and
establish an ethnic development fund. The orders requiring Cerro Matoso to provide ongoing health care to community members
alleging health impacts, and to submit to a new consultative environmental licensing process, were not annulled.
Production has not been impacted by the decision handed down by the Court and FY19 guidance remains unchanged at 40.5kt.
5
Cannington
(100% share)
1Q19 1Q19
YTD YTD
South32's share YoY 1Q18 4Q18 1Q19 vs vs
FY18 FY19
1Q18 4Q18
Payable zinc equivalent production (kt) 45.4 49.7 10% 45.4 58.9 49.7 10% (16%)
Payable silver production (koz) 2,763 3,185 15% 2,763 4,234 3,185 15% (25%)
Payable silver sales (koz) 2,926 3,057 4% 2,926 3,542 3,057 4% (14%)
Payable lead production (kt) 25.8 25.8 (0%) 25.8 31.4 25.8 (0%) (18%)
Payable lead sales (kt) 25.9 22.5 (13%) 25.9 25.8 22.5 (13%) (13%)
Payable zinc production (kt) 11.0 13.2 20% 11.0 12.5 13.2 20% 6%
Payable zinc sales (kt) 13.6 8.8 (35%) 13.6 13.0 8.8 (35%) (32%)
Cannington payable zinc equivalent production decreased by 16% (or 9.2kt) to 49.7kt in the September 2018 quarter following the
extraction of a high grade sequence of stopes in the prior quarter. Processed silver, lead and zinc grades met our expectations and
guidance remains unchanged for FY19 at 186g/t, 5.1% and 3.1%, respectively. Mill throughput was largely unchanged with greater
predictability and stability achieved in the underground mine.
The decrease in quarterly sales reflects a change to the shipping schedule requested by a customer. FY19 zinc equivalent[Note 9]
production guidance of 188.1kt (silver 11,750koz, lead 98.0kt and zinc 51.0kt) remains unchanged.
Notes:
1. Refer to exchange release on 13 August 2018 “South32 completes acquisition of Arizona Mining”.
2. The information in this release that relates to estimates of Mineral Resources for the Hermosa project are foreign
estimates under ASX Listing Rules and reference should be made to the clarifying statement on Mineral Resources in
the market announcement ‘South32 to acquire Arizona Mining in agreed all cash offer’ dated 18 June 2018, in accordance
with ASX Listing Rule 5.12. South32 is not in possession of any new information or data relating to the foreign
estimate that materially impacts on the reliability of the estimates. South32 confirms that the information contained
in the clarifying statement in the 18 June 2018 market announcement continues to apply and has not materially changed.
The estimates of Mineral Resources are not reported in accordance with the JORC Code. Competent Persons
have not done sufficient work to classify the foreign estimates as Mineral Resources in accordance with JORC Code.
It is uncertain that following evaluation and further exploration that the foreign estimates will be able to be reported
as Mineral Resources or Ore Reserves in accordance with the JORC Code.
3. Refer to media release on 14 September 2018 “South32 completes acquisition of 50% interest in Eagle Downs and assumes
operatorship”.
4. Net Cash number is unaudited and should not be considered as an indication of or alternative to an IFRS measure of
profitability, financial performance or liquidity.
5. Net distributions from equity accounted investments includes net debt movements and dividends, which are unaudited and
should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance
or liquidity.
6. The Colombian corporate tax rate was 40% until 31 December 2017. The Mozambique operations are subject to a royalty on revenues
instead of income tax.
7. 8% of South Africa Energy Coal is owned by a Broad-Based Black Economic Empowerment (B-BBEE) consortium. The interests
owned by the B-BBEE consortium were acquired using vendor finance, with the loans repayable to South32 via distributions
attributable to these parties, pro rata to their share in South Africa Energy Coal. Until these loans are repaid, South32’s
interest in South Africa Energy Coal is accounted at 100%.
8. Consistent with the presentation of South32’s segment information, South Africa Manganese ore production and sales have
been reported at 60%.The Group’s financial statements will continue to reflect a 54.6% interest in South Africa Manganese
ore.
9. Payable Zinc Equivalent (kt) is calculated by aggregating revenues from payable silver, lead and zinc, and dividing the
total revenue by the price of zinc. FY18 realised prices for zinc (US$3,185/t), lead (US$2,463/t) and silver (US$16.6/oz)
have been used for FY18 and FY19e. Zinc equivalent is used to compare Cannington with the recently acquired Hermosa
project which is currently reported in zinc equivalent terms.
10. The quarterly sales volume weighted average of the Platts Alumina Index (PAX) (FOB Australia) on the basis of a one month
lag to published pricing (Month minus one or “M-1”) was US$499/t in the September 2018 quarter.
11. The following abbreviations have been used throughout this report: grams per tonne (g/t); tonnes (t); thousand tonnes
(kt); thousand tonnes per annum (ktpa); million tonnes (Mt); million tonnes per annum (Mtpa); thousand ounces (koz);
million ounces (Moz); thousand wet metric tonnes (kwmt); million wet metric tonnes (Mwmt); million wet metric tonnes
per annum (Mwmt pa); thousand dry metric tonnes (kdmt).
6
Operating Performance
South32’s share YTD YTD 1Q18 2Q18 3Q18 4Q18 1Q19
FY18 FY19
Worsley Alumina (86% share)
Alumina hydrate production (kt) 974 959 974 973 938 911 959
Alumina production (kt) 942 854 942 923 918 981 854
Alumina sales (kt) 966 850 966 920 910 967 850
Hillside Aluminium (100%)
Aluminium production (kt) 180 180 180 178 175 179 180
Aluminium sales (kt) 162 178 162 182 184 183 178
Mozal Aluminium (47.1% share)
Aluminium production (kt) 69 68 69 68 67 67 68
Aluminium sales (kt) 65 59 65 82 51 76 59
Brazil Alumina (36% share)
Alumina production (kt) 337 305 337 339 314 314 305
Alumina sales (kt) 333 302 333 316 314 378 302
South Africa Energy Coal (100%)
Energy coal production (kt) 6,689 6,170 6,689 6,734 6,741 7,107 6,170
Domestic sales (kt) 3,788 4,103 3,788 3,546 3,835 4,227 4,103
Export sales (kt) 2,748 1,923 2,748 3,117 3,472 3,181 1,923
Illawarra Metallurgical Coal (100%)
Total coal production (kt) 819 1,905 819 1,041 1,149 1,235 1,905
Total coal sales (kt) 778 1,504 778 882 1,091 1,365 1,504
Metallurgical coal production (kt) 494 1,515 494 788 794 1,089 1,515
Metallurgical coal sales (kt) 403 1,178 403 654 760 1,120 1,178
Energy coal production (kt) 325 390 325 253 355 146 390
Energy coal sales (kt) 375 326 375 228 331 245 326
Australia Manganese (60% share)
Manganese ore production (kwmt) 808 932 808 893 830 865 932
Manganese ore sales (kwmt) 790 884 790 822 803 875 884
Ore grade sold (%, Mn) 46.1 46.1 46.1 46.0 45.0 45.7 46.1
Manganese alloy production (kt) 39 41 39 43 41 42 41
Manganese alloy sales (kt) 36 29 36 42 37 55 29
South Africa Manganese (60% share)
Manganese ore production (kwmt) 496 515 496 633 539 477 515
Manganese ore sales (kwmt) 528 487 528 539 476 539 487
Ore grade sold (%, Mn) 40.7 40.0 40.7 39.9 40.1 39.1 40.0
Manganese alloy production (kt) 17 11 17 19 21 22 11
7
South32’s share YTD YTD 1Q18 2Q18 3Q18 4Q18 1Q19
FY18 FY19
Manganese alloy sales (kt) 14 16 14 14 21 18 16
Cerro Matoso (99.9% share)
Ore mined (kwmt) 1,051 613 1,051 1,036 831 823 613
Ore processed (kdmt) 696 712 696 644 672 710 712
Ore grade processed (%, Ni) 1.91 1.68 1.91 1.75 1.76 1.73 1.68
Payable nickel production (kt) 11.7 10.7 11.7 10.1 10.7 11.3 10.7
Payable nickel sales (kt) 11.4 10.9 11.4 9.9 10.8 11.2 10.9
Cannington (100%)
Ore mined (kwmt) 647 623 647 562 571 683 623
Ore processed (kdmt) 593 638 593 575 544 643 638
Silver ore grade processed (g/t, Ag) 175 184 175 155 207 237 184
Lead ore grade processed (%, Pb) 5.2 4.9 5.2 4.9 5.2 5.8 4.9
Zinc ore grade processed (%, Zn) 2.8 2.9 2.8 2.3 2.5 2.8 2.9
Payable zinc equivalent production (kt) 45.4 49.7 45.4 40.0 42.9 58.9 49.7
Payable silver production (koz) 2,763 3,185 2,763 2,412 3,082 4,234 3,185
Payable silver sales (koz) 2,926 3,057 2,926 2,503 3,014 3,542 3,057
Payable lead production (kt) 25.8 25.8 25.8 23.6 23.6 31.4 25.8
Payable lead sales (kt) 25.9 22.5 25.9 22.7 23.5 25.8 22.5
Payable zinc production (kt) 11.0 13.2 11.0 9.2 8.6 12.5 13.2
Payable zinc sales (kt) 13.6 8.8 13.6 12.1 6.3 13.0 8.8
Forward-looking statements
This release contains forward-looking statements, including statements about trends in commodity prices and
currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of
management; capital costs and scheduling; operating costs; anticipated productive lives of projects, mines and
facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations at
the date of this release, however they are not guarantees or predictions of future performance. They involve known
and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause
actual results to differ materially from those expressed in the statements contained in this release. Readers are
cautioned not to put undue reliance on forward-looking statements. Except as required by applicable laws or regulations,
the South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result
of new information or future events. Past performance cannot be relied on as a guide to future performance.
Further information
Investor Relations Media Relations
Alex Volante Rob Moore Jenny White
T +61 8 9324 9029 T +61 8 9324 9695 T +44 20 7798 1773
M +61 403 328 408 M +61 426 699 835 M +44 7900 046 758
E Alex.Volante@south32.net E Rob.Moore@south32.net E Jenny.White@south32.net
18 October 2018
JSE Sponsor: UBS South Africa (Pty) Ltd
8
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