Wrap Text
Quarterly Report September 2026
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
QUARTERLY REPORT
September 2026
South32 maintains production guidance and balance sheet strength while investing in base metals growth
South32 Chief Executive Officer, Matt Daley: “We’ve made a positive start to FY27, maintaining production guidance across all our operations
and achieving key development milestones for our copper and zinc growth projects.
“Sierra Gorda increased payable copper equivalent production by 11 per cent on higher planned copper grades and paid a record quarterly
distribution of US$153 million. Sierra Gorda also commenced execution of the fourth grinding line project, which is expected to increase processing
capacity by 25 per cent, increasing our exposure to copper.
“Manganese had a strong start to the year, with production increasing by 14 per cent as Australia Manganese benefitted from improved operating conditions
following the wet season and South Africa Manganese lifted underground productivity at Wessels.
"At Cannington, we successfully processed lower-grade stockpiles to mitigate lower mining rates caused by a temporary reduction in paste backfill
availability. We expect upgrades to the paste delivery system to support higher mining rates over the remainder of FY27, with continued processing
of lower-grade stockpiles providing additional mill feed.
“At Hermosa, we continued construction of underground and surface infrastructure for the Taylor zinc-lead-silver project and achieved a significant
permitting milestone with completion of the federal permitting process under FAST-41.
“On 15 October, South32 shareholders approved the sale of our aluminium value chain assets to Alcoa. The transaction remains on track for
completion in the June 2027 half year, subject to relevant regulatory approvals, and will reposition South32 as a leading upstream base metals
focused company with high-margin assets and transformational growth.”
• FY27 production guidance remains unchanged across all operations.
• Net cash1 increased by US$14M to US$297M as we received a distribution2 of US$153M from Sierra Gorda (South32 share), continued our
investment in growth at Hermosa, and experienced a temporary build in working capital.
• Sierra Gorda payable copper equivalent production3 increased by 11%, as higher planned copper grades more than offset temporary wet
weather impacts during the quarter.
• Cannington payable zinc equivalent production4 decreased by 27%, as a temporary reduction in paste backfill availability delayed access to planned stopes,
while we maintained ore processed by supplementing mill feed with lower-grade stockpiles5.
• Manganese production increased by 14%, with Australia Manganese realising higher plant utilisation as wet weather subsided.
• Alumina production increased by 1%, with both refineries operating near nameplate capacity.
• Aluminium production6 was largely unchanged as Hillside Aluminium continued to test nameplate and Brazil Aluminium ramped-up.
• Invested US$197M7 at Hermosa as we advanced construction of the Taylor zinc-lead-silver project, with both shafts expected to reach the primary production
level in the December 2026 quarter.
• Paid a fully-franked ordinary dividend of US$242M in respect of the June 2026 half year, subsequent to the end of the quarter.
Production summary
4Q26 1Q27 YTD FY27 FY27e(a) % of FY27e(a)
Sierra Gorda (non-operated) (CuEq) (kt)3 20.1 22.4 22.4 91.8 24%
Cannington (ZnEq) (kt)4 81.6 59.2 59.2 290.0 20%
Australia Manganese (kwmt) 782 902 902 2,775(b) 33%
South Africa Manganese (kwmt) 528 588 588 2,000 29%
South32 Quarterly Report September 2026 Page 1 of 6
Worsley Alumina (kt) 943 966 966 3,900 25%
Brazil Alumina (non-operated) (kt) 351 345 345 1,360 25%
Brazil Aluminium (non-operated) (kt) 37 40 40 140 29%
Hillside Aluminium (kt)8 179 177 177 720 25%
(a) The denotation (e) refers to an estimate or forecast year.
(b) Reflects the midpoint of the Australia Manganese FY27e guidance range of 2,650kwmt to 2,900kwmt.
CORPORATE UPDATE
• On 15 October 2026, South32 shareholders approved the sale of our aluminium value chain assets to Alcoa Corporation (the Transaction)9
at our Annual General Meeting. The Transaction is expected to complete in the June 2027 half year, subject to satisfaction or waiver of
remaining conditions precedent.
• Net cash1 increased by US$14M to US$297M in the September 2026 quarter as we received a distribution2 of US$153M from our Sierra
Gorda equity accounted investment (EAI), continued our investment in growth at Hermosa, and experienced a temporary build in working
capital of approximately US$80M. The increase in working capital primarily reflected higher inventories due to the timing of shipments, and
payments accrued in the prior period. Cash subject to the Transaction's locked box mechanism was approximately US$300M at the end of
the quarter.
• We invested US$87M in Group capital expenditure (excluding EAIs and Hermosa) in the September 2026 quarter.
• We made Group tax payments (excluding EAIs) of US$47M in the September 2026 quarter.
• We returned US$13M to shareholders via our on-market share buy-back in the September 2026 quarter, purchasing 4M shares at an average
price of A$5.04 per share. Our US$2.6B capital management program is 92% complete, with US$196M remaining to be returned to
shareholders ahead of its extension or expiry on 10 September 202710.
• Following the end of the September 2026 quarter, we paid a fully-franked ordinary dividend of US$242M in respect of the June 2026 half
year.
DEVELOPMENT AND EXPLORATION UPDATE
Hermosa project
• We invested US$197M7 of growth capital expenditure at Hermosa in the September 2026 quarter, continuing construction of the Taylor
zinc-lead-silver project (Taylor). In addition, lease payments for self generated power and other assets were approximately US$15M.
• We progressed underground construction during the quarter, extending the decline and sinking the main and ventilation shafts. Both shafts are expected to
reach the primary production level in the December 2026 quarter. We also advanced surface infrastructure construction, installing all flotation cells and major
electrical transformers.
• On 2 September 2026, the US Forest Service released a Final Mine Plan of Operations for Hermosa, completing the federal permitting
process under FAST-41.
• We invested US$7M in capitalised exploration in the September 2026 quarter, including exploration drilling at the Peake copper deposit. On
14 September 2026, we announced additional drilling results from Peake, including high-grade copper and polymetallic intercepts11.
Ambler Metals project
• The Ambler Metals joint venture (50% South32 share) completed its summer field season in the September 2026 quarter, drilling more than
5,000m at the high-grade Arctic polymetallic deposit to support development studies.
• Federal permitting for Arctic under FAST-41 progressed during the quarter, with the US Army Corps of Engineers publishing a Notice of Intent
to prepare an Environmental Impact Statement.
• On 11 September 2026, we completed the previously announced sale of 8.2M shares in Trilogy Metals, our joint venture partner in Ambler
Metals, to the US Government for US$17.8M12. We will reinvest the sale proceeds in Ambler Metals to support exploration and development
activities.
Exploration
• We invested US$6M in our greenfield exploration opportunities in the September 2026 quarter, progressing multiple exploration programs
targeting base metals in highly prospective regions.
• We invested US$21M (US$20M capitalised) in exploration programs at our existing operations and development options in the September
2026 quarter, including US$7M at our Hermosa project (noted above, all capitalised), US$3M for our Sierra Gorda EAI (all capitalised) and
US$1M for our manganese EAI (nil capitalised).
South32 Quarterly Report September 2026 Page 2 of 6
SIERRA GORDA (45% SHARE, NON-OPERATED)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Payable copper equivalent production (kt)3 24.8 22.4 (10%) 24.8 20.1 22.4 (10%) 11%
Payable copper production (kt) 18.3 18.7 2% 18.3 16.0 18.7 2% 17%
Payable copper sales (kt) 17.2 17.3 1% 17.2 17.3 17.3 1% 0%
Sierra Gorda payable copper equivalent production3 increased by 11% (or 2.3kt) to 22.4kt in the September 2026 quarter, as higher planned
copper grades more than offset temporary wet weather impacts during the quarter. FY27 payable copper equivalent production guidance
remains unchanged at 91.8kt.
Execution of the fourth grinding line project commenced during the quarter, following final investment approval by the joint venture partners13. The
project is expected to increase processing capacity by approximately 25% to ~60Mtpa (100% basis), with first production in mid FY30 and full production
rates in FY3113.
CANNINGTON (100% SHARE)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Payable zinc equivalent production (kt)4 67.9 59.2 (13%) 67.9 81.6 59.2 (13%) (27%)
Payable silver production (koz) 2,067 1,808 (13%) 2,067 2,506 1,808 (13%) (28%)
Payable silver sales (koz) 2,149 1,934 (10%) 2,149 3,241 1,934 (10%) (40%)
Payable lead production (kt) 21.3 16.0 (25%) 21.3 22.8 16.0 (25%) (30%)
Payable lead sales (kt) 21.0 15.8 (25%) 21.0 30.8 15.8 (25%) (49%)
Payable zinc production (kt) 8.3 8.8 6% 8.3 11.4 8.8 6% (23%)
Payable zinc sales (kt) 7.3 8.4 15% 7.3 12.3 8.4 15% (32%)
Cannington payable zinc equivalent production4 decreased by 27% (or 22.4kt) to 59.2kt in the September 2026 quarter, as a temporary reduction in paste
backfill availability delayed access to planned stopes, resulting in lower mined volumes and grades. Ore processed exceeded mined volumes by approximately
234kdmt in the quarter, as we processed lower-grade stockpiles to supplement mined ore feed.
FY27 payable zinc equivalent production guidance remains unchanged at 290.0kt, with upgrades to the paste delivery system expected to support
improved mining rates over the remainder of FY27 and continued processing of lower-grade stockpiles providing additional mill feed.
We progressed mine life extension studies during the quarter and remain on track to provide an update with our H1 FY27 financial results.
AUSTRALIA MANGANESE (60% SHARE)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Manganese ore production (kwmt) 854 902 6% 854 782 902 6% 15%
Manganese ore sales (kwmt) 944 861 (9%) 944 921 861 (9%) (7%)
Australia Manganese saleable production increased by 15% (or 120kwmt) to 902kwmt in the September 2026 quarter, reflecting higher utilisation
rates in the primary circuit as the impact of heavy rainfall in the prior quarter subsided. FY27 production guidance remains unchanged at
2,650kwmt to 2,900kwmt, subject to the impacts from the wet season.
We progressed approvals for additional water management infrastructure during the quarter. As previously advised, FY28 production guidance remains subject to the
receipt of the required approvals and subsequent installation of the infrastructure.
SOUTH AFRICA MANGANESE (54.6% SHARE)
South32 Quarterly Report September 2026 Page 3 of 6
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Manganese ore production (kwmt) 551 588 7% 551 528 588 7% 11%
Manganese ore sales (kwmt) 548 460 (16%) 548 586 460 (16%) (22%)
South Africa Manganese saleable production increased by 11% (or 60kwmt) to 588kwmt in the September 2026 quarter, as improved
underground productivity supported higher volumes from Wessels. While FY27 production guidance remains unchanged at 2,000kwmt, we
continue to monitor market conditions and optimise the use of higher-cost trucking.
Sales decreased by 22% in the September 2026 quarter, as we reduced trucked volumes in response to market conditions and a shipment slipped
to the December 2026 quarter.
WORSLEY ALUMINA (86% SHARE)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Alumina production (kt) 934 966 3% 934 943 966 3% 2%
Alumina sales (kt) 878 961 9% 878 931 961 9% 3%
Worsley Alumina saleable production increased by 2% (or 23kt) to 966kt in the September 2026 quarter, supported by improved bauxite supply
to the refinery. FY27 production guidance remains unchanged at 3,900kt.
BRAZIL ALUMINA (36% SHARE, NON-OPERATED)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Alumina production (kt) 354 345 (3%) 354 351 345 (3%) (2%)
Alumina sales (kt) 332 331 0% 332 357 331 0% (7%)
Brazil Alumina saleable production decreased by 2% (or 6kt) to 345kt in the September 2026 quarter, with the refinery operating near nameplate
capacity. FY27 production guidance remains unchanged at 1,360kt.
BRAZIL ALUMINIUM (40% SHARE, NON-OPERATED)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Aluminium production (kt) 37 40 8% 37 37 40 8% 8%
Aluminium sales (kt) 29 39 34% 29 42 39 34% (7%)
Brazil Aluminium saleable production increased by 8% (or 3kt) to 40kt in the September 2026 quarter, as the smelter ramped-up, with all pots in
operation by the end of the quarter. FY27 production guidance remains unchanged at 140kt.
HILLSIDE ALUMINIUM (100% SHARE)
1Q27 1Q27
South32 share YTD FY26 YTD FY27 YoY 1Q26 4Q26 1Q27 vs vs
1Q26 4Q26
Aluminium production (kt) 181 177 (2%) 181 179 177 (2%) (1%)
Aluminium sales (kt) 169 175 4% 169 174 175 4% 1%
Hillside Aluminium saleable production decreased by 1% (or 2kt) to 177kt in the September 2026 quarter, as the smelter continued to test its
maximum technical capacity, despite the impact of load-shedding. FY27 production guidance remains unchanged at 720kt8.
South32 Quarterly Report September 2026 Page 4 of 6
NOTES
1. 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.
2. Net distributions from our material equity accounted investments (EAI) (manganese and Sierra Gorda) include dividends, capital contributions/redemptions and net repayments/drawdowns of shareholder loans,
which are unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial
performance or liquidity.
3. Payable copper equivalent production (CuEq) (kt) was calculated by aggregating revenues from copper, molybdenum, gold and silver, and dividing the total Revenue by the price of copper. FY26 realised prices for copper
(US$5.92/lb), molybdenum (US$25.90/lb), gold (US$4,462/oz) and silver (US$70.6/oz) have been used for FY26, Q1 FY27 and FY27e.
4. Payable zinc equivalent production (ZnEq) (kt) was calculated by aggregating revenues from silver, lead and zinc, and dividing the total Revenue by the price of zinc. FY26 realised prices for zinc (US$3,000/t), lead
(US$1,944/t) and silver (US$66.4/oz) have been used for FY26, Q1 FY27 and FY27e.
5. The low-grade stockpile is not included as Mineral Resources in accordance with the JORC Code.
6. Refers to production from Hillside Aluminium and Brazil Aluminium. Mozal Aluminium was placed on care and maintenance in March 2026, refer to market release "Mozal Aluminium placed on care and
maintenance" dated 16 March 2026.
7. Hermosa growth capital expenditure excludes lease payments for self generated power and other assets directly attributable to construction of infrastructure at the Taylor project. These costs were included in our
capital cost estimate provided in market release “Hermosa project update” dated 30 April 2026.
8. Production guidance for Hillside Aluminium does not assume any load-shedding impact on production.
9. Refer to market release "Agreement to sell aluminium value chain assets to Alcoa for up to US$5.6B and Chief Executive Officer transition” dated 1 July 2026.
10. Since inception of our capital management program, US$1.8B has been allocated to our on-market share buy-back (841M shares at an average price of A$3.07 per share) and US$525M returned in the form of special
dividends.
11. Refer to market release "Hermosa site visit" dated 14 September 2026. Information in this announcement that relates to the Exploration Results for Peake deposit was prepared by Competent Person and declared
in "Hermosa site visit" presentation dated 14 September 2026 (www.south32.net) in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that
materially affects the information included in the original announcement. South32 confirms that the form and context in which the competent persons' findings are presented have not materially modified from the
original market announcement.
12. On 28 August 2026, South32 executed definitive agreements with the US Department of War for its strategic equity interest in Trilogy Metals. The agreements include governance provisions that apply only in defined
circumstances involving parties considered to be restricted entities under US law. The provisions impose notice and monitoring obligations, and restrictions on certain investments, asset sales and product sales on
South32’s US subsidiary to the extent they involve restricted entities. They also allow a special representative appointed by the US Department of War to Ambler Metals to have the right to veto a limited set of
Ambler Metals decisions, including the declaration of insolvency, the suspension or termination of the project, and the sale of all or substantially all assets. These veto rights apply only while restricted entities
beneficially own 10% or more of South32 in the aggregate and may be exercised solely on US national security grounds in relation to Ambler Metals.
13. Refer to market release "Final investment approval for Sierra Gorda’s fourth grinding line” dated 1 July 2026.
The following abbreviations have been used throughout this report: dry metric tonne unit (dmtu); grams per tonne (g/t); thousand dry metric tonnes (kdmt); thousand ounces (koz); thousand tonnes (kt); thousand
tonnes per annum (ktpa); thousand wet metric tonnes (kwmt); million ounces (Moz); million tonnes (Mt); million tonnes per annum (Mtpa); million wet metric tonnes (Mwmt); ounces (oz); tonnes (t); United States (US);
US$ billion (US$B); US$ million (US$M).
Figures in italics indicate that an adjustment has been made since the figures were previously reported. The denotation (e) refers to an estimate or forecast year.
OPERATING PERFORMANCE
South32 share YTD FY26 YTD FY27 1Q26 2Q26 3Q26 4Q26 1Q27
Sierra Gorda (45% share)
Ore mined (Mt) 5.5 5.1 5.5 6.1 4.5 3.5 5.1
Ore processed (Mt) 5.5 5.3 5.5 5.4 4.9 5.2 5.3
Copper ore grade processed (%, Cu) 0.42 0.46 0.42 0.42 0.45 0.41 0.46
Payable copper equivalent production (kt)3 24.8 22.4 24.8 22.3 20.6 20.1 22.4
Payable copper production (kt) 18.3 18.7 18.3 18.0 16.9 16.0 18.7
Payable copper sales (kt) 17.2 17.3 17.2 19.3 15.3 17.3 17.3
Payable molybdenum production (kt) 0.8 0.2 0.8 0.4 0.3 0.4 0.2
Payable molybdenum sales (kt) 0.6 0.2 0.6 0.7 0.3 0.5 0.2
Payable gold production (koz) 6.3 4.4 6.3 4.6 3.7 3.9 4.4
Payable gold sales (koz) 5.9 4.1 5.9 5.3 3.2 4.2 4.1
Payable silver production (koz) 159 253 159 189 204 189 253
Payable silver sales (koz) 151 233 151 193 186 207 233
Cannington (100% share)
Ore mined (kwmt) 585 364 585 503 461 564 364
Ore processed (kdmt) 504 587 504 505 545 609 587
Silver ore grade processed (g/t, Ag) 148 118 148 170 133 151 118
South32 Quarterly Report September 2026 Page 5 of 6
Lead ore grade processed (%, Pb) 5.0 3.4 5.0 5.1 4.1 4.4 3.4
Zinc ore grade processed (%, Zn) 2.3 2.2 2.3 2.9 2.4 2.8 2.2
Payable zinc equivalent production (kt)4 67.9 59.2 67.9 77.5 63.0 81.6 59.2
Payable silver production (koz) 2,067 1,808 2,067 2,420 1,913 2,506 1,808
Payable silver sales (koz) 2,149 1,934 2,149 2,421 882 3,241 1,934
Payable lead production (kt) 21.3 16.0 21.3 21.0 17.8 22.8 16.0
Payable lead sales (kt) 21.0 15.8 21.0 21.7 9.3 30.8 15.8
Payable zinc production (kt) 8.3 8.8 8.3 10.4 9.1 11.4 8.8
Payable zinc sales (kt) 7.3 8.4 7.3 9.6 8.8 12.3 8.4
Australia Manganese (60% share)
Manganese ore production (kwmt) 854 902 854 806 589 782 902
Manganese ore sales (kwmt) 944 861 944 865 868 921 861
Ore grade sold (%, Mn) 41.4 41.1 41.4 41.4 41.7 41.9 41.1
South Africa Manganese (54.6% share)
Manganese ore production (kwmt) 551 588 551 506 500 528 588
Manganese ore sales (kwmt) 548 460 548 546 501 586 460
Ore grade sold (%, Mn) 38.3 38.6 38.3 38.4 38.8 38.5 38.6
Worsley Alumina (86% share)
Alumina hydrate production (kt) 940 969 940 955 899 947 969
Alumina production (kt) 934 966 934 959 886 943 966
Alumina sales (kt) 878 961 878 985 836 931 961
Brazil Alumina (36% share)
Alumina production (kt) 354 345 354 355 351 351 345
Alumina sales (kt) 332 331 332 387 333 357 331
Brazil Aluminium (40% share)
Aluminium production (kt) 37 40 37 37 33 37 40
Aluminium sales (kt) 29 39 29 45 27 42 39
Hillside Aluminium (100% share)
Aluminium production (kt) 181 177 181 181 176 179 177
Aluminium sales (kt) 169 175 169 187 158 174 175
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.
South32 cautions against reliance on any forward-looking statements or guidance.
FURTHER INFORMATION
South32 Quarterly Report September 2026 Page 6 of 6
INVESTOR RELATIONS MEDIA RELATIONS
Ben Baker Jamie Macdonald
M +61 403 763 086 M +61 408 925 140
E Ben.Baker@south32.net E Jamie.Macdonald@south32.net
Approved for release to the market by Matt Daley, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
19 October 2026
South32 Quarterly Report September 2026 Page 7 of 6
Date: 19/10/2026 07:27:00
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