SOUTH32 LIMITED - Quarterly Report September 2026

Evidence from the filing

• Sierra Gorda payable copper equivalent production increased 11% to 22.4kt, while FY27 guidance remained unchanged at 91.8kt.

  “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.”

• Australia Manganese saleable production increased 15% to 902kwmt as improved primary-circuit utilisation followed the subsiding wet-season impact.

  “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.”

• Execution began on Sierra Gorda’s fourth grinding line, which is expected to increase processing capacity by approximately 25% to ~60Mtpa.

  “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.”

• Completion of Hermosa’s federal permitting process under FAST-41 removes a stated permitting milestone for the Taylor project development programme.

  “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.”

• Net cash increased US$14M to US$297M after a US$153M distribution from Sierra Gorda despite continued Hermosa investment and a temporary working-capital build.

  “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.”

• Cannington payable zinc equivalent production decreased by 27% to 59.2kt because reduced paste-backfill availability delayed stopes and lowered mined volumes and grades.

  “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.”

• South Africa Manganese sales decreased by 22% as trucked volumes were reduced in response to market conditions and a shipment slipped to the December 2026 quarter.

  “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.”

• Hillside Aluminium production decreased by 1% to 177kt despite load-shedding, while FY27 production guidance assumes no load-shedding impact.

  “Production guidance for Hillside Aluminium does not assume any load-shedding impact on production.”

• The aluminium asset sale is expected to complete in the June 2027 half year, subject to satisfaction or waiver of remaining conditions precedent.

  “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.”

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