South32 : Investor presentation - Sierra Gorda acquisition

14 October 2021	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
	INVESTOR PRESENTATION: SOUTH32 TO ACQUIRE A
	45% INTEREST IN THE SIERRA GORDA COPPER MINE

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) will hold a conference call at 8.00am Australian Western Standard Time (11:00am Australian Eastern Standard Summer Time) on 14 October 2021 to provide an overview of the Transaction including Q&A, the details of which are as follows:

Conference ID:

Please pre-register for this call at link.

A presentation is attached. Following the conference call a recording will be available on the South32 website (https://www.south32.net/investors-media/investor-centre/presentations-reports-speeches).

Separately a video presentation by South32 Chief Executive Officer, Graham Kerr, is available on the South32 website (https://www.south32.net/investors-media/investor-centre/presentations-reports-speeches).

About us

South32 is a globally diversified mining and metals company. 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 bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at our operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two development options in North America and several partnerships with junior explorers around the world.

Investor Relations

Alex Volante	Tom Gallop
T	[phone]	T	+61	8 9324 9030
M	[phone]	M	+61	439 353 948
E	[e-mail]	E	[e-mail]
Media Relations
Miles Godfrey	Jenny White
M	[phone]	T	+44	20 7798 1773
E	[e-mail]	M	+44	7900 046 758
		E	[e-mail]

Further information on South32 can be found at www.south32.net.

Approved for release by Graham Kerr, Chief Executive Officer JSE Sponsor: UBS South Africa (Pty) Ltd 14 October 2021

Registered Office Level 35 108 St Georges Terrace Perth WA 6000 Australia

ABN 84 093 732 597 Registered in Australia

SOUTH32 TO ACQUIRE A 45% INTEREST IN THE SIERRA GORDA COPPER MINE

• 14 October 2021

IMPORTANT NOTICES

This presentation should be read in conjunction with the announcement "South32 to acquire a 45% interest in the Sierra Gorda copper mine" released on 14 October 2021, which is available on South32's website (www.south32.net).

Figures in italics indicate that an adjustment has been made since the figures were previously reported.

FORWARD-LOOKING STATEMENTS

This presentation 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 presentation, however they are not guarantees or predictions of future performance or statements of fact. 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 presentation. Readers are cautioned not to put undue reliance on forward-looking statements. South32 makes no representation, assurance or guarantee as to the accuracy or likelihood or fulfilment of any forward-looking statement or any outcomes expressed or implied in any forward-looking statement. 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, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. The denotation "e" refers to an estimate or forecast year.

NON-IFRS FINANCIAL INFORMATION

This presentation includes certain non-IFRS financial measures, including Underlying earnings, Underlying EBIT and Underlying EBITDA, Basic Underlying earnings per share, Underlying effective tax rate, Underlying EBIT margin, Underlying EBITDA margin, Underlying return on invested capital, Free cash flow, net debt, net cash, net operating assets and ROIC. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.

NO OFFER OF SECURITIES

Nothing in this presentation should be read or understood as an offer or recommendation to buy or sell South32 securities, or be treated or relied upon as a recommendation or advice by South32.

RELIANCE ON THIRD PARTY INFORMATION

Any information contained in this presentation that has been derived from publicly available or third party sources (or views based on such information) has not been independently verified. The South32 Group does not make any representation or warranty about the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by South32.

NO FINANCIAL OR INVESTMENT ADVICE - SOUTH AFRICA

South32 does not provide any financial or investment 'advice' as that term is defined in the South African Financial Advisory and Intermediary Services Act, 37 of 2002.

SLIDE 2

IMPORTANT NOTICES

MINERAL RESOURCES AND MINERAL RESERVES

The information in this Presentation that relates to the mineral resource and mineral reserve estimates for the Sierra Gorda Cu-Mo-Au deposit was declared by KGHM Polska Miedz (KGHM) on their website on 25 June 2015 in accordance with National Instrument 43-101 and CIM Standard for Disclosure (43-101). Quantities are stated in Million Tonnes unless otherwise stated. Commodity weights of measure are in grams per tonne (g/t), parts per million (ppm) or per cent (%) unless otherwise stated. The mineral resource estimates are reported inclusive of mineral reserves. The estimates are "qualifying foreign estimates" under the ASX Listing Rules and stated by KGHM as being classified in accordance with National Instrument 43-101 and CIM Standard for Disclosure (43-101). Competent persons have not done sufficient work to classify the foreign estimates as Mineral Resources and Ore Reserves in accordance with the 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. Reference should be made to the clarifying statement on mineral resources and mineral reserves in the market announcement "South32 to acquire a 45% interest in the Sierra Gorda copper mine" dated 14 October 2021 (Market Announcement), in accordance with ASX Listing Rule 5.12. South32 is representing the mineral resource and mineral reserve estimates on a 100% basis whereas Information on mineral resource and mineral reserve published by KGHM on their website on 25 June 2015 are presented on a 55% basis and in kilo tonnes. South32 Competent Persons converted the mineral resource and mineral reserve estimate to a 100% basis and in million tonnes by dividing the tonnage by 550 in discussion with the Sierra Gorda S.C.M (SGSCM) Technical Team. In discussion with the SGSCM Technical Team, contained metals were also converted using factors (Cu(t) to Cu(Mt) - Dividing by 0.55 million; Au(kg) to Au(t) - Dividing by 550; and Mo(t) to Mo(kt) - Dividing by 550). South32 confirms that no additional estimation or assumptions were considered in the tonnage and contained metals conversion to represent the estimates on a 100% basis. Since the publication of these estimates in June 2015, production from Sierra Gorda is expected to have resulted in a ~18% reduction in the reported mineral resource estimate and a ~20% reduction in the reported mineral reserve estimate for sulphide ore. In addition, approximately 110Mt of oxide mineral reserves have been stockpiled on surface. 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 Market Announcement continues to apply and has not materially changed.

The information in this presentation that relates to production targets for the medium term (CY22 to CY26) are based 100% on proven and probable mineral reserve of the foreign estimate. Material assumptions for the production target and forecast financial information for the medium term (CY22 to CY26) are included as Annexure B of the Market Announcement.

This presentation contains information in relation to the Sierra Gorda deposit, financial forecasts and assumptions as provided to South32 by Sumitomo Metal Mining Co. Ltd and Sumitomo Corporation, as part of our due diligence with respect to the acquisition of a 45% interest in SGSCM. All material assumptions (including economic) upon which this information and financial forecasts are based are contained in the Market Announcement.

SLIDE 3

TRANSACTION OVERVIEW