Half Year Results and Outlook: 31 December 2025

APPENDIX 4D

SOUTH32 LIMITED

(ABN 84 093 732 597)

Results for announcement to the market

This page and the accompanying 63 pages comprise the half year end financial information given to the Australian Securities Exchange (ASX) under Listing Rule 4.2A. This statement includes the unaudited consolidated results of the South32 Group for the half year ended 31 December 2025 (H1 FY26) compared with the half year ended 31 December 2024 (H1 FY25).

The half year report should be read in conjunction with the Financial Report for the year ended 30 June 2025. Figures in italics indicate that an adjustment has been made since the financial information was previously reported.

(a) On 29 August 2024, South32 sold its shareholding in Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources Pte Ltd and M Resources Pty Ltd[2]. As a result, Illawarra Metallurgical Coal was classified as a discontinued operation in the H1 FY26 and H1 FY25 results. Our H1 FY26 and H1 FY25 Group underlying financial measures include the results of Illawarra Metallurgical Coal for our period of ownership as well as finalisation adjustments for the upfront consideration.

(b) On 1 December 2025, South32 sold its shareholding in Cerro Matoso to an entity owned by CoreX Holding B.V[3]. As a result, Cerro Matoso was classified as a discontinued operation in the H1 FY26 and H1 FY25 restated results. Our H1 FY26 and H1 FY25 Group underlying financial measures include the financial contribution from Cerro Matoso prior to its sale.

Net tangible assets per share

Net tangible assets per ordinary share were US$2.02 as at 31 December 2025 (US$1.93 as at 30 June 2025)[4].

Dividends

The Board has resolved to pay an interim dividend of US 3.9 cents per share (fully-franked) for the half year ended 31 December 2025.

The record date for determining entitlements to dividends is 6 March 2026; payment date is 2 April 2026.

FINANCIAL RESULTS AND OUTLOOK HALF YEAR ENDED 31 DECEMBER 2025

ASX / LSE / JSE Share Code: S32; ADR: SOUHY

12 February 2026

South32 delivers strong financial results and growth in base metals

"Our consistent operating performance and higher base and precious metals prices underpinned strong financial results for the half.

"We delivered Underlying EBITDA of US$1.1B and 16 per cent growth in Underlying earnings to US$435M.

"We have today announced a fully-franked interim ordinary dividend of US 3.9 cents per share (US$175M) in respect of the December 2025 half year.

"Reflecting our strong financial position and positive outlook for the business, we have also increased our capital management program by US$100M to US$2.6B, with US$209M remaining to be returned to shareholders.

"FY26 production and Operating unit cost guidance is unchanged across our operated businesses, as we maintain a disciplined focus on delivering safe and reliable operating performance.

"We're continuing work to grow our base metals production and unlock value across multiple development horizons. 

"At Hermosa, we advanced construction of our large-scale, long-life Taylor zinc-lead-silver project. We're also continuing work to unlock value from Hermosa's broader land package, today releasing further positive exploration drilling results from the Peake copper deposit.

"At Cannington, we have today announced a 28 per cent increase in the underground Ore Reserve, while also targeting further potential growth through both underground and open pit development options.

"Sierra Gorda progressed options to grow future copper production, advancing studies for the fourth grinding line project, and defining an exploration target at Catabela Northeast which highlights the potential for future mine life extension.

"As announced in December 2025, Mozal Aluminium will transition to care and maintenance in March 2026 due to the inability to secure sufficient and affordable electricity supply. We are working closely with our people and stakeholders through this change.

"I'd like to thank our teams around the world for their work to deliver these strong results, as we look to continue our positive momentum into the second half of the year."

Graham Kerr, South32 CEO

Financial Highlights

Safety performance

Nothing is more important than the health, safety and wellbeing of our people. We continue to implement our global Safety Improvement Program, including investment in safety leadership through our LEAD Safely Every Day (LSED) program, together with further simplification of our systems and improved effectiveness of controls.

We achieved improved safety performance in H1 FY26, with lost time injury frequency (LTIF) reducing by 36% to 0.9 (FY25: 1.4) and total recordable injury frequency (TRIF) reducing by 24% to 2.8 (FY25: 3.7). Our leading indicator, significant hazard frequency, increased to 245 for H1 FY26 (FY25: 196), indicating an improved hazard awareness and a more proactive reporting culture.

Health and safety performance[11]

People and culture

An inclusive culture and diverse workforce supports greater collaboration, innovation and performance. We continue to focus on building a workforce that represents the communities where we operate, and increasing the representation of women in leadership roles.

We measure our inclusion and diversity progress through a set of measurable objectives as described in the table below.

Inclusion and diversity performance11

(a) FY26 measurable objectives have been updated following the divestment of Cerro Matoso. Local workforce diversity has been revised to four targets from five targets, with an objective to achieve three of the four targets (75%).

(b) FY25 outcomes include Cerro Matoso. FY25 outcomes excluding Cerro Matoso which was divested on 1 December 2025 are as follows: Women in our workforce: 23.7%, Women in leadership roles: 23.1% and Local workforce diversity: 4 targets met representing 100%.

Addressing climate change

We have set a target to halve our net operational greenhouse gas (GHG) emissions (Scope 1 and 2) by FY35, from FY21 levels, and a long-term goal to achieve net zero GHG emissions across all scopes (Scope 1, 2 and 3) by 2050. Our approach to climate change is focused on positioning our portfolio for the energy transition, reducing our operational GHG emissions, supporting GHG emissions reduction across our value chains, and strengthening physical climate resilience.

A non-binding advisory resolution in relation to our second Climate Change Action Plan was passed by shareholders at our Annual General Meeting in October 2025, with 90% of the votes cast in favour of the resolution. Our Climate Change Action Plan 2025 is available on our website (www.south32.net).

Our operational GHG emissions increased by 16% in H1 FY26, reflecting an increased reliance on coal-fired electricity at Mozal Aluminium due to reduced hydroelectric power supply following drought conditions in Mozambique. 

Greenhouse gas emissions

Business performance

Aluminium value chain

Alumina

Alumina saleable production increased by 3% to 2.6Mt in H1 FY26, as Brazil Alumina achieved record half year production and Worsley Alumina delivered planned volumes while completing scheduled calciner maintenance. FY26 production guidance remains unchanged at 5.1Mt.

Underlying EBITDA decreased by US$365M to US$178M in H1 FY26, for an operating margin of 18%, as improved volumes were more than offset by a 27% decrease in our average realised price of alumina.

Aluminium

Aluminium saleable production increased by 2% to 619kt in H1 FY26.

Hillside Aluminium saleable production was unchanged at 362kt in H1 FY26, as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding. FY26 production guidance remains unchanged at 720kt[12].

Mozal Aluminium saleable production increased by 3% to 183kt in H1 FY26. On 16 December 2025[13], we announced Mozal Aluminium will transition to care and maintenance on or around 15 March 2026 due to the inability to secure sufficient and affordable electricity supply. FY26 production guidance for the period to March 2026 remains unchanged at 240kt12.

Brazil Aluminium saleable production increased by 16% to 74kt in H1 FY26. Despite this growth, production in Q2 FY26 was below plan due to unplanned pot outages and external energy disruptions. Production guidance has been revised to 135kt (from 160kt) in FY26 and 140kt (from 165kt) in FY27, as the smelter's operator implements measures to improve stability and continue the ramp-up of all three potlines.

Underlying EBITDA increased by US$115M to US$251M in H1 FY26, for an operating margin of 15%, reflecting a 6% increase in our average realised price of aluminium and lower alumina input prices at Hillside Aluminium and Brazil Aluminium.

Base metals

Sierra Gorda

Sierra Gorda payable copper equivalent production[14] was largely unchanged at 47.0kt in H1 FY26, with plant throughput and copper production in line with plan, while higher molybdenum output from the current mining phase offset lower planned gold production.

FY26 production guidance14 remains unchanged at 85.7kt (ore processed 21.8Mt, copper 72.0kt, molybdenum 1.2kt, gold 18.0koz and silver 600koz), with the operation positioned to potentially exceed guidance if strong volumes of molybdenum, gold and silver continue in H2 FY26.

Underlying EBITDA increased by US$178M to US$393M in H1 FY26, for an operating margin of 68%, due to higher realised metal prices.

Sierra Gorda continued to invest in studies and exploration to support future copper production growth.

Sierra Gorda is nearing completion of the feasibility study for the fourth grinding line project, which has the potential to increase plant throughput by ~20% to ~58Mtpa (100% basis), after which the joint venture partners will undertake an independent review to support a potential joint final investment decision in mid‑CY26.

At the Catabela Northeast prospect, adjacent to the Catabela pit, we have defined an Exploration Target[15] ranging from 1.1Bt @ 0.48% TCu to 2.9Bt @ 0.45% TCu, highlighting the potential for future mine life extension. Further exploration activity and technical assessment will be completed in CY26.

Cannington

Cannington payable zinc equivalent production[16] decreased by 18% to 102.8kt in H1 FY26, as higher ore processed was more than offset by lower planned metal grades. FY26 production guidance16 remains unchanged at 200.6kt (ore processed 1,850kdmt, zinc 40.0kt, lead 87.0kt and silver 8,200koz).

Underlying EBITDA increased by US$81M to US$211M in H1 FY26, for an operating margin of 53%, reflecting higher average realised metal prices and lower costs.

We continued work on underground and open pit life extension options at Cannington. This work has supported a further increase in the underground Ore Reserve by 3Mt to 13Mt in H1 FY26, extending the reserve life by approximately two years to FY33[17]. To support the extended mine life, we expect to invest additional capital expenditure of approximately US$65M to US$80M during FY27 and FY28, including for ventilation and electrical upgrades. Study work for the potential open pit development is expected to tollgate to pre-feasibility stage in CY26.

Hermosa project

We invested US$338M[18] of growth capital expenditure at Hermosa in H1 FY26, as we progressed construction of the Taylor zinc-lead-silver project, and completed the exploration decline for the Clark battery-grade manganese deposit.

At Taylor, we continue to sink the ventilation and main shafts, while progressing construction of surface infrastructure, following delivery of major components of the primary mill and flotation circuit.

FY26 growth capital expenditure guidance remains unchanged at US$750M[19].

As part of scheduled project execution at Taylor, an assessment of project milestones and capital expenditure will be completed in H2 FY26. This assessment will be informed by the pricing of additional underground and surface infrastructure packages scheduled to be awarded during this period.

We also invested US$14M in capitalised exploration at Hermosa in H1 FY26, continuing exploration drilling at the Peake deposit, which returned further high-grade copper results[20]. Further exploration and study work to support the potential to produce copper from Peake, leveraging the infrastructure for Taylor, will continue in H2 FY26. 

Exploration

We invested US$30M (US$20M capitalised) in exploration programs at our existing operations and development options, including our Hermosa project and equity accounted investments (EAI) in H1 FY26.

We also invested US$15M in greenfield exploration programs in H1 FY26, as we continued work to discover our next generation of base metals mines.

We expanded our pipeline of copper exploration options in highly prospective regions as we entered into strategic alliances with Orogen Royalties Inc. targeting projects in western North America, and Aurum Discovery Limited, focusing on early stage prospects in Norway and Ireland.

Cerro Matoso

Cerro Matoso payable nickel production decreased by 19% to 15.0kt in H1 FY26, while Underlying EBITDA decreased by US$33M to US$11M in H1 FY26, reflecting a period of five months of operations prior to its divestment to a subsidiary of CoreX Holding B.V. on 1 December 2025[21].

Manganese

Australia Manganese

Australia Manganese production increased to 1,660kwmt in H1 FY26, as the operation achieved normalised production rates after executing its recovery plan following the impacts of Tropical Cyclone Megan. FY26 production guidance remains unchanged at 3,200kwmt, subject to potential wet season impacts.

Underlying EBITDA increased to US$107M in H1 FY26, with sales volumes increasing to 1,809kwmt, as shipping rates reached full capacity following the commissioning of new wharf infrastructure in Q4 FY25.

South Africa Manganese

South Africa Manganese production decreased by 2% to 1,057kwmt in H1 FY26, as the operation completed planned maintenance and underground development at Wessels. FY26 production guidance remains unchanged at 2,000kwmt, with further planned maintenance scheduled in Q3 FY26.

Underlying EBITDA decreased by US$20M to US$8M in H1 FY26, due to lower average realised manganese prices.

Financial performance

Profit and Loss

The Group's profit after tax attributable to members increased by US$104M to US$464M in H1 FY26, as we delivered strong operating results and capitalised on higher commodity prices. Underlying earnings attributable to members increased by US$60M to US$435M in H1 FY26. A reconciliation of profit/(loss) to Underlying earnings attributable to members is set out on page 10.

Underlying EBITDA increased by US$89M (or 9%) to US$1,107M for a Group operating margin of 28.2% (H1 FY25: 27.5%). Our strong financial results were driven by broadly higher commodity prices (+US$131M), notably copper, silver and aluminium, lower controllable costs (+US$44M), and the restart of operations at Australia Manganese (+US$100M). These benefits more than offset lower contributions from Illawarra Metallurgical Coal (IMC) (-US$50M) and Cerro Matoso (-US$21M) post divestment, as we continued to streamline our portfolio towards higher-margin businesses in critical metals. 

Underlying EBIT increased by US$84M (or 13%) to US$747M in H1 FY26, as Underlying depreciation and amortisation was largely unchanged.

Cash Flow

Group free cash flow from operations, excluding EAIs, was an outflow of US$183M in H1 FY26 (H1 FY25: US$116M outflow), which reflected an increase in growth capital expenditure at Hermosa (-US$90M) and a temporary build in working capital due to higher commodity prices and the timing of sales. 

Separately, we received distributions[22] of US$240M (H1 FY25: US$23M) from our EAIs in H1 FY26. This included a record distribution of US$180M from Sierra Gorda (H1 FY25: US$86M), reflecting strong operating performance and higher metal prices, and US$60M from our manganese business (H1 FY25: US$63M of funding) as we finalised external insurance recoveries related to Australia Manganese.

Group capital expenditure, excluding EAIs, exploration and intangibles, increased by US$41M to US$498M in H1 FY26, as higher growth capital expenditure at Hermosa (-US$90M) was partially offset by lower sustaining capital expenditure (+US$77M) following the divestments of IMC and Cerro Matoso.

Capital expenditure for our Sierra Gorda EAI, excluding exploration and intangibles, increased by US$10M to US$116M in H1 FY26, as the operation continued to invest in deferred stripping activity.

Capital expenditure for our manganese EAI, excluding exploration and intangibles, decreased by US$8M to US$64M in H1 FY26, as Australia Manganese executed its recovery plan in FY25, while South Africa Manganese completed work to access new mining areas at Wessels. 

We returned US$152M to shareholders during H1 FY26, with US$117M in fully-franked ordinary dividends in respect of H2 FY25, and US$35M via our on-market share buy-back[23].

Balance Sheet

The Group finished the period with net debt of US$25M, with strong operating results and higher EAI distributions supporting our investment in growth at Hermosa (-US$338M) and returns to shareholders (-US$152M).

Dividends and Capital Management

Our unchanged capital management framework supports investment in our business and rewards shareholders as our financial performance improves. Consistent with our policy to distribute a minimum 40% of Underlying earnings attributable to members as ordinary dividends, the Board has resolved to pay a fully-franked interim ordinary dividend of US 3.9 cents per share (US$175M) in respect of H1 FY26, representing 40% of Underlying earnings attributable to members.

Reflecting our strong financial position and positive outlook for the business, we have also increased our capital management program by US$100M to US$2.6B, with US$209M remaining to be returned to shareholders by 26 February 2027[24].

Earnings reconciliation

Consistent with our accounting policies, various items are excluded from the Group's profit/(loss) to derive Underlying earnings[25]. Total adjustments to derive H1 FY26 Underlying EBIT (+US$184M), shown in the table below, include:

Further information on these adjustments is included in Note 3 Segment information to the financial statements on page 43.

Profit/(loss) to Underlying EBITDA reconciliation

Profit/(loss) to Underlying earnings attributable to members reconciliation

Earnings analysis

The following key factors influenced Underlying EBIT in H1 FY26, relative to H1 FY25.

Reconciliation of movements in Underlying EBIT (US$M)[30][31]

Net finance income/(costs)

The Group's Underlying net finance costs decreased by US$11M to US$81M in H1 FY26. These costs primarily comprised the unwinding of the discount applied to our closure and rehabilitation provisions (US$65M), interest on lease liabilities (US$29M), largely for our multi-fuel co-generation facility at Worsley Alumina, and interest on our US$700M of senior unsecured notes (US$16M).

Underlying net finance income/(costs) reconciliation

Tax expense

The Group's Underlying income tax and royalty related taxation expense increased by US$35M to US$232M in H1 FY26, for an Underlying effective tax rate (ETR) of 34.2% (FY25: 35.0%). Our Group Underlying ETR reflects the corporate tax rates[33] and royalty related taxes[34] of the jurisdictions in which we operate and our geographical earnings mix.

The Underlying ETR for our manganese business was 62.5% in H1 FY26, including the royalty related tax34 at Australia Manganese and the derecognition of certain deferred tax assets. The Underlying ETR for our Sierra Gorda EAI was 32.8% in H1 FY26, reflecting royalty related tax34.

Underlying income tax expense (including royalty related taxation) reconciliation

Cash flow

Group free cash flow from operations, excluding EAIs, was an outflow of US$183M in H1 FY26 (H1 FY25: US$116M outflow), which reflected an increase in growth capital expenditure at Hermosa (-US$90M) as well as a temporary build in working capital. 

Working capital increased by US$130M in H1 FY26, due to higher commodity prices, the timing of sales from Mozal Aluminium to manage customer commitments in H2 FY26, and movements in payables. A planned drawdown of inventories at Mozal Aluminium is expected to add to the Group's cash generation in H2 FY26.

Separately, we received distributions[35] of US$240M (H1 FY25: US$23M) from our EAIs in H1 FY26. This included a record distribution of US$180M from Sierra Gorda (H1 FY25: US$86M), reflecting strong operating performance and higher metal prices, and US$60M from our manganese business (H1 FY25: US$63M of funding) as we finalised external insurance recoveries related to Australia Manganese.

Free cash flow from operations excluding EAIs

Working capital movement

Capital expenditure

The Group's capital expenditure[37], excluding EAIs, increased by US$46M to US$524M in H1 FY26, as higher growth capital expenditure at Hermosa was partially offset by lower sustaining capital expenditure:

Our share of capital expenditure for our material EAIs was unchanged at US$185M in H1 FY26:

Capital expenditure (South32 share)37

(a) Reflects Cerro Matoso (H1 FY26: US$6M safe and reliable capital expenditure and US$2M improvement and life extension capital expenditure; H1 FY25: US$13M safe and reliable capital expenditure) and IMC (H1 FY26: nil; H1 FY25: US$57M safe and reliable capital expenditure).

Balance sheet

The Group finished the period with net debt of US$25M, with strong operating results and higher EAI distributions supporting our investment in growth at Hermosa (-US$338M) and returns to shareholders (-US$152M).

We continue to prioritise a strong balance sheet and investment grade credit rating through the cycle. Our current BBB+/Baa1 credit ratings were reaffirmed by S&P Global Ratings and Moody's, respectively, during CY25. We also retain access to significant liquidity, with our undrawn US$1.4B sustainability-linked revolving credit facility maturing in December 2028.

Net cash/(debt)

(a) FY25 net cash includes Cerro Matoso which was classified as held for sale.

Dividends and capital management

Our unchanged capital management framework supports investment in our business and rewards shareholders as our financial performance improves. Consistent with our policy to distribute a minimum 40% of Underlying earnings attributable to members as ordinary dividends, the Board has resolved to pay a fully-franked interim ordinary dividend of US 3.9 cents per share (US$175M) in respect of H1 FY26, representing 40% of Underlying earnings attributable to members.

Reflecting our strong financial position and positive outlook for the business, we have also increased our capital management program by US$100M to US$2.6B, with US$209M remaining to be returned to shareholders by 26 February 2027[39].

Dividends announced

South32 shareholders registered on the South African branch register will not be able to dematerialise or rematerialise their shareholdings between 4 and 6 March 2026 (both dates inclusive), nor will transfers to/from the South African branch register be permitted between 26 February and 6 March 2026 (both dates inclusive).

Details of the currency exchange rates applicable for the dividend will be announced to the relevant stock exchanges. Further dividend information is available on our website (www.south32.net).

South32 American Depositary Receipts (ADRs) each represent five fully paid ordinary shares in South32 and ADR holders will receive dividends accordingly, subject to the terms of the Depositary Agreement.

OUTLOOK

Production

FY26 production guidance remains unchanged across our operated assets, as we continue to focus on delivering safe and reliable operations.

Production guidance for non-operated Brazil Aluminium has been revised to 135kt (from 160kt) in FY26 and 140kt (from 165kt) in FY27, as the smelter's operator implements measures to improve stability and continue the ramp-up of all three potlines.

Production guidance (South32 share)

(a) The denotation (e) refers to an estimate or forecast year.

Costs and capital expenditure

Operating unit cost performance and guidance

Stable production and disciplined cost management saw Operating unit costs track in line with or below expectations in H1 FY26. As a result, FY26 Operating unit cost guidance has been maintained across all operated assets.

While Operating unit cost guidance is not provided for our aluminium smelters, their cost profile will continue to be influenced by producer currencies, and the prices of raw material inputs and energy.

Operating unit cost[43]

(a) The denotation (e) refers to an estimate or forecast year.

(b) US dollar per tonne of ore processed. Periodic movements in finished product inventory may impact Operating unit costs.

Capital expenditure guidance (excluding exploration and intangibles)

FY26 Group capital expenditure guidance, including EAIs, remains unchanged at US$1,400M, with:

FY26 capital expenditure for our material EAIs has been revised to US$325M (from US$310M), with:

Capital expenditure excluding exploration and intangibles (South32 share)

Capital expenditure for EAIs excluding exploration and intangibles (South32 share)

(a) The denotation (e) refers to an estimate or forecast year.

Capitalised exploration guidance

FY26 Group capitalised exploration guidance, including EAIs, is unchanged at US$40M as we progress base metals exploration programs across our portfolio.

Capitalised exploration (South32 share)

(a) The denotation (e) refers to an estimate or forecast year.

Other expenditure guidance

Other expenditure items presented below are on a proportional consolidation basis including our manganese and Sierra Gorda EAIs.

(a) The denotation (e) refers to an estimate or forecast year.

OPERATIONS ANALYSIS

A summary of the underlying performance of the Group's operations is presented below and a more detailed analysis is presented on pages 23 to 31. 

Operations table (South32 share)

WORSLEY ALUMINA

Location: Western Australia, Australia

South32 share: 86 per cent

Worsley Alumina is an integrated bauxite mining and alumina refining operation in the South West of Western Australia. Alumina from Worsley Alumina is currently exported to our Hillside Aluminium and Mozal Aluminium smelters and other smelters around the world.

Volumes

Worsley Alumina saleable production increased by 2% (or 43kt) to 1,893kt in H1 FY26, as the operation delivered planned volumes while completing scheduled calciner maintenance. FY26 production guidance remains unchanged at 3,750kt.

Worsley Alumina commenced development of the Worsley Mine Development Project (the Project) in Q4 FY25, following receipt of final environmental approvals[51]. The Project is expected to deliver improved bauxite supply and sustain production to at least FY36[52].

Operating costs

Operating unit costs increased by 4%, to US$318/t in H1 FY26, as higher volumes and lower caustic soda consumption (H1 FY26: 120kg/t, H1 FY25: 134kg/t), reflecting improved bauxite quality, were more than offset by general inflation and one-off costs associated with workforce restructuring initiatives.

Our operating margin decreased to 21% (H1 FY25: 40%), as alumina prices declined from elevated levels in the prior period.

FY26 Operating unit cost guidance is unchanged at US$310/t, with costs expected to be lower in H2 FY26 (compared to H1 FY26) due to lower labour costs and deferral of non-essential activities in response to market conditions. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 18, footnote 45.

Financial performance

Underlying EBIT decreased by 75% (or US$210M) to US$70M in H1 FY26, as higher sales volumes (+US$38M) and lower caustic soda consumption (+US$12M), were more than offset by a 22% decrease in our average realised price of alumina (-US$208M).

Capital expenditure

Safe and reliable capital expenditure was US$32M in H1 FY26 and is expected to be US$55M in FY26 as we continue our investment in additional bauxite residue disposal capacity.

Improvement and life extension capital expenditure was US$41M in H1 FY26 and is expected to be US$90M in FY26 as we advance development of new mining areas as part of the Project, including the Nullaga mine development.

(a) H1 FY25 reflects the balance as at 30 June 2025.

BRAZIL ALUMINA

Location: Pará and Maranhão, Brazil

South32 investment: Bauxite - 33 per cent

South32 share: Alumina - 36 per cent (non-operated)

Brazil Alumina includes a 33% interest in the Mineração Rio do Norte (MRN) bauxite mine and a 36% interest in the Alumar alumina refinery. Our share of bauxite produced from MRN is supplied to the Alumar alumina refinery. The alumina produced from the Alumar alumina refinery is supplied to the co-located Alumar aluminium smelter and exported to other smelters around the world.

Volumes

Brazil Alumina saleable production increased by 4% (or 27kt) to a record 709kt in H1 FY26, as the refinery operated above nameplate capacity. FY26 production guidance remains unchanged at 1,360kt.

Operating costs

Operating unit costs were unchanged at US$320/t in H1 FY26 as higher volumes were offset by a stronger Brazilian real.

Our operating margin decreased to 9% (H1 FY25: 43%) as alumina prices declined from elevated levels in the prior period. 

While Operating unit cost guidance is not provided for this non-operated facility, the refinery will continue to be influenced by energy and raw material input prices.

Financial performance

Underlying EBIT decreased to a loss of US$3M in H1 FY26, as higher sales volumes (+US$17M) were more than offset by a 37% reduction in our average realised price of alumina (-US$158M).

Our share of the loss from our equity accounted interest in MRN was unchanged at US$13M in H1 FY26.

Capital expenditure

Capital expenditure decreased by US$22M to US$5M in H1 FY26 due to the timing of spend and refinery improvement projects completed in the prior period. Capital expenditure is expected to be US$40M (previously US$50M) in FY26.

MRN continues to execute the transmission line project to connect the MRN bauxite mine to the Brazilian power grid. The transmission line will enable MRN to reduce operating costs by replacing its diesel-powered generation with cost efficient renewable energy sources. Our share of capital expenditure for the transmission line was ~US$15M (33% share) in H1 FY26.

(a) Excludes the profit/(loss) from our equity accounted interest in MRN.

(b) Results for Brazil Alumina include MRN on an equity accounted basis.

(c) H1 FY25 reflects the balance as at 30 June 2025.

BRAZIL ALUMINIUM

Location: Maranhão, Brazil

South32 share: 40 per cent (non-operated)

Brazil Aluminium produces aluminium for domestic and export markets, with alumina supplied by the co-located Alumar alumina refinery. Our share of Brazil Aluminium production is powered by 100% renewable power.

Volumes

Brazil Aluminium saleable production increased by 16% (or 10kt) to 74kt in H1 FY26. Despite this growth, production in Q2 FY26 was below plan due to unplanned pot outages and external energy disruptions. 

Production guidance has been revised to 135kt (from 160kt) in FY26 and 140kt (from 165kt) in FY27, as the smelter's operator implements measures to improve stability and continue the ramp-up of all three potlines.

Operating costs

Operating unit costs decreased by 14%, to US$2,919/t in H1 FY26,as higher volumes and lower alumina input prices, more than offset a stronger Brazilian real.

While Operating unit cost guidance is not provided, the smelter's cost profile will continue to be influenced by raw material input prices and the ramp-up profile for all three potlines.

Financial performance

Underlying EBIT improved by US$40M, to a loss of US$15M in H1 FY26, as higher sales volumes (+US$35M) and average realised aluminium prices (+US$16M) more than offset higher smelter raw materials consumption (-US$15M) to deliver increased volumes.

Capital expenditure

Capital expenditure was US$9M in H1 FY26 and is expected to be US$15M in FY26.

(a) H1 FY25 reflects the balance as at 30 June 2025.

HILLSIDE ALUMINIUM

Location: KwaZulu-Natal, South Africa

South32 share: 100 per cent

Hillside Aluminium is located in Richards Bay, South Africa, and is the largest aluminium smelter in the southern hemisphere. The smelter produces high-quality, primary aluminium for domestic and export markets.

Volumes

Hillside Aluminium saleable production was unchanged at 362kt in H1 FY26, as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding. FY26 production guidance remains unchanged at 720kt[53].

Operating costs

Operating unit costs decreased by 2%, to US$2,295/t in H1 FY26,as the smelter continued to test its maximum technical capacity and benefitted from lower alumina input prices. These benefits more than offset a stronger South African rand and inflation-linked indexation of energy costs.

Our operating margin increased to 20% (H1 FY25: 12%), reflecting a 7% increase in the average realised price of aluminium together with lower costs.

While Operating unit cost guidance is not provided, the cost profile of the smelter will continue to be heavily influenced by the price of smelter raw material inputs and other external factors including the South African rand and inflation-linked indexation of energy costs.

The smelter's electricity is supplied by Eskom under a contract to 2031, with a tariff that is South African rand based and a rate of escalation linked to the South African Producer Price Index. We are continuing to work with Eskom and other stakeholders in the South African energy sector on pathways to secure low-carbon[54] electricity supply beyond 2031.

Financial performance

Underlying EBIT increased by 92% (or US$82M), to US$171M in H1 FY26, as higher average realised aluminium prices (+US$65M) combined with lower smelter raw material input prices (+US$34M), including alumina, more than offset a stronger South African rand (-US$11M), and lower sales volumes (-US$30M) due to the timing of shipments.

49 pots were relined at a cost of US$323k per pot in H1 FY26(H1 FY25: 95 pots at US$305k per pot), with ~70 pots scheduled to be relined in FY26. The smelter is deploying AP3XLE energy efficiency technology in its pot relining activity to further enhance the smelter's energy efficiency and reduce GHG emissions. At the end of H1 FY26, ~63% of the pots had been relined using AP3XLE technology.

Capital expenditure

Capital expenditure was US$34M in H1 FY26 and is expected to be US$65M in FY26 as we continue our investment to replace the pot tending assemblies.

(a) H1 FY25 reflects the balance as at 30 June 2025.

MOZAL ALUMINIUM

Location: Maputo, Mozambique

South32 share: 63.7 per cent

Mozal Aluminium is located near Maputo, Mozambique, and is a significant industrial employer in the country. The smelter produces high-quality, primary aluminium for domestic and export markets.

Volumes

Mozal Aluminium saleable production increased by 3% (or 5kt) to 183kt in H1 FY26.

On 16 December 2025[55], we announced that Mozal Aluminium will transition to care and maintenance on or around 15 March 2026 due to the inability to secure sufficient and affordable electricity supply. With the smelter transitioning to care and maintenance, we have ceased pot relining and procurement of smelter raw materials. FY26 production guidance remains unchanged at 240kt[56], based on operations continuing to March 2026.

Operating costs

Operating unit costs increased by 5%, to US$2,556/t in H1 FY26,as higher priced alumina and a stronger South African rand more than offset lower pot relining and maintenance spend, as we prepare to transition the smelter to care and maintenance.

Our operating margin decreased to 12% (H1 FY25: 14%), as a 4% increase in the average realised price of aluminium was more than offset by higher costs.

While Operating unit cost guidance is not provided, the cost profile of the smelter will continue to be heavily influenced by the price of smelter raw material inputs and external factors including the South African rand.

Financial performance

Underlying EBIT increased by 76% (or US$25M), to US$58M in H1 FY26, as higher average realised aluminium prices (+US$19M) and lower maintenance spend (+US$27M) more than offset lower sales volumes (-US$34M) due to the timing of sales. We expect to draw down finished goods inventory during H2 FY26.

Capital expenditure

Capital expenditure was US$4M in H1 FY26 and is expected to be US$4M (previously US$10M) for the period ending March 2026.

(a) H1 FY25 reflects the balance as at 30 June 2025.

SIERRA GORDA

Location: Antofagasta, Chile

South32 share: 45 per cent (non-operated)

Sierra Gorda is a large-scale, open pit mine in the prolific Antofagasta copper mining region, that produces copper, molybdenum, gold and silver.

Volumes

Sierra Gorda payable copper equivalent production[57] was largely unchanged at 47.0kt in H1 FY26, with plant throughput and copper production in line with plan, while higher molybdenum output from the current mining phase offset lower planned gold production. 

FY26 production guidance57 remains unchanged at 85.7kt (ore processed 21.8Mt, copper 72.0kt, molybdenum 1.2kt, gold 18.0koz and silver 600koz), with the operation positioned to potentially exceed guidance if strong volumes of molybdenum, gold and silver continue in H2 FY26.

Operating costs

Operating unit costs decreased by 1%, to US$17.0/t ore processed in H1 FY26, reflecting lower ore mined as the operation increased development activity, partially offset by a drawdown in stockpiles. 

Our operating margin increased to a record 68% (H1 FY25: 53%), reflecting higher average metal prices and lower costs.

FY26 Operating unit cost guidance is unchanged at US$17.0/t ore processed. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 18, footnote 45.

Financial performance

Underlying EBIT increased by 133% (or US$170M), to US$298M in H1 FY26, as higher average realised metal prices (+US$168M) and sales volumes (+US$5M) more than offset higher contractor costs (-US$9M).

Capital expenditure

Safe and reliable capital expenditure was US$111M in H1 FY26 and is expected to be US$200M (previously US$180M) in FY26, as the operation continues deferred stripping activity.

Improvement and life extension capital expenditure was US$5M in H1 FY26 and is expected to be US$14M in FY26, as the operation progresses the feasibility study for the fourth grinding line project. Following completion of the feasibility study, the joint venture partners will undertake an independent review to support a potential joint final investment decision in mid‑CY26.

(a) H1 FY25 reflects the balance as at 30 June 2025.

CANNINGTON

Location: Queensland, Australia

South32 share: 100 per cent

Cannington is an underground mine located in north-west Queensland, Australia, that produces high-grade lead and zinc concentrates with a high silver content.

Volumes

Cannington payable zinc equivalent production[59] decreased by 18% (or 23.0kt) to 102.8kt in H1 FY26, as higher ore processed was more than offset by lower planned metal grades.

FY26 production guidance59 remains unchanged at 200.6kt (ore processed 1,850kdmt, zinc 40.0kt, lead 87.0kt and silver 8,200koz).

Operating costs

Operating unit costs decreased by 7%, to US$183/t ore processed in H1 FY26, as higher ore processed and inventory movements more than offset higher price-linked royalties. 

Our operating margin increased to 53% (H1 FY25: 40%), reflecting stronger metal prices together with lower costs.

While costs are tracking below plan, FY26 Operating unit cost guidance remains unchanged at US$205/t ore processed, with the potential for higher price-linked royalties if metal prices remain at current levels. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 18, footnote 45.

Financial performance

Underlying EBIT increased by 83% (or US$74M), to US$163M in H1 FY26, as higher average realised metal prices (+US$140M) more than offset lower planned sales volumes (-US$67M).

Capital expenditure

Capital expenditure was unchanged at US$23M in H1 FY26 and is expected to be US$40M in FY26 as we invest in underground development and activities to support mine life extensions.

Our work on mine life extension options has supported a further increase in the underground Ore Reserve by 3Mt to 13Mt in H1 FY26, extending the reserve life by approximately two years to FY33[60]. To support the extended mine life, we expect to invest additional capital expenditure of approximately US$65M to US$80M during FY27 and FY28, including for ventilation and electrical upgrades.

(a) H1 FY25 reflects the balance as at 30 June 2025.

AUSTRALIA MANGANESE

Location: Northern Territory, Australia

South32 share: 60 per cent

Australia Manganese is Groote Eylandt Mining Company (GEMCO) in the Northern Territory, Australia, an open-cut mining operation that produces high-grade manganese ore.

Volumes

Australia Manganese saleable production increased to 1,660kwmt in H1 FY26, as the operation achieved normalised production rates after executing its recovery plan following the impacts of Tropical Cyclone Megan.

FY26 production guidance remains unchanged at 3,200kwmt, subject to potential wet season impacts.

Australia Manganese finalised insurance claims related to Tropical Cyclone Megan, with an additional US$153M (100% basis) in external insurance recoveries received in H1 FY26, bringing final approved recoveries to US$503M (100% basis).

Operating costs

Operating unit costs were US$2.31/dmtu in H1 FY26 and FY26 Operating unit cost guidance remains unchanged at US$2.40/dmtu. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 18, footnote 45.

Financial performance

Underlying EBIT increased to US$66M in H1 FY26 (H1 FY25: loss of US$34M), with sales volumes increasing to 1,809kwmt following the commissioning of new wharf infrastructure in Q4 FY25.

Depreciation and amortisation increased by US$38M to US$41M in H1 FY26 as operations resumed.

Income related to external insurance recoveries (US$92M) is excluded from Underlying EBIT as an earnings adjustment.

Capital expenditure

Capital expenditure was US$46M in H1 FY26 and is expected to be US$81M in FY26 as we continue planned investments in water management infrastructure and mobile equipment.

(a) H1 FY25 reflects the balance as at 30 June 2025.

SOUTH AFRICA MANGANESE

Location: Northern Cape and Gauteng, South Africa

South32 share: Ore - 54.6 per cent, Alloy - 60 per cent (divested)

South Africa Manganese consists of two manganese mines in the Kalahari Basin, the open-cut Mamatwan mine and the underground Wessels mine.

In June 2025, Samancor Manganese Proprietary Limited completed the divestment of the Metalloys manganese alloy smelter[65], which had been placed on care and maintenance in FY20.

Volumes

South Africa Manganese saleable production decreased by 2% (or 25kt) to 1,057kwmt in H1 FY26, as the operation completed planned maintenance and underground development at Wessels.

FY26 production guidance remains unchanged at 2,000kwmt, with further planned maintenance scheduled in Q3 FY26.

Operating costs

Operating unit costs decreased by 1%, to US$3.09/dmtu in H1 FY26, as a drawdown of low-cost inventory more than offset a stronger South African rand.

FY26 Operating unit cost guidance is unchanged at US$3.10/dmtu. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 18, footnote 45.

Financial performance

Ore Underlying EBIT decreased by US$21M, to a loss of US$2M in H1 FY26, reflecting lower average realised manganese prices (-U$19M) and a stronger South African rand (-US$4M).

Capital expenditure

Capital expenditure was US$18M in H1 FY26 and is expected to be US$30M (previously US$35M) in FY26.

(a) H1 FY25 reflects the balance as at 30 June 2025.

GLOSSARY OF TERMS AND ABBREVIATIONS

ADR

American Depositary Receipts.

ASX

Australian Securities Exchange.

Cu/TCu

Copper/total copper.

CY

Calendar year.

dmtu

Dry metric tonne unit.

EAI

Equity accounted investment.

FY

Financial Year.

Goal

Goal is defined as an aspiration to deliver an outcome for which we have not identified a pathway for delivery, but for which efforts will be pursued towards achieving that outcome, subject to certain assumptions or conditions.

g/t

Grams per tonne.

JSE

Johannesburg Stock Exchange.

kdmt

Thousand dry metric tonnes.

koz

Thousand ounces.

kt

Thousand tonnes.

ktpa

Thousand tonnes per annum.

kwmt

Thousand wet metric tonnes.

lb

Pound.

Leadership roles

A Leadership Role is a position in the organisational structure flagged as the head of an organisational unit.

Local workforce diversity

Local workforce diversity is a metric consisting of four equally weighted targets measuring local workforce diversity across the regions in which we operate. This includes Black People in the total workforce in South Africa, Black People in Management Roles in South Africa, Mozambique nationals in the Mozambique workforce and Aboriginal and Torres Strait Islander (ATSI) Peoples representation in the Australian workforce. In FY25, the Local workforce diversity metric also included a target for local community members hired into unionised positions at Cerro Matoso. This target was removed following the divestment of Cerro Matoso on 1 December 2025.

Lost time injury frequency (LTIF)

(The sum of lost time injuries x 1,000,000) ÷ exposure hours, for employees and contractors. This is stated in units of per million hours worked for employees and contractors. We adopt the United States Government Occupational Safety and Health Administration (OSHA) guidelines for the recording and reporting of occupational injuries and illnesses.

LSE

London Stock Exchange.

Moz

Million ounce.

Mt

Million tonne.

Mtpa

Million tonnes per annum.

MW

Megawatt.

Mwmt

Million wet metric tonne.

Operating cost

Operating cost is Underlying revenue less Underlying EBITDA excluding third party products and services.

Operating unit cost

Operating unit cost is Underlying revenue less Underlying EBITDA, excluding third party products and services, divided by sales volumes.

oz

Ounce.

Realised sales price

Realised sales price is calculated as Underlying revenue excluding third party products and services divided by sales volume.

ROIC

Return on invested capital (ROIC) is calculated as Underlying EBIT less the discount on rehabilitation provisions included in Underlying net finance costs, tax effected by the Group's Underlying effective tax rate (ETR) including our material equity accounted investments on a proportional consolidation basis, divided by the sum of fixed assets (excluding any rehabilitation assets, the impact of any impairments or impairment reversals, and unproductive capital) and inventories. For the half year report, financial results are annualised to reflect 12-month equivalent returns.

Significant hazard frequency

(The sum of significant hazards x 1,000,000) ÷ exposure hours. This is stated in units of per million hours worked for employees and contractors. A significant hazard is something that has the potential to cause harm, ill health or injury, or damage to property, plant or the environment.

South32 share

South32's ownership share of operations is presented as follows: Worsley Alumina (86% share), Brazil Alumina (36% share), Brazil Aluminium (40% share), Hillside Aluminium (100%), Mozal Aluminium (63.7% share), Sierra Gorda (45% share), Cannington (100%), Hermosa (100%), Australia Manganese (60% share) and South Africa Manganese ore (54.6% share). Prior to the divestment of Illawarra Metallurgical Coal on 29 August 2024, South32's ownership was 100%. Prior to the divestment of South Africa Manganese alloy on 3 June 2025, South32's ownership was 60%. Prior to divestment of Cerro Matoso on 1 December 2025, South32's ownership was 99.9%. Unless otherwise stated: all metrics reflect South32's share.

t

Tonne.

Target

Target is defined as an intended outcome in relation to which we have identified one or more pathways for delivery of that outcome, subject to certain assumptions or conditions.

Total recordable injury frequency (TRIF)

(The sum of recordable injuries x 1,000,000) ÷ exposure hours, for employees and contractors. This is stated in units of per million hours worked for employees and contractors. We adopt the United States Government Occupational Safety and Health Administration (OSHA) guidelines for the recording and reporting of occupational injuries and illnesses.

Underlying earnings attributable to members

Underlying earnings attributable to members is profit/(loss) after tax, net of amounts attributable to non-controlling interests and earnings adjustment items, from continuing and discontinued operations. Underlying earnings attributable to members is the key measure that South32 uses to assess the performance of the South32 Group, make decisions on the allocation of resources and assess senior management's performance.

Underlying EBIT

Underlying EBIT is profit/loss before net finance income/costs, tax and any earnings adjustments, including impairments, from continuing and discontinued operations. The performance of each of the South32 operations and operational management is assessed based on Underlying EBIT. In order to calculate Underlying EBIT, the following items are adjusted as applicable each period, irrespective of materiality: Exchange rate gains/losses on restatement of monetary items; Impairment losses/reversals; Gains/losses on disposal and consolidation of interests in operations; Gains/losses on non-trading derivative instruments and contingent consideration measured at fair value through profit or loss; Major corporate restructures; Joint venture adjustments; Exchange rate variations on net cash/debt; Tax effect of earnings adjustments; and Exchange rate variations on tax balances. In addition, items that do not reflect the underlying operations of South32, and are individually, or in combination with other related earnings adjustments, significant to the financial statements, are excluded to determine Underlying earnings. When applicable, significant items are detailed in the Financial Information.

Underlying EBIT margin

Comprises Underlying EBIT excluding third party products and services EBIT, divided by Underlying revenue excluding third party products and services revenue.

Underlying EBITDA

Underlying EBITDA is Underlying EBIT before Underlying depreciation and amortisation, and excludes third party products and services EBITDA. In order to calculate Underlying EBITDA, the following items are adjusted as applicable each period, irrespective of materiality: Exchange rate gains/losses on restatement of monetary items; Impairment losses/reversals; Gains/losses on disposal and consolidation of interests in operations; Gains/losses on non-trading derivative instruments and contingent consideration measured at fair value through profit or loss; Major corporate restructures; Joint venture adjustments; Exchange rate variations on net cash/debt; Tax effect of earnings adjustments; and Exchange rate variations on tax balances. In addition, items that do not reflect the underlying operations of South32, and are individually, or in combination with other related earnings adjustments, significant to the financial statements, are excluded to determine Underlying earnings. When applicable, significant items are detailed in the Financial Information.

Underlying EBITDA margin

Comprises Underlying EBITDA excluding third party products and services EBITDA, divided by Underlying revenue excluding third party products and services revenue. Also referred to as operating margin.

Underlying Effective Tax Rate (ETR)

Underlying ETR is Underlying income tax expense, including royalty related tax, divided by Underlying profit subject to tax.

Underlying revenue

Underlying revenue includes revenue from third party products and services.

US$B

US$ billion.

US$M

US$ million.

SOUTH32

FINANCIAL

INFORMATION

For the half year ended 31 December 2025

Contents

Consolidated Income Statement

for the half year ended 31 December 2025

1. Refer to note 9 Disposal of subsidiaries.

The accompanying notes form part of the half year consolidated financial statements.

Consolidated statement of comprehensive income

for the half year ended 31 December 2025

The accompanying notes form part of the half year consolidated financial statements.

Consolidated balance sheet

for the half year ended 31 December 2025