South32 : BMO Global Metals, Mining and Critical Minerals Conference Presentation

BMO GLOBAL METALS, MINING AND CRITICAL MINERALS CONFERENCE

27 February 2023

IMPORTANT NOTICES

This presentation should be read in conjunction with the "Financial Results and Outlook - half year ended 31 December 2022" announcement released on 16 February 2023, 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, Underlying revenue, Underlying net finance costs, Underlying depreciation and amortisation, Underlying operating costs, Underlying income tax expense, Underlying royalty related tax expense, Basic Underlying earnings per share, Underlying effective tax rate, Underlying EBIT margin, Underlying EBITDA margin, Underlying return on capital, Free cash flow, net debt, 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 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, and we strongly recommend that you seek professional advice.

MINERAL RESOURCES AND ORE RESERVES

Information in this presentation that relates to Ore/Coal Reserve or Mineral/Coal Resource estimates for all operations and projects was declared as part of South32's annual Resource and Reserve declaration in the FY22 Annual Report (www.south32.net) issued on 9 September 2022 and prepared by Competent Persons 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 announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Resource life is estimated using Mineral Resources (extracted from South32's FY22 Annual Report published on 9 September 2022 and available to view on www.south32.net) and Exploration Target (details of which are available in the "Hermosa Project Update" announcement published on 17 January 2022), converted to a run-of-mine basis using conversion factors, divided by the nominated run-of-mine production rate on a 100% basis. Whilst South32 believes it has a reasonable basis to reference this resource life and incorporate it within its Production Targets, it should be noted that resource life calculations are indicative only and do not necessarily reflect future uncertainties such as economic conditions, technical or permitting issues. Resource life is based on our current expectations of future results and should not be solely relied upon by investors when making investment decisions. The cautionary statement included in the next paragraph relates to the proportion of Inferred Resources and Exploration Target when calculating Resource life and should be read in conjunction with this paragraph.

Taylor Production Targets cautionary statement: The information in this presentation that refers to Production Target and forecast financial information is based on Measured (20%), Indicated (62%), Inferred (14%) Mineral Resources and Exploration Target (4%) for the Taylor Deposit. The Mineral Resources underpinning the Production Target have been prepared by a Competent Person in accordance with the JORC Code. All material assumptions on which the Production Target and forecast financial information is based is provided in the "Hermosa Project Update" announcement released on 17 January 2022. There is low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target will be realised. The potential quantity and grade of the Exploration Target is conceptual in nature. In respect of Exploration Target used in the Production Target, there has been insufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of Mineral Resources or that the Production Target itself will be realised. The stated Production Target is based on South32's current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. South32 confirms that inclusion of 18% of tonnage (14% Inferred Mineral Resources and 4% Exploration target) is not the determining factor of the project viability and the project forecasts a positive financial performance when using 82% tonnage (20% Measured and 62% Indicated Mineral Resources). South32 is satisfied, therefore, that the use of Inferred Mineral Resources and Exploration Target in the Production Target and forecast financial information reporting is reasonable.

Peake Exploration Target: The information is this presentation that relates to Exploration Target for Peake is extracted from "Hermosa Project Update" released on 17 January 2022 and is available to view on www.south32.net. The information was prepared by a Competent Person 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 market announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Flux Exploration Target: The information is this presentation that relates to Exploration Target for Flux is extracted from "South32 Strategy and Business Update" released on 18 May 2021 and is available to view on www.south32.net. The information was prepared by a Competent Person 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 market announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

SLIDE 2

OUR STRATEGY

OPTIMISE

our business by working safely, minimising our impact, consistently delivering stable and predictable performance and continually improving our competitiveness.

UNLOCK

the full value of our business through our people, innovation, projects and technology.

IDENTIFY

and pursue opportunities to sustainably reshape our business for the future, and create enduring social, environmental and economic value.

Our simple strategy is underpinned by a disciplined approach to capital management

SLIDE 3

WORKING SAFELY

The most important commitment we make at South32 is that everyone goes home safe and well

Fatalities1,(a)

					2
1	1
		FY21		FY22		H1 FY23
TRIF2,(b)
6.0	5.3	6.0

FY21

FY22

H1 FY23

TRILF2,(b)

1.8

		1.3	1.0
	FY21	FY22	H1 FY23

• In November 2022, we were devastated by the loss of two of our colleagues, Mr Cristovão Alberto Tonela and Mr Alfredo Francisco Domingos João, who were fatally injured in an incident while undertaking maintenance work on a raising girder at Mozal Aluminium
• An investigation into the incident has been completed and key learnings are being shared across our organisation and with industry participants
• We continue to implement our multi-year Safety Improvement Program, designed to fundamentally shift our safety performance and deliver the culture transformation required for sustained improvement
• We remain focused on continuing to embed safe and sustainable business practices, shift mindsets through leadership, and empower our people

Notes:

1. Incidents are included where South32 controls the work location or controls the work activity. Since FY20 we have disclosed fatalities that occur as part of activities associated with our operations, where we seek to influence safety performance, but which occur in locations where we do not have operational control. In FY21 an employee from a company contracted by Cerro Matoso lost their life

while carrying out road paving activities on the public road between the municipality of Planeta Rica and our Q&P Project. In H1 FY23 an employee from a company contracted by our South Africa
Manganese operation lost their life in an offsite road trucking accident.	SLIDE 4
b. FY21 TRIF and TRILF data was adjusted to account for the removal of South Africa Energy Coal and Tasmanian Electro Metallurgical Company from the portfolio.

OUR PORTFOLIO

We have an attractive commodity mix and a growth pipeline in metals critical to a low-carbon future

Portfolio improvements have		Our next phase of growth		We are investing to discover
increased our volumes of metals		is expected to come from our		our next generation of mines with
critical to a low-carbon future		development options in the Americas		over 25 exploration prospects

Ambler Metals JV	Cerro Matoso		Australia
	Manganese	Cannington
		MRN Bauxite
		Brazil Alumina	Worsley
		Alumina

Sierra Gorda

Hermosa Project

Brazil Aluminium

			Mozal Aluminium
					Illawarra
					Metallurgical Coal
South Africa Manganese			Hillside Aluminium

Aluminium value chain
Advancing greenfield exploration partnerships and prospects in:
Copper
Nickel
United
Zinc-lead-silver	Canada	Argentina	Peru	Australia	Ireland
Manganese ore	States

Metallurgical coal

Project pipeline

Brownfield options in study phase

• Worsley Alumina decarbonisation and life extension
• MRN bauxite mine life extension
• Hillside energy transition
• Sierra Gorda fourth line expansion
• Sierra Gorda brownfield oxide project
• Australia Manganese Eastern & Southern Areas
• South Africa Manganese expansion & logistics

Greenfield growth options in study phase

• Hermosa Taylor zinc-lead-silver

• Hermosa Clark battery-grademanganese-zinc-silver

• Ambler Metals Arctic deposit

SLIDE 5