South32 Ltd.

Overview Key strengths Key risks Diversified commodity portfolio, with operating assets across multiple countries. Smaller scale with lower quality assets than the major global miners. Continuing portfolio repositioning to base metals. Cyclical and capital-intensive mining industry. Conservative balance sheet provides resilience to volatile commodity prices and headroom for growth. Exposure to operations located in higher-risk jurisdictions. The company completed the sale of its Illawarra Metallurgical Coal (IMC) business in August 2024. It received net cash proceeds of about US$964 million, after adjusting for the already received deposit and working capital provisions. Consequently, at the end of the September 2024 quarter, South32's reported net debt decreased to US$39 million (drawn debt was US$692 million). In addition to the proceeds received to

...South32's strengthened balance sheet following the sale of its coal business provides funding flexibility for growth. The company completed the sale of its Illawarra Metallurgical Coal (IMC) business in August 2024. It received net cash proceeds of about US$964 million, after adjusting for the already received deposit and working capital provisions. Consequently, at the end of the September 2024 quarter, South32's reported net debt decreased to US$39 million (drawn debt was US$692 million). In addition to the proceeds received to date, the IMC sale will deliver a deferred cash consideration of US$250 million in 2030, and contingent price-linked proceeds up to US$350 million applicable for five years. The first two years will be calculated and paid on the second anniversary of completion and annually thereafter....

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