This report does not constitute a rating action. South32's reduced assets would lower its earnings over the next two years. The company will likely place its Mozal aluminum operations on care and maintenance in March 2026 and divest Cerro Matoso in response to structural changes in the nickel market. The situation should improve as production at the Taylor project begins in 2027. The resumption of production at the GEMCO manganese mine will temper the impact of the reduced asset portfolio. South32?s portfolio will decline to eight commodities following the sale of Cerro Matoso. That said, the company?s transformational Taylor project in Arizona will materially lift production of zinc, lead, and silver in the key U.S. market. Successful development of Taylor
