This report does not constitute a rating action. Taylor project capex is up about 50%. South32 Ltd.?s Taylor zinc-lead-silver deposit in the U.S. has seen the project costs rise to US$3.3 billion, up US$1.1 billion from the expected cost at final investment decision. The cost overruns reflect incremental scope changes, increased construction costs and cost inflation for key materials exacerbated by tariffs on imported materials such as steel. Further, first production is delayed to 2028. Based on the company?s revised Taylor project guidance, we expect South32?s total capex to be US$3.5 billion–US$3.8 billion over fiscals 2027 and 2028. Solid earnings outlook from price benefits. We expect incremental earnings momentum for South32 over the next two years on higher metals prices
