South32 (S32) investor relations material

Project update, execution, and capital expenditure

• Taylor project's capital expenditure increased to $3.3 billion, driven by scope changes, inflation, tariffs, and industry-wide cost increases, with $100 million from additional decline access and $450 million from revised shaft construction.

• Over 80% of capital is now committed or contracted, reducing future capital risk, and most work packages are fixed-price or unit rate.

• First ore from Clark decline is expected mid FY2028, with production ramping up in the second half and nameplate capacity by FY2031.

• Construction of key infrastructure, including shafts and process plant, is progressing, with ventilation shaft completion expected in H2 FY27 and main shaft in H1 FY28.

• Steady state EBITDA projected at $650 million per annum, with upside at spot prices and further resource growth potential.

Operational performance and mine design

• Contractor underperformance on shaft sinking has delayed completion, but Clark decline progress is ahead of schedule and increases ore handling capacity by 25%.

• No major geotechnical or water issues have been encountered; delays are attributed to engineering and productivity.

• Mining rates are targeted at 4.3 million tons, with potential for higher throughput pending debottlenecking studies.

• Multiple mining areas and improved ore body knowledge provide operational upside and flexibility.

• Life of mine production increased by 17% to 10.4Mt ZnEq, with annual steady-state production of 346kt ZnEq.

Resource and reserve growth

• Taylor's mine life extended to 33 years, with Ore Reserve up 52% to 99Mt and Mineral Resource up 10% to 169Mt, supported by infill drilling.

• Peak/Peake copper deposit resource increased by 32% to 33 million tons at 1.78% copper equivalent, with further drilling planned post-federal approval.

• Exploration Target for Taylor updated, with potential for further extensions as the deposit remains open in several directions.

• Lower early-year grades are due to initial mining from Clark decline, with higher grades accessed later.

• Federal permitting expected by year-end or H1 FY27, unlocking further drilling and expansion opportunities.