Investor Presentaiton
OUR CAPITAL EXPENDITURE OUTLOOK
Prioritising safe and reliable operations and unlocking value through improvement and growth projects
Capital expenditure guidance(a)(b)
(US$M per annum)
Notes:
a.
b.
~175
160
0
SOUTH32
We expect to direct US$250M in FY23e at our Hermosa project, delivering critical path activity
and study work for our Taylor and Clark deposits
Taylor's feasibility study is expected in H2 CY23, as we undertake additional engineering
studies to align the development schedule for a permitting process under FAST-41 and
incorporate current market cost estimates
We have approved a ~US$60M investment to construct a decline at Clark, providing access to
ore to facilitate demonstration scale production of battery-grade manganese
FY24 improvement and life extension capital includes:
.
•
US$75M at Worsley Alumina for new mining areas, energy security and decarbonisation
US$35M at Australia Manganese for the Eastern Lease South life extension project
•
US$15M at Sierra Gorda for plant de-bottlenecking and the feasibility study for the
~850
fourth grinding line expansion, which is expected to be completed in H1 FY24
730
•
US$15M at Brazil Alumina for the De-bottlenecking Phase Two project
FY23e
Safe and reliable
FY24e
Improvement and life extension
FY24 safe and reliable capital includes:
•
US$190M at Sierra Gorda including deferred stripping and additional tailings infrastructure
•
US$290M at Illawarra Metallurgical Coal to support the transition to a single longwall
configuration at Appin, and additional ventilation infrastructure (c) to extend Appin to 2039(d)
Includes our Manganese and Sierra Gorda EAIS.
FY23e and FY24e capital expenditure guidance includes the following assumptions for exchange rates: an AUD: USD exchange rate of 0.67, a USD:BRL exchange rate of 5.51, a USD:COP
exchange rate of 4,630, a USD: MZN exchange rate of 67.94, a USD:ZAR exchange rate of 18.80 and a USD: CLP exchange rate of 857.
C.
d.
~US$260M total investment in additional ventilation infrastructure, with US$50M in FY23e, US$90M in FY24e, US$90M in FY25e and US$30M in FY26e.
Refer to important notices (slide 2) for additional disclosure.
SLIDE 11View entire presentation