FY22 Overview & Safety Program Update
OPERATING UNIT COSTS GUIDANCE
FY23 guidance vs.
Operating unit costs
H2 FY22
actual
FY22
FY23
Guidance 33
FY22 actual
(10%)
0%
10%
20%
Worsley Alumina
274
265
296
(US$/t)
Brazil Alumina (non-operated)
312
288
(US$/t)
Guidance not
provided
Cannington 34
139
133
129
(US$/t)
Cerro Matoso
4.56
4.34
4.97
(US$/lb)
Illawarra Metallurgical Coal
129
126
116
(US$/t)
Australia Manganese35
1.94
1.86
2.08
(FOB, US$/dmtu)
South Africa Manganese 35
2.83
2.73
2.66
(FOB, US$/dmtu)
Hillside Aluminium
(US$/t)
Mozal Aluminium
(US$/t)
Smelter raw material basket costs
(% of LME Aluminium)43
Commentary
III
SOUTH32
Significantly higher caustic soda prices and
consumption, and increased freight costs,
partially offset by a weaker Australian dollar
Will continue to be influenced by energy and raw
material input prices, including caustic soda
Higher throughput from the optimised mine plan and a
weaker Australian dollar, to more than offset higher
energy prices
Higher price-linked royalties and energy prices, and the
impact of the prior year's one-off royalty adjustment
(+US$0.13/lb), more than offsetting additional volumes
Higher volumes and a weaker Australian dollar to more
than offset labour and energy cost inflation
Higher labour and contractor costs and rising strip ratio,
combined with higher diesel prices, more than offsetting
a weaker Australian dollar
Continued use of higher cost trucking, offset by draw
down of previously built low-cost inventory from the
barrier pillar project and a weaker South African rand
6 month averages
80%
2,318
2,137
50%
41%
41%
38%
34%
36%
37%
60%
40%
Will continue to be influenced by the price of
raw material inputs, the South African rand and
inflation-linked energy costs
2,429
2,243
20%
Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22
Foreign exchange Price-linked costs (including royalties)42 Controllable costs
◇ FY23 guidance vs. FY22 actual % movement O≤5% of prior year actual O>5% of prior year actual
SLIDE 47View entire presentation