FY22 Overview & Safety Program Update
FOOTNOTES
III
SOUTH32
31. Sierra Gorda's copper equivalent production (kt) was calculated by aggregating revenues from copper, molybdenum, gold and silver, and dividing the total Revenue by the price of copper. FY22 realised prices for copper (US$3.50/lb),
molybdenum (US$18.48/lb), gold (US$1,934/oz) and silver (US$23.5/oz) have been used for FY22 and FY23e.
32. Zinc equivalent (kt) was calculated by aggregating revenues from payable silver, lead and zinc, and dividing the total Revenue by the price of zinc. FY22 realised prices for zinc (US$3,248/t), lead (US$2,046/t) and silver (US$21.0/oz) have been
used for FY21, FY22, FY23e and FY24e.
33. FY23 Operating unit cost guidance includes royalties (where appropriate) and the influence of exchange rates, and includes various assumptions for FY23, including: an alumina price of US$364/t; an average blended coal price of US$265/t for
Illawarra Metallurgical Coal; a manganese ore price of US$6.40/dmtu for 44% manganese product; a nickel price of US$9.94/lb; a silver price of US$22.11/troy oz; a lead price of US$2,059/t (gross of treatment and refining charges); a zinc price of
US$3,480/t (gross of treatment and refining charges); a copper price of US$4.07/lb (gross of treatment and refining charges); a molybdenum price of US$16.95/lb (gross of treatment and refining charges); a gold price of US$1,860/troy oz; an
AUD:USD exchange rate of 0.69; a USD:ZAR exchange rate of 16.62; a USD: COP exchange rate of 3,851; and a reference price for caustic soda; all of which reflected forward markets as at June 2022 or our internal expectations.
34. Sierra Gorda and Cannington Operating unit cost is Revenue less Underlying EBITDA divided by ore processed. Periodic movements in finished product inventory may impact Operating unit costs as related marketing costs may change.
35. FOB ore Operating unit cost is Revenue less Underlying EBITDA, freight and marketing costs, divided by ore sales volume.
36.
37.
Cerro Matoso has a license to operate to 1 August 2029 under terms of Contract 051-96M, with the option of a 15-year term extension to 2044.
In FY21, we developed a scenario in which global warming is assumed to be limited to 1.5°C above pre-industrial levels and analysed the potential impacts on commodity demand. In this scenario the world transitions to a low-carbon economy at
a much faster rate than in our base case (which is a probable trajectory of at least 2°C warming). The chart illustrates projected long-term commodity demand in the 1.5°C scenario compared to our base case.
Refer to market release "Financial Results and Outlook Year Ended 30 June 2022" dated 25 August 2022. Sale price includes US$103M in cash payments, US$82M of Anglo Pacific shares and contingent payments of up to US$15M.
39. Refers to aluminium produced using renewable power.
38.
40.
Refer to media release "South32 completes acquisition of additional interest in Mineração Rio do Norte" dated 2 May 2022.
41. FY22 Operating unit cost guidance includes royalties (where appropriate) and the influence of exchange rates, and includes various assumptions for FY22, including: an alumina price of US$399/t; an average blended coal price of US$382/t for
Illawarra Metallurgical Coal; a manganese ore price of US$6.07/dmtu for 44% manganese product; a nickel price of US$10.60/lb; a silver price of US$24.22/troy oz; a lead price of US$2,308/t (gross of treatment and refining charges); a zinc price of
US$3,461/t (gross of treatment and refining charges); an AUD:USD exchange rate of 0.73; a USD:ZAR exchange rate of 15.06; a USD: COP exchange rate of 3,843; and a reference price for caustic soda; all of which reflected forward markets as at
March 2022 or our internal expectations.
Price-linked costs reflect commodity price-linked and market traded consumables costs.
42.
43. Sources: LME, Baiinfo, Aladinny, AZ China, CRU, Platts, Jacobs. Calculation assumes 1t of aluminium, 1.9t alumina, 0.35t coke, 0.075t pitch and 0.02t aluminium tri-fluoride.
44.
Unwind of discount applied to closure and rehabilitation provisions.
45. Balance sheet movement (+US$35M) reflects the net impact of a US$167M increase in provisions as a result of amounts capitalised for changes in costs and estimates related to open mines, and a US$19M increase in provisions as a result of
portfolio changes, partially offset by a US$127M decrease in provisions associated with the capitalisation of foreign exchange impacts on restatement of closure provisions relating to open sites, a US15M decrease in provisions as a result of
amounts capitalised from changes in discount rates, and a US$9M decrease as a result of utilisation.
46. The underlying information reflects the Group's interest in material equity accounted joint ventures and is presented on a proportional consolidation basis, which is the measure used by the Group's management to assess their performance. The
joint venture adjustments reconcile the proportional consolidation to the equity accounting position included in the Group's consolidated financial statements.
The denotation (e) refers to an estimate or forecast year.
The following abbreviations have been used throughout this presentation: billion (B); cents per share (cps); dry metric tonne (dmt); Dendrobium Next Domain (DND); earnings before interest and tax (EBIT); earnings before interest, tax, depreciation
and amortisation (EBITDA); free on board (FOB); feasibility study (FS); financial year (FY); greenhouse gas (GHG); Illawarra Metallurgical Coal (IMC); inclusion and diversity (I&D); million (M); Mineração Rio do Norte (MRN); Ore Sorting and Mechanical Ore
Concentration (OSMOC); pre-feasibility study (PFS); return on invested capital (ROIC); Tasmanian Electro Metallurgical Company (TEMCO); total recordable injury frequency (TRIF); total recordable illness frequency (TRILF); United States (US) and
year to date (YTD).
SLIDE 54View entire presentation