[Ferro-Alloys.com] South32: Manganese Ore Operating Performance in FY25

AUSTRALIA MANGANESE

Location: Northern Territory, Australia

South32 share: 60 per cent

Australia Manganese is Groote Eylandt Mining Company (GEMCO) in the Northern Territory, Australia, an open-cut mining operation that produces high-grade manganese ore

Volumes

Australia Manganese saleable production was 1,106kwmt in FY25, as we successfully resumed operations following the impacts of Tropical Cyclone Megan in Q3 FY24. Production is expected to be 3,200kwmt across both FY26 and FY27 as the operation delivers normalised production rates.

Export shipments recommenced in Q4 FY25 following completion of the wharf construction. Shipping rates are on track to reach full capacity in Q1 FY26.

Australia Manganese received external insurance payments of US$350M (100% basis) in FY25. We continue to work with our insurers regarding further insurance recoveries.

Operating costs

We expect FY26 Operating unit costs to be US$2.40/dmtu, with the return to normalised production rates. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 87, footnote 53.

Financial performance

Underlying EBIT was a loss of US$125M in FY25 due to the impacts of Tropical Cyclone Megan. Separately, idle capacity and other remediation costs (US$133M, South32 share) and insurance recoveries (US$350M, 100% basis) were excluded from Underlying EBIT as earnings adjustments.

Depreciation and amortisation recognised in Underlying EBIT decreased by US$101M to US$20M in FY25, with net US$59M capitalised to inventory and US$20M recognised as earnings adjustments. Underlying depreciation and amortisation is expected to be US$120M in FY26.

Capital expenditure

Capital expenditure was US$115M in FY25 as we invested in infrastructure to deliver the operational recovery plan, including the wharf and a critical bridge.

We expect to invest US$80M in FY26 including planned upgrades to water management infrastructure and mobile equipment

SOUTH AFRICA MANGANESE

Location: Northern Cape and Gauteng, South Africa

South32 share: Ore - 54.6 per cent, Alloy - 60 per cent (divested)

South Africa Manganese consists of two manganese mines in the Kalahari Basin, the open-cut Mamatwan mine and the underground Wessels mine.

In June 2025, Samancor Manganese Proprietary Limited completed the divestment of the Metalloys manganese alloy smelter79, which had been placed on care and maintenance in FY20.

Volumes

South Africa Manganese saleable production was largely unchanged at 2,151kwmt in FY25, as the operation continued to deliver strong mining performance and benefitted from improved access to rail logistics. Our realised price was an ~11% premium to the medium grade 37% manganese lump ore index80 as we optimised our sales mix.

Production guidance is expected to be 2,000kwmt across both FY26 and FY27, subject to our continued use of higher cost trucking in response to market conditions.

Operating costs

Operating unit costs increased by 14%, to US$3.05/dmtu in FY25, as improved access to cost efficient rail logistics, was more than offset by a stronger South African rand and increased maintenance costs.

We expect FY26 Operating unit costs to increase by 2% to US$3.10/dmtu, reflecting general cost inflation. Exchange rate and price assumptions for FY26 Operating unit cost guidance are detailed on page 87, footnote 53.

Financial performance

Ore Underlying EBIT decreased by US$18M, to US$30M in FY25, as higher average realised manganese prices (+US$9M) and lower inland logistics costs (+US$7M), were more than offset by a stronger

South African rand (-US$6M), additional maintenance (-US$6M) and unfavourable movements in work-in-progress inventory (-US$7M).

The Metalloys manganese alloy smelter incurred care and maintenance costs of US$6M (South32 share) prior to its divestment in June 2025.

Capital expenditure

Safe and reliable capital expenditure was US$28M in FY25 and is expected to be US$30M in FY26.

Improvement and life extension capital expenditure was US$16M in FY25 and is expected to decrease to US$5M in FY26 as we complete work to access new mining areas at the Wessels mine.

Manganese

Australia Manganese

Australia Manganese successfully completed its operational recovery plan following the impacts of Tropical Cyclone Megan in Q3 FY24, with export shipments resuming in Q4 FY25. Production is expected to be 3,200kwmt across both FY26 and FY27 as the operation delivers

normalised production rates.

Underlying EBITDA was a loss of US$105M in FY25, due to the impacts of Tropical Cyclone Megan. In addition, we incurred idle capacity and other remediation costs of US$133M (South32 share) that were excluded from Underlying EBITDA as an earnings adjustment.

South Africa Manganese

South Africa Manganese production was largely unchanged at 2,151kwmt in FY25, as the operation continued to deliver strong mining performance and benefitted from improved access to in-land rail logistics. Production is expected to be 2,000kwmt across both FY26 and

FY27, subject to our continued use of higher cost trucking in response to market conditions.

Underlying EBITDA decreased by US$19M to US$46M in FY25, for an operating margin of 13%, as higher average realised manganese prices and lower in-land logistics costs, were more than offset by a stronger South African rand and additional planned maintenance.

In June 2025, Samancor Manganese Proprietary Limited completed the divestment of the Metalloys manganese alloy smelter25, which had been on care and maintenance since FY20.

Operating unit cost

• [Editor:tianyawei]