This presentation should be read in conjunction with the “Hermosa Project Update” announcement published on January 17, 2022, which is available on the South32 website (www.south32.net) and any other communications made to exchanges since that date. Numbers in italics indicate that an adjustment has been made since the numbers were previously reported.
This presentation contains forward-looking statements, including statements about commodity price and currency exchange rate trends; commodity demand; production forecasts; management plans, strategies and objectives; investment costs and schedule; operating costs; expected productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations as of the date of this presentation, but they are not guarantees or predictions of future performance or statements of fact. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Readers are cautioned not to place undue reliance on forward-looking statements. South32 makes no representations, assurances or warranties as to the accuracy or likelihood or achievement of any forward-looking statement or any results expressed or implied in any forward-looking statement. Except as required by applicable laws or regulations, South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be taken as an indication of future performance. South32 cautions against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption related to COVID-19. The denotation (e) refers to an estimate or forecast year.
NON-IFRS FINANCIAL INFORMATION
This presentation includes certain non-IFRS financial measures, including underlying earnings, underlying EBIT and underlying EBITDA, underlying basic earnings per share, underlying effective tax rate underlying, underlying EBIT margin, underlying EBITDA margin, underlying return on invested capital, free cash flow, debt, net cash, net operating assets, operating margin and ROIC . These measures are used internally by management to assess the performance of our business, make decisions about the allocation of our resources and assess operational management. Non-IFRS measures have not been audited or reviewed and should not be considered an indication or alternative to an IFRS measure of profitability, financial performance or liquidity.
NO TITLES OFFER
Nothing in this presentation should be read or understood as an offer or recommendation to buy or sell South32 securities or be treated or relied upon as a recommendation or advice by South32.
RELIANCE ON THIRD-PARTY INFORMATION
Any information contained in this presentation that has been derived from publicly available sources (or opinions based on such information) has not been independently verified. South32 Group makes no representations or warranties as to the accuracy, completeness or reliability of the information. This presentation should not be considered a recommendation or prediction by South32.
NO FINANCIAL OR INVESTMENT ADVICE – SOUTH AFRICA
South32 does not provide financial or investment “advice” as that term is defined in the South African Financial Advice and Intermediary Services Act, 37 of 2002.
MINERAL RESOURCES AND ORE RESERVES
Caution regarding the exploratory study of the Clark deposit: The exploratory study referred to in this presentation is based on low-level technical and economic evaluations and is insufficient to support the estimation of ore reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the scoping study will be realized. The study is based on 60% indicated mineral resources and 40% inferred mineral resources (see footnotes (slide 29) for disclaimer).
Disclaimer on production targets: the information contained in this presentation which refers to the production target and the forecast financial information is based on the mineral resources measured (20%), indicated (62%), inferred (14 %) and the exploration objective (4%) for the Taylor Deposit. The mineral resources underlying the production target have been prepared by a competent person in accordance with the JORC code (see footnotes (slide 29) for disclaimer). All material assumptions on which the production target and forward financial information are based are provided in the “Hermosa Project Update” announcement issued on January 17, 2022. There is a low level of geological confidence associated with the inferred mineral resources and there There is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or the achievement of Target Production. The potential quantity and grade of the exploration target are conceptual in nature. With respect to the exploration target used in the production target, there has not been sufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be achieved. The stated production target is based on South32’s current expectations regarding future results or events and should not be relied upon solely by investors when making investment decisions. Further evaluative work and appropriate studies are needed to establish sufficient confidence that this objective will be achieved. South32 confirms that the inclusion of 18% tonnage (14% inferred mineral resource and 4% exploration target) is not the determining factor for project viability and the project anticipates positive financial performance using 82% tonnage (20% measured and 62% indicated mineral resources). South32 is therefore satisfied that the use of inferred mineral resources and the exploration objective in the production objective and forward-looking financial information reports is reasonable.
Competent Person Statement and Caution – Exploration Results and Exploration Target: The information contained in this presentation regarding exploration results and exploration targets for Hermosa (including Peake) has been disclosed in the announcement “Hermosa Project Update” published on January 17, 2022 and are prepared by a competent person in accordance with the requirements of the JORC code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the initial market announcement. South32 confirms that the form and context in which the competent person’s findings are presented have not changed materially from the initial announcement to the market. For these exploration targets, the potential quantity and grade are conceptual in nature. There has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of a mineral resource.