South32 (S32) Status update summary

Project update and capital expenditure

• Taylor's gross capital estimate increased by $1.1 billion to $3.3 billion, driven by additional decline access, revised shaft construction costs, inflation, and industry-wide input cost increases.

• Additional decline access added $100 million, revised shaft construction $450 million, and inflation plus tariffs $500 million to the capital estimate.

• Over 80% of capital is now committed, with remaining shaft development under unit rate contracts, reducing future capital risk.

• Contractor underperformance and productivity challenges have delayed shaft completion, prompting a more gradual ramp-up to nameplate capacity by FY2031.

• First ore from Clark decline expected mid FY2028, with ventilation shaft completion in H2 FY27 and main shaft in H1 FY28.

Operational performance and mine design

• Taylor mine life extended to 33 years, with the ore body continuing to grow and remaining open in several directions.

• Clark decline completion ahead of schedule and budget, enabling earlier ore access and a 25% increase in ore handling capacity.

• Multiple mining areas and improved geotechnical and water conditions provide operational flexibility and upside potential.

• Confidence in achieving or exceeding 4.3 million tons mining rate, with potential for further upside through debottlenecking.

• Early production will access lower-grade ore from Clark, with higher grades expected as shafts come online.

Resource and reserve growth

• Taylor Ore Reserve increased by 52% to 99Mt, and Mineral Resource by 10% to 169Mt, supported by successful infill drilling.

• Peake copper resource increased by 32% to 33 million tons, with potential integration into the mine plan around year 8-10 depending on commodity prices.

• Exploration Target for Taylor updated, with further extensions possible as the deposit remains open.

• Mine life extended by five years through infill drilling, with further upside from the Peake copper deposit and regional exploration.

• Regional exploration continues, with more than 15 prospects identified for future drilling.