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BRIGHTER FUTURES, TOGETHER
This year has been one of the most significant in South32’s history as we accelerated the transformation of our portfolio to produce commodities critical for a low-carbon future.
"The portfolio changes we have announced align with our purpose and position South32 to continue supporting the global energy transition."
Karen Wood
"We achieved two key strategic milestones this year which have accelerated our transformation towards commodities critical for a low-carbon future."
Graham Kerr
Chief Executive Officer
Hear from Graham Kerr, South32 CEO, on our FY24 performance and achievements: |
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OUR PERFORMANCE AT A GLANCE
Key highlights from our FY24 performance include:
- No fatalities at our operations and improved our total recordable injury frequency.
- Improved operating performance, disciplined cost management and higher prices for our key commodities lifted our financial results to finish the year.
- Set consecutive annual production records at Hillside Aluminium and South Africa Manganese, and lifted production at Cannington by 10 per cent year-on-year despite adverse weather impacts.
- Announced final investment approval to develop the Taylor zinc-lead-silver deposit at our Hermosa project.
- Announced the sale of Illawarra Metallurgical Coal, which is expected to complete on 29 August 2024.
- Operational greenhouse gas (GHG) emissions (Scope 1 and 2) decreased by six per cent and value chain GHG emissions (Scope 3) decreased by 17 per cent year-on-year.
1 Copper equivalent production was calculated using FY23 realised prices.
2 Fully-franked ordinary dividends paid in respect of H2 FY23 (US$145M), fully-franked ordinary dividends paid in respect of H1 FY24 (US$18M) and on-market share buy-back (US$35M).
3 Frequency rates are per million hours worked. Incidents are included where South32 controls the work location or controls the work activity.
4 Includes Scope 1 and Scope 2 greenhouse gas emissions.
A BALANCED APPROACH TO
MEASURING OUR PERFORMANCE
OUR FINANCIAL KPIS
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1,118 kt
Copper equivalent production1
FY23: 1,206kt FY22: 1,124kt
Why it matters
Provides a baseline to easily benchmark our production performance against other mining and metals companies.
Performance in FY24
Achieved 98 per cent of revised FY24 copper equivalent production guidance, with two annual production records offset by weather and other operational impacts
1 Copper equivalent production was calculated using FY24 realised prices.
US$1,409m
Investment2
FY23: US$1,177m FY22: US$723m
Why it matters
Measures our approach to investing in safe and reliable operations, improvements and life extensions, and growth options.
Performance in FY24
Increased our investment in productivity and improvement projects and our high-quality development projects in base metals.
2 Comprises capital expenditure, capitalised exploration and evaluation expenditure and the purchase of intangibles. Capital expenditure comprises safe and reliable capital expenditure, improvement and life extension capital expenditure (including decarbonisation), and growth capital expenditure.
US$1,802m
Underlying EBITDA
FY23: US$2,534m FY22: US$4,755m
Why it matters
Underlying measures of earnings are important when assessing underlying financial and operating performance.
Performance in FY24
Lower commodity prices and production volumes, primarily at Illawarra Metallurgical Coal and Australia Manganese, more than offset a reduction in our cost base.
US$(80)m
Free cash flow from operations
FY23: US$57m FY22: US$2,240m
Why it matters
Cash flow measures are important when assessing underlying financial and operating performance.
Performance in FY24
Following a challenging first half, strong cash generation in the second half of the year was supported by improved operating performance, higher commodity prices and an unwind of working capital.
US$198m
Shareholder returns3
FY23: US$1,225m FY22: US$788m
Why it matters
Provides an indicator for shareholders of how well their investment is performing.
Performance in FY24
We returned US$163 million via fully-franked ordinary dividends and US$35 million via our on-market share buy-back, while managing our financial position and retaining the right balance of flexibility, efficiency and prudence.
3 Fully-franked ordinary dividends paid in respect of H2 FY23 (US$145M), fully-franked ordinary dividends paid in respect of H1 FY24 (US$18M) and on-market share buy-back (US$35M).
Read more about our FY24 financial results and performance
FY24 Financial Results Announcement FY24 Results Presentation
OUR SUSTAINABILITY KPIS
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1.9
Lost Time Injury Frequency (per million hours worked)1
FY23: 1.62 FY22: 2.0
Why it matters
Nothing is more important than the health, safety and wellbeing of our people.
Performance in FY24
LTIF increased by 19 per cent year-on-year, mostly driven by an increase in lost time injuries at our Australian operations.
1 Frequency rates are per million hours worked. Incidents are included where South32 controls the work location or controls the work activity.
2 In FY24, seven injuries which occurred in FY23 have been reclassified from restricted work cases to lost time cases, resulting in an increase in LTIF from 1.4 to 1.6.
81%
Employee engagement3
FY23: 80% FY22: 80%
Why it matters
Engaging directly with our people allows us to understand how they experience all aspects of South32 and identify areas for improvement.
Performance in FY24
Our employee engagement score, as measured in our Your Voice employee survey, improved by one percentage point year-on-year.
3 Given the agreement to sell Illawarra Metallurgical Coal and focus on recovery efforts following Cyclone Megan at Australia Manganese, employees at these operations did not participate in this year’s Your Voice survey. Survey results presented in this report are calculated on re-baselined data to support year-on-year comparison against the same operations in scope.
US$23.6m
Social investment
FY23: US$27.7m FY22: US$31.1m
Why it matters
We invest in local communities with the aim of contributing to their social and economic development.
Performance in FY23
Social investment plans were implemented on time and on budget.
68.4%
Operational water efficiency4
FY23: 67.8% FY22: — (data not collected)
Why it matters
Water is a vital shared resource and a critical input for our operations.
Performance in FY24
Our operational water efficiency increased year-on-year, demonstrating overall improved management of water resources.
4 Percentage of water used for operational activities which is reused/recycled water.
20.3Mt CO₂-e
Operational greenhouse gas emissions
FY23: 21.7Mt CO₂-e5 FY22: 22.0Mt CO₂-e5
Why it matters
Human activity is causing climate change and the impacts are affecting ecosystems, biodiversity, and communities around the world.
Performance in FY24
Our reported Scope 1 and Scope 2 greenhouse gas emissions decreased by six per cent year-on-year, with Scope 1 emissions decreasing by 0.9 Mt CO2-e and Scope 2 emissions decreasing by 0.5 Mt CO2-e.
5 In FY24, Illawarra Metallurgical Coal transitioned its greenhouse gas emissions reporting methodology from Continuous Emissions Monitoring to Periodic Emissions Monitoring, resulting in historical greenhouse gas emissions being revised.
Annual Report 2024
Our Annual Report 2024 is a summary of South32's operations, activities, performance and financial position as at 30 June 2024. It includes our operating and financial review, governance information including the remuneration report, our financial report, resources and reserves information, shareholder information and glossary.
Download our Annual Report 2024 (.pdf)
"As we enter our 10th year, the South32 of today looks very different to the one we established in 2015 and is primarily focused on our aluminium value chain, base metals and manganese, an attractive commodity mix from which we believe we can grow."
Graham Kerr, South32 CEO
OUR COMMODITIES AND FY24 PRODUCTION
Learn more about the commodities we produce and the roles they play in a low-carbon world.
Aluminium is often referred to as the metal of the future. It is lightweight, durable, strong, resistant to corrosion, recyclable and can conduct electricity.
It has a wide range of applications including construction, electrical wiring, transportation including electric vehicles and their batteries, packaging, consumer goods, and has the potential to substitute copper for certain applications in aerospace and rail.
We produce both alumina and aluminium, and have doubled our low-carbon aluminium1 capacity since inception
5,063kt
FY24 alumina production
1,138kt
FY24 aluminium production
Learn more about aluminium, alumina and bauxite and how we produce it.
1A definition of the term 'low-carbon aluminium' when used in the context of climate change is set out in the Glossary of terms and abbreviations at the end of the Annual Report document
Copper is an excellent conductor of electricity. It is a key metal used in electric vehicles and charging infrastructure, and as the world moves towards electrification it will be used in power-related infrastructure including renewable energy generation.
Copper is also widely used in construction and consumer durables including household appliances.
We hold an interest in the Sierra Gorda copper mine in Chile which has embedded options for further growth, and we are progressing a pipeline of options to grow our copper volumes as we seek to capitalise on the long-term demand outlook for the commodity.
60.8kt
FY24 copper production
Zinc protects steel structures, wind turbines and solar panels against corrosion, and zinc oxide coatings help achieve higher energy conversion in solar panels.
Lead batteries have potential to be used in energy storage systems to support uptake of renewable energy.
Silver is used in solar panels, the electrical systems of vehicles, medical appliances and consumer electronics.
We have been producing zinc, lead and silver at Cannington for more than 25 years, and are investing US$2.16 billion to develop the Taylor zinc-lead-silver deposit at our Hermosa project, with first production expected in the second half of FY27.
60.7kt
FY24 zinc production
112.4kt
FY24 lead production
13,273koz
FY24 silver production
Nickel is used in stainless steel, which is used in transportation, manufacturing, household items and surgical instruments. Nickel has an important role to play as the world transitions to a more sustainable future as it is used as an alloy in wind and solar power infrastructure. Nickel-rich batteries are also critical for the rapid adoption of electric vehicles.
We are one of the world’s largest ferronickel producers with the potential to produce intermediary products for electric vehicles.
40.6kt
FY24 nickel production
Manganese is used to improve the quality and strength of steel in major infrastructure such as hospitals, office towers and bridges. Manganese also has the potential to displace cobalt in lithium-ion batteries, with demand for manganese-rich cathode chemistries expected to grow.
We are well positioned to meet future demand as we are one of the world’s largest producers of manganese from our operations in Australia and South Africa, and the Hermosa Clark development option has the potential to produce battery-grade manganese.
4,499kt
FY24 manganese production
In February 2024 we entered into an agreement to sell Illawarra Metallurgical Coal, with the sale expected to complete imminently.
4,305kt
FY24 metallurgical coal production
BUILDING A STRONGER, SIMPLER BUSINESS
In FY24, South32 achieved two key strategic milestones in the evolution of our business:
- Final investment approval for the Taylor zinc-lead-silver deposit at our Hermosa project.
- The sale of Illawarra Metallurgical Coal for up to US$1.65 billion - with the sale now unconditional and set to complete imminently.
Following the sale of IMC, approximately 90 per cent of our portfolio’s underlying revenue is expected to come from base metals, including our aluminium value chain, with the remainder from manganese.
The progressive transformation of our portfolio means we now have a stronger and simpler business primarily focused on base metals, including zinc, copper and our aluminium value chain – all of which have an important role to play in the energy transition.
DEVELOPING HERMOSA'S TAYLOR DEPOSIT
In February, we announced final investment approval for the Taylor deposit, the first development at our Hermosa project in Arizona, United States.
Taylor has the potential to be a top 10 global producer of zinc, a commodity critical to support the global energy transition.
Taylor is the first development stage of a significant, regional-scale opportunity at Hermosa, with the potential to deliver value for our shareholders for decades to come.
Construction at the zinc-lead-silver deposit is progressing to plan, with first production expected in H2 FY27. In FY24, Hermosa completed its dewatering program covering both the Taylor and Clark deposits, received all state permits required to construct Taylor, completed shaft pre-sink activity and constructed the main shaft headframe
Alongside the development of Taylor, work is continuing to progress other opportunities at Hermosa - including the Clark deposit, which has the potential to produce battery-grade manganese, and the Peake deposit, where additional drill results support the potential for a continuous copper system connecting Peake with Taylor.
Learn more about our Hermosa project and the development of the Taylor deposit
OUR FUTURE GROWTH THROUGH DISCOVERY
We are seeking to increase our base metals exposure by investing in a pipeline of growth options which are being advanced through study phases, and our portfolio of exploration prospects in targeted regions as we work to discover our next generation of base metals mines.
At Sierra Gorda in Chile, a final investment decision regarding the fourth grinding line expansion project is expected in H1 FY25, while exploration drilling programs continue at the Catabela Northeast prospect.
We continued to be active in greenfield exploration in FY24 - with partnerships and prospects in six countries.
More details about our development options and exploration projects can be found in our FY24 Results Presentation.
"Our approach to sustainability aims to balance environmental, social and economic considerations, and to support delivery of our purpose and strategy in a way that creates enduring value for our stakeholders."
Graham Kerr, South32 CEO
OUR SUSTAINABILITY PERFORMANCE
We are committed to transparently reporting our sustainability performance and providing clear and meaningful disclosures.
Our Sustainable Development Report 2024 outlines how our business-wide processes support our sustainability objectives, how we manage our material sustainability topics and our sustainability performance for FY24, supported by our Sustainability Databook 2024, which provides data intended to assist our investors and stakeholders with understanding our performance.
SUSTAINABILITY PERFORMANCE HIGHLIGHTS
Expand the boxes below to learn more about our FY24 performance on key sustainability topics.
 | Protecting and respecting our people
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 | Delivering value to society
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 | Operating ethically and responsibly
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 | Managing our environmental impact
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 | Addressing climate change
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CASE STUDIES
Our sustainability approach in action
Using artificial intelligence to improve manganese output and reduce waste at GEMCO
Innovation and finding new ways to employ technology play an important role in h...
More
Mozal Aluminium supporting careers for women in industry
Inclusion and diversity are a core element of creating a safe, high-performance ...
More
Electric mobile equipment trials at Cannington
South32 is a founding member of the Electric Mine Consortium (EMC), a collaborat...
More
"At South32, we view sustainability as supporting the needs of the present without compromising the ability of future generations to meet their own needs.
It is at the heart of our purpose and underpins the delivery of our strategy."
FY24 ANNUAL REPORTING SUITE
Annual Report 2024
Annual Report 2024
Our Annual Report 2024 is a summary of South32's operations, activities, performance and financial position as at 30 June 2024.
It includes our operating and financial review, governance information including the remuneration report, our financial report, resources and reserves information, shareholder information and glossary.
Sustainable Development Report 2024
Sustainable Development Report 2024
Our Sustainable Development Report 2024 is an overview of how our business-wide processes support our sustainability commitments, how we manage our material sustainability topics and the progress we have made during FY24.
Sustainability Databook 2024
Sustainability Databook 2024
Our Sustainability Databook 2024 supports our Sustainable Development Report 2024 and is intended to assist our investors and stakeholders with understanding our performance with respect to sustainable development.
Standards and Frameworks Reporting Index 2024
Standards and Frameworks Reporting Index 2024
This Reporting Index is developed to support navigation to specific disclosures and indicators in our 2024 Annual Reporting Suite.
Download the Standards and Frameworks Reporting Index 2024 (.xlsx)
Corporate Governance Statement 2024
Corporate Governance Statement 2024
Our Corporate Governance Statement 2024 details our key corporate governance policies and practices - which are designed to meet the high standards of governance expected by our stakeholders.
It also includes more information about our Board, its members, its committees and its activities in FY24.
Modern Slavery Statement 2024
Modern Slavery Statement 2024
Respecting human rights and addressing the risks of modern slavery across our operations and supply chains aligns strongly with our purpose and values.
Our Modern Slavery Statement 2024 outlines our approach and the steps taken to seek to minimise the risk of modern slavery in our business.
Tax Transparency and Payments to Governments Report 2024
Tax Transparency and Payments to Governments Report 2024
Our Tax Transparency and Payments to Governments Report 2024 details our approach to tax, how we conduct our tax arrangements globally and the size of tax payments and contributions to governments we made for the year ended 30 June 2024.
Download the Tax Transparency and Payments to Governments Report 2024 (.pdf)