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27 August 2026
Strong operating performance coupled with commodity price tailwinds underpinned one of the best financial results in our history, while the sale of our aluminium value chain assets is set to simplify and strengthen our portfolio.
The agreed sale of our aluminium value chain assets is a step change for us that accelerates the delivery of our strategy and provides us with additional balance sheet flexibility to invest in our next phase of growth, while delivering shareholder returns.”
Stephen Pearce
“We are simplifying our portfolio to sharpen our operational focus, directing capital to our highest-return opportunities, and building a stronger base metals mining and processing business.
When the transaction completes, we will be focused on high-margin, long-life copper, zinc, silver and lead operations, alongside our strong position in manganese.”
Matt Daley
Chief Executive Officer
OUR PERFORMANCE
AT A GLANCE
Key highlights from our FY26 performance include:
- Delivered strong operating performance and achieved 101% of Group copper equivalent production guidance, despite localised weather impacts.
- Delivered one of the best financial results in our history, with Group Underlying EBITDA increasing by 28% to US$2.5 billion and Underlying earnings increasing by 55% to US$1 billion.
- Continued construction at Hermosa’s Taylor deposit and extended its initial operating life by five years to approximately 33 years.
- Continued work on underground and open pit life-extension options as we seek to unlock additional value from Cannington’s high-margin, silver-rich production.
- Entered into a binding conditional agreement to sell our aluminium value chain assets to Alcoa for up to US$5.6 billion.
1 Total operations includes divested operations, and continuing operations reflecting emissions from our current operations.
2 Fully-franked ordinary dividends paid in respect of H2 FY25 (US$117 million), fully-franked ordinary dividends paid in respect of H1 FY26 (US$175 million) and on-market share buy-back (US$35 million).
OUR BUSINESS IN FY26
October 2025
The US Government announced it would issue authorisations necessary for the establishment of the Ambler Access Road, a key enabler in unlocking the value of the Ambler Mining District.
December 2025
Completed the divestment of Cerro Matoso in Colombia to an international nickel-focused company.
February 2026
Reported a 28% increase in Cannington’s underground Ore Reserve while targeting further potential growth through underground and open pit development options.
March 2026
Mozal Aluminium was placed on care and maintenance after it was unable to secure sufficient and affordable electricity supply beyond March 2026.
April 2026
Extended the initial operating life of Hermosa's Taylor deposit by five years to approximately 33 years. First production was revised to H2 FY28.
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May 2026
Ambler Metals' Arctic polymetallic deposit accepted as a covered project under the US Government's FAST-41 program.
June 2026
Entered into a binding conditional agreement to sell our aluminium value chain assets to Alcoa Corporation (Alcoa) for up to US$5.6B.
June 2026
Sierra Gorda joint venture approved execution of the fourth grinding line project, expected to increase copper production by approximately 30% from FY31.
RESHAPING OUR FUTURE
The sale of South32's aluminium value chain to Alcoa for up to US$5.6B is set to unlock significant value for shareholders and reposition South32 as a focused, upstream supplier of base metals with transformational growth.
TRANSACTION HIGHLIGHTS
- Long-life, high-margin copper, zinc, silver and lead operations, and a large producer of manganese.
- Life extension and de-bottlenecking projects to unlock further value from across our operations.
- Projects in construction or approved for development are expected to grow our production volumes by ~55%.
- Next phase of projects in copper and zinc are advancing through study and exploration phases.
- Producing five critical minerals as listed by multiple major developed nations and trading blocs.
- Growing presence in the Americas through Sierra Gorda, Hermosa and our Ambler Metals joint venture.
- Portfolio value concentrated in tier one mining jurisdictions in Australia, Chile and the US.
- Significantly improved sustainability profile with low GHG emissions exposure.
- Streamlined upstream portfolio that is expected to realise overhead savings of ~US$125M per annum.
- Balance sheet flexibility to allocate capital into both high-returning growth projects and shareholder returns.
SIMPLER AND STRONGER
South32's streamlined portfolio will be focused on long-life, high-margin copper, zinc, silver and lead operations, and maintain our position as a large producer of manganese. Our streamlined portfolio will include:
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Underlying EBITDA by commodity
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Alumina Aluminium Copper Zinc-lead-silver Manganese |
CONTINUING THE DEVELOPMENT OF HERMOSA
We invested US$711M of growth capital expenditure at Hermosa in FY26, continuing construction of the Taylor zinc-lead-silver project, and completing the exploration decline for the Clark battery-grade manganese deposit.
On 30 April 2026, we announced an update on the Taylor project. This included an increase in Taylor's initial operating life by 5-years to ~33 years, first production expected in H2 FY28, and growth capital expenditure updated to US$3.3B.
Underground development and surface infrastructure construction is progressing in accordance with the Taylor project update. Lateral development and shaft station construction at the first underground mining level from the main shaft was completed in Q4 FY26, while the ventilation shaft is expected to reach the primary production level in Q1 FY27.
Work is also underway to extend the Clark decline to provide additional access to the Taylor orebody. This will enhance operational flexibility and increase ore handling capacity by approximately 25%, offering the potential to increase production above Taylor's design capacity through future plant de-bottlenecking.
Annual Report 2026
Our Annual Report 2026 is a summary of South32’s operations and activities and performance for the year ended 30 June 2026 and its financial position as at 30 June 2025. It also includes our progress against our sustainability and human rights commitments.
OUR SUSTAINABILITY PERFORMANCE
We are committed to transparently reporting our sustainability performance and providing clear and meaningful disclosures.
Our Annual Report 2026 outlines how our business-wide processes support our sustainability objectives, how we manage our material sustainability topics and our sustainability performance for FY26, supported by our Sustainability Databook 2026, 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 FY26 performance on key sustainability topics.
 | Protecting and respecting our peopleNothing is more important than the health, safety and wellbeing of our people. We are committed to improving our safety performance, and fostering a values-based culture and an inclusive and diverse workforce.
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 | Delivering value to societyWe believe trust and transparency are essential to the way we operate. We listen to our stakeholders to understand what’s important to them and work together with the aim of creating enduring value.
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 | Operating ethically and responsiblyOperating ethically and responsibly is essential to building strong, mutually beneficial and trusting relationships with our stakeholders. We respect human rights and seek to apply responsible business practices across our value chain.
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 | Managing our environmental impactWe are focused on managing our impact on nature, including water, biodiversity, air and surrounding ecosystems. We work hard to safely manage tailings, reduce waste, and rehabilitate land disturbed by our activities.
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 | Addressing climate changeAddressing risks and opportunities that climate change presents is central to our strategy. Our climate actions are focused on positioning our portfolio for the energy transition, reducing our operational GHG emissions, supporting emissions reduction across our value chain, and strengthening our physical climate resilience.
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CASE STUDIES
