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S32 Manganese Ore Annual Report FY2026

Manganese

Australia Manganese

Australia Manganese production increased to 3,031kwmt in FY26, as operations resumed following the impacts of Tropical Cyclone Megan in the prior period. Notwithstanding, production was below plan, as the operation managed elevated site water levels resulting from ongoing groundwater inflows and significant wet season impacts.

Production guidance for FY27 and FY28 is set at 2,650kwmt to 2,900kwmt, reflecting constrained mine pit access due to elevated water volumes. FY28 production guidance is subject to receipt of required approvals for additional water management infrastructure, and its subsequent installation during the next dry season. We expect to invest approximately US$70M in additional water infrastructure across FY27 and FY28, subject to regulatory approvals.

Underlying EBITDA increased to US$229M in FY26, with sales volumes increasing to 3,598kwmt, following the restart of operations and commissioning of new wharf infrastructure in the prior period.

South Africa Manganese

South Africa Manganese production decreased by 3% to 2,085kwmt in FY26, but exceeded guidance, as the operation completed planned maintenance and additional underground development activity at Wessels. Production is expected to be 2,000kwmt across both FY27 and FY28, subject to our continued use of higher cost trucking.

Underlying EBITDA decreased by US$16M to US$30M in FY26, as higher sales volumes were more than offset by a stronger South African rand, higher trucking costs and diesel prices.

Production guidance (South32 share)

Operating unit costs guidance

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 increased to 3,031kwmt in FY26, as operations resumed following the impacts of Tropical Cyclone Megan in the prior period. Notwithstanding, production was below plan, as the operation managed elevated site water levels resulting from ongoing groundwater inflows and significant wet season impacts.

Production guidance for FY27 and FY28 is set at 2,650kwmt to 2,900kwmt, reflecting constrained mine pit access due to elevated water volumes. FY28 production guidance is subject to receipt of required approvals for additional water management infrastructure, and its subsequent installation during the next dry season.

Operating costs

Operating unit costs were US$2.62/dmtu in FY26, reflecting a stronger Australian dollar and higher diesel prices.

We expect FY27 Operating unit costs to increase to US$3.15/dmtu, reflecting lower planned volumes, a stronger Australian dollar and general inflation. Exchange rate and price assumptions for FY27 Operating unit cost guidance are detailed on page 35, footnote 55.

Financial performance

Underlying EBIT increased to US$143M in FY26 (FY25: loss of US$125M), with sales volumes increasing to 3,598kwmt, following the restart of operations and commissioning of new wharf infrastructure in the prior period.

Separately, external insurance recoveries of US$92M in relation to the impacts of Tropical Cyclone Megan were received in FY26. This income was excluded from Underlying earnings as an earnings adjustment.

Capital expenditure

Capital expenditure was US$78M in FY26 and is expected to be US$85M in FY27 including investment in additional water infrastructure, subject to receipt of regulatory approvals.

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 smelter70, which had been on care and maintenance since FY20.

Volumes

South Africa Manganese saleable production decreased by 3% (or 66kwmt) to 2,085kwmt in FY26, but exceeded guidance, as the operation completed planned maintenance and additional underground development activity at Wessels.

Production is expected to be 2,000kwmt across both FY27 and FY28, subject to our continued use of higher cost trucking.

Operating costs

Operating unit costs increased by 6% to US$3.22/dmtu in FY26, reflecting a stronger South African rand and higher diesel prices.

We expect FY27 Operating unit costs to increase by 9% to US$3.50/dmtu, reflecting general inflation and higher in-land logistics costs. Exchange rate and price assumptions for FY27 Operating unit cost guidance are detailed on page 35, footnote 55.

Financial performance

Ore Underlying EBIT decreased by US$28M to US$2M in FY26, as higher sales volumes (+US$14M), were more than offset by a stronger South African rand (-US$18M), higher trucking costs (-US$3M) and diesel prices (-US$3M).

Capital expenditure

Capital expenditure was US$27M in FY26 and is expected to decrease to US$15M in FY27 following the completion of mine access work at Wessels.

• [Editor:tianyawei]