29 July 2024
South32
Limited
(Incorporated in Australia under the Corporations Act
2001 (Cth))
(ACN 093
732 597)
ASX / LSE
/ JSE Share Code: S32; ADR: SOUHY
ISIN:
AU000000S320
south32.net
ILLAWARRA METALLURGICAL COAL
SALE UNCONDITIONAL
South32
Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32)
advises that all conditions precedent to the sale of
Illawarra Metallurgical Coal (Transaction) to an entity owned by
Golden Energy and Resources Pte Ltd and M Resources Pty Ltd
(the Buyer)[1] have been satisfied.
Accordingly, the Transaction is unconditional
and is expected to complete on or around 2 September
2024.
South32 Chief
Executive Officer, Graham Kerr said: "The sale
of Illawarra Metallurgical Coal is a significant milestone in the
transformation of our portfolio towards commodities critical to a
low-carbon future. The transaction will simplify our business,
strengthen our balance sheet and reduce our capital intensity,
unlocking capital to invest in our high-quality development
projects in copper and zinc.
"Looking forward, our strategy and disciplined
approach to capital allocation is unchanged. We remain focused on
delivering our development projects and advancing our portfolio of
earlier stage options to further increase our exposure to
commodities critical to a low-carbon future and realise substantial
value for our shareholders.
"I would like to thank our colleagues at
Illawarra Metallurgical Coal for the contribution they have made to
our business and wish them every success for the
future."
Further
information
The Buyer will assume economic and operating
control of Illawarra Metallurgical Coal on completion, including
all current and future liabilities.
On completion, we will receive the upfront cash
consideration of US$1,050M[2], less the
already paid deposit of US$40M.
The deferred cash consideration of US$250M,
payable in 2030, and the contingent price-linked cash consideration
of up to US$350M[3], will be recognised in our
financial statements as a non-current other receivable and a
on-current other financial asset, respectively.
The upfront cash consideration will be
allocated in accordance with our capital management framework and
commitment to an investment grade credit rating. Our capital
management framework is designed to support investment in our
business and deliver returns to shareholders in the most efficient
and value accretive manner. Further detail will be provided with
our FY24 financial results.
About us
South32 is a globally diversified mining and
metals company. Our purpose is to make a difference by developing
natural resources, improving people's lives now and for generations
to come. We are trusted by our owners and partners to realise the
potential of their resources. We produce commodities including
bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel,
metallurgical coal and manganese from our operations in Australia,
Southern Africa and South America. We also have a portfolio of
high-quality development projects and options, and exploration
prospects, consistent with our strategy to reshape our portfolio
toward commodities that are critical for a low-carbon
future.
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Investor
Relations
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Ben
Baker
T
+61 8 9324 9363
M
+61 403 763 086
E
Ben.Baker@south32.net
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Media
Relations
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Jamie Macdonald
T
+61 8 9324 9000
M +61 408 925
140
E
Jamie.Macdonald@south32.net
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Miles Godfrey
T
+61 8 9324 9000
M +61 415 325 906
E
Miles.Godfrey@south32.net
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Further information on South32 can be found
at www.south32.net.
Approved for release
to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
29 July 2024