South32 "Agrees to divest Aluminium value chain to Alcoa" (Restricted) Shaw

Research evidence excerpt

South32 "Agrees to divest Aluminium value chain to Alcoa" (Restricted) Shaw

Global Research

3 July 2026ab

South32 Equities

AustraliaAgrees to divest Aluminium value chain to Alcoa

Mining

12-month rating Restricted

Aluminium divestment results in S32's portfolio becoming base-metal focused

South32 has announced the divestment of its aluminium value chain to Alcoa for a 12m price target -

transaction enterprise value of up to US$5.6bn. The transaction aligns with the

commencement of Matt Daley as CEO. It exits the more cyclical, capital-intensive

Price (02 Jul 2026) A$4.16

downstream aluminium exposures and refocuses the portfolio on upstream base metals.

This repositioning is further underpinned by the approval of Sierra Gorda’s fourth RIC: S32.AX BBG: S32 AU

grinding line, a ~US$725m brownfield expansion expected by the company to deliver

Trading data and key metrics

copper equivalent production growth and lower unit costs, reinforcing South32’s

52-wk range A$4.91-2.54

increased leverage to copper, zinc and silver.

Market cap. A$18.7b/US$12.9b

Details of the aluminium divestment Shares o/s 4,501m (ORD)

Free float 100%

South32 has agreed to sell its aluminium value chain assets to Alcoa for a transaction

enterprise value (excl rehab) of up to US$5.6bn, comprising US$3.1bn cash, US$1.0bn Avg. daily volume ('000) 15,461

in Alcoa equity, up to US$0.75bn in price-linked contingent consideration, and US Avg. daily value (m) A$67.4

$0.75bn of assumed net debt/leases. The assets include Worsley Alumina, Hillside Common s/h equity (06/26E) *

Aluminium and stakes in Alumar and MRN (with Mozal retained by S32). Alcoa will also P/BV (06/26E) *

assume ~US$1.2bn of rehabilitation liabilities. The transaction is subject to shareholder Net debt to EBITDA (06/26E) *