North American Supply

Orica (ASX: ORI) has sourced ammonium nitrate supply for contracted customers in North America for FY2027, reinforcing security of supply for these customers and the resilience of our global supply network. While sourcing costs have increased, Orica does not expect a material impact on margins in FY2027 as a result of logistics cost optimisation, cost out initiatives and customer arrangements.

Ammonium nitrate will be sourced from US based ammonium nitrate producers, from increased volumes at our Carseland manufacturing plant in Canada and from our North America and global supply network.

Orica has added valuable new infrastructure to its manufacturing and supply network with the acquisition of the US based Nelson Brothers’ explosives business and will continue to optimise and diversify its supply network in North America throughout FY2027 and beyond.

Land Sales

Negotiations for the sale of surplus land at Deer Park, Victoria, will extend beyond the previously indicated FY2026 timing for contract exchange due to changes in market conditions. Orica will continue to assess options for an orderly sale of the land and will continue to evaluate sales opportunities across its property portfolio. The change in timing for the Deer Park land sale does not affect Orica’s underlying business operations.

Commenting on the updates, Orica Managing Director and CEO Sanjeev Gandhi said:

“This update highlights Orica’s ability to adapt its supply chain and strengthen the resilience and flexibility of our network while maintaining competitive economics. We will continue to further optimise our network to support the growth in this market. We have made significant progress on our strategic priorities. We completed the integration of Danafloat and the Nelson Brothers explosives business and continue to make strong progress in our organisation-wide cost reduction program.

We will remain disciplined in our approach to land divestments to ensure optimal commercial outcomes for our shareholders.

Together, these initiatives support Orica’s long-term growth objectives, while delivering sustainable value for shareholders and helping our customers operate more safely, productively and responsibly.

The broader business continues to perform strongly, in line with our expectations and Orica continues to maintain a strong balance sheet and liquidity position. Further details, including an outlook for 2027, will be provided at Orica's upcoming full year results announcement in November.”