Highlights

• On 28 September 2026, Orica Limited said it has secured ammonium nitrate supply for its contracted North American customers for FY2027.
• Sourcing costs have risen, but Orica does not expect a material impact on FY2027 margins.
• The sale of surplus land at Deer Park, Victoria, will now extend beyond the previously flagged FY2026 contract exchange timing.

North American Supply Secured for FY2027

Orica Limited (ASX: ORI), the global mining and infrastructure solutions provider, gave the ASX an operational update on 28 September 2026. The company has locked in ammonium nitrate supply for its contracted North American customers for FY2027, which it said strengthens supply security for those customers and the resilience of its global network.

The supply will come from several sources:

• US-based ammonium nitrate producers
• Higher output at its Carseland manufacturing plant in Canada
• Its wider North American and global supply network

Orica acknowledged that sourcing costs have increased. However, it expects logistics cost optimisation, cost-reduction initiatives and customer arrangements to prevent any material hit to margins in FY2027.

Nelson Brothers Acquisition Strengthens Network

The company pointed to its acquisition of the US-based Nelson Brothers explosives business as a valuable addition to its manufacturing and supply infrastructure. Orica plans to keep optimising and diversifying its North American supply network through FY2027 and beyond.

Deer Park Land Sale Timeline Extended

Negotiations to sell surplus land at Deer Park in Victoria will run past the FY2026 contract exchange timeframe Orica previously indicated, because market conditions have changed. The company will continue to explore options for an orderly sale and to assess sales opportunities across its broader property portfolio. Orica stressed that the delay does not affect its underlying business operations.

CEO Comments on Strategy

Managing Director and CEO Sanjeev Gandhi said the update shows Orica can adapt its supply chain and make its network more resilient and flexible while keeping its economics competitive. He added that the company will keep refining its network to support growth in the North American market.

Gandhi also noted progress on Orica's strategic priorities. The integration of Danafloat and the Nelson Brothers explosives business is complete, and the company-wide cost reduction program is advancing well.

On property, he said Orica will stay disciplined with land divestments to secure the best commercial outcomes for shareholders. He described these initiatives as supporting Orica's long-term growth goals while helping customers work more safely, productively and responsibly.

Business Performing in Line With Expectations

According to Gandhi, the broader business continues to perform strongly and in line with expectations, backed by a solid balance sheet and liquidity position. More detail, including an outlook for 2027, will be released with Orica's full-year results in November.

About Orica

With a history spanning more than 150 years and a global workforce of over 15,000 people, Orica provides blasting products and systems, specialty mining chemicals, geotechnical monitoring services and digital solutions. Its customer base covers industries including surface and underground mining, quarrying, construction, and oil and gas. Orica has set a target of achieving net zero emissions by 2050. Investors responded positively to the update. Orica shares last traded at AU$23.340, up AU$0.489, or 2.144%.

Note- All data presented is based on information available at the time of writing.

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