Anglo American Plc · LSE:AAL
Anglo American — FY2022 Earnings Presentation
105 slides from Anglo American's earnings presentation, Feb 23, 2023
Slide 1: Anglo American results, 23 February 2023
23 February 2023 Anglo American
Slide 2: Introductory comments
Introductory comments Stuart Chambers Chairman 2 Anglo American
Slide 3: Cautionary statement
Cautionary statement Disclaimer: This document has been prepared by Anglo American plc (“Anglo American”) and comprises the written in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward- materials/slides for a presentation concerning Anglo
Slide 4: 2022 results agenda
Image to be updated 2022 results agenda 2022 operating performance Duncan Wanblad The numbers Stephen Pearce Enabling the future sustainably & Woodsmith update Duncan Wanblad 4
Slide 5: Safe & healthy operations are our first priority
Safe & healthy operations are our first priority Safety Health Environment Group TRIFR1,2 Fatalities1 Occupational health – new cases1,3 Level 3 & above significant incidents1,4 30 2.38 H1 2.24 2.19 2.14 16 2.00 H2 5 1 1 1 2 2 2 2020 20211 2022 2020 2021 2022 2020 2021 2022 Safety reset & call to ac
Slide 6: Striving for a healthy environment & thriving communities
Striving for a healthy environment & thriving communities Energy GHG emissions Social mGJ5 Mt CO2 equivalent emissions5 Social Way 3.0 Implementation6 84 83 15 78 15 13 66% 49% 23% 2020 2021 2022 2020 2021 2022 2020 2021 2022 Operational performance impacting energy South America - 100% renewable el
Slide 7: 2022 summary
2022 summary EBITDA7 Production8 $14.5bn 2% Mining EBITDA margin9 Unit cost10 47% 15% 7 Anglo American
Slide 8: 2022 operating performance
2022 operating performance Diamonds Base Metals Strong operating performance Quellaveco ramping up Benefit of Venetia open-pit final cut Expected lower grades in Chile Strong US consumer demand 61kt of nickel produced PGMs Bulks Lower grade at Mogalakwena Minas-Rio – operational & weather impacts Am
Slide 9: 2022 sustainability highlights
2022 sustainability highlights nuGenTM hydrogen truck Los Bronces water solution World’s largest H2 powered haul-truck Desal water offtake from 2025 Key step to decarbonising mining fleet Meets >45% of the mine’s need Now combined with First Mode Phase 2 water swap to benefit communities Envusa Ener
Slide 10: The numbers
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style The numbers Stephen Pearce
Slide 11: 2022 financial results
2022 financial results EBITDA7 DPS Net debt $14.5bn $1.98/sh $6.9bn 40% of underlying earnings EPS7 Shareholder returns11 ROCE12 $4.97/sh $2.4bn 30% 11 Anglo American
Slide 12: Robust EBITDA & margins supported by strong pricing
Robust EBITDA & margins supported by strong pricing Diamonds Base Metals 13 PGMs Bulks 14 $1.4bn7 $2.6bn7 $4.4bn7 $6.6bn7 52% mining margin9 40% mining margin9 54% mining margin9 49% mining margin9 12 Anglo American
Slide 13: Strong earnings despite operational & macro headwinds
Strong earnings despite operational & macro headwinds 3.3 2.2 EBITDA7 $bn 0.8 0.3 PGMs Copper Other 20.6 Chile (2.2) 1.1 (0.9) 18.6 (3.3) (0.8) 14.5 108 2021 Price15 FX CPI16 Volume & cost17 Other 2022 13 Anglo American
Slide 14: Inflationary headwinds & lower volumes
Inflationary headwinds & lower volumes 2022 unit cost performance10 2023F unit cost outlook10 3% ~3% unit cost increase in 2023F (7)% Volumes benefit from Quellaveco 8% 6% 15% Reflects ongoing inflationary pressure 5% Volumes CPI FX Input costs Other18 2022 14 Anglo American
Slide 15: Significant economic contribution of $30.6bn
Significant economic contribution of $30.6bn 19 Paid to employees Paid in taxes and royalties20 $3.7bn $5.9bn Paid in host country Paid to suppliers Paid to providers of capital $14.8bn $6.0bn 15 Anglo American
Slide 16: Project re-scoping triggered Woodsmith impairment
Project re-scoping triggered Woodsmith impairment Schedule & capex updated to accommodate 13Mtpa21 expansion, scope changes & phased development Commercial-led operational ramp-up strategy Carrying value impaired by $1.7bn Project re-scoping to optimise capital efficiency & align to market Conservat
Slide 17: Higher capex reflects recovery in sustaining spend
Higher capex reflects recovery in sustaining spend Capex22 $bn 5.7 5.2 Higher sustaining spend reflects deferred 2021 1.6 expenditure & increase in investment programmes Growth 1.8 Growth capex driven by Quellaveco & Woodsmith 2023F: $6.0-6.5bn reflects ramp-up in sustaining 4.1 projects & Woodsmith
Slide 18: Robust cash generation & resilient balance sheet
Robust cash generation & resilient balance sheet Net debt $bn Build in working capital – mainly inventory 1.6 (4.3) Attractive shareholder returns from record 3.7 6.9 2021 earnings & strong 2022 results 2.1 Growth capex allocated to value-adding 3.8 projects aligned to future demand themes 17% geari
Slide 19: Balanced capital allocation framework
Balanced capital allocation framework 2022 allocation of capital Sustaining attributable free cash flow23 2022 dividends at 40% of underlying earnings11 Growth capex22 ($1.6bn) & 2021 additional returns ($0.8bn)11 19 Anglo American
Slide 20: Our balanced, disciplined & sustainable approach
Our balanced, disciplined & sustainable approach Strong Attractive Quality Strong balance sheet Attractive returns balance sheet shareholder returns organic growth 0.5x 40% payout >90% 2022 base, through the cycle growth capex aligned to future demand net debt:EBITDA7 dividend themes in high margin
Slide 21: Enabling the future - sustainably
Enabling the future - sustainably Duncan Wanblad
Slide 22: A carbon neutral world requires metals & minerals
A carbon neutral world requires metals & minerals Current warming Limiting warming to 1.5°C is trajectory metals & minerals intensive ~2.7°C ~60 new Quellaveco size >$1tn based on current policies24 copper mines needed by 204025 needed by 205026 but supply is constrained with new mines taking 15-20
Slide 23: Diversified product suite aimed at two major demand trends
Diversified product suite aimed at the two major demand trends Copper equivalent production8 Steelmaking Diamonds Coal Long term energy transition enabler High quality Copper Iron Ore ~85% aligned to future demand themes Manganese Crop Nickel Nutrients PGMs 23 Anglo American
Slide 24: Quellaveco ramp up progressing
Quellaveco ramp up progressing Built on time & budget despite pandemic Processing lines in ramp-up – full capacity expected from mid-2023 Moly plant completion expected in Q1 2023F: 310-350kt at ~100c/lb27 2023 production is H2 weighted 24 Anglo American
Slide 25: Woodsmith update
Woodsmith update Duncan Wanblad Woodsmith mine
Slide 26: Delivering against our model of mine development
Delivering against our model of mine development Building a platform for project success Additional studies to maximise value Project parameters agreed Mine development & ventilation Change in execution strategy e.g. EPCM model Materials transport & handling Established core infrastructure schedule
Slide 27: Significant progress on core infrastructure
Significant progress on core infrastructure Two 1.6km deep shafts ~364m Q1 2023 sunk of service shaft28 started production shaft SBR sink Intermediate shafts Mineral transport tunnel 3 ~21km well progressed of 37km from mine to port28 27 Anglo American Production foreshaft
Slide 28: Indicative phased project development pathway to 13Mtpa
Indicative phased project development pathway to 13Mtpa Core infrastructure Commercial-led ramp-up Annual capex21 Capacity from 203021 ~$1.0bn Up to ~5Mtpa initial focus on shafts & tunnel First product available to market 21 Expected design capacity21 ~2027 ~13Mtpa 28 Anglo American Shaft boring ro
Slide 29: Developing a larger, scalable operation
Developing a larger, scalable operation 21km -364m Not to scale. Graphic and information is illustrative only as studies are ongoing and subject to Board approval. Shafts 1,600m access and hoisting shafts Mine Mechanised underground operation Underground conveyor 37km underground tunnel Materials Ha
Slide 30: Developing a larger, scalable operation
Developing a larger, scalable operation Ventilation Bran Sands expansion Granulation capacity Upgraded conveyor Not to scale. Graphic and information is illustrative only as studies are ongoing and subject to Board approval. Shafts 1,600m access and hoisting shafts Mine Mechanised underground operat
Slide 31: POLY4 tackles three key challenges facing agriculture
POLY4 tackles the three key challenges facing the agricultural industry Environmental responsibility Existing fertilisers CO2 intensive Environment Minimising waste streams Increased food demand Organic product desirability +2bn people by 2050 Low carbon & waste, organic Higher calorific demands Fla
Slide 32: POLY4 is a differentiated, high value product
POLY4 is a differentiated, high value product Market development key to realising full value 1,500 commercial scale on-farm demonstrations complete • 3-5% yield improvements vs standard practice • Nutrient-use efficiency improvements • 85% lower CO2 than comparative conventional fertilisers29 • Low
Slide 33: Marketing strategy is key to unlocking POLY4 value
Marketing strategy is key to unlocking the full value potential of POLY4 Long-term price forecast at 13Mtpa21 Product quality & Nutrient value Sustainable solution performance Indicative price Organic Low-CO2 footprint Significant Improved soil health upside 3-5% yield increase potential Granular pr
Slide 34: A large-scale, long-life Tier 1 asset
A large-scale, long-life Tier 1 asset ~25m consistent seam thickness Significant Only scalable polyhalite resource globally structural Limited processing advantages Close to port Highly cash ~$190/t Q1 13Mtpa generative long-term price with expected cost planned development significant upside potent
Slide 35: Delivering attractive growth
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style Delivering attractive growth Duncan Wanblad
Slide 36: ~25% organic growth optionality over the next decade
~25% organic growth optionality over the next decade >90% capex allocated to products +25% aligned to future demand themes +10% +5% Attractive value-adding options Integrating technology expertise & holistic sustainability considerations Leveraging our customer-centric marketing capabilities 2022 20
Slide 37: Our investment proposition / Q&A
Q&A Our investment proposition Competitive Differentiated Sustainable assets capabilities returns Strong cost position Technology-led Disciplined capital allocation Long-term growth options Sustainability leader Robust EBITDA margins To ask a question: UK +44 20 3481 4247 / SA +27 105 003 945 / US +
Slide 38: Footnotes
Footnotes 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has 20. Taxes and royalties include all taxes and royalties borne and collected by the Group. This includes management control. Data for fatalities, TRIFR and environmental metrics excludes
Slide 39: Appendix
Appendix
Slide 40: Simplified earnings & guidance
Simplified earnings & guidance
Slide 41: 2022 simplified earnings by BU
2022 simplified earnings by BU De Beers Steelmaking $m (unless stated) (Diamonds) Copper1 Nickel PGMs Iron Ore2 Coal Other3 Total Sales volume (mined share) 30.4Mct4 641kt 39.0kt 2,552koz5 58.0Mt 14.7Mt6 Average benchmark price n/a $8,708/t7 $25,596/t7 n/a $129/t $356/t8 Product premium/(discount) p
Slide 42: 2022 simplified earnings by BU - notes
2022 simplified earnings by BU - notes PGMs basket price Iron Ore realised price Copper realised price Own mined Realised Total Copper Chile Peru PGMs basket price Volume Revenue Total iron ore Kumba Minas-Rio Average benchmark7 $8,708/t 400c/lb 362c/lb Platinum $959/oz 1,124koz $1,078m Market price
Slide 43: Guidance summary
Guidance summary Earnings Capex¹ Other Volumes See slide 44-45 2023 $6.0-6.5bn Quellaveco copper project Growth ~$1.8bn Unit costs See slide 46 Includes: • 2023 capex3 : 100% ~$0.2bn; our share • Woodsmith ~$0.8bn ~$0.1bn 2023 depreciation $3.3-3.5bn • SA renewables5 & nuGen™ ~$0.3bn • Our share of
Slide 44: Production outlook
Production outlook Units 2020 2021 2022 2023F 2024F 2025F Diamonds1 Mct 25 32 35 30-33 29-32 32-35 Copper2 kt 647 647 664 840-930 910-1,000 840-930 Nickel3 kt 44 42 40 38-40 39-41 37-39 Platinum Group Metals4 Moz 3.8 4.3 4.0 3.6-4.0 3.6-4.0 3.5-3.9 Iron Ore5 Mt 62 64 59 57-61 61-65 64-68 Steelmaking
Slide 45: Production outlook – supplementary guidance
Production outlook – supplementary guidance Units 2020 2021 2022 2023F 2024F 2025F Chile: 562 Chile: 530-580 Chile: 550-600 Chile: 530-580 Copper2 kt 647 647 Peru: 102 Peru: 310-350 Peru: 360-400 Peru: 310-350 Pt: 1.8 Pt: 2.0 Pt: 1.9 Pt: 1.6-1.8 Pt: 1.6-1.8 Pt: 1.6-1.8 Platinum Group Metals – M&C by
Slide 46: Unit costs performance by Business Unit
Unit costs performance by Business Unit De Beers (US$/ct)1 Copper (C1 USc/lb)2 Nickel (C1 USc/lb) ~80 154 ~156 513 ~515 58 59 120 377 2021 2022 2023F 2021 2022 2023F 2021 2022 2023F PGMs (US$/PGM oz)3 Iron Ore (FOB US$/t)4 Steelmaking Coal (US$/t)5 937 ~1,025 38 ~39 105 107 ~105 868 33 2021 2022 202
Slide 47: Earnings sensitivities
Earnings sensitivities Impact of 10% Sensitivity Analysis – 20221 change in price / FX Commodity / Currency 31 December spot Average realised EBITDA ($m) Copper (c/lb)2 380 385 548 Nickel ($/lb)3 13.80 10.26 133 Platinum ($/oz) 1,065 962 109 Palladium ($/oz) 1,788 2,076 191 Rhodium ($/oz) 12,250 15,
Slide 48: Capex guidance
Capex guidance Capex1 $bn Woodsmith ~0.8 ~0.7 Growth ~0.7 ~0.3 ~0.7 SA renewables2 & nuGenTM ~0.3 ~0.3 ~0.3 Collahuasi desal ~0.4 ~0.7 ~0.3 Lifex ~0.7 ~0.5 Baseline 3.5-4.0 3.1-3.6 3.2-3.7 3.0-3.5 sustaining + lifex 2023F 2024F 2025F Long-term (2022 real)1 Totals 6.0-6.5 5.5-6.0 5.0-5.5 (excl. ~$1bn
Slide 49: Life extension capex
Life extension capex Major components of lifex¹ ($bn) Guidance ~0.7 ~0.7 ~0.5 Mototolo – Der Brochen (PGMs) ~0.1 ~0.1 Kolomela (Iron Ore) ~0.2 ~0.3 ~0.3 Venetia (Diamonds) ~0.2 2023F 2024F 2025F Lifex projects – subject to disciplined capital allocation framework Forecast Returns Capex (pa) Volume (
Slide 50: Key projects driving growth capex
Key projects driving growth capex Major components of growth capex¹ ($bn) Guidance ~1.0 ~1.0 ~1.0 + ~0.8 Woodsmith Quellaveco2 (Copper) ~0.12 Mogalakwena (PGMs) ~0.2 ~0.4 ~0.1 SA renewables3 & ~0.3 ~0.3 nuGenTM ~0.3 Technology & innovation ~0.23 ~0.23 ~0.13 2023F 2024F 2025F 1. Cash expenditure on p
Slide 51: Attractive greenfield and brownfield options
Attractive greenfield and brownfield options Growth capex¹ ($bn) Long life greenfields and fast returning brownfields Capex Volume (pa) From¹ Forecast Returns Payback IRR Margin Quellaveco (Copper) ~$2.8bn2 +300kt2 2022 ~4 years >15% >50% Collahuasi 5th Ball Mill (Copper) ~$0.1bn3 +15kt3 2023 ~3 yea
Slide 52: Technology & innovation will transform the physical footprint of mining
Technology & innovation will transform the physical footprint of mining $0.2–0.5bn1 pa capex to support FutureSmart MiningTM & the delivery of our Sustainable Mining Plan targets Initiative Application Impact Progress • Mogalakwena North Concentrator (PGMs) (~70% of complex feed) and Los Bronces (Co
Slide 53: Quellaveco modelling
Quellaveco modelling Fully consolidated with a 40% minority interest Accounting treatment Shareholder loans from minority shareholder consolidated in Anglo American net debt ~330 ave. over first 5 years Production (copper content) (ktpa) ~220 ave. over 35 year Reserve Life1 By-products2 ~5ktpa conta
Slide 54: Quellaveco accounting - debt
Quellaveco accounting - debt After the initial $0.8bn equity injection by Mitsubishi, the project was funded 60:40 through shareholder debt Group net debt by the end of the project is expected to include ~$1.9bn debt from Mitsubishi (40% of shareholder debt); which is funded from their 40% share of
Slide 55: Business Unit results
Business Unit results
Slide 56: Diamonds – strong demand drives operational performance
Diamonds – strong demand drives operational performance Average Realised Underlying Mining Production1 Sales (Cons.)2 price index price3 Unit cost4 EBITDA margin5 Capex 2022 34.6Mct 30.4Mct 142 $197/ct $59/ct $1,417m 52% $593m vs. 2021 7% 9% 23% 35% 2% 29% 5pp 5% Underlying EBITDA ($m) 76 (152) 1,46
Slide 57: Copper Total – Quellaveco offsetting lower production in Chile
Copper Total – Quellaveco offsetting lower production in Chile Realised Underlying Mining Production Sales1 price1 Unit cost2 EBITDA3 margin3 Capex 2022 664kt 641kt 385c/lb 154c/lb $2,182m 39% $2,031m vs. 2021 3% ~ 0% 15% 28% 46% 23pp 15% Underlying EBITDA ($m) 4,011 (705) 11 3,012 (305) (612) (21
Slide 58: Copper Chile – lower prices and production challenges
Copper Chile – lower prices and production challenges Realised Underlying Mining Production Sales1 price1 Unit cost2 EBITDA3 margin3 Capex 2022 562kt 563kt 386c/lb 157c/lb $1,952m 40% $1,217m vs. 2021 13% 12% 15% 31% 51% 22pp 22% Underlying EBITDA ($m) 4,011 (705) 11 3,012 (305) (842) (218) 1,952 20
Slide 59: Copper Peru – successful start of production ramp-up
Copper Peru – successful start of production ramp-up Realised Underlying Mining Production Sales price Unit cost EBITDA1 margin Capex2 2022 102kt 78kt 379c/lb 136c/lb $230m 38% $814m vs. 2021 n/a n/a n/a n/a n/a n/a 5% Underlying EBITDA ($m)3 230 230 2021 Cost & volume 2022 1. Includes exploration a
Slide 60: Nickel – strong pricing underpins earnings
Nickel – strong pricing underpins earnings Realised Underlying Mining Production1 Sales1 price Unit cost EBITDA margin Capex 2022 39.8kt 39.0kt $10.26/lb $5.13lb $381m 44% $79m vs. 2021 5% 7% 33% 36% 19% 1pp 172% Underlying EBITDA ($m) (5) 511 (17) (120) 213 381 (10) 320 2021 Price FX Inflation Cost
Slide 61: PGMs – impacted by lower volumes
PGMs – impacted by lower volumes Realised Underlying Mining Production1 Sales2 basket price2 Unit cost3 EBITDA margin4 Capex 2022 4,024koz 3,861koz $2,551/PGM oz $937/PGM oz $4,417m 54% $1,017m vs. 2021 6% 26% 8% 8% 38% 8pp 14% Underlying EBITDA ($m) 7,099 6,713 (846) (211) 671 (2,154) 4,417 (142) 2
Slide 62: Iron Ore Total – impacted by lower prices
Iron Ore Total – impacted by lower prices Realised price Unit cost Underlying Mining Production1 Sales1 (FOB)1 (FOB)1 EBITDA margin Capex 2022 59.3Mt 58.0Mt $111/t $38/t $3,455m 45% $834m vs. 2021 7% 8% 29% 15% 50% 17pp 33% Underlying EBITDA ($m) 6,871 (2,534) 4,470 206 (73) (896) 3,455 (119) 2021 P
Slide 63: Kumba (Iron Ore) – lower prices drive earnings
Kumba (Iron Ore) – lower prices drive earnings Realised price Unit cost Underlying Mining Production1 Sales1 (FOB)1,2 (FOB)1 EBITDA margin Capex 2022 37.7Mt 36.7Mt $113/t $40/t $2,211m 48% $674m vs. 2021 8% 9% 30% 3% 49% 14pp 62% Underlying EBITDA ($m) 4,311 (1,770) 2,739 245 (47) (483) 2,211 (45) 2
Slide 64: Minas-Rio (Iron Ore) – impacted by prices & operational challenges
Minas-Rio (Iron Ore) – impacted by prices & operational challenges Realised price Unit cost Underlying Mining Production1 Sales1 (FOB)1 (FOB)1 EBITDA margin Capex 2022 21.6Mt 21.3Mt $108/t $35/t $1,244m 41% $160m vs. 2021 6% 7% 28% 46% 51% 20pp 24% Underlying EBITDA ($m) 2,560 (764) 1,731 (39) (26)
Slide 65: Steelmaking Coal – higher prices driving earnings
Steelmaking Coal – higher prices driving earnings Realised Underlying Mining Production1 Sales1 price2 Unit cost3 EBITDA margin Capex 2022 15.0Mt 14.7Mt $304/t $107/t $2,749m 55% $648m vs. 2021 1% 4% 52% 2% 186% 22pp ~ 0% Underlying EBITDA ($m) 2,749 373 2,199 177 196 (89) 1,130 962 2021 Price FX In
Slide 66: Liquidity
AngloAmeric Estacion de Hidréaeno Verd
Slide 67: Strong liquidity & issued first sustainability-linked bond
Strong liquidity & issued first sustainability-linked bond Liquidity1 Debt repayments ($bn)1 $16.1bn 2.3 +$8.4bn cash 1.8 +$7.7bn undrawn committed facilities 1.5 1.2 1.2 1.0 0.9 0.7 0.8 Majority of cash held centrally in US dollars 0.7 0.6 0.4 0.5 0.5 Strong Investment Grade credit metrics and rati
Slide 68: Portfolio overview
Image to be realigned Portfolio overview
Slide 69: Portfolio overview – key assets
Portfolio overview – key assets1 Diamonds (De Beers) Gahcho Kué Copper 2.8Mcts2 Woodsmith PGMs project ~13Mtpa3 Iron Ore Steelmaking Coal Nickel Crop Nutrients Barro Alto 40kt Quellaveco Marine Namibia Jwaneng/Orapa Moranbah, Grosvenor, 102kt4 2.1Mcts2 24.1Mcts2 Aquila and open pits 15
Slide 70: A differentiated portfolio of high quality assets
A differentiated portfolio of high quality assets Revenue by product1 Capital employed by geography2 % % PGMs 27 ⚫ Chile & Peru 28 Iron Ore 20 ⚫ South Africa 23 Diamonds (De Beers) 18 ⚫ Brazil 22 Copper 15 ⚫ Namibia & Botswana 11 Steelmaking Coal 14 ⚫ Australia 9 Nickel 2 ⚫ Other 7 Man
Slide 71: Transparent taxes & royalties in host countries
Transparent taxes & royalties in host countries $5.9bn Taxes and royalties1 UK $0.4bn Paid in host country 17%1 decrease from 2021 due to lower earnings Other Africa Australia/Asia Brazil $1.0bn $0.9bn $0.4bn Queensland royalty increase Chile $1.0bn impacted H2 profitability South Africa Chilean tax
Slide 72: Commodity outlook – medium to long term
Commodity outlook – medium to long term • Global economic recovery and growing disposable income drives higher consumer demand Diamonds • Global supply of rough diamonds expected to slightly decline due to lack of significant recent discoveries • Demand is robust in the long term and accelerated dec
Slide 73: De Beers: world leader in diamonds
De Beers: world leader in diamonds Best-in-class business… …focused on consumers Mining EBITDA margin1 Global Diamond Jewellery Demand3 51% ⚫ USA % 54 ⚫ China 11 ⚫ Japan 6 Trading margin (typical level)2 ⚫ India 5 ⚫ Gulf 4 ~7% ⚫ Rest of world 20 Self purchases4 Millennials4 LGD price drops continue5
Slide 74: A growing, world class copper business
A growing, world class copper business Quality assets with growth High value portfolio with long term potential Collahuasi 251 ktpa 1 (our share) ~1 Mtpa Reserve life 84 years2 in ~2024 at mid to low Q2 cost position Los Bronces 271 ktpa 1 664 ~900 ~1,000 Reserve life 34 years2 20223 2023F 2024F Que
Slide 75: World leader in PGMs
World leader in PGMs Own mined production Own mined production Asset focused - by volume - by revenue 1. Mogalakwena 2. Amandelbult 63% 52% Mining EBITDA margin Mining EBITDA margin 3. Processing purchased concentrate1 23% ⚫ Platinum % 46 ⚫ Rhodium % 43 EBITDA margin1 ⚫ Palladium 35 ⚫ Palladium 31 ⚫
Slide 76: PGMs sector
PGMs sector Platinum demand1 Basket price driven by Pd and Rh % ⚫ Automotive 40 ⚫ Industrial 40 ⚫ Jewellery 20 ICE to maintain high share in light vehicles2 Global light duty vehicle production outlook (million vehicles) Rhodium +387% 102 82 ⚫ Battery ⚫ Hybrid (Pt, Pd, Rh)3 ⚫ Gasoline (Pd, Rh)3 PGM
Slide 77: 5E Platinum group metals
5E Platinum group metals Platinum Palladium Rhodium Global mined supply1 ~2 ~6 ~1 ~7 ~0.2 ~0.7 Our supply ~90% of demand is autocatalysts demand Industrial Pt & Pd convert harmful See previous slide for demand data carbon monoxide & Pt & Pd interchangeable in autocats 14% hydrocarbons to CO2 ~$1.8bn
Slide 78: Structural trends favouring high quality bulks
Structural trends favouring high quality bulks Iron Ore: high quality products Steelmaking Coal: premium products Kumba production Minas-Rio production High quality portfolio ~64% Fe ~67% Fe ~80% of which 67% is lump Pellet feed products Hard coking coal (typical level)2 20-25% lower GHG emissions f
Slide 79: Woodsmith: a world class asset with a differentiated product
Woodsmith: a world class asset with a differentiated product Quality asset Competitive product Progressing project infrastructure >40 year 13Mtpa ~$0.8bn 2023 capex asset life1 planned development capacity2 focused on shafts and tunnel Q1 unit cost expected Low carbon, organic3 ~$1.0bn annual capex
Slide 80: POLY4 is a multi-nutrient fertiliser
POLY4 is a multi-nutrient fertiliser Key nutrients N P K Nitrogen Phosphates Potassium Secondary nutrients S Ca Mg Sulphur Calcium Magnesium Other key attributes Low Micro- Organic & chloride nutrients low carbon POLY4 nutrients 80 Anglo American
Slide 81: POLY4 is differentiated from traditional fertilisers
POLY4 is differentiated from traditional fertilisers Current main potassium fertiliser sources MOP (Muriate of potash)1 SOP (Sulphate of potash)1 POLY41 Chloride Chloride Chloride Sulphur Calcium Magnesium Potassium Potassium Sulphur Potassium ~68Mt2 ~7Mt2 Low cost, high value in use substitute Sulp
Slide 82: Our transformation journey
Our transformation journey
Slide 83: A transformed business since 2012
A transformed business since 2012… Productivity1 • Portfolio restructuring • Operating Model and 97% technical improvements Unit costs2 Number of assets3 7% ~60% 1. Productivity is calculated as adjusted copper equivalent production divided by the average direct headcount from consolidated mining op
Slide 84: Innovation & technology
Innovation & technology
Slide 85: Operational excellence underpins transformation
Operational excellence underpins transformation Operating Model: delivering stable & predictable outcomes Stabilisation at Work is planned, scheduled and properly resourced higher performance Stable and consistent performance Stabilisation at still Further improvement higher impacting stability perf
Slide 86: Innovative technologies: Bulk Ore Sorting
Innovative technologies in development & roll-out Bulk Ore Sorting Sensors determine ore content prior to processing Delivers improved feed grade to plants Waste rejected early: • Grade uplift: +3% to +15% • Energy, water & cost savings Capital cost $10m to $80m (volume dependent) Deployed in Copper
Slide 87: Innovative technologies: Coarse Particle Recovery
Innovative technologies in development & roll-out Coarse Particle Recovery (CPR) Flotation process changed An enabler for hydraulic dewatered stacking Allows material to be crushed to larger particle size: • Throughput increase: +15% to +20% • 20% energy reduction per tonne1 • Up to 85% water recove
Slide 88: Innovative technologies: Hydraulic Dewatered Stacking
Innovative technologies in development & roll-out Hydraulic Dewatered Stacking (HDS) Low cost, safe, geotechnically stable dry tailings • Eliminate risk of liquefaction • Increases water recovery ~ 85% • Can be repurposed, benefiting host communities and biodiversity Hydraulic Dewatered Stacking Hyd
Slide 89: Innovative technologies: nuGen Zero Emissions Haulage Solution
Innovative technologies in development & roll-out nuGen™ Zero Emissions Haulage Solution (ZEHS) Developing the world’s largest hydrogen powered mine haul truck, including associated refuelling infrastructure • Launched prototype in Q2 2022 • 50% to 70% reduction in emissions (Scopes 1 and 2 for open
Slide 90: Innovative technologies: Advanced Process Control
Innovative technologies in development & roll-out Advanced Process Control (APC) • Uses process models, replaces manual control of processes • Stabilises and optimises process performance • Improves equipment and process safety by managing constraints • Up to 40% improvements in mainstream process s
Slide 91: Innovative technologies: Integrated Data Solutions
Innovative technologies in development & roll-out Integrated Data Solutions Industry-first dedicated digital platform to deliver data-driven insights for mining operations Integrated suite of applications across the mining value chain • Creating a set of Digital Twins • Enabling each application to
Slide 92: Innovative technologies: Carbon Neutrality
Innovative technologies in development & roll-out Sustainability: Carbon Neutrality • nuGenTM hydrogen trucks • Piloting the world’s first Hydrogen Ultra-Class truck • Roll-out will include installation of H2 & refuelling infrastructure • Vent-air methane abatement • Developing improved-safety Regen
Slide 93: Sustainability performance
Update image Sustainability performance
Slide 94: Our Purpose: Re-imagine mining to improve people's lives
Our Purpose: ‘Re-imagine mining to improve people’s lives’ 94 Anglo American
Slide 95: Our Sustainable Mining Plan at the heart of our strategy
Our Sustainable Mining Plan at the heart of our strategy 95 Anglo American
Slide 96: Active route to a more sustainable world
Active route to a more sustainable world 2020 2021-23 2025 2030 2040 8% SA Thermal Coal demerger 100% 30% 30% Carbon energy completed2 renewable electricity improvement in absolute reduction neutrality efficiency1 powering Australian energy efficiency4 in GHG emissions4 Cerrejón sale of operations a
Slide 97: Operations carbon neutral by 2040
Operations carbon neutral by 2040 Scopes 1 & 2 - GHG emissions South America renewable energy Three Solar PV plants in 2030 goal – 30% reduction of South Africa GHG emissions vs 20161 Hydrogen trucks pilot Regionally integrated solar and Southern Africa wind in South Africa electrical supply Carbon
Slide 98: Ambition: 50% reduction in Scope 3 emissions by 2040
Ambition: 50% reduction in Scope 3 emissions by 2040 Scope 3 - GHG emissions Production growth aligned to future Thermal coal demand themes mines divested Our ambition: Steelmaking 50% coal reduction Iron ore Production growth Steel value chain outpaces steel value decarbonisation chain decarbonisat
Slide 99: Summary inventory of our 2020 Scope 3 emissions
Summary inventory of our 2020 Scope 3 emissions Scope 3 - GHG emissions 115Mt 1 77% of our emissions driven by Total Scope 3 emissions steel industry Leased Investments Capital Business Transportation Use of sold assets goods travel & distribution products Purchased Transportation Franchises Operati
Slide 100: Industry leading dam safety management
Industry leading dam safety management Managing tailings safely Tailings storage facilities in our portfolio1 Group Technical Specialists Internal risk assurance Independent Technical Downstream/ Review Panel other BU Technical Standard expert Engineer of Record Upstream Southern Australia Operation
Slide 101: ESG integrated into management remuneration
ESG integrated into management remuneration SHE targets in annual bonus 20% All employees incentivised on safety1 Critical tasks include Sustainable Mining Plan roll-out target LTIPs include metrics incentivising delivery of: ESG targets in LTIPs • Creating renewable energy supply for sites • Reduct
Slide 102: A sustainable, responsible & transparent business
A sustainable, responsible & transparent business ESG ratings Overall score 79/100 ‘AA’ rated ‘Prime’ rated Overall score of 4.5 (out of 5), In the top 5 in mining & metals group Ahead of peers Industry leader which puts us in the top percentile Included in both and in joint second place European &
Slide 103: Measuring our ESG progress: 2022 targets
Measuring our ESG progress: 2022 targets1 Target Pillar of value Metric 2022 20212 Target achieved Safety & health Work-related fatal injuries3 2 2 Zero Not achieved Total recordable injury frequency rate per million hours3 2.19 2.24 Year-on-year reduction On track New case of occupational disease 5
Slide 104: Sustainability summary
Sustainability summary Sustainability twice-yearly update presentations: FutureSmart MiningTM: → For presentations and webinar replays, visit: To deliver on our Purpose, we are changing the way we mine through smart angloamerican.com/investors/investor-presentations innovation across technology, dig
Slide 105: Investor Relations
Update image Investor Relations Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 Michelle Jarman michelle.jarman@angloamerican.com Tel: +44 (0)20 7968 1494