Slide 1: Developing mining for a better future
Developing mining for a better future 2021 HY Results | 19th August 2021
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions: This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Exampl
Slide 3: Agenda
Agenda 1 Overview 2 Financial review 3 Sustainability performance 4 Growth opportunities and investment case 3
Slide 4: Overview
Overview 2021 HY Results Iván Arriagada | Chief Executive Officer 4
Slide 5: 2021 HY highlights
2021 HY highlights Strong financials, reflecting improved copper price Safety Financial results Balance sheet and dividend EBITDA: $2,357m Net cash of $701m EBITDA margin2: 66% Cash flow from operations of $2.5bn LTIFR1: 1.28 EPS: 67.5 c/share Interim dividend 23.6 c/share Copper production Net cash
Slide 6: 2021 guidance
2021 guidance Copper production (kt) Copper production Revised 710-740,000 tonnes Guidance 770 Bottom end of range based on assumption that 725 734 710-740 there is minimal precipitation for the rest of 2021 Antucoya & 130 120 127 Zaldívar Net cash costs Centinela 248 277 247 $1.25/lb 361 Assuming b
Slide 7: Water situation at Los Pelambres
Water situation at Los Pelambres Unprecedented dry conditions, with almost no precipitation Precipitation and water contained – Mauro tailings dam Thickeners 12 250 10.6 10.3 10.3 9.7 9.5 10 9.3 The Mauro dam water 200 8.6 8.3 volume has fallen to Fresh Recycled its lowest level ever water water Los
Slide 8: Mining royalty
Mining royalty • Draft legislation approved by lower house (May) • Senate is taking the time for a considered debate • Evidence requested from many parties • Amended draft being prepared • The stated intention is to complete this legislation before the end of the year 8
Slide 9: Financial review
Financial review 2021 HY Results Mauricio Ortiz| Chief Financial Officer 9
Slide 10: 2021 HY financial highlights
2021 HY financial highlights Strong EBITDA margin and cash flow Revenue Net cash costs EBITDA and EBITDA margin1 $2,357m ↑ 133% $3,591m $1.14/lb ↑ 68% below guidance 65.6% ↑ 18 ppt Earnings per share Financial strength Dividends per share Net cash $701m Interim dividend 23.6 cps 67.5 c/share ↑ 54 ce
Slide 11: Operating performance
Operating performance Group production of 361,500 tonnes at $1.14/lb Los Pelambres Centinela Antucoya Zaldívar Transport Cu production Cu production Cu production Cu production1 Tonnage 169,300 t 132,100 t 39,500 t 20,600 t transported Net cash costs Net cash costs Cash costs Cash costs 3,192 kt $0.
Slide 12: Production and cash costs
Production and cash costs -10.3 kt (-3%) 371.7 kt Copper 10.9 Production 3.5 0.7 361.5 kt kt (14.4) (11.0) HY 2020 Grades Throughput Recovery Work-in-progress ROM/Others HY 2021 & inventories $0.22/lb (15%) 0.11 0.03 0.17 $1.73/lb Cash costs $1.51/lb (0.03) (0.04) (0.01) by cost type $1.14/lb $/lb (
Slide 13: EBITDA
EBITDA EBITDA1 and margin2 2020 HY versus 2021 HY $ million and % 47%2 + 18.3 ppt 66%2 +$1,344m 1,520 30 9 $2,357m (111) (8) (10) $1,013m (85) 2020 HY Sales volumes Realised Mining costs Exploration Corporate cost Associates Transport 2021 HY EBITDA and TC/RCs prices & evaluation & non operating & J
Slide 14: Net earnings
Net earnings Net earnings 2020 HY versus 2021 HY $ million +$490m 1,314 14 22 (34) (500) $665m (326) $135m 40 $175m 2020 HY Exceptional 2020 HY EBITDA from Depreciation Associates Net Tax Non-controlling 2021 HY Net earnings items Net earnings subsidiaries1 and and JVs finance costs2 interests Net e
Slide 15: Balance sheet
Balance sheet Net cash / (debt) and Net debt/EBITDA ratio $ million and times +$783m 177 2,284 (0.15x) (348) Net ratio1 cash 65 (782) (27) $1,074m (68) $701m (518) $312m $(82)m Net cash Net cash EBITDA from Working Tax Capex Net interest Other non- Dividends Dividends Net cash Net cash (debt) - (deb
Slide 16: Capital allocation drives decision making
Capital allocation drives decision making Operating Cash Flow • Economic outlook Copper • Stress test forecasts at various copper prices Price Free Sustaining Capex & Mine Development Cash • Future free cash flow generation Flow • Cash buffer DECISION Committed Dividends (35% pay-out) FACTORS Capex
Slide 17: Capital expenditure: Investing through the cycle
Capital expenditure Investing through the cycle Capital expenditure1 Guidance $ million $1.6bn $1,306m $1,079m 890 Growth 571 $899m $873m 279 $782m 276 144 61 68 37 70 Transport & corporate 32 398 310 392 341 265 Sustaining (Mining) 221 17 132 371 352 347 357 375 Mine development 236 2017 2018 2019
Slide 18: Sustainability performance
Sustainability performance 2021 HY Results René Aguilar| Vice President of Corporate Affairs and Sustainability 18
Slide 19: Safety
Safety The safety of our people is our top priority 316 217 86 1.61 1.53 1.59 29 1.01 2 0.86 1.28 1 1 High Potential Incidents (HPIs) are 0 0 0 leading indicators of the effectiveness 2016 2017 2018 2019 2020 2021 HY of safety controls and facilitate the Fatalities early introduction of improvements
Slide 20: 2021 HY sustainability performance
2021 HY sustainability performance Commitment to communities and the environment Climate change Renewable energy Water New targets on • Mitigating water shortage at Los Expect 100% Pelambres with desalination plant GHG emissions renewable by-end 2022 in H2 2022 30% reduction by 20251 • Progressing w
Slide 21: Growth opportunities and investment case
Growth opportunities and investment case 2021 HY Results Iván Arriagada| Chief Executive Officer 21
Slide 22: Copper market
Copper market Short term Copper price and exchange stocks ▪ Global economic recovery underway, subject to pandemic Thousand c/lb Tonnes ▪ Fiscal and monetary stimulus in many countries ▪ China still very important but considerable demand growth 550 1,000 expected from Europe and North America 500 80
Slide 23: Growth opportunities
Growth opportunities 2020 2021 2022 2023 2024+ LOS PELAMBRES EXPANSION - PHASE 1 (in construction) PHASE 2 (in FS stage) Cu +60 ktpa | Capex $1.7 bn1 (including desalination plant) Cu +35 ktpa | Capex $0.5 bn2 15 year LOM extension Organic ESPERANZA SUR PIT (in construction) CENTINELA 2ND CONCENTRAT
Slide 24: Growth projects update
Growth projects update Los Pelambres Zaldívar Centinela Centinela Expansion – Phase 1 Chloride Leach Esperanza Sur Pit Second concentrator 52% complete 76% complete • Pre-stripping completed in July • EIS update approved and Desalinated water system • Chlorine corrosion-resistant • First autonomous
Slide 25: Transformational innovation: Operation of the Future
Transformational innovation Our “Operation of the Future" vision Planning Mine Plant Integrated and Remote Management New Ways Dynamic and intelligent planning Autonomous operations Automated operations Remote operation to Operate (sustain Full processing capacity Data-driven decision making competi
Slide 26: Our priorities for 2021 and beyond
Our priorities for 2021 and beyond Commitment to zero fatalities and protecting employees and communities from COVID-19 Embed climate change and sustainability strategy across all decision making and update climate change targets Maintaining operating resilience and flexibility Continuous productivi
Slide 27: Investment case: Responsible copper producer
Investment case Responsible copper producer Sustainability High quality assets Operating efficiency Financial position • Zero fatalities culture • Strong and growing • Constant focus on unit costs • Strong balance sheet • Safety and health model production • Continuous productivity • Healthy cash fl
Slide 28: Appendix
Appendix 28
Slide 29: Antofagasta at a glance
Antofagasta at a glance Group Antucoya • 65% owned by Luksic Group, 35% free float • 70% owned • Market cap: $20.4 billion (August 17th 2021) • Copper production1: 79,300 t • Remaining mine life2: 19 years • FTSE 100 • Reserves3: 711 million t @ 0.32% Cu Mining division1 Centinela • Top 10 copper pr
Slide 30: Revenue
Revenue Revenue 2020 HY versus 2021 HY $ million +$1,452m 1,401 128 24 17 $3,591m (118) $2,139m HY 2020 Copper price Copper sales By-products TC/RC Transport division HY 20212 1 Excludes Zaldívar and JVs 30
Slide 31: Cash flow
Cash flow Cash flow in 2021 HY1 $ million +$567m 177 2,284 (348) (782) 65 (27) (271) $4,240m (518) (13) $3,673m Cash at EBITDA from Working Tax Capex Net Net Dividends Dividends Others Cash at 30 1 Jan 2021 Subsidiaries Capital Interest borrowings from Jun 2021 associates 1 Excludes Zaldívar and JVs
Slide 32: 2021 HY production cost breakdown
2021 HY production cost breakdown 0.33 1.86 0.59 1.73 Energy Labour 13% 14% (0.20) Others 7% 1.14 17% Services Other inputs 10% $1,481m 4% Sulphuric acid 6% 13% Fuel and Lubricants Maintenance services 15% Net Cash By-products Gross TC/RC & Mine Production Materials and spare parts Cost HY credits C
Slide 33: Production and metals prices
Production and metals prices Group production Metal prices 2018 2019 2020 2021 HY 2021E1 2018 2019 2020 2021 HY Copper ('000 tonnes) Copper ($/lb) Los Pelambres 357.8 363.4 359.6 169.3 340-350 Realised 2.81 2.75 2.98 4.42 Centinela Concentrates 155.5 195.5 153.5 90.4 LME 2.96 2.72 2.80 4.13 270-280
Slide 34: Unit cash costs
Unit cash costs Group cash costs 2018 2019 2020 2021 HY 2021E1 Group cash costs ($/lb) Los Pelambres 1.52 1.40 1.27 1.51 1.45 Centinela 1.89 1.83 1.85 1.80 1.75 Antucoya 1.99 2.17 1.82 2.04 1.80 Zaldívar2 1.94 1.75 1.80 2.46 1.75 Cash costs before by-products credits ($/lb) 1.72 1.65 1.56 1.73 1.65
Slide 35: Reserves and resources as of December 2020
Reserves and resources as of 31 December 2020 Tonnage (millions tonnes) Copper (%) Molybdenum (%) Gold (g/t) Attributable Tonnage (millions tonnes) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Ore reserves Los Pelambres 1,010.5 1,072.0 0.59 0.60 0.020 0.020 0.05 0.05 606.3 643.2 Centinela Conce
Slide 36: Antofagasta contacts
Antofagasta contacts Andrew Lindsay alindsay@antofagasta.co.uk Rosario Orchard rorchard@antofagasta.co.uk Director, London Office Tel: +44 20 7808 0988 Investor Relations Manager Tel: +44 20 7808 0988 36
Slide 37: www.antofagasta.co.uk
www.antofagasta.co.uk WN ANTOFAGASTA PLC