Anglo American Plc · LSE:AAL
Anglo American — Bank of America 2022 Global Metals & Mining Conference
18 slides from Anglo American's conference presentation, May 18, 2022
Slide 1: Bank of America 2022 Global Metals & Mining conference
Bank of America 2022 Global Metals & Mining conference 18 May 2022 Anglo American
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the materials/slides for a presentation concer
Slide 3: What about long term trends? What about copper?
What about long term trends? What about copper? 3 Anglo American
Slide 4: The future is arriving sooner; behaviour trumps technology
What about long term trends? The future is arriving sooner; behaviour trumps technology What about copper? Copper is favoured… but we do need help to make it happen 4 Anglo American
Slide 5: The future may be arriving sooner: is population growth slowing?
The future may be arriving sooner: is population growth slowing? World population forecasts1 Billion people 16 15 14 13 Forecasts are the same through to 12 2040 11 UN 2019 10 9 Murray Model 8 7 6 5 4 3 2 1 0 1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 2100 Anglo American 5
Slide 6: There is already significant stress in the system, as we see for land
There is already significant stress in the system, as we see for land Global land use for food production2 71% 29% Land Earth’s surface Ocean 149M km2 361M km2 19% Barren land 71% Habitable land 28M km2 Land surface (Including the 104M km2 world’s deserts, salt flats, exposed rocks, beaches and dune
Slide 7: Technology has saved us before: it feeds close to 4 Bn of us today
Technology has saved us before: it feeds close to 4 Bn of us today Growth in the consumption of inorganic fertiliser and population3 Nutrient Tonnes Billion People 200,000 8.0 Potassium 180,000 Phosphorus 7.0 Nitrogen 160,000 Global Population 6.0 140,000 World Population fed by Haber-Bosch 3.8 bn N
Slide 8: What can we learn from history? Guess the car
What can we learn from history? Guess the car 4 Anglo American 8
Slide 9: Light vehicle drivetrains are due to change, as we know, again
Light vehicle drivetrains are due to change, as we know, again United States: Share of Fuel Type5 100% 90% 80% 70% 60% 50% Forecast 40% 30% 20% 10% 0% 1910 1930 1950 1970 1990 2010 2030 2050 Steam Gasoline Pb Gasoline Diesel Electric Fuel cell Flex fuel Anglo American 9
Slide 10: Technology change takes >30 years; behaviour change is faster
Technology change takes >30 years; behaviour change is faster Changes in behaviours and adoption of new technologies6 Market share/Change Nuclear (France) Jet airliners OH steel BOF steel Wind power (Denmark) Nuclear (World) Years Delay period Growth period Smoking (UK) Asbestos (World) Ozone (USA)
Slide 11: The next 25 years will need as much copper as the last 75 years
The next 25 years will need as much copper as the last 75 years Total copper demand estimated in a 1.5°C world7 Mt 1950 1975 2000 2025 2050 Anglo American 11
Slide 12: Markets resolve themselves in various ways, not all are benign
Markets resolve themselves in various ways, not all are benign Longer term Shorter term Recycled Production material Creep Supply expansions Resolved Stocks markets Thrifting and Demand substitution elasticity Anglo American 12
Slide 13: Scrap can only be a part of the solution, even in the extreme
Scrap can only be a part of the solution, even in the extreme Total copper demand and obsolete scrap usage and potential8 Mt 1950 1975 2000 2025 2050 Total copper demand Obsolete scrap consumed Potential: flow of copper in retired products Anglo American 13
Slide 14: Resources are abundant, but unevenly spread across regions
Resources are abundant, but unevenly spread across regions9 Cu Ni Fe Pt+Pd North America Europe & Middle East Russia China Other Asia Oceania Africa Key: Years of global supply 100 50 South America 10 Anglo American 14
Slide 15: Copper: half of all known reserves needed to 2060
Copper: half of all known reserves needed to 2060 Copper cumulative availability curve10 Capex ($/t est) North America Other World China Europe+Middle East South America Estimated capex per Russia Other Asia Cumulative tonne Africa Oceania demand to 2060 Cash operating cost per tonne 0 200 400 600 8
Slide 16: Copper is favoured… but we do need help to make it happen
What about long term trends? The future is arriving sooner; behaviour trumps technology What about copper? Copper is favoured… but we do need help to make it happen 16 Anglo American
Slide 17: Thank you
Thank you 17 Anglo American
Slide 18: Footnotes
Footnotes 1. Source: Source: Anglo American Macro & Commodity Research, UN, IHME 2. Source: Anglo American Macro & Commodity Research, UN Food and Agriculture Organization (FAO) 3. Source: Anglo American Macro & Commodity Research, International Fertilizer Association 4. Source: Wikipedia. Top left:
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