Antofagasta Plc · LSE:ANTO
Antofagasta — FY1999 Earnings Presentation
21 slides from Antofagasta's earnings presentation, March 2000
Slide 1: Antofagasta plc 1999 Review and Results
Antofagasta plc 1999 Review and Results March 2000 1 Antofagasta plc
Slide 2: 1999 Highlights
1999 Highlights l Los Pelambres – commissioned successfully l El Tesoro – financed and under construction l Railway – volumes exceed 3 million tons l Investments – US$ 30m dividend receivable in 2000 1999 Results: l PBET – US$ 31.8m l PBT – US$13.2m l Total dividend up 10% to 8p per share 2 Antofaga
Slide 3: Group Operations & Projects
Group Operations & Projects Northern Michilla (74%) Chile Copper Cathodes 50,000 tpy Antofagasta El Tesoro (61%) Railway (100%) Copper Cathodes Freight 75,000 tpy 3.2 million tons/year Los Pelambres (60%) Punta de Copper in Concentrates Chungo 250,000 tpy Valparaiso Santiago 3 Antofagasta plc
Slide 4: Section 1: 1999 Review
Section 1 1999 Review 4 Antofagasta plc
Slide 5: Los Pelambres
Los Pelambres Key Features l On budget (US$1.36bn) and ahead of schedule l A major porphyry orebody - 3bn tonnes of 0.65% copper l 30 year mine plan - 0.9bn tonnes, 95% in proven category l 275,000 tonnes of payable copper in 2000 l Estimated cash costs - first five years 41 cents/lb 5 Antofagasta p
Slide 6: Los Pelambres start up: ore processed
Los Pelambres Start up January 2000 – 85,000 tpd design capacity achieved Ore Processed 105,000 100,000 Weekly average tonnes per day 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 n an an b b n eb Ja r n b Fe Fe Ja ar Ma 1J 8J Ja Fe 5F 4M 29 12 19 15 22 26 11 6 Antofagasta plc
Slide 7: El Tesoro
El Tesoro Key Features l Total project costs of US$296m l Reserves - 152m tonnes of 0.96 % copper l 18 year mine plan - 92% reserves in proven category l Annual cathode production of 75,000 tpy l Estimated cash costs - first 5 years 40 cents/lb 7 Antofagasta plc
Slide 8: El Tesoro project progress
El Tesoro Project progress l Financing completed and project under construction l EPC contract with Kvaerner Metals l Construction period of 18 months l First production in May 2001 8 Antofagasta plc
Slide 9: Michilla
Michilla Today l Total production of 60,500 tonnes (1998 - 62,100 tonnes) l Cash cost reduced to 55 cents/lb (1998 – 61 cents/lb) l Concentrator plant mothballed l Open pit life extended to 2008 l Heap-leach process for copper sulphides developed 9 Antofagasta plc
Slide 10: Seeking opportunities for growth: Exploration
Seeking opportunities for growth Exploration Main focus - Peru Other - Chile • Santa Carmen • Esperanza Magistral • El Tesoro NE Cotabambas 10 Antofagasta plc
Slide 11: Transport Volumes & Sales
Transport Transport Volumes & Sales 3.5 55 l Growth consolidated 3 50 3.1 2.5 45 l Record tonnage 2.8 US$m (Sales) million tons 2.5 2 40 l Customer base expanded 2.0 1.5 1.7 35 l Profits maintained 1 30 0.5 25 0 20 1995 1996 1997 1998 1999 11 Antofagasta plc
Slide 12: Investments
Investments Quiñenco S.A. (33.6%) – diversified industrial and financial group l Listed in Santiago and New York ADR l Market value at 15 March 2000 US$408m l Net profit of US$ 302m (1998 US$51m) l Expected dividend of US$ 30m in May 2000 12 Antofagasta plc
Slide 13: Section 2: Financial Analysis
Section 2 Financial Analysis 13 Antofagasta plc
Slide 14: 1999 Results
1999 Results 1999 1998 US$m US$m Turnover 145.5 184.9 P rofit before exceptionals and tax 31.8 64.6 E xceptionals (18.6) (4.1) P rofit before tax 13.2 60.5 cents cents E arnings per share before exceptionals 13.5 30.9 E arnings per share 8.1 29.6 Dividend per share 12.9 12.0 (8.0 p) (7.25 p) 14 Anto
Slide 15: Profit before exceptionals and tax 1999 vs 1998
Profit before exceptionals and tax (PBET) 1999 vs 1998 80 64.6 70 60 3.8 US$ million 1.9 50 40 31.8 18.2 30 8.9 20 10 0 Railway 1998 PBET Mining including Quiñenco Interest 1999 PBET associates dividend Income 15 Antofagasta plc
Slide 16: Balance sheet at 31 December 1999
Balance sheet at 31 December 1999 Pelambres Tesoro Escrow Other Total US$m US$m US$m US$m US$m Cash and time deposits 51 82 139 60 332 Long and short term debt (937) (120) - (14) (1,071) Net debt/(cash) (886) (38) 139 46 (739) Fixed assets and investments 1,331 97 - 414 1,842 Other net assets (10) 1
Slide 17: Section 3: 2000 Outlook
Section 3 2000 Outlook 17 Antofagasta plc
Slide 18: Copper Outlook
Copper Outlook World consumption increasing l Estimated growth of 4.5% for 2000 (1999 - 3.5%) Resulting from l Strong Asian recovery l Increased demand from Europe and Japan No major new mine production until 2002 18 Antofagasta plc
Slide 19: Chile Outlook
Chile Outlook 1995-8 1999 2000E Real GDP Growth 7.3% -1.1% 6.1% Annual Inflation 6.4% 2.3% 4.0% Unemployment 6.1% 8.9% 7.3% Trade Balance -946 1,664 940 Foreign Debt/ GDP 0.36 0.51 - International Reserves / Foreign Debt 0.62 0.43 - An Investment Grade Country: S&P A-, Moody's Baa1, Duff & Phelps A-
Slide 20: Targets for 2000
Targets for 2000 Los Pelambres – achieve completion test El Tesoro - maintain construction progress Michilla - implement new mine plan Transport - identify new business for rail and road transport 20 Antofagasta plc
Slide 21: Antofagasta is one of the fastest growing mining companies
“Antofagasta is one of the fastest growing mining companies with a strong asset base and a proven ability to develop large scale projects” 21 Antofagasta plc