Antofagasta Plc · LSE:ANTO
Antofagasta — Investor Day (2021)
64 slides from Antofagasta's investor day presentation, 2021
Slide 1: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021
Slide 2: Agenda
Agenda DN» Operations Hernan Menares, VP Operations Project development Paula Aguirre, Acting VP Projects Exploration Andrénico Luksic, VP Development Sustainability René Aguilar, VP Corporate Affairs and Sustainability Alejandra Vial, Environment Manager Interview Andrés Velasco, former Finance Min
Slide 3: Cautionary statement — Capital Markets Day
ANTOFAGASTA PLC Cautionary statement — Capital Markets Day All the presentations and videos included in this event have been prepared by Antofagasta plc. By reviewing and/or watching this event you agree to the following conditions: This presentations and videos contain forward-looking statements. A
Slide 4: Overview
OVERVIEW Iván Arriagada CHIEF EXECUTIVE OFFICER
Slide 5: Pure play copper producer
PURE PLAY COPPER PRODUCER Providing an essential commodity for the energy transition 5
Slide 6: Market dynamics for copper
MARKET DYNAMICS FOR COPPER Supety outlook Expected to grow just in line with demand during 2021 and 2022. Logistics constraints stressing ‘supply chain * Continued falling grades and increasing ore hardness. Scarcity of major new projects * Scrap supply will continue to increase Demand outlook * Gro
Slide 7: Developing mining for a better future
7 > oom il LE se — — ma —_—_ y git alee | Ww — DEVELOPING MINING -_"FOR"A BETTER FUTURE
Slide 8: Pillars of our strategy
Pillars of our strategy DEVELOPING MINING FOR A BETTER FUTURE
Slide 9: We are a reliable producer
WE ARE A RELIABLE PRODUCER Over the last five years, we have consistently met or exceeded our guidance Copper production guidance Net cash cost guidance ktonnes c/lb 800 1,40 1,35 750 1,30 1,25 700 1.20 15 il 1 10 4 : 2017 2018 2019 2020 2021 2017 2018 — Guide -min — Guide -max — Actual —* Guide —*
Slide 10: Resilient business with high-quality growth portfolio
RESILIENT BUSINESS WITH HIGH-QUALITY GROWTH PORTFOLIO Sustainable long term production 120 ktpa Cu SOktpacCu ov 35 ktpa Cu ( V sized to 50 ktpa for = 7 illustrative purposes only ~ Azaldivat 1Sktpacu NL ( Primary sulphides Ne entinela 2 (Concentrator Esperanza Phase 2 Sur Pit Centinela 2" ®@ ce trat
Slide 11: Unlocking embedded growth through exploration
UNLOCKING EMBEDDED GROWTH THROUGH EXPLORATION Sulphides | f q ll ‘A. Regional Offices © Mines / Projects _ ~ om A e we y Main prospectwe belt E 7/0 pr i Source: 2020 Annual Report. 100% of each mineral resource 11
Slide 12: Production outlook
900 800 700 600 500 400 300 2021 2022 2023 2024 2025 2026 1 2 I Base Production Projects Unapproved Accuracy range This is an indicative, forward-looking directional estimate only and should not be considered as guidance. Production outcomes are highly dependent on a range of risks, uncertainties an
Slide 13: 13
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Slide 14: Hernán Menares
Hernán Menares VICE PRESIDENT OF OPERATIONS
Slide 15: 2020 YTD 3Q 2021 operations
2020 YTD3Q 2021 Antucoya Cu production Net cash costs : oma — ¥ 79,300 tonnes $2.04/lb @0.32% Cu * Copper cathodes Centinela * 70% owned | ene 2.1 billion ° 47. ir mine lif * pti seca a 246,800 tonnes | $1.10/Ib @0.41% Cu concentrates Zaldivar #| * 50% owned (and operated) ae 468 million * 154 ine l
Slide 16: Current safety focus
Current safety focus is to reinforce: • Planning critical tasks using the Job Safety Analysis tool • Constant supervision of all high-risk tasks • Accident analysis, inspection and planning by executive leadership together with mine • After 33 months, very regrettably, we had a fatal management acci
Slide 17: Operating strategy
OPERATING STRATEGY The key to unlocking value Stabilise = Optimise rN our operating j ny A ANTOFAGASTA PLC the process processes Improve Challenge Strong organisational structure the Continuous improvement and the Expansion of assets’ full and operating discipline to Business operating excellence to
Slide 18: Operating model
Ry prrorscasra PLC OPERATING MODEL Successfully embedded across our operations Main Milestones Stacked Material at Antucoya (ktpa) * Operating Model embedded, defining roles, responsibilities 5600 and routines , = 5267 53235300 17% * Operational Excellence standard with 5 steps to identity, deploy,
Slide 19: — ~,. a a a FF
— ~,. a a 673 a FF ‘ f ae , ar -AGASTA PLC ae TE Oe ANS 7 F as ec ~* Pe Pe had itment t — a a > . &
Slide 20: Our environmental management model
OUR ENVIRONMENTAL MANAGEMENT MODEL A HELPS GUIDE OUR RESPONSIBLE PRODUCTION Ad SrToFaGaSTA Pui *® Compliance with commitments related to our environmental permits and legal requirements ¢ Effectively implement critical environmental controls ¢ Ensure zero operational events with significant environm
Slide 21: Paula Aguirre
Paula Aguirre DEPUTY VICE PRESIDENT OF PROJECTS
Slide 22: Evaluation process to ensure successful projects
a PLC EVAL ION PROCESS TO EN E SUCCESSFUL PROJECTS development decision Scoping , PreFeasibility Stage | FeasibilityStage = |» Commitment Construction Operation I I I Business H Business case Define selected | Construction Construction and | Hand over to opportunity H selection alternative H readine
Slide 23: Pipeline
PIPELINE LOS PELAMBRES EXPANSION - PHASE 1 PHASE 2 {in construction) {in FS stage) Cu +60 ktpa | Capex $1.7 bn? Cu +35 ktpa | Capex $0.5 bn? e (including desalination plant) 15-year LOM extension : | ESPERANZA SUR PIT CENTINELA 2"° CONCENTRATOR {in construction) {in FS stage) | Cu +10-15 ktpa| Capex
Slide 24: Los Pelambres Expansion – Phase 1
LOS PELAMBRES EXPANSION – PHASE 1 24
Slide 25: Centinela – Esperanza Sur Pit
CENTINELA – ESPERANZA SUR PIT 25
Slide 26: Zaldívar – Chloride Leach Project
ZALDÍVAR – CHLORIDE LEACH PROJECT 26
Slide 27: Andrónico Luksic L.
Andrónico Luksic L. VICE PRESIDENT OF DEVELOPMENT
Slide 28: Pillars of our strategy
PILLARS OF OUR STRATEGY pa Resource conversion and expansion ool] Resource growth through discovery Giouth and acquisition
Slide 29: Exploration history
EXPLORATION HISTORY ~— =, 2005-2010 2010-2015 1950-1980 Northern Chile El Abra and Sierra Gorda areas 1980-2005 Chile Peru Argentina Bolivia Chile Colombia Ecuador Pakistan Chile Americas Oceania Europe 2015-2021 Chile USA Canada Peru 29
Slide 30: Target criteria and focus
TARGET CRITERIA • Copper, preferably with by-products • Over 50ktpa of copper for more than 10 years • Geographic focus the Americas: Chile, Peru, Canada and USA • Looking for M&A opportunities and early stage projects FOCUS • Proven and favourable jurisdictions in the Americas • Advanced projects i
Slide 31: Successful mineral resource development
SUCCESSFUL MINERAL RESOURCE DEVELOPMENT RESOURCE GROWTH (CONTAINED COPPER) (CAGR 2003 - 2020) e 2nd highest resource growth since 2003 « Successful resource development, mainly through exploration © Cost efficient copper growth Peer 1 Antofagasta Peer 2 Peer 3 Peer 4
Slide 32: Exploration's contribution to Antofagasta growth
EXPLORATION’S CONTRIBUTION TO ANTOFAGAS GROWTH DISCOVERY AND ACQUISITION HISTORY: 2002 - 2020 100 80 In Situ Cu Resources (Cu, million tonnes) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 © New resources at Centinela ® Discovery of Encuentro and ® Ad
Slide 33: Centinela mining district
CENTINELA MINING DISTRICT SUCCESS OF THE EXPLORATION STRATEGY BUILDING A WORLD CLASS MINING DISTRICT 1986 - 1993 Staked, exchanged and acquired properties. Esperanza, Encuentro, El Tesoro orebody defined Telegrafo Norte & Sur, Mirador, Polo Sur Polo Sur, Mirador Penacho Bianco a 1999-2001 Discovery
Slide 34: Exploration expenditure
EXPLORATION EXPENDITURE 35 30 © Strong commitment to exploration even in low price cycles 20 © Expenditure reduction in 2020 due to COVID-19 restrictions 15 10 5 i?) 2016 2017 2018 2019 2020 $ Million ) a
Slide 35: Exploration is a long term activity
e Exploration is a long term activity that has played an important role in Antofagasta’s growth strategy e Maintain a steady exploration expenditure with a long term view supported by several orebody discoveries, mainly in Chile e Very experienced geologists and exploration teams with deep knowledge
Slide 36: René Aguilar and Alejandra Vial
René Aguilar VICE PRESIDENT OF CORPORATE AFFAIRS AND SUSTAINABILITY Alejandra Vial ENVIRONMENT MANAGER
Slide 37: Pillars of our strategy
PILLARS OF OUR STRATEGY Mas 2 and Sustainability
Slide 38: Sustainability policy
Sustainability policy PEOPLE ECONOMIC PERFORMANCE ENVIRONMENTAL MANAGEMENT SOCIAL DEVELOPMENT TRANSPARENCY AND CORPORATE GOVERNANCE 06660 38
Slide 39: People
People Promoting diversity & inclusion Female direct employee participation? 14.7% 2018 2019 2020 Target 2022
Slide 40: Increasing local employment
Increasing local employment LOCAL EMPLOYMENT Mining division Transport 9 division 40
Slide 41: Environmental
Environmental Management Model Leadership w ooo 8) Reportability of operational events and \ environmental findings Q Management of operational risks 41
Slide 42: Climate change
Cli Ch | m a t e a n ge Development of climate Strategy change resilience fan neKe) anne To strengthen the Integration ¥ i 2 Group’s capacity Reduction of stakeholders to mitigate and of GHG adapt to climate emissions change Management Efficient use of the environment of strategic and biodiversity r
Slide 43: GHG emissions
GHG EMISSIONS New reduction targets and carbon neutrality by 2050 Emission targets 300,000 Target tonnesiess GHG achieved emieslons thon nehighoicn for emissions in 2017 by 2022 of $81,355 tO, reduction Diagnosis covering 100% compared to 2020 a Scope 1 and 2 emissions [Bh scope 3 emissions [BB scop
Slide 44: Biodiversity
BIODIVERSITY Protecting the environments around us Cerro Santa Inés Monte Aranda Quebrada Llau-Llau Conchalf Wetland
Slide 45: Dialogue, collaboration, traceability
Dialogue Collaboration Traceability Excellence Transparency 45
Slide 46: Investing in our communities
INVESTING IN OUR COMMUNITIES Portfolio of initiatives by municipal district (2020) Los Pelambres a _ a 0 Att! PP sanamos A® ANTOFAGASTA ODOS renspest CLUSTER MINERO ‘Salamanca -230, Los Vilos - 173 ‘inaction, we implemanted.21 intatves at he Choapa Province level DOM 5a acrux Portfolio of initiative
Slide 47: Working responsibly
WORKING RESPONSIBLY Our commitment to transparency THE oo COPPER rovers CMM pal (sustanaurtics 7) Wepp ViGeQ iris FTSE4Good LMEpassport eee ® MSCI& @wpi BetalRabhitvindexes ShareAction» ISS ESG> WE ARE ALSO REPORTING AGAINST THE TCFD RECOMMENDATIONS
Slide 48: Mauricio Ortiz
Mauricio Ortiz CHIEF FINANCIAL OFFICER
Slide 49: A reliable track record
A RELIABLE TRACK RECORD Sustainable value & shareholder returns over the long term e Healthy operating cash flow due to our rigorous focus on costs Operating © Maintaining production at a competitive ~ unit cost throughout the cycle is paramount Cash Flow Sustainable value & e Focus on expanding EBI
Slide 50: A reliable track record
A RELIABLE TRACK RECORD Sustainable value & shareholder returns over the long term Operating Cash Flow Sustainable value & shareholder returns over the long term EBITDA & Margin NET CASH COSTS OH Net cash costs EBITDA ($M) & MARGIN 2016 or 2018 2019 2020 2021 HY TOTAL DIVIDENDS ($M) & PAY OUT RATIO
Slide 51: Pillars of our strategy
Pillars of our strategy DEVELOPING MINING FOR A BETTER FUTURE ee Competitiveness Growth Enhancing Enabling competitiveness growth
Slide 52: Cost drivers and competitive position
COST DRIVERS AND COMPETITIVE POSITION 2021 HY production cost breakdown Chilean Peso Denominated Spares & Imported Materials © Comprise 40% of our costs © Move in-line with copper prices so limited margin erosion @ Switch to renewable energy for emissions reduction and decoupled reliance on volatile
Slide 53: Cost and competitiveness programme (CCP)
COST AND COMPETITIVENESS PROGRAMME (CCP) Embedded across the business to create value COST SAVINGS PER YE, Operational Excellence e Bringing our infrastructure and plants to their full potential e Improving performance of critical processes and standardising maintenance management Goods and Services
Slide 54: Expanding the capital allocation model
EXPANDING THE CAPITAL ALLOCATION MODEL Integrating climate factors e Economic outlook e Resilience against various Copper Price scenarios Macro Perspective © Future capital expenditures Approved projects and those under evaluation Decision Factors . a © Climate resilience investments reviewed agains
Slide 55: Capex
1 1 Includes Sustaining, Mine development, plus IFRS 16 and Railway /Corporate Capex 55
Slide 56: Capital allocation model in action
CAPITAL ALLOCATION MODEL IN ACTION Climate resilience ADAPTATION RESPONSE Actions taken by the company to Actions taken by the company to adapt to Climate Change Realities mitigate to Climate Change Realities Los Pelambres Desalination Plant Switch to Renewable Energy Prolonged drought with deterior
Slide 57: Our priorities for the future
OUR PRIORITIES FOR THE FUTURE Creating sustainable value and shareholder returns Operating Cash Flow Sustainable e& EBITDA & Margin Capital Allocation Keeping Costs Control at the centre of our business Managing inflationary pressures and volatility of input prices Deliver value through the cycle an
Slide 58: Alan Muchnik
Alan Muchnik VICE PRESIDENT OF STRATEGY AND INNOVATION
Slide 59: Pillars of our strategy
Pillars of our strategy DEVELOPING MINING FOR A BETTER FUTURE
Slide 60: Innovation process - systemic approach
INNOVATION PROCESS - SYSTEMIC APPROACH Understand — Co-develop Implementation id Ps rl and define Explore Assess Prioritice and testing and value capture 1. “Improve” operational continuity and operations 9 = = DD IN VY Bas faa = full potential (target condition) SOLUTIONS - INITIATIVES > PROJECTS 2
Slide 61: Using innovation and technology for the future of mining
Using innovation and technology for the future of mining 2018-2021 today 2021-2026 advanced analytics t . New Ways ' Understanding and Automation and Autonomous Equipment CIC obotics Improve experience and operational performance Disruptive process technology ns: Y Concentration (Pre-conc., New meth
Slide 62: Iván Arriagada
Iván Arriagada CHIEF EXECUTIVE OFFICER
Slide 63: Reliable and responsible producer with embedded growth options
RELIABLE AND RESPONSIBLE PRODUCER WITH EMBEDDED GROWTH OPTIONS A very large 18 billion tonne mineral resource inventory e A new proprietary primary sulphide leach technology e Identified key value accretive brownfields and incremental growth within our asset portfolio e A five-year production plan w
Slide 64: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021