Anglo American Plc · LSE:AAL
Anglo American — FY2018 Earnings Presentation
79 slides from Anglo American's earnings presentation, Feb 21, 2019
Slide 1: 2018 Results
2018 RESULTS 21 February 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: 2018 Results Agenda
2018 RESULTS AGENDA Unlocking our Full Potential Mark Cutifani Financials Stephen Pearce Project Update Mark Cutifani A Sustainable Future Mark Cutifani 3
Slide 4: Unlocking our Full Potential
UNLOCKING OUR FULL POTENTIAL Mark Cutifani FutureSmart MiningTM innovation hub – El Soldado
Slide 5: 2018 – Continued Delivery
2018 – CONTINUED DELIVERY Production volumes1 EBITDA2 Mining margin3 6% $9.2bn 42% Dividend Free cash flow4 ROCE5 $1.3bn $3.2bn 19% 5
Slide 6: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT Safety Health Environment Group TRCFR6,7 Fatalities Occupational health – new cases6,8 Major incidents6,9 15 209 30 11 175 4.66 159 4.02 9 111 15 96 101 5.42 5 6 6 3.55 3.17 6 6 2.66 4 2 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017
Slide 7: Our Tailings Safety Management
OUR TAILINGS SAFETY MANAGEMENT Dam safety management Tailings dams in our portfolio Our mandatory Group Technical Standard exceeds ICMM and regulatory 56 tailings storage facilities, comprising 79 dams. requirements in all jurisdictions. 32 dams (41%) built by the upstream method of construction: 21
Slide 8: A Fundamentally Different Business
A FUNDAMENTALLY DIFFERENT BUSINESS Copper equivalent production and productivity10,11 2012 to 2018 Number of assets 200 180 +98% 50% productivity 160 140 120 Production volumes10,11 100 80 108 10% 60 40 2012 2013 2014 2015 2016 2017 2018 Unit costs11 Production index (Cu Eq)11 Productivity index (Cu
Slide 9: Leading Margin Curve Improvement
LEADING MARGIN CURVE IMPROVEMENT Average margin adjusted cost curve position12 (%) 49% 12 p.p. 45% 45% 43% 39% 38% 37% 36% 36% 27% Peer 1 Peer 2 Peer 3 Peer 4 Anglo 2013 2018 9
Slide 10: Leading Competitive Position
LEADING COMPETITIVE POSITION Improved operating leverage Improved financial leverage Inherent growth prospects Average margin adjusted cost curve position12 Net debt:EBITDA2 Cu Eq growth14 2018-2023 ~20-25% 0.9x 45% Peer Peer range range ~15% 37% 36% Peer 0.3x range 0.3x ~5% Anglo Peers13 Anglo Peer
Slide 11: Step-Change in Performance and Sustainability
STEP-CHANGE IN PERFORMANCE AND SUSTAINABILITY P101 Exceeding industry best-in- class process & equipment performance Operating Model Stability and optimisation FutureSmart MiningTM Game-changing technology; data analytics; sustainability Incremental improvement Step-change 11
Slide 12: Step-Change Beyond Operating Model
STEP-CHANGE BEYOND OPERATING MODEL Copper processing PGM shovels and productivity P101 Exceeding industry best-in- class process & equipment performance Venetia acceleration Longwall performance Bulk Sorting Water & energy savings FutureSmart MiningTM Game-changing technology; Data analytics Coarse
Slide 13: Inherent Growth and Higher Margins
INHERENT GROWTH AND HIGHER MARGINS Portfolio upgrade P101 Technical changes FutureSmart MiningTM Operating Model Disciplined Investment ~135 110 100 2012 2018 2023 Cu Eq production14 30% 42% ~45-50% Improvement in Mining Margin3 13
Slide 14: Financials
FINANCIALS Stephen Pearce Palladium grain
Slide 15: 2018 – Continued Delivery
2018 – CONTINUED DELIVERY EBITDA2 Underlying EPS15 Free cash flow4 $9.2bn $2.55/sh $3.2bn Capital expenditure16 Net debt17 Dividend $2.8bn $2.8bn 100c/sh $2.5bn sustaining, $0.3bn growth down $1.7bn vs FY 2017 40% of underlying earnings 15
Slide 16: Continued Delivery of Improvements
CONTINUED DELIVERY OF IMPROVEMENTS EBITDA2 variance: 2018 vs 2017 ($bn) $0.8bn initiatives delivered 0.9 0.2 offset by: (0.4) $(0.2)bn oil price & above CPI cost inflation $(0.2)bn working capital build PGMs (0.6) (0.2) 0.4 Other 108 9.5 8.8 9.2 2017 Price18 Currency CPI Minas-Rio Cost & Other 2018
Slide 17: A Resilient Balance Sheet
A RESILIENT BALANCE SHEET Net debt17 ($bn) Net debt:EBITDA2 Gearing ratio21 37% y-o-y 40% y-o-y 31% y-o-y 4.5 0.5x 13% 9% 2.8 0.3x 2017 2018 2017 2018 2017 2018 ~$0.5bn net debt increase in 2019 from IFRS 16 Leases 17
Slide 18: Delivering Returns to Shareholders
DELIVERING RETURNS TO SHAREHOLDERS 2018 dividend Payout per share Payout policy $1.3bn 100c 40% $2.6bn returned since H1: 49c, H2: 51c of underlying earnings H1 2017 18
Slide 19: Balanced Capital Allocation
BALANCED CAPITAL ALLOCATION Capital allocation framework22 2018 ($bn) Attributable free cash flow4 of $3.2bn 3.8 Add back discretionary spend Reduced net debt17 by $1.7bn Paid dividends of $1.3bn (3.3) Other adjustments (H2 2018 dividend declared: $0.7bn) Discretionary capital options $0.6bn discret
Slide 20: Life Extensions Will Deliver Value; Higher Near-Term Sustaining Capex
LIFE EXTENSIONS WILL DELIVER VALUE; HIGHER NEAR-TERM SUSTAINING CAPEX Sustaining capex16 ($bn) expanded portfolio e.g. Quellaveco ~3.2 ~3.2 2.8-3.1 2.5 0.5 0.5 0.2 2.7 2.7 2.3 2018 2019 2020-21 Long-term Lifex SIB & Stripping23 Disciplined capital allocation framework drives project selection Veneti
Slide 21: Improved Capital Efficiency
IMPROVED CAPITAL EFFICIENCY 30% ~20-25% SIB & stripping capex/Cu Eq tonne Disciplined production growth 2012-2018 2018-2023 ~135 110 100 30% 2012 2018 2023 Capital efficiency (SIB & stripping/Cu Eq tonne) Production (Cu Eq)14 21
Slide 22: High Margin, High Return, Fast Payback Options
HIGH MARGIN, HIGH RETURN, FAST PAYBACK OPTIONS 2019 growth capex16 2020-21 growth capex16 $0.6bn to $0.9bn ~$1.5bn to $2bn pa driven by Quellaveco and technology projects subject to board approvals Disciplined capital allocation framework drives project selection27 Our share: Quellaveco (Copper) $2.
Slide 23: $3-4bn Cost & Volume Improvement
$3-4BN COST & VOLUME IMPROVEMENT Delivered 2013-201720: $2-3bn $3-4bn $4.2bn ✓ Operating Model & P101 Technology & Innovation Projects $0.5bn Met Coal P101 $0.4bn Other cost & volume 201820 201920 2020-2220 23
Slide 24: A Balanced and Disciplined Approach
A BALANCED AND DISCIPLINED APPROACH Attractive growth14 Strong margin3 Resilient balance sheet ~20-25% ~45-50% <1.5x Cu Eq production – by 2023 Mining margin (LT consensus prices) bottom of the cycle net debt:EBITDA 24
Slide 25: Project Update
PROJECT UPDATE Mark Cutifani Exploration drone - Kolomela
Slide 26: Minas-Rio Restarted on Schedule
MINAS-RIO RESTARTED ON SCHEDULE ✓ • Pipeline scan complete and independently verified ✓ • 4km of pipeline replaced as a precaution; additional monitoring equipment installed ✓ • PIG inspection frequency increased to 2 years, from 5 Magnetic PIG ✓ • Re-started in December 2018; FY EBITDA negative $31
Slide 27: Quellaveco On-Track
QUELLAVECO ON-TRACK 2018 achievements 2019 priorities • Asana and Vizcachas river diversions complete • Earthworks & concrete placement for plant • Main access road complete • 4,000-bed camp • Contracts and procurement significantly progressed • Tunnel excavations for overland conveyor • Earthwork c
Slide 28: Prospective Districts in Diversified Geographies
PROSPECTIVE DISTRICTS IN DIVERSIFIED GEOGRAPHIES Brazil Cu-Au Sakatti Uniao, >37,000km2 granted & under application Chidliak Arizona Zambia Cu-Co Zambezi W, >10,000km2 secured Ecuador Brazil Corcapunta Zambezi West Quellaveco Angola Mt Isa South Los Bronces Mogalakwena Australia Cu Mt Isa South, >10
Slide 29: A Sustainable Future
A SUSTAINABLE FUTURE Mark Cutifani Copper, nickel, steel (iron ore and metallurgical coal)
Slide 30: Asset Quality Plays to Global Demand Themes
ASSET QUALITY PLAYS TO GLOBAL DEMAND THEMES Diamonds Copper PGMs Bulks ~37 Mct ~1 Mt ~5 Moz ~75 Mt iron ore Botswana Quellaveco Mogalakwena ~30 Mt met coal Namibia Collahuasi Amandelbult Thermal coal, nickel & Canada & South Africa Los Bronces Processing manganese Consumer World Greener World Electr
Slide 31: Sustainability at the Heart of Our Business
SUSTAINABILITY AT THE HEART OF OUR BUSINESS Trusted corporate leader 30% Improvement in energy efficiency by 203032 Thriving communities OPERATIONAL EFFICIENCY FEWER SURPRISES ACCESS TO RESOURCES 50% Reduction in water abstraction by 203032 Healthy environment 30% Reduction in GHG emissions by 20303
Slide 32: Attractive Long-Term Margins and Returns
ATTRACTIVE LONG-TERM MARGINS AND RETURNS 2018 Long-term Margin3 42% ~45-50% ROCE5 19% +20% Asset life33 production weighted average ~30 yrs ~30 yrs 32
Slide 33: Investment Proposition
INVESTMENT PROPOSITION “Leading capabilities actively improving a world-class asset base to drive sustainable, competitive returns” Assets Capabilities Returns Focus on quality Operating Model Capital discipline Long life FutureSmart MiningTM Dividend payout ratio Technology & Sustainability Low-cos
Slide 34: Footnotes
FOOTNOTES 1. Copper equivalent is calculated using long-term consensus parameters. Excludes 16. Cash expenditure on property, plant and equipment including related domestic / cost-plus production and impact of Minas-Rio suspension. Normalised derivatives, net of proceeds from disposal of property, p
Slide 35: Appendix
Real Mining. Real People. Real Difference.
Slide 36: Production Outlook
PRODUCTION OUTLOOK Units 2017 2018 2019F 2020F 2021F (new guidance) Diamonds1 Mct 33.5 35 31-33 33-35 35-37 Copper2 kt 579 668 ~630-660 ~620-680 ~590-650 Platinum3 Moz 2.4 2.5 ~2.0-2.14 ~2.0-2.24 ~2.0-2.24 (previously ~2.0 – 2.2) Palladium3 Moz 1.6 1.6 1.3-1.44 1.3-1.44 1.3-1.44 Iron ore (Kumba)5 Mt
Slide 37: 2018 Unit Costs Guidance Beat; Improvement Offsets Inflation in 2019
2018 UNIT COSTS GUIDANCE BEAT; IMPROVEMENT OFFSETS INFLATION IN 2019 De Beers (US$/ct)1 Copper (C1 USc/lb) PGMs (US$/Pt oz)2 Kumba (FOB US$/t) 63 60 ~65 147 134 135-140 1,443 1,561 <1,600 31 32 ~35 2017 2018 2019F 2017 2018 2019F 2017 2018 2019F 2017 2018 2019F Minas-Rio (FOB US$/t)3 Met Coal (US$/t
Slide 38: 2018 Simplified Earnings by BU
2018 SIMPLIFIED EARNINGS BY BU Kumba Iron Metallurgical Thermal $m (unless stated) De Beers Copper PGMs Nickel Other1 Total Ore Coal Coal a 2,834koz3 PGMs 43.3Mt 22.0Mt4 28.4Mt5 43.1kt Sales volume (mined) 31.7Mct2 672kt 1,305koz3 Pt Benchmark price n/a $6,526/t6 n/a $69/t7 $198/t8 $93/t9 $13,117/t6
Slide 39: 2018 Simplified Earnings by BU - Notes
2018 SIMPLIFIED EARNINGS BY BU - NOTES PGMs basket price Coal blended price Own mined volumes Coal weighted average market Price Volume Revenue Price Volume PGMs basket prices Platinum $875/oz 1,305koz $1,142m HCC $207/t 19.2Mt Palladium $1,043/oz 960koz $1,001m PCI $136/t 2.8Mt Rhodium $2,228/oz 16
Slide 40: Earnings Sensitivities
EARNINGS SENSITIVITIES Impact of 10% change Sensitivity Analysis – 20181 in price / FX Commodity / Currency 31 December spot Average realised EBITDA ($m) Copper (c/lb) 270 283 4302 Platinum ($/oz) 794 871 128 Palladium ($/oz) 1,263 1,029 102 Rhodium ($/oz) 2,445 2,204 35 Iron Ore ($/t) 73 72 301 Har
Slide 41: De Beers – Solid Production Performance
DE BEERS – SOLID PRODUCTION PERFORMANCE Sales Average Realised Underlying EBITDA Production1 Unit cost3 Capex4 (Cons.)2 price index price EBITDA margin 2018 35.3Mct 31.7Mct 123 $171/ct5 $60/ct $1,245m 20% $417m vs. 2017 #6% $2% #1% #6% $5% $13% $5pp #53% Underlying EBITDA ($m) 11 (50) 1,469 1,435 73
Slide 42: Copper – Strong Operational Performance
COPPER – STRONG OPERATIONAL PERFORMANCE Underlying EBITDA Production Sales1 Realised price1 C1 unit cost2 Capex EBITDA margin¹ 2018 668kt 672kt 283c/lb 134c/lb $1,856m 48% $703m vs. 2017 #15% #16% $2% $9% #23% #7pp #6% Underlying EBITDA ($m) (91) 1,856 223 219 1,508 58 (53) 1,505 (8) 2017 Price FX I
Slide 43: PGMs – Strong Basket Price
PGMS – STRONG BASKET PRICE Realised Underlying EBITDA Production1 Pt sales2 Unit cost3 Capex Headcount basket price2 EBITDA margin4 Pt: 2,485koz 2018 2,424koz $2,219/Pt oz $1,561/Pt oz $1,062m 29% $496m 24,800 Pd: 1,611koz vs. 2017 #4% $3% #13% #8% #23% #3pp #40% $14% Underlying EBITDA ($m) (40) (11
Slide 44: Kumba Iron Ore – EBITDA Up Despite Rail Constraints
KUMBA IRON ORE – EBITDA UP DESPITE RAIL CONSTRAINTS Realised price Unit cost Underlying Production Sales EBITDA margin Capex (FOB)1 (FOB) EBITDA 2018 43.1Mt 43.3Mt $72/t $32/t $1,489m2 43% $309m vs. 2017 $4% $4% #1% #3% #5% #2pp #35% Underlying EBITDA ($m) (54) 18 121 (39) (75) 1,489 97 1,461 1,421
Slide 45: Minas-Rio Operations Resumed Following Suspension
MINAS-RIO OPERATIONS RESUMED FOLLOWING 9 MONTH SUSPENSION Realised price Unit cost Underlying EBITDA Production Sales Capex (FOB) (FOB) EBITDA margin 2018 3.4Mt (wet) 3.2Mt $70/wmt n/a $(312)m1 n/a $106m vs. 2017 $80% $81% #8% n/a n/a n/a #361% Underlying EBITDA ($m) 454 407 34 (3) 16 (584) (182) (3
Slide 46: Metallurgical Coal – Strong Performance
METALLURGICAL COAL – STRONG PERFORMANCE Metallurgical Metallurgical FOB realised Underlying EBITDA Unit cost3 Capex production1 sales1 price2 EBITDA margin 2018 21.8Mt 22.0Mt $190/t $64/t $2,158m4 51% $574m vs. 2017 #11% #11% #3% #5% #12% $2pp #38% Underlying EBITDA ($m) 41 (96) 2,158 110 (25) 2,088
Slide 47: Thermal Coal – Driven by Higher Prices
THERMAL COAL – DRIVEN BY HIGHER PRICES Underlying EBITDA Export prod. Sales FOB price3 Unit cost4 EBITDA margin SA Capex SA1 / Col SA2 / Col SA / Col SA / Col SA / Col SA / Col 2018 18.4Mt / 10.2Mt 18.3Mt / 10.1Mt $87/t / $83/t $44/t / $36/t $650m5 / $388m 34%6 / 46% $148m vs. 2017 $1% / $4% $2% / $
Slide 48: Nickel – Benefitting from Higher Prices
NICKEL – BENEFITTING FROM HIGHER PRICES Realised C1 unit Underlying EBITDA Production1 Sales1 Capex price cost2 EBITDA margin 2018 42.3kt 43.1kt 588c/lb 361c/lb $181m 32% $38m vs. 2017 $3% 0% #24% $1% #123% #14pp #36% Underlying EBITDA ($m) (14) 191 32 (9) 181 2 (3) 92 81 2017 Price FX Inflation Cos
Slide 49: De Beers: World Leader in Diamonds
DE BEERS: WORLD LEADER IN DIAMONDS Best-in-class business Consumer focused product LightboxTM EBITDA mining margin1 Global demand Rest of world ~53% India USA Gulf China Trading business delivering Diversified customer base2 stable margins Other gifts Bridal Clarity for consumers ~8% Female Differen
Slide 50: Quellaveco – A World Class Copper Project
QUELLAVECO – A WORLD CLASS COPPER PROJECT Attractive returns Focus on execution Successfully syndicated Low cost with significant All key permits in place, further potential execution benefitting from early works IRR Payback Mitsubishi subscription > 15% 4 years $851m Real, post-tax From first produ
Slide 51: Quellaveco – Financial Modelling
QUELLAVECO – FINANCIAL MODELLING Ownership Anglo American 60%, Mitsubishi 40% Accounting treatment Fully consolidated with a 40% minority interest Shareholder loans from minority shareholder to be consolidated in Anglo American Group net debt Project capex (nominal) $5.0-5.3 billion (100% basis - An
Slide 52: Quellaveco – Accounting
QUELLAVECO – ACCOUNTING Anglo American consolidates 100% of Quellaveco’s P&L and Balance Sheet. Mitsubishi’s 40% share is shown as a non-controlling interest. After the initial $0.8bn equity injection by Mitsubishi, the project will be funded 60:40 through shareholder debt. Group net debt by the end
Slide 53: Asset Focused PGMs Strategy
ASSET FOCUSED PGMS STRATEGY World leader in PGMs Platinum demand2 - European diesel only ~20% European light duty $2,759/oz Other autocatalysts 1. Mogalakwena Other autocatalysts ~20% ~22% Base metals 49% Palladium 2018 cash margin1 Platinum Basket price Industrial & other Jewellery ~35% ~23% 2. Ama
Slide 54: PGMs Own Mined Production Split
PGMS OWN MINED PRODUCTION SPLIT By volume (PGMs) By revenue 3% 3% 3% 6% 2% 2% 11% 8% 36% 46% 14% 35% 31% Platinum Palladium Other Rhodium Gold Ruthenium Iridium 54 54
Slide 55: Structural Trends Favouring High Quality Bulks
STRUCTURAL TRENDS FAVOURING HIGH QUALITY BULKS 2018 average Fe content (%) – peer comparison1 Focus on premium products 66.7 Kumba production 64.1 64.5 60.8 60.7 64.5%Fe of which 68% is lump 57.7 Peer 1 Peer 2 Peer 3 Peer 4 Kumba Minas-Rio Minas-Rio production US$/t Widening iron ore quality spreads
Slide 56: Our Asset Improvement Journey
OUR ASSET IMPROVEMENT JOURNEY Group 2018 2013 Group 37th percentile 49th percentile Diamonds (De Beers) Copper PGMs Iron Ore Met Coal Thermal Coal Manganese Nickel Nickel & Manganese Margin adjusted cost Q1 Q2 Q3 Q4 curve position 56 56 Source: Wood Mackenzie, CRU, De Beers internal analysis, Anglo
Slide 57: Asset Quality: Differentiated Portfolio
ASSET QUALITY: DIFFERENTIATED PORTFOLIO Revenue by product1 Capital employed by geography1 Nickel and Manganese Other 6% 5% PGMs Australia Thermal coal 19% 10% 12% Brazil 24% Diamonds Met coal (De Beers) 14% 20% Chile, Peru & Colombia Iron ore 19% South Africa 12% Copper 26% Namibia & 17% Botswana 1
Slide 58: Attributable Free Cash Flow; One-Off Benefits in 2017
ATTRIBUTABLE FREE CASH FLOW; ONE-OFF BENEFITS IN 2017 Attributable Free Cash Flow ($bn) 4.9 2018 inventory build Other 2017 working capital (0.9) optimisation Sustaining capex +$0.5bn (0.7) Growth capex +$0.2bn (0.3) 3.2 0.1 2017 Working capital Capex Tax timing Other 2018 58 58
Slide 59: IFRS 16: New Accounting Standard for Leases
IFRS 16: NEW ACCOUNTING STANDARD FOR LEASES • Leases mainly corporate offices and jewellery stores; also freight and some mining equipment • Previously accounted for ‘off-balance sheet’ with lease costs taken to P&L New accounting from 2019 • Lease commitments brought onto the balance sheet, increas
Slide 60: Debt Maturity Profile
DEBT MATURITY PROFILE Debt repayments ($bn) at 31 December 2018 1.9 1.4 1.4 1.1 1.1 0.7 0.7 0.5 0.5 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Euro Bonds US$ Bonds Other Bonds Subsidiary Financing % of portfolio 45% 51% 2% 3% Capital markets 97% Bank 3% US bonds Euro bonds Other bonds (e.g. Z
Slide 61: Operating Model, Technology and Innovation
OPERATING MODEL, TECHNOLOGY AND INNOVATION
Slide 62: Anglo American Operating Model: A Differentiated Approach
ANGLO AMERICAN OPERATING MODEL: A DIFFERENTIATED APPROACH Apply a manufacturing approach to Work that is planned, scheduled and mining, through organised and efficient properly resourced is safer and delivers planning and execution of work consistently and at a lower cost Further improvements implem
Slide 63: Innovation Is Needed to Ensure Sustainability
INNOVATION IS NEEDED TO ENSURE SUSTAINABILITY Then Now Future state 1900 2018 What is required to produce 40kg of copper 24t waste 6m3 water 1t waste 3m3 water 1t ore 10 KWhr 8t ore 160 KWhr 40kg 4% Cu 0.02 Km2 0.5% Cu 100 Km2 63 63
Slide 64: P101: Focused on the Key Value Drivers
P101: FOCUSED ON THE KEY VALUE DRIVERS Mine Plant Drill Blast Load & haul Crush Mill Float & filter Percentage of 2018F direct cost base, Los Bronces = c.5% cost base >45Mtpa +10% >94% >89% Shovel Throughput Operating time Recoveries performance increase 64 64
Slide 65: A Number of Game Changing Technologies
A NUMBER OF GAME CHANGING TECHNOLOGIES >50% Reduction in water intensity Coarse Particle Recovery Dry Disposal >50% Reduction in energy intensity Advanced Shock-break Precision Classify Fragmentation 65 65
Slide 66: Coarse Particle Recovery: Improved Recoveries
COARSE PARTICLE RECOVERY: IMPROVED RECOVERIES Drill Blast Load & haul Crush Mill Float & filter • Flotation process changed to allow for larger diameter material Technology • Ore is liberated and recovered with lower waste volumes • Significant increase in throughput Benefits • Solidified disposal m
Slide 67: Coarse Particle Recovery: In Copper
COARSE PARTICLE RECOVERY: IN COPPER Drill Blast Load & haul Crush Mill Float & filter >10% >20% Increase in Operating Decrease in water and Free Cash Flow energy intensity 67 67
Slide 68: Bulk Sorting: Less Waste to Concentrator
BULK SORTING: LESS WASTE TO CONCENTRATOR Drill Blast Load & haul Crush Mill Float & filter • Uses sensors to determine ore content prior to processing Technology • Gangue is removed using natural heterogeneity of ore bodies • Provides immediate grade assays • Unlocks production capacity by rejecting
Slide 69: Bulk Sorting: In Copper
BULK SORTING: IN COPPER Drill Blast Load & haul Crush Mill Float & filter >10% Decrease in water and energy intensity 69 69
Slide 70: FutureSmart Mining: Sustainability
FUTURESMART MININGTM: SUSTAINABILITY Environment, Social and Governance
Slide 71: Innovation with Purpose: Key Messages
INNOVATION WITH PURPOSE: KEY MESSAGES Mining is getting harder: Grades declining; societal expectations increasing Context Increasing scale is not a sustainable solution A focus on greater precision and efficiency is needed Improved the business since 2012, through the operating model: 50% fewer Ope
Slide 72: Our FutureSmart Mining Programme: Step-Change Innovation in Technology and Sustainability
OUR FUTURESMART MININGTM PROGRAMME: STEP-CHANGE INNOVATION IN TECHNOLOGY AND SUSTAINABILITY Our Sustainability approach is integral to FutureSmart Mining™: to innovate and deliver step change results across the entire mining value chain. It is centred around three Global Sustainability Pillars and n
Slide 73: Our 2018 Sustainability Performance
OUR 2018 SUSTAINABILITY PERFORMANCE 2013 2014 2015 2016 2017 2018 Target Work-related 15 Zero harm fatal injuries1 11 9 6 6 5 15% year-on- TRCFR1 5.49 4.66 4.02 3.55 3.17 year reduction 2.66 New cases of Year-on-year occupational 209 175 159 111 101 reduction disease1 96 Energy 8% saving by consumpt
Slide 74: Our 2018 Sustainability Performance
OUR 2018 SUSTAINABILITY PERFORMANCE 2013 2014 2015 2016 2017 2018 Target 14% saving by Total water 276 276 339 296 306 2020 and 50% withdrawals1 227 by 2030 Environmental Year-on-year 30 incidents1 15 reduction 6 4 2 6 Jobs sustained 111 116 121 125 (‘000) 77 97 % of localised procurement 23 23 21 1
Slide 75: Coal
COAL Coal demand Our Production & Capex Profile Thermal coal makes up ~37% of the global electricity mix We have reduced our thermal coal production by 50% since 2012: IEA and other forecasts see a significant role for thermal coal in Production (Mt) Thermal Coal – South Africa capex ($m) the global
Slide 76: Tailings Dams Summary
TAILINGS DAMS SUMMARY Upstream design Downstream design Built progressively ‘upstream’ of the starter dam by Raised progressively with the crest of the dam moving incorporating tailings materials into the outer dam wall ‘downstream’ of the starter dam, with an internal drain or filter. construction,
Slide 77: Tailings Dams in Our Portfolio
TAILINGS DAMS IN OUR PORTFOLIO Tailings dams in our portfolio South America We have a total of 56 tailings storage facilities, with 79 tailings We do not have any dams built by the upstream method of dams providing tailings containment. construction in South America. A total of 32 dams (41%) are bui
Slide 78: Tailings Dams Management Process
TAILINGS DAMS MANAGEMENT PROCESS Our Group Technical Standard exceeds regulatory requirements • All our tailings dams are built following established design criteria to ensure structural integrity. Design • We adhere to the highest standards of change management to ensure structural integrity is pre
Slide 79: Investor Relations
INVESTOR RELATIONS Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Robert Greenberg robert.greenberg@angloamerican.com Tel: +44 (0)20 7968 2124 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574