Anglo American Plc · LSE:AAL
Anglo American — FY2023 Earnings Presentation
88 slides from Anglo American's earnings presentation, Feb 22, 2024
Slide 1: 2023 Results
2023 Results 22 February 2024
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This document has been prepared by Anglo American plc (“Anglo American”) and comprises the written Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be materials/slides for a presentation co
Slide 3: Introductory comments
Introductory comments Stuart Chambers Chairman Anglo American 3
Slide 4: Agenda
Agenda Strategic priorities Duncan Wanblad 2023 operating performance Duncan Wanblad, Chief Executive 2023 financial performance John Heasley, Finance Director Operational detail, portfolio replenishment & growth Duncan Wanblad Anglo American 4
Slide 5: Strategic priorities
Strategic priorities Duncan Wanblad 5
Slide 6: Shaping the business for the major demand trends
Shaping the business for the 3 major demand trends Energy Improving living Food transition standards security Anglo American 6
Slide 7: Clear strategic priorities to deliver value through the cycle
Clear strategic priorities to deliver value through the cycle Immediate & ongoing Continuous review Operational Portfolio 1 excellence 2 improvement Longer term 3 Growth delivery Execution underpinned by our differentiated capabilities & disciplined approach to capital allocation Anglo American 7
Slide 8: Operational excellence: Committed to safe, efficient, profitable production
Operational excellence: Committed to safe, efficient, profitable production Safe, stable & repeatable Effective cost & capital Sustainable, value-focused operational performance management production plans Safety & operating performance inextricably linked ~$1bn pa Prioritising stability at Quellave
Slide 9: Portfolio: Commitment to improvement & active management
Portfolio: Commitment to improvement & active management Crop Nutrients Systematic asset review under way Manganese Copper Steelmaking Production Coal mix from Each business must play a portfolio role long term portfolio2 High quality Nickel Iron Ore Ongoing active management of portfolio – always f
Slide 10: Growth: Longer term, but substantial options in attractive products
Growth: Longer term, but substantial options in attractive products Prioritising products with Copper strongest long term fundamentals Up to 1Mtpa in mid-2030s3 Aligned with megatrends Polyhalite & our distinctive capabilities +13Mtpa from mid-2030s4 High quality iron ore Partnerships & syndication
Slide 11: Differentiated capabilities enable value delivery
Differentiated capabilities enable value delivery FutureSmart MiningTM Leading sustainability & supporting profitability social impact capabilities & sustainability agenda Customer-centric Partner of choice marketing Anglo American 11
Slide 12: 2023 operating performance
2023 operating performance Duncan Wanblad 12
Slide 13: Safety is our number 1 value
Safety is our number 1 value Lowest ever TRIFR The Operating Model underpins well planned work TRIFR6,7 2.24 Increased leadership time in the field 2.19 Focus on contractor performance management 1.78 Fatalities6 Target of zero harm through our ‘Always safe’ vision 2 2 3 20218 2022 2023 Anglo Americ
Slide 14: 2023 operating performance
2023 operating performance Production9 Copper & Nickel ↑23% PGMs ↓5% Solid operational performance 2% Quellaveco fully ramped-up Copper Chile & Nickel impacted Limited impact from load curtailment by grade declines Macro pressures weighing on prices Iron Ore ↑1% Steelmaking Coal ↑7% De Beers ↓8% M
Slide 15: 2023 financial performance
2023 financial performance John Heasley 15
Slide 16: Robust 2023 financial results despite $5.5bn revenue impact
Robust 2023 financial results despite $5.5bn revenue impact from market weakness in PGMs & De Beers Group basket price 13% EBITDA10 $10.0bn 31% Revenue10 $32.5bn 13% Mining margin12 39% 8pp Unit costs11 4% Net debt $10.6bn 53% ROCE13 EPS10 Total dividend Net debt:EBITDA10 16% 2.42 96 cen
Slide 17: EBITDA impacted by weaker prices
EBITDA impacted by weaker prices EBITDA10 (3.1) $bn (1.0) (0.7) (4.8) PGMs SMC De 14.5 Beers (4.8) (0.7) 10.0 10.0 1.0 (0.1) 0.1 2022 Price14 FX CPI15 Volume & cost 16 Other 2023 Anglo American 17
Slide 18: Strong operational performance at Quellaveco & Minas-Rio offset by challenges
Strong operational performance at Quellaveco & Minas-Rio offset by challenges elsewhere Volume & cost impacts to EBITDA16 $bn 0.3 (0.7) 1.5 (0.7) (0.5) (0.1) Que ramp-up Minas-Rio De Beers Copper Chile PGMs Anglo American 18
Slide 19: Total costs are a key focus for 2024 & beyond
Total costs are a key focus for 2024 & beyond to improve margins & cash generation Group unit costs Focusing on total cost base contained to +4%11 to drive margin improvement Year-on-year change in unit costs for key drivers of Group unit cost17 Lower production, cost $22.5bn inflation & stronger CL
Slide 20: Resilient Group mining margin of 39%
Resilient Group mining margin of 39% Copper & Nickel Steelmaking Coal EBITDA10 $10.0bn 13% $3.4bn Mining margin12 39% Copper 42% margin 32% PGMs De Beers EBITDA $1.2bn $0.1bn contribution by business10 30% margin 48% margin High quality Nickel Iron Ore 1% Iron Ore Steelmaking Coal 40% PGMs $4.0bn $1
Slide 21: Other financials
Other financials Effective tax rate18 Impacts from special items include: 38.5% vs 34.0% in 2022 $1.6bn impairment of De Beers: Driven by: • Lower GDP growth forecast due to macroeconomic uncertainty in key markets • profit mix – more from Quellaveco, less from • USD strength vs consumer currencies
Slide 22: Investing in our high quality growth options
Investing in our high quality growth options Capex19 $bn 5.7 5.7 Growth 1.6 1.3 2023 capex in line with 2022 Growth spend focused on Woodsmith & Copper Rising capital expenditure & operating costs across Sustaining 4.1 4.4 the industry will drive prices higher 2022 2023 Anglo American 22
Slide 23: Significant improvement targeted in sustaining attributable free cash flow
Significant improvement being targeted in sustaining attributable free cash flow Impacted by $1.2bn working capital build Cash flows Inventory builds at 0.2 (0.1) $bn 0.2 De Beers & Kumba 0.4 1.2 & pricing impacts 0.5 in PGMs & iron ore De Beers Kumba PGMs Minas- Other Rio 10.0 (0.7) (1.2) 8.1 (2.0)
Slide 24: Net debt impacted by earnings & investment in portfolio
Net debt impacted by earnings & investment in portfolio Net debt Focused on significant cost & capital $bn savings to drive sustainable 10.6 improvement in cash generation 0.9 1.6 Investment in value-adding growth in products with strongest long term 6.9 1.3 fundamentals (0.1) Dividend paid includes
Slide 25: Committed to delivering significant improvement in cash generation
Committed to delivering significant improvement in cash generation ~$0.5bn pa saving from corporate streamlining ~$0.5bn pa savings from across the businesses ~$1bn pa opex saving • Los Bronces plant closure well progressed • PGMs cost out programme • Additional savings at Kumba, SMC & De Beers Opti
Slide 26: Key financial messages
Key financial messages • $1bn pa opex savings by end of 2024 1 Costs • Addressing cash generation challenge • $1.6bn capex savings 2024-261 2 Capital • Opportunities to optimise sustaining capex • Clear prioritisation of growth capital • Committed to financial discipline 3 Leverage • <1.5x net debt:
Slide 27: Operational detail
Operational detail Duncan Wanblad 27
Slide 28: Embedding higher confidence in operational plans across portfolio
Embedding higher confidence in operational plans across portfolio Clear accountability for delivery 1 underpinned by organisational re-design Focus on Operating Model to drive safe, stable 2 production with confidence in delivery of plans Prioritising the most value accretive 3 additional technologi
Slide 29: Prioritising safety at Quellaveco
Prioritising safety at Quellaveco • Fault necessitated change to mine plan • Impacted a higher grade phase scheduled for 2024 • Safety prioritised: pit wall slope laid back from 52° to 40-45° 1. Initial slope design • Mine plan resequenced: producing from lower grade phases while additional developm
Slide 30: Value-focused production at Los Bronces
Value-focused production at Los Bronces while operationally constrained in the near term • Single mining phase: lower grade, harder ore impacting volumes & cost led to asset review Improving ore properties from ~2027 • Second plant which is smaller, older & higher cost put on C&M Plant closure unloc
Slide 31: Decisive action at PGMs & Kumba to right-size footprint
Decisive action at PGMs & Kumba to right-size our operational footprint PGMs: Relentless focus on costs & capex Kumba: Adjusting to logistics constraint • Intentional strategy at concentrators to produce higher • Costs adjusted to restore competitiveness grade concentrate • Kolomela lifex rephasing
Slide 32: Transforming operations at Steelmaking Coal & De Beers
Significant work underway to transform operations at Steelmaking Coal & De Beers Steelmaking Coal: Safety first De Beers is streamlining • Gas, depth & strata are complex geotech challenges • $2.4bn lower rough diamond revenue reflects weaker demand in our key markets of US & China • Ground conditio
Slide 33: Portfolio replenishment & growth
Portfolio replenishment & growth Duncan Wanblad 33
Slide 34: Highly attractive, value-accretive organic copper growth pipeline
Highly attractive, value-accretive organic copper growth pipeline 50-100 Collahuasi expansion Further expansion ~100 ~1Mt3 ~20 potential at Quellaveco being ~150 826 evaluated ~15 ~25 Portfolio adjacencies provide value opportunities 2023 5th ball mill Debottleneck 4th line Quellaveco Sakatti25 Los
Slide 35: Woodsmith: Significant 2023 progress
Woodsmith: Significant 2023 progress Strong project progress Ongoing market development Two 1.6km deep shafts: Innovative downstream strategy • Service shaft: ~745m • >1,800 on-field demonstrations, with • Production: ~510m large scientific research program • Engagement throughout the value Tunnel:
Slide 36: Combining Serpentina with Minas-Rio
Combining Serpentina with Minas-Rio focuses on long term value creation Acquire Serpentina plus $157.5m in cash from Serpentina offers value upside Vale for a 15% stake in Minas-Rio26 from scale & quality27 • Minas-Rio moves into harder itabirite ore in mid-2030s Significantly larger • ~4.3Bt Minera
Slide 37: Wrap-up
AngloAmerican Wrap-up Duncan Wanblad
Slide 38: Clear strategic priorities to deliver value through the cycle
Clear strategic priorities to deliver value through the cycle Immediate & ongoing Continuous review Operational Portfolio 1 excellence 2 improvement Longer term 3 Growth delivery Execution underpinned by our differentiated capabilities & disciplined approach to capital allocation Anglo American 38
Slide 39: To ask a question
To ask a question Copper PGMs Iron ore & Steelmaking coal Nickel Diamonds Crop Nutrients UK & other +44 20 3481 4247 / SA +27 105 348 155 / US +1 800 715 9871 Conference ID: 5880539 Anglo American 39
Slide 40: Footnotes
Footnotes 1. Capex savings in 2023-2025 calculated comparing latest guidance to previously 14. Price variance calculated as increase/(decrease) in price multiplied by current period published guidance. 2026 capex saving of ~$0.4bn is versus previous budget. sales volume. 2. Attributable copper equiv
Slide 41: Appendix
Shift picture to capture the full bodies Shift picture to capture the woman of the woman and man in the picture fully in the picture Appendix
Slide 42: Our investment proposition
Our investment proposition Competitive assets Differentiated capabilities Sustainable returns Leading market positions Sustainability leadership World class growth options in aligned with demand trends & partner of choice attractive products Focus on operational Focused technology Proven project exc
Slide 43: Simplified earnings and guidance
Simplified earnings and guidance
Slide 44: 2023 simplified earnings by Business
2023 simplified earnings by Business De Beers - Steelmaking $m (unless stated) Copper1 Nickel PGMs Iron Ore2 Other3 Total Diamonds Coal Sales volume (mined share) 843kt 39.8kt 2,573koz4 24.7Mct5 61.5Mt 14.9Mt6 Average benchmark price $8,488/t7 $21,473/t7 n/a n/a $125/t $278/t8 Product premium/(disco
Slide 45: 2023 simplified earnings by Business - notes
2023 simplified earnings by Business - notes PGMs basket price Iron Ore realised price Steelmaking Coal blended price Own mined Market price Sales Volume PGMs basket Realised price Volume Revenue Total Iron Ore Kumba Minas-Rio HCC $296/t 11.5Mt Platinum $959/oz 1,150koz $1,103m Market price32 $125/t
Slide 46: Guidance summary
Guidance summary Earnings Capex¹ Other Volumes See slide 47-48 2024 ~$5.7bn Net debt: EBITDA : <1.5x bottom of cycle Growth ~$1.2bn Unit costs See slide 49 Sustaining ~$4.5bn • Baseline ~$3.4bn • Lifex ~$0.7bn 2024 depreciation $3.0-3.2bn • Collahuasi desalination3 ~$0.4bn 2025 ~$5.7bn 2024 underlyi
Slide 47: Production outlook
Production outlook Units 2022 2023 2024F 2025F 2026F Copper1 kt 664 826 730-790 690-750 760-820 Nickel2 kt 40 40 36-38 35-37 35-37 Platinum Group Metals3 Moz 4.0 3.8 3.3-3.7 3.0-3.4 3.0-3.4 Diamonds4 Mct 35 32 29-32 30-33 32-35 Iron Ore5 Mt 59 60 58-62 57-61 58-62 Steelmaking Coal6 Mt 15 16 15-17 17
Slide 48: Production outlook – supplementary guidance
Production outlook – supplementary guidance Units 2022 2023 2024F 2025F 2026F Chile: 562 Chile: 507 Chile: 430-460 Chile: 380-410 Chile: 440-470 Copper1 kt Peru: 102 Peru: 319 Peru: 300-330 Peru: 310-340 Peru: 320-350 Own mined: 2.6 Own mined: 2.5 Own mined: 2.1-2.3 Own mined: 2.1-2.3 Own mined: 2.1
Slide 49: Unit costs outlook by Business
Unit costs outlook by Business Copper (C1 c/lb)1 Nickel (C1 c/lb) PGMs ($/PGM oz)2 -5% +11% -5% Chile: Chile: 200 ~190 154 166 Peru: ~157 Peru: 541 ~600 937 968 ~920 111 ~110 513 2022 2023 2024F 2022 2023 2024F 2022 2023 2024F Diamonds ($/ct)3 Iron Ore (FOB $/t)4 Steelmaking Coal ($/t)5 +13% -3% -5%
Slide 50: Earnings sensitivities
Earnings sensitivities Impact of 10% Sensitivity analysis – 20231 change in price / FX Commodity / Currency 31 December spot Average realised 12-month EBITDA ($m) Copper (c/lb)2 384 384 690 3 4 Nickel ($/lb) 5.91 7.71 104 Platinum ($/oz) 1,006 946 122 Palladium ($/oz) 1,119 1,313 140 Rhodium ($/oz)
Slide 51: Capex guidance
Capex guidance Capex1 ($bn) Growth2 ~1.2 ~1.3 ~1.3 Collahuasi desal ~0.4 ~0.2 Lifex ~0.7 ~0.7 ~0.5 Baseline sustaining ~3.4 ~3.5 ~3.5 3.0-3.5 + lifex 2024F 2025F 2026F Long-term1 Totals ~5.7 ~5.7 ~5.3 1. Cash expenditure on property, plant and equipment including related derivatives, net of proceeds
Slide 52: Life extension capex
Life extension capex Major components of lifex¹ ($bn) Guidance ~0.7 ~0.7 ~0.5 Mototolo – Der Brochen2 (PGMs) ~0.1 ~0.1 Venetia (Diamonds) ~0.3 ~0.3 ~0.1 ~0.1 Jwaneng3 (Diamonds) Mogalakwena4 (PGMs) ~0.1 ~0.1 ~0.1 2024F 2025F 2026F Forecast Returns Capex (pa) Volume (pa) From1 LOM extension IRR Margi
Slide 53: Key projects driving growth capex
Key projects driving growth capex Major components of growth capex¹ ($bn) Guidance ~1.2 ~1.3 ~1.3 Collahuasi2 (Copper) ~0.1 ~0.2 ~0.1 Woodsmith3 (Crop Nutrients) ~0.9 ~1.0 ~1.0 Technology & innovation4 ~0.2 ~0.1 ~0.1 2024F 2025F 2026F Capex1 Volume (pa) From1 Growth optionality Woodsmith3 Optimisati
Slide 54: Key operational outlooks
AngloAmerican Key operational outlooks
Slide 55: Los Bronces: Temporarily constrained until higher grade ore ~2027
Los Bronces: Temporarily constrained until higher grade, softer ore from new phases ~2027 • Current, single ore phase is hard, lower grade ore • Development of next phases delayed due to permitting & other factors • Production expected from a softer, higher grade ore phase (Donoso 2) from early 2027
Slide 56: Los Bronces: Removing cash-negative tonnes
Los Bronces: Removing cash-negative tonnes • Two processing plants at Los Bronces mine: Value focus Confluencia (~90ktpd) & Los Bronces (~60ktpd) ✓ Significant cash flow benefits as outlined on slide 30 • Smaller, older Los Bronces processing plant will be ✓ Step-down in C1 unit cost position from g
Slide 57: Minas-Rio: Focus on safe & stable performance
Minas-Rio: Focus on safe & stable performance while progressing Serpentina for long term value • Near term focus is on safe and stable production of high quality premium products Stable production of high quality premium product (Mt) • Also increasing the maturity of capital projects to sustain & gr
Slide 58: De Beers streamlining to capture margin
De Beers streamlining to capture margin • Embedding ~$0.1bn pa sustainable cost savings, with Streamlining further 2024 cash benefits being identified • 25% reduction in executive leadership positions • More targeted exploration spend Focusing • Focus on progressing core Jwaneng & Venetia Undergroun
Slide 59: Result by business
Result by business
Slide 60: Copper Total – Quellaveco offsetting lower production in Chile
Copper Total – Quellaveco offsetting lower production in Chile Realised Underlying Mining Production Sales1 Unit cost2 Capex price EBITDA margin3 2023 826kt 843kt 384c/lb 166c/lb $3,233m 44% $1,684m vs. 2022 24% 32% 0% 8% 48% 5pp 17% Underlying EBITDA ($m) 3,233 186 880 2,182 (16) 2,167
Slide 61: Copper Chile
Copper Chile – production challenges at Los Bronces & El Soldado and higher unit costs Realised Underlying Mining Production Sales1 Unit cost2 Capex price EBITDA margin3 2023 507kt 505kt 384c/lb 200c/lb $1,452m 31% $1,268m vs. 2022 10% 10% 1% 27% 26% 9pp 4% Underlying EBITDA ($m) 1,952
Slide 62: Copper Peru – reached commercial production levels in June
Copper Peru – reached commercial production levels in June Realised Underlying Mining Production Sales Unit cost1 Capex price EBITDA margin 2023 319kt 339kt 384c/lb 111c/lb $1,781m 65% $416m vs. 2022 212% 337% 1% 18% 674% 27pp 49% Underlying EBITDA ($m) 1,781 15 1,536 230 2022 Cost & v
Slide 63: Nickel – impacted by significantly lower prices
Nickel – impacted by significantly lower prices Realised Underlying Mining Production1 Sales1 Unit cost Capex price EBITDA margin 2023 40.0kt 39.8kt $7.71/lb $5.41/lb $133m 20% $91m vs. 2022 1% 2% 25% 5% 65% 24pp 15% Underlying EBITDA ($m) 381 (232) (9) 125 133 (15) 8 0 2022 Price FX I
Slide 64: PGMs – impacted by lower basket price & POC
PGMs – impacted by significantly lower basket price & POC Realised Underlying Mining Production1 Sales2 Unit cost4 Capex basket price3 EBITDA margin5 2023 3,806koz 3,925koz $1,657/PGM oz $968/PGM oz $1,209m 30% $1,108m vs. 2022 5% 2% 35% 3% 73% 24pp 9% Underlying EBITDA ($m) 4,417 (3,1
Slide 65: Diamonds – weak demand & lower prices
Diamonds – weak demand & lower prices, reduced trading margin and higher unit costs Average Realised Underlying Mining Production1 Sales (Cons.)2 Unit cost4 Capex price index price3 EBITDA margin5 2023 31.9Mcts 24.7Mcts 133 $147/ct $71/ct $72m 48% $623m vs. 2022 8% 19% 6% 25% 20% 95% 4
Slide 66: Iron Ore Total – benefitting from higher prices and weaker FX
Iron Ore Total – benefitting from higher prices and weaker FX Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1 (FOB)1 EBITDA margin 2023 59.9Mt 61.5Mt $114/t $38/t $4,013m 50% $909m vs. 2022 1% 6% 3% 0% 16% 5pp 9% Underlying EBITDA ($m) 4,013 (157) 3,889 86 269
Slide 67: Kumba (Iron Ore)
Kumba (Iron Ore) – benefitting from higher prices & FX, despite logistics constraints & increased costs Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1,2 (FOB)1 EBITDA Margin 2023 35.7Mt 37.2Mt $117/t $41/t $2,415m 52% $538m vs. 2022 5% 1% 4% 3% 9% 4pp 20% Un
Slide 68: Minas-Rio (Iron Ore) – record production & sales
Minas-Rio (Iron Ore) – record strong production & sales Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1 (FOB)1 EBITDA margin 2023 24.2Mt 24.3Mt $110/t $33/t $1,598m 48% $371m vs. 2022 12% 14% 2% 6% 28% 7pp 132% Underlying EBITDA ($m) 1,598 33 298 1,244 (20) 1
Slide 69: Steelmaking Coal – impacted by lower prices & higher unit costs
Steelmaking Coal – impacted by lower prices & higher unit costs Realised Underlying Mining Production1 Sales1 Unit cost3 Capex price2 EBITDA margin 2023 16.0Mt 14.9Mt $261/t $121/t $1,320m 32% $619m vs. 2022 7% 2% 14% 13% 52% 23pp 4% Underlying EBITDA ($m) 2,749 (952) 1,756 50 (91) 25
Slide 70: Group EBITDA to earnings waterfall
Group EBITDA to earnings waterfall Group EBITDA to statutory profit ($bn) 10.0 D&A $0.3bn higher largely due to Quellaveco reaching commercial production in mid-year (2.8) Higher net finance costs reflect higher net debt & interest rates - majority of Group’s borrowings (0.6) are floating 38.5% ETR
Slide 71: Liquidity
Liquidity
Slide 72: Strong liquidity & limited near-term debt maturities
Strong liquidity & limited near-term debt maturities Liquidity1 Debt repayments ($bn)1 2.4 $13.2bn 2 1.7 1.8 +$6.1bn cash 1.5 +$7.2bn undrawn committed facilities 1.2 1.0 0.9 0.9 0.7 0.8 0.7 0.6 Majority of cash held centrally in US dollars 0.4 0.5 0.2 0.1 0.1 0.1 Strong Investment Grade credit metr
Slide 73: Portfolio overview
S AngloAmerican c “ Portfolio overview
Slide 74: Portfolio overview – key assets
Portfolio overview – key assets1 Sakatti early-stage project ~100kt4 Copper Gahcho Kué Nickel 2.8Mcts2 Woodsmith project ~13Mtpa3 Platinum Group Metals (PGMs) Diamonds (De Beers) Iron Ore Steelmaking Coal Crop Nutrients Barro Alto 40kt Quellaveco Jwaneng/Orapa Moranbah, Grosvenor, Nami
Slide 75: A differentiated portfolio of high quality assets
A differentiated portfolio of high quality assets Revenue by product1 Capital employed by geography2 % % Iron Ore 25 Chile & Peru 27 Copper 23 South Africa 23 PGMs 21 Brazil 20 Diamonds (De Beers) 13 Australia 10 Steelmaking Coal 13 Namibia & Botswana 9 Manganese 2 Other 7
Slide 76: High quality endowments in future-enabling products
High quality endowments in future-enabling products 35 year open pit life (Ore Reserves of 8.2Mt Cu) World class endowments offer Quellaveco Exclusive Mineral Resources of 7.6Mt Cu Exploring further mineralisation potential UG & in Mamut satellites exciting potential 33 year open pit life (Ore Reser
Slide 77: Product outlook – medium to long term
Product outlook – medium to long term • Demand is robust in the long term, given its critical role in decarbonisation as well as traditional industrial applications Copper • Consensus estimates continue to underestimate the complexity and lead times involved in the commissioning of new supply • Whil
Slide 78: Sustainability performance
Sustainability performance
Slide 79: Our Sustainable Mining Plan at the heart of our strategy
Our Sustainable Mining Plan at the heart of our strategy Anglo American 79
Slide 80: Active route to a more sustainable world
Active route to a more sustainable world 2020 2021-23 2025 2030 2040 8% SA Thermal Coal demerger 100% 3-5 GW 30% Carbon completed2 energy renewable electricity renewable energy absolute reduction in neutrality across efficiency1 Cerrejón sale of shareholding powering Australian generated from Envusa
Slide 81: Operations carbon neutral by 2040
Operations carbon neutral by 2040 Scopes 1 & 2 - GHG emissions Three renewables plants in construction in South Africa 2030 goal – 30% reduction of GHG emissions vs 20161 Ongoing roll-out of South America 100% Australia 100% integrated solar and renewable energy renewable energy wind generation in E
Slide 82: Ambition: 50% reduction in Scope 3 emissions by 2040
Ambition: 50% reduction in Scope 3 emissions by 2040 Driving scope 3 emissions reduction within our sphere of influence and control 15-20% 10-15% 15-20% ~45-55% 50% emissions 10-15% reduction target 2020 baseline Kumba emission Minas-Rio emission Steelmaking coal 50% reduction 2040 intensity levers1
Slide 83: Our ESG ratings reflect our leading capabilities
Our ESG ratings reflect our leading capabilities in sustainable mining AAA Anglo American AA A Peer 2 Peer 3 BBB Peer 1 MSCI1 BB B Peer 4 CCC 40 35 30 25 20 Sustainalytics2 High risk Medium risk Based on original analysis prepared by Barclays in their research note “ESG comps: leaders and improvers”
Slide 84: Processed Mineral Residue Facilities safety management
Processed Mineral Residue Facilities safety management Managing Processed Mineral Residue Facilities safely Processed Mineral Residue Facilities in our portfolio 1 Group Technical Specialists 57 21 Managed facilities Facilities inactive or in care & maintenance Internal risk assurance 27 9 Facilitie
Slide 85: ESG integrated into management remuneration
ESG integrated into management remuneration SHE targets in annual bonus Individual & Strategic EPS 34% 30% All employees under the Group bonus scheme & local site-specific operational bonus schemes are incentivised on safety 10% 30% strategic & individual measures that can contain additional ESG-lin
Slide 86: Measuring our ESG progress: 2023 targets
Measuring our ESG progress: 2023 targets1 Pillar of value Metric 2023 2022 Target Target achieved Safety & health Work-related fatal injuries 3 2 Zero Not achieved Total recordable injury frequency rate per million hours 1.78 2.19 Reduction year on year On track New cases of occupational disease 15
Slide 87: Sustainability summary
Sustainability summary Sustainability twice-yearly update presentations FutureSmart MiningTM → For presentations and webinar replays, visit: To deliver on our Purpose, we are changing the way we mine through smart angloamerican.com/investors/investor-presentations innovation across technology, digit
Slide 88: Investor Relations
Investor Relations Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 Juliet Newth juliet.newth@angloamerican.com Tel: +44 (0)20 7968 8830 Michelle Jarman michelle.jarman@angloamerican.com Tel: +44 (0)20 7