Antofagasta Plc · LSE:ANTO
Antofagasta — BMO Capital Markets 2015 Global Metals & Mining Conference
20 slides from Antofagasta's conference presentation, Feb 23, 2015
Slide 1: BMO Capital Markets 2015 Global Metals & Mining Conference
BMO Capital Markets 2015 Global Metals & Mining Conference Diego Hernandez – CEO Antofagasta plc 23 February 2015
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions. This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Exampl
Slide 3: Agenda
Agenda Overview Operations and costs Growth opportunities Investment case 33
Slide 4: Investment overview
Investment overview High • Strong production, large resource base and long-life assets quality • Focus on two ‘world-class’ mining districts assets • Competitive cash costs Cost • Focus on operating and project cost control control • Strong operating margins and capital efficiency Capital • Return o
Slide 5: Market environment and outlook
Market environment and outlook • LME copper price averaged $3.11/lb in 2014 • Growth of new supply expected to slow (2013: $3.32/lb) • Current broker consensus for average 2015 • Some concerns over China’s growth copper price is around $2.96/lb • Prices supported by tight scrap market • Cautious in
Slide 6: Operations and costs
Operations and costs Los Pelambres
Slide 7: FY14 performance and FY15 guidance
FY14 performance and FY15 guidance 2014 2015 2014 highlights Hit FY FY actual Guidance Revised • Production and net cash costs beat guidance guidance1 guidance COPPER PRODUCTION (kt) • Capture of synergies: Centinela Los Pelambres P 391 385 385 Centinela2 P 267 255 255 • Consolidation of ownership o
Slide 8: Cost saving initiatives
Cost saving initiatives • Merged Esperanza and El Tesoro • Reducing sustaining capex • Shared mining fleet & waste dumps • Streamlined decision-making Centinela Capex • Lower capex estimate for Encuentro Oxides • Single vision for district • Supply managed at corporate centre Central Approach • In-h
Slide 9: Current energy contracts for Los Pelambres
Current energy contracts for Los Pelambres 80% of Los Pelambres’ energy supply will be from renewable sources from 2019 MW 250 200 Hydro 110 MW Spot 200 MW 140 Solar 50 50 MW MW 90 Coal 50 MW 40 Wind 40 MW 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 Average 2014 all-in price: $145/MWh(1) Avera
Slide 10: Dividend policy - considerations
Dividend policy - considerations Dividends Considerations Earnings • Minimum pay-out ratio of 35% of net earnings $971m $937m Copper price • Stress test forecasts at various copper prices $434m $0.99* • Free cash flow generation $0.95* Free cash flow • Cash buffer $0.44* • Upcoming capital expenditu
Slide 11: Growth Opportunities
Growth Opportunities Centinela
Slide 12: 2015 priorities – delivering on the strategy
2015 priorities – delivering on the strategy Existing core business • Constant focus on cost management • Delivery of production and cash cost guidance • Continue to get the best possible performance from existing assets Organic & sustainable growth of the core business • Complete Antucoya on budget
Slide 13: Growth pipeline
Growth pipeline In periods of lower prices and increasing capital intensity: • Focus remains on cost control and efficiency throughout the operations • Focus on higher return, lower risk brownfield debottlenecking/ expansion projects • Advance greenfield projects steadily for future development Gree
Slide 14: Antucoya – first production Q2 2015
Antucoya – first production Q2 2015 Delivering growth • 85,000 tonnes per annum of production • Commence production Q2 2015 • First full year of production 2016 • Synergies with Centinela water pipeline Current status • 99.1% overall project progress (design, procurement, construction)(1) • 98.3% co
Slide 15: Focus on brownfield expansions
Focus on brownfield expansions Centinela • Debottlenecking concentrates plant to increase throughput to 105 ktpd (2014: 86ktpd) • Project completion in Q3 2015 • Complete moly plant feasibility study early 2015 Encuentro Oxides • Encuentro Oxides will ensure maximum utilisation of existing Centinela
Slide 16: Growth opportunities beyond 2018
Growth opportunities beyond 2018 Los Pelambres – long-term further Twin Metals Minnesota Project expansion • 2.3 billion tonne resource containing copper, • A world class deposit nickel and PGMs • Current resource base triple the size of the • Pre-feasibility study complete current 23-year mine plan
Slide 17: Investment Case
Investment Case Centinela
Slide 18: Investment case
Investment case High • Strong production, large resource base and long-life assets quality • Focus on two ‘world-class’ mining districts assets • Competitive cash costs Cost • Focus on operating and project cost control control • Strong operating margins and capital efficiency Capital • Return of ca
Slide 19: Questions
Questions Los Pelambres
Slide 20: BMO Capital Markets 2015 Global Metals & Mining Conference
BMO Capital Markets 2015 Global Metals & Mining Conference 23 February 2015
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