Vedanta Resources — Mining Indaba 2017
25 slides from Vedanta Resources's conference presentation, Feb 7, 2017
Slide 1: Vedanta Resources plc: A Great Diversified Story
Vedanta Resources plc A Great Diversified Story Anil Agarwal, Chairman Tom Albanese, CEO Mining Indaba VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017 7 February 2017
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from statements. We do not undertake to update our forward-looking publicly available sources that have not been independently verified. statements. We caution you that reliance on any forward-looking statem
Slide 3: Anil Agarwal, Executive Chairman
Anil Agarwal Executive Chairman VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017
Slide 4: License to Operate • Zero Harm • Empowering Community
License to Operate • Zero Harm -Safety - Environment • Empowering Community - Corporate Social Responsibility - Free Prior Consent • Waste to Value Creation Gamsberg Biodiversity Project VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017 4
Slide 5: Leveraging Technology and Innovation
Leveraging Technology and Innovation 5 VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017
Slide 6: Group Overview: Tom Albanese, Chief Executive Officer
Group Overview Tom Albanese Chief Executive Officer VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017
Slide 7: Vedanta: A Global Diversified Natural Resources Company
Vedanta: A Global Diversified Natural Resources Company Overview Cost Curve Positioning • Portfolio of large, diversified, low-cost assets in base Position on respective commodity C1 cost curve metals and oil I II III IV Zinc • FY16 group revenue of $10.7bn and EBITDA of India Zinc Size of circle $2
Slide 8: Attractive Commodity Mix
Attractive Commodity Mix Vedanta’s commodity basket has captured commodity price upside, with low volatility Aluminium Zinc Copper Iron Ore 62%² Silver Brent Oil VED commodity Basket¹ 700 Vedanta’s commodity 600 basket up by 53% since Jan’16 500 (01 Jan 2016 = 100) Commodity prices 400 300 194% Silv
Slide 9: Attractive Commodity Mix (cont'd): Zinc Fundamentals
Attractive Commodity Mix (cont’d) Zinc: Strong fundamentals supporting performance CY 2016E Zinc C1 composite cost curve Global zinc concentrate deficit supporting zinc prices (kt) $/t 800 Century closure Zinc Zinc (500ktpa) India Intl 600 Lisheen closure 2,000 (160 ktpa) 400 1,500 200 0 1,000 -200
Slide 10: Proven Track Record
Proven Track Record 19% CAGR production growth since listing Total Production (copper equivalent kt) 3,000 Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas Copper Equivalent Production (kt) 2,500 2,000 +66% 1,500 1,000 500 0 Design FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY1
Slide 11: The India Story is Compelling
The India Story is Compelling… India’s demand is growing 18 Copper consumption (kg/capita) 4,500 16 Germany Real GDP Per Capita (USD) 4,000 14 South Korea 3,500 12 3,000 10 China 2,500 8 2,000 GDP/capita 6 Japan US 1,500 growth 1,000 4 500 2 India 0 0 2015 2020 2025 2030 0 10 20 30 40 50 60 GDP (k$
Slide 12: Vedanta in Africa
Vedanta in Africa We've had a presence in Africa since 2004 Our Presence in Africa Mining copper in Zambia at Konkola Copper South Africa Mines (KCM) Producing zinc & lead concentrate in South Zinc-lead-silver • Black Mountain Africa at Black Mountain Mining (BMM) • Gamsberg Project Producing
Slide 13: Making a Positive Contribution in Africa
Making a Positive Contribution in Africa In Namibia and South Africa - +1,000 cataract cases treated in the Northern Cape (SA) BMM Developed a full brick-making plant, run by members of the local community in the Northern Cape School support programmes Upgrade of Rosh Pinah State Clinic in N
Slide 14: Business Overview
Business Overview VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017
Slide 15: Cairn India
Cairn India India’s leading O&G producer Strongly positioned on the global oil cost curve Cairn India is the largest private sector producer of crude oil in Opex 100 $/bbl India 90 Operating c.27% of India’s domestic crude oil production 80 70 On shore & offshore blocks in India 60 50 Strong
Slide 16: Hindustan Zinc Limited
Hindustan Zinc Limited Second largest integrated producer in the world and owns the world’s largest mine Rampura Agucha Largest zinc producer in India with 79.1% market share Current capacity of 1million tonnes of Zinc-Lead to be expanded to 1.2 million tonnes Produces 16moz of silver with pot
Slide 17: Zinc International
Zinc International Existing Operations Skorpion Zinc: Strongly positioned in the second quartile of the cost curve1 Pit push back underway to extend LOM to 2020 Exploring opportunities for LOM extension via underground development beyond 2020 Black Mountain Mine: Swartberg expansion prop
Slide 18: Zinc International – Gamsberg Project
Zinc International – Gamsberg Project Gamsberg has ~214 mn tonnes of resources and 35 yr LOM Gamsberg is a large, high return project Gamsberg North Gamsberg East Resource U/G Resource 181.76Mt of Ore @ 32.27Mt of Ore @ 6.34% Zn 9.83% Zn Project NPV ($mm) Project IRR Gamsberg pre-start mining in pro
Slide 19: Sterlite Copper
Sterlite Copper 400ktpa copper smelter accounting for 40% of total Indian copper capacity Efficient by-product management Considering expansion opportunity to reach up to 800ktpa smelter capacity Sustained, high utilisation rate Copper cathode production (kt) Utilisation rate 450 96% 100% 91%
Slide 20: Konkola Copper Mines PLC
Konkola Copper Mines PLC Vision of 50 years of mining at world-class asset KCM: One of world’s highest grade copper mines Top 25 producing copper mines by contained copper (mt) Konkola Copper Mines plc (KCM) is one of Africa's 140 largest integrated copper producers Contained Cu in R&R 120 100 80
Slide 21: Sesa Iron Ore
Sesa Iron Ore Vedanta’s cost lower than top four iron ore miners¹ Vedanta’s iron ore business is in the states of Goa and Karnataka Avg. C1 cash cost : $14.3/t India's largest private sector exporter of iron ore since 2003 Competitive cost position: first quartile (58% Fe cost basis) Current
Slide 22: Aluminium Business
Aluminium Business Major Indian producer with established infrastructure #1 aluminium producer in India by installed capacity Primary products are aluminium ingots, wire rods, billet and rolled products Plants located close to states with rich bauxite ores & domestic coal Established infrast
Slide 23: Power Business
Power Business Increased availability of domestic coal has enabled lower One of the largest power generators in India coal costs Vedanta is well positioned to capitalise on India’s Domestic coal Imported coal 100% 5% 6% 0% 160 8% economic growth, power deficit and large coal reserves 90% 23% 14% 1
Slide 24: Our Strategic Objectives Remain Unchanged
Our Strategic Objectives Remain Unchanged Production growth and asset optimisation Disciplined approach towards ramp up De-levering the balance sheet Reduce gross debt Continued optimisation of opex and capex Continued discipline around working capital Simplifying the Group structure Compl
Slide 25: Thank You
Thank You VEDANTA RESOURCES PLC – MINING INDABA PRESENTATION, FEBRUARY 2017 25