Anglo American Plc · LSE:AAL
Anglo American — BMO Global Metals & Mining Conference 2019
18 slides from Anglo American's conference presentation, Feb 25, 2019
Slide 1: Unlocking Our Full Potential
UNLOCKING OUR FULL POTENTIAL BMO Global Metals & Mining Conference, 25 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 – Continued Delivery
2018 – CONTINUED DELIVERY Production volumes1 EBITDA2 EBITDA margin3 6% $9.2bn 42% Dividend Net debt ROCE5 100cps $2.8bn 19% 3
Slide 4: 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 5: 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 6: 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 7: 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 7
Slide 8: 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 9: 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 9
Slide 10: 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 11: Improved Capital Efficiency
IMPROVED CAPITAL EFFICIENCY Sustaining capex ~$3.2bn pa (2019-21) - attractive lifex projects adding ~10 years at ~500ktpa Cu Eq 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 t
Slide 12: 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 13: Project Update
PROJECT UPDATE Minas-Rio restarted Quellaveco on track Discovery Pipeline scan complete and Asana and Vizcachas river diversions Brazil Cu-Au: Uniao, >37,000km2 independently verified and main access road complete granted & under application 4km replaced; additional monitoring Contracts and procurem
Slide 14: 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 15: 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 16: 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 16
Slide 17: 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 18: Q&A
Q&A Copper, nickel, steel (iron ore and metallurgical coal)
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