Antofagasta Plc · LSE:ANTO
Antofagasta — Merrill Lynch Global Metals, Mining & Steel Conference 2000
22 slides from Antofagasta's conference presentation, May 2000
Slide 1: Merrill Lynch Global Metals, Mining & Steel Conference
Merrill Lynch Global Metals, Mining & Steel Conference ANTOFAGASTA PLC Jean-Paul Luksic Deputy Chairman May 2000, Phoenix, AZ ANTOFAGASTA PLC
Slide 2: Group operations & ongoing projects
Group operations & ongoing projects Northern Chile Michilla (74%) Copper Cathodes 50,000 tpy Antofagasta Tesoro (61%) project Copper Cathodes Railway 75,000 tpy (100% ) 3.2 million tons//yr tons Los Pelambres (60%) Punta Chungo Copper Concentrates 300,000 tpy Santiago ANTOFAGASTA PLC
Slide 3: Key investor information
Key investor information • Total Assets: US$ 1.84 bn - Dec 99 (US$ 0.56 bn - Dec 97) • Market Cap : US$ 1.14 bn (May 11) Free Float : 35.6% (75% UK investors) • London Stock Exchange - ANTO.L New York Level 1 ADR - ANFGY ANTOFAGASTA PLC
Slide 4: Antofagasta plc
Antofagasta plc •Low cost copper producer •Ability to develop large scale projects •Well positioned for future growth ANTOFAGASTA PLC
Slide 5: Low cost copper producer: Los Pelambres
Low cost copper producer Los Pelambres • Open pit - 3 bn tonnes total resource • 30 year mine plan -1 bn tonnes @ 0.77% copper • 300,000 tpy copper in concentrates • Cash costs below 40 c/lb first five years - Low waste to ore ratio - 0.66 life of mine mine - Low transport costs in the mine costs -
Slide 6: Low cost copper producer: Michilla
Low cost copper producer Michilla • Open pit /underground - 28 million tonnes @1.28% copper • 64 million tonnes total resource • 8 year mine plan • 50,000 tpy of high quality copper cathodes - LME registered since 1997 • 15 years of experience - Unique SX-EW process – use of sea water in leaching •
Slide 7: Low cost copper producer: Tesoro
Low cost copper producer Tesoro • Open pit - 152 million tonnes @ 0.96% copper • 18 year mine plan • 75,000 tpy of copper cathodes • Cash costs of 40 c/lb first five years - Ore grade - 1.28% - Recovery - 75% ANTOFAGASTA PLC
Slide 8: Consolidated production and costs
Low cost copper producer Consolidated production and costs 65 400 60 55 000 tonnes 300 cents / lb 50 200 45 40 100 35 0 30 1998 1999 2000 E 2001 E 2002 E Production Cash Cost ANTOFAGASTA PLC
Slide 9: Ability to develop large scale projects
Antofagasta plc Ability to develop large scale projects ANTOFAGASTA PLC
Slide 10: Los Pelambres: budget vs actual
Ability to develop large scale projects Los Pelambres Budget Actual Project cost (US$ m) 1,360 1,356 Construction (months) 26 24 Ore throughput (000 tpd) 85 95 Ramp-up (days) 90 75 Safety (severity / frequency) 116 / 3.2 136 / 2.1 Completion test 4Q 00 2Q 00 ANTOFAGASTA PLC
Slide 11: Los Pelambres plant ore processed
Ability to develop large scale projects Los Pelambres Plant Ore Processed 100.000 95.000 90.000 85.000 Tons per day 80.000 75.000 70.000 65.000 60.000 55.000 50.000 00 00 00 00 0 0 0 0 0 0 0 0 /0 /0 /0 /0 /0 /0 /0 /0 4/ 5/ 6/ 1/ /1 /1 /2 /3 /2 /3 /4 /5 8/ 6/ 3/ 1/ 15 29 12 11 26 25 22 20 ANTOFAGASTA
Slide 12: Ability to develop large scale projects: Tesoro
Ability to develop large scale projects Tesoro • Financing completed in 1999 - US$ 296 million • 23% completed to date - 18 months construction period • Start up expected in May 2001 ANTOFAGASTA PLC
Slide 13: Key elements in Group's project developments
Ability to develop large scale projects Key elements in Group’s project developments • High level of proven reserves • On site engineering / pilot plant operation • Strong internal project team • Preparation in advance for start up of operations ANTOFAGASTA PLC
Slide 14: Well positioned for future growth
Antofagasta plc Well positioned for future growth ANTOFAGASTA PLC
Slide 15: Expansion potential
Well positioned for future growth Expansion potential • Los Pelambres - 30 year mine plan utilising 30% of total resources - Expansion up to 185,000 tpd • Tesoro - Life of mine being extended from 18 to 21 years - New geological resources near Tesoro • Michilla - New mine plan - life extended to 200
Slide 16: Exploration in Chile
Seeking opportunities for growth Exploration in Chile •Area around Tesoro was the main focus during 1999. •Esperanza copper/gold porphyry geological resource - at 0.3% copper Chuquicamata Calama cutoff: Antofagasta EL TESORO Sulphide resource : 210 million tonnes @ 0.51% copper & 0.29 g/t gold; Oxid
Slide 17: Exploration in Peru
Seeking opportunities for growth Exploration in Peru Magistral Copper/Moly skarn, porphyry copper located 60 km from Antamina First 8 drillholes successful (1% copper, 0.1% moly) Cotabambas (Copper/Gold porphyry, located 45 km from Cuzco) Wholly owned geological resources till now of 74 million tonn
Slide 18: Antofagasta Railway volumes transported
Well positioned for future growth Antofagasta Railway Volumes Transported 3.5 • Growth consolidated • Record tonnage 3 3.2 2.5 2.8 million tons 2 2.5 • Customer base expanded 2.0 1.5 1.7 • Growth expected from 1 mine expansions 0.5 0 1995 1996 1997 1998 1999 ANTOFAGASTA PLC
Slide 19: Financial position at December 1999
Well positioned for future growth Financial position at 31 December 1999 Pelambres Tesoro Escrow Other Total US$m US$m US$m US$m US$m Cash and time deposits 51 82 139 60 332 Long and short term debt (937) (120) - (14) (1,071) Net (debt) / cash (886) (38) 139 46 (739) Fixed assets and investments 1,3
Slide 20: Improved cash generation from new low cost operations
Well positioned for future growth • Improved cash generation from new low cost operations Cash flow from operations 300 250 US$ million 200 150 100 50 0 1998 1999 2000 E • Debt service coverage in 2000 approx 3 times at 80 c/lb • Cash position strengthened after escrow released ANTOFAGASTA PLC
Slide 21: Targets for 2000
Targets for 2000 Los Pelambres achieve completion test and optimise plant El Tesoro maintain construction progress on time and within budget Michilla implement new mine plan Railway obtain new contracts ANTOFAGASTA PLC
Slide 22: Antofagasta is a fast growing mining group
“Antofagasta is a fast growing mining group with a strong asset base and a proven ability to develop large scale projects” ANTOFAGASTA PLC
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