Slide 1: Delivering Performance and Growth
Delivering Performance and Growth Full Year Results 2023 Full Year Results 2023 20 February 2024 20 February 2024
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
1 2023: Key highlights 2 Financial review 3 Sustainability review 4 The future: Profitable growth and innovation Antofagasta plc | 2023 Full Year Results 3
Slide 4: 2023: Delivering on our strategy
2023: Delivering on our strategy Setting the stage for disciplined and sustainable growth STRONG FINANCIAL PERFORMANCE • Portfolio of long-life, high quality copper mines continue to deliver robust performance • Robust cost control to protect strong margins DELIVERING RESPONSIBLE COPPER • Prioritisi
Slide 5: Health and safety: Continued focus
Health and safety: Continued focus Record year for safety performance in 2023 OUR SAFETY JOURNEY: TEN YEARS OF PROGRESS SAFETY DASHBOARD 2023 (Figures for Mining and Transport Divisions combined) 8 Total Recordable Injury Frequency Rate Zero 7 Fatalities in 2023 6 5 (2022: 0) 25% 4 3 Lost time injur
Slide 6: Key highlights
Key highlights A year of significant progress Continued strong Delivering profitable Focus on responsible financial performance growth copper • Production: 660,600 tonnes • Los Pelambres: Expansion • Record year of safety performance • Costs: In line ramping up • Seawater withdrawals increased to •
Slide 7: Copper market review
Copper market review Increased stability in copper pricing seen in 2023; positive medium-term outlook MARKET IN LINE YEAR-ON-YEAR DESPITE SUPPLY-SIDE DISRUPTION COPPER MARKETS: REDUCED VOLATILITY IN 2023 • Balanced copper markets in 2023, with lower demand from China offset by guidance cuts and othe
Slide 8: Value accretive portfolio
Value accretive portfolio Entering the next phase of disciplined growth and investment Los Pelambres • Phase 1 Expansion completed (Desalination plant & 4th concentrator line) • Foundation for further expansion of desalinated water capacity, replacing critical infrastructure and mine life extension
Slide 9: Chile: Moving towards a new chapter of stability
Chile: Moving towards a new chapter of stability Resolution of two key national debates reduce uncertainty • New mining royalty enacted • Chileans vote to reject Q3 • and effective 2024 Stability agreements at Centinela and Antucoya until 2030/31 Q4 proposed Constitution, and the country will contin
Slide 10: Financial review
Financial review Full year 2023 Mauricio Ortiz | Chief Financial Officer 10 Image: View of the recently completed desalination plant, located in Los Vilos (Chile), whichAntofagasta forms partplc of|the Company’s 2023 recent Phase 1 Expansion. Full Year Results
Slide 11: Financial highlights
Financial highlights Strong performance with margins maintained despite inflationary pressures REVENUE CASHFLOW FROM OPERATIONS +8% (2023: $6,325m) +11% (2023: $3,027m) EBITDA NET DEBT / EBITDA +5% 2023: $3,087m (EBITDA margin: 49%) 0.38x(2022: 0.30x) UNDERLYING EARNINGS PER SHARE1 FINAL DIVIDEND (P
Slide 12: Production and cash costs
Production and cash costs Robust management of controllable cost drivers kept costs in line YoY Copper production 7.4 0.4 660.6kt 29.5 646.2kt (4.2) (18.7) FY 2022 Grades Throughput Recovery Work-in-progress ROM/Others FY 2023 & inventories Cash costs External: $0.06/lb Controllable: $0.06/lb 0.15 0
Slide 13: Cost and Competitiveness Programme
Cost and Competitiveness Programme Operational efficiencies and cost discipline delivering over $100 million of savings CCP Results1 2023 $ million Operational 91 +218% efficiency 135 2 28 $107m Savings 42 Contract 107 Management 15 Target Actual Cash costs before Throughput by-product credits above
Slide 14: EBITDA and margin
EBITDA and margin Strong EBITDA margin maintained despite industry-wide inflation 1 1 50% 49% $158m 145 315 (193) (28) $3,087m 1 (59) (24) $2,930m 2022 FY Sales volumes Realised Mining costs Exploration Associates Corporate costs Transport 2023 FY EBITDA2 and TC/RCs prices & evaluation & JVs & non o
Slide 15: A focus on growth and returns
A focus on growth and returns Allocating capital in a disciplined and consistent manner CONSISTENT APPROACH TO CAPITAL ALLOCATION Strong track record of capital investment and OPERATING CASH FLOW shareholder returns through the cycle CAPITAL OUTFLOW SUSTAINING CAPEX & MINE DEVELOPMENT Completed grow
Slide 16: Balance sheet: Strong metrics maintained
Balance sheet: Strong metrics maintained Platform for delivering our next phase of development Net debt/EBITDA ratio (2022) Net debt/EBITDA ratio (2023) 0.30x 0.38x $ million $(274)m 2,994 33 (528) (2,129) (49) Subsidiaries’ $(886)m (188) minorities Antofagasta $(1,160)m Shareholders (1,001) (351) 9
Slide 17: Value accretive investments and growth
Value accretive investments and growth Through-cycle investment delivering consistent returns Investments delivering robust margins in Consistent track record of generating copper space cashflow 70% Completed growth: 60% Los Pelambres 50% Phase 1 Expansion EBITDA Margin (%) 5,000 Cash flow from cont
Slide 18: Sustainability review
Sustainability review Full year 2023 René Aguilar | Vice President of Corporate Affairs and Sustainability 18 Image: Aerial view of Centinela’s solar power plant, which helps to heat solutions at our SX-EW operations, Antofagasta where plc | 2023 Fullwe produce Year Resultscathodes.
Slide 19: Sustainability highlights
Sustainability highlights Producing copper responsibly HEALTH AND SAFETY PEOPLE 25% 23.6% +3.2 20.4 23.6 2022 2023 Reduction in lost time injury frequency rate Female representation in our workforce LTIFR (2023): 0.63 (2022: 20.4%) COMMUNITIES NEW EMISSIONS TARGETS 100% Of programmes assessed for So
Slide 20: Updated emissions reduction targets
Updated emissions reduction targets 50% emissions target in parallel with planned production increase SCOPE 1 AND 2 TARGET: 50% REDUCTION BY 2035 (ABSOLUTE BASIS)1 SCOPE 3 TARGET: 1. Scope 1 and 2 emissions on a combined basis, with a baseline year of 2020. 10% REDUCTION BY 2030 (PROJECTED BASIS) Im
Slide 21: Responsible water use
Responsible water use Building a portfolio of strategic assets MOVING TOWARDS 90% OF WATER USE FROM SEAWATER OR RECIRCULATED WATER SOURCES • Los Pelambres: 400 litres/second (l/s) desalination plant construction and ramp up completed in 2023. EIA approved for expansion to 800l/s (key stage in delive
Slide 22: Community engagement programme
Community engagement programme Positive social impact scores for all 18 projects assessed in 2023 COMMUNITY ENGAGEMENT: STRATEGY ACTIVITIES IN 2023: KEY FIGURES • We seek to contribute to social and economic • + 64,000 direct and indirect beneficiaries in the Choapa Valley profiting development in t
Slide 23: Biodiversity protection
Biodiversity protection Los Pelambres supporting 7x its land footprint in protected environments COMMITTED TO DELIVERING NATURE POSITIVE OUTCOMES • Five-point plan for nature1: (1) Protect and conserve pristine areas of our natural environment (2) Halt biodiversity loss at our operations (3) Collabo
Slide 24: The future: Profitable growth and innovation
The future: Profitable growth and innovation Positioned for the next phase of disciplined growth Iván Arriagada | Chief Executive Officer 24 Image: View of drilling at Antofagasta’s Encierro Project in Central Chile, whereby drilling to date has delineated Antofagasta a mineral plc | 2023 Full resou
Slide 25: 2024 guidance
2024 guidance Capex guidance reflects next phase of growth COPPER PRODUCTION (KT) NET CASH COSTS ($/LB) CAPITAL EXPENDITURE ($BN) 750 1.70 3.0 2.7 670-710 700 1.65 2.1 661 2.0 650 1.61 1.60 1.60 600 1.0 550 1.55 500 1.50 0.0 2023A 2024E 2023A 2024E 2023A 2024E 10-40kt increase in 2024 reflects: Cost
Slide 26: Our pipeline to provide critical copper supply
Our pipeline to provide critical copper supply Delivering on our ambition of moving towards 900,000tpa of copper production 2018 – 2022 Today Average of 719kt 900kt COPPER AND BY-PRODUCTS ambition • Copper supply fundamental for the energy transition • Supply/demand balance: structural deficit in me
Slide 27: Capital investment pipeline (illustrative)
Capital investment pipeline (illustrative) Projects to ensure long-term future of key operations 2024 total: 2025 total: $2.7Bn $3.5-3.9Bn 700 0 Los Pelambres Conc. Pipeline and Other projects: Desal. Water Supply Expansion (800L/S) 600 0 Encuentro Sulphide Pit Capital investment (illustrative) Cent
Slide 28: Los Pelambres: Enhancing and enabling the future
Los Pelambres: Enhancing and enabling the future Achieving strong performance while enhancing water availability and ore processing capacity Los Pelambres Phase 1 Derisking and enabling the future Los Pelambres Phase 2 DESALINATION PLANT FOURTH CONCENTRATOR Desalination plant to 800 L/S Replacement
Slide 29: Centinela Second Concentrator
Centinela Second Concentrator Building a Tier 1 mining district UNLOCKING VALUE DELIVERING GROWTH FIRST kt QUARTILE 36 year mine life for the 170 additional production, COSTS Material fall in C1 cost Centinela District creating a top 15 global due to technology and copper mine2 byproducts INVESTING
Slide 30: Innovation for competitiveness: Highlights
Innovation for competitiveness: Highlights Deploying technology for safe and efficient copper production SHORTER TERM BENEFITS LONGER TERM BENEFITS INTEGRATED REMOTE ARTIFICIAL INTELLIGENCE (AI) INNOVATION THROUGH PRIMARY SULPHIDE LEACHING OPERATION CENTRES (IROC) IN MINERALS PROCESSING DIGITALISATI
Slide 31: 2023: Delivering on our purpose
2023: Delivering on our purpose Developing mining for a better future LONG LIFE, DISCIPLINED RESPONSIBLE HIGH- ATTRACTIVE HIGH-QUALITY AND PRODUCER OF MARGIN SHAREHOLDER COPPER SUSTAINABLE COPPER BUSINESS RETURNS ASSETS GROWTH Antofagasta plc | 2023 Full Year Results 31
Slide 32: Delivering Performance and Growth
Delivering Performance and Growth Full Year Results 2023 Full Year Results 2023 20 February 2024 20 February 2024 Antofagasta plc | 2023 Full Year Results 32
Slide 33: Appendix
Appendix 33 Image: Haul truck at Los Pelambres. Antofagasta plc | 2023 Full Year Results
Slide 34: At a glance
At a glance Antucoya Group • 70% owned • 65% owned by Luksic Group, 35% free float • Copper production1: 77,800 t • Market cap: $22 billion (February 2024) • Remaining mine life2: 20 years • FTSE 100 • Reserves3: 717.6 million t @ 0.31% Cu Mining division1 Centinela • 70% owned • Top 10 copper produ
Slide 35: Revenue
Revenue $ million $463m 219 2 $6,325m (58) 231 69 $5,862m 1 1 FY 2022 Copper price Copper sales By-products TC/RC Transport division FY 2023 1 Excludes Associates and JVs Antofagasta plc | 2023 Full Year Results 35
Slide 36: Net earnings
Net earnings $ million $122m 125 $835m 216 97 $710m (68) (21) (42) $588m (61) 2022 EBITDA Depreciation Associates Net Tax Non- 2023 Exceptional 2023 Underlying from and and JVs finance costs2 controlling Underlying items Net earnings net earnings subsidiaries1 amortisation interests net earnings 1 E
Slide 37: Cash flow
Cash flow $ million $528mm 2,994 33 (528) 599 945 (290) (61) (49) (613) 15 $2,919m (388) (2,129) $2,391m Cash at EBITDA Working Tax Capex Disposal Investment Acquisition Net interest Net Dividends Dividends Others Cash at 31 1 Jan 2023 from capital of JV in other of equity borrowings to Aplc to non-
Slide 38: Capital expenditure
Capital expenditure1 Guidance $ million $2.7bn 2,129 52 1,879 1,778 59 42 544 1,307 676 40 897 1,079 792 899 873 61 559 795 31 279 583 17 67 276 144 296 503 347 357 352 371 741 304 562 310 392 351 336 178 221 2016 2017 2018 2019 2020 2021 2022 2023 2024E Other Sustaining Growth Mine Development Mine
Slide 39: Group 2023 production cost breakdown
Group 2023 production cost breakdown Other Energy $/lb 7% 11% 0.64 2.69 Other inputs 10% 0.70 2.31 Labour 14% (0.26) Sulphuric acid 6% 1.61 $3,917m 9% Fuel and Lubricants 20% Other 13% services Materials and spare parts 11% Net Cash By- Gross TC/RC Mine Production Cost FY products Cash Cost & Com. d
Slide 40: Production and metals prices
Production and metals prices Group production Metal prices 2019 2020 2021 2022 2023 2024E1 2019 2020 2021 2022 FY 2023 Copper ('000 tonnes) Copper ($/lb) Los Pelambres 363.4 359.6 324.7 275.0 300.3 335 - 350 Realised 2.75 2.98 4.37 3.84 3.89 Centinela Concentrates 195.5 153.5 185.4 149.3 162.7 LME 2
Slide 41: Unit cash costs
Unit cash costs Group cash costs 1 2019 2020 2021 2022 FY 2023 2024E Group cash costs ($/lb) Los Pelambres 1.40 1.27 1.59 1.84 1.92 2.05 Centinela 1.83 1.85 1.87 2.44 2.57 2.30 Antucoya 2.17 1.82 2.04 2.50 2.63 2.50 Zaldívar 1.75 1.80 2.39 2.39 2.95 2.95 Cash costs before by-products credits ($/lb)
Slide 42: Antofagasta contacts
Antofagasta contacts Rosario Orchard rorchard@antofagasta.co.uk Robert Simmons rsimmons@antofagasta.co.uk Director, London Office Tel: +44 20 7808 0988 Investor Relations Manager Tel: +44 20 7808 0988 Antofagasta plc | 2023 Full Year Results 42
Slide 43: www.antofagasta.co.uk
www.antofagasta.co.uk Antofagasta plc | 2023 Full Year Results 43