Anglo American Plc · LSE:AAL
Anglo American — FY2020 Earnings Presentation
93 slides from Anglo American's earnings presentation, March 2021
Slide 1: 2020 Results & Q1 Roadshows
2020 RESULTS & Q1 ROADSHOWS February-March 2021
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: Presentation Overview
PRESENTATION OVERVIEW Main results presentation Appendix (continued) 2020 overview and look ahead 4-11 Portfolio overview 62 Key assets & diversified portfolio 63-66 The Numbers 12-23 De Beers 67 Positioned for a Sustainable Future 24-33 Copper 68 Footnotes to presentation 34 Platinum Group Metals 6
Slide 4: Driving Towards a Safe & Healthy Future
DRIVING TOWARDS A SAFE & HEALTHY FUTURE Safety Health Environment Group TRCFR1,2 Fatalities1 Occupational health – new cases1,3 Significant incidents1,4 111 3.6 101 3.2 96 6 2.7 11 2.2 2.1 9 4 39 5 30 2 4 2 1 1 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Elimination of
Slide 5: Good Progress on Interim ESG Targets
GOOD PROGRESS ON INTERIM ESG TARGETS Energy savings5 GHG savings5 Social Way compliance 2020 target 2020 target Social Way 2.0 8% 34% 91% 96% 84% 89% 66% 6% 6% 25% 24% 5% 5% 21% 19% 2015 2016 2017 2018 2019 From 2020: 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Social Way 3.0 Raising the bar D
Slide 6: Comprehensive Covid Response
COMPREHENSIVE COVID RESPONSE Responsible & Holistic Approach “WeCare” Operations Recovery Operating Practices Lives & Livelihoods Safe & Disciplined Prevention & Care 66
Slide 7: FY 2020 Results
FY 2020 RESULTS Production6 EBITDA7 Mining EBITDA margin8 10% $9.8bn 43% Unit cost9 EPS7 ROCE10 2% $2.53/share 17% 77
Slide 8: Solid Recovery in H2
SOLID RECOVERY IN H2 Diamonds Copper PGMs Bulks Encouraging signs of recovery Strong cost performance Solid mining performance Minas-Rio performing well Production response to pandemic Improved access to water ACP back in operation Record iron ore margin since 2011 Strong fundamentals Leading portfo
Slide 9: Our Continuing Improvement Journey
OUR CONTINUING IMPROVEMENT JOURNEY Portfolio restructuring P101 cost & volume Technical reconfiguration Incremental growth & debottlenecking Operating Model & processes New projects Mining EBITDA margin8 H2 2020 47% H1 2020 38% 43% 45-50% 35% 2016 2020 2023F 99
Slide 10: Value Adding, Future Enabling Growth
VALUE ADDING, FUTURE ENABLING GROWTH +35% Cu Eq production6 +25% +20% Current portfolio by 2023 by 2025 post 20256 Quellaveco Marine Namibia Mogalakwena Collahuasi Moranbah-Grosvenor Woodsmith ~300ktpa copper ~500kctpa11 diamonds ~0.3-0.6Mozpa PGMs ~150ktpa copper ~5Mtpa HCC ~10Mtpa POLY4 +10% cu eq
Slide 11: Performance Delivery and Minimising Footprint
PERFORMANCE DELIVERY AND MINIMISING FOOTPRINT Delivery of operating improvements Technology driving sustainability 2020 improvement run-rate (vs 2017) Bulk Ore Sorting ~$2bn Copper, PGMs & Nickel Operating control & stability delivers improvement ~$1bn Hydrogen Haulage ~$1bn integrated with solar Co
Slide 12: The Numbers
AngloAmerican THE NUMBERS Stephen Pearce Real Mining. Real People. Real Difference.
Slide 13: FY 2020 Results
FY 2020 RESULTS EBITDA7 EPS7 Net debt:EBITDA7 $9.8bn $2.53/sh 0.6x Unit cost9 Dividends Free cash flow12 2% $1.00/sh $2.7bn 13 13
Slide 14: Strong Margins Across the Business
STRONG MARGINS ACROSS THE BUSINESS Diamonds Copper $0.4bn $1.9bn 54% mining EBITDA margin7 45% mining EBITDA margin7 $9.8bn 13 PGMs Bulks $2.6bn $5.1bn14 51% mining EBITDA margin7 46% mining EBITDA margin7 14 14
Slide 15: Solid Recovery in H2
SOLID RECOVERY IN H2 EBITDA7 $bn 0.5 (1.1) 2.2 (0.8) Met Coal (0.9) PGMs 0.3 (0.5) 11.7 108 10.0 9.8 2019 Price15 Currency Covid Operational Cost & Other 2020 & CPI16 disruption volume17 15 15
Slide 16: Robust Balance Sheet
ROBUST BALANCE SHEET Net debt $bn $2bn reduction in net debt in H2 1.6 2.2 2.8 15% gearing Quellaveco 0.8 5.6 Sirius Minerals 1.0 PGM inventory unwind 4.6 expected in 2021 & 2022 Supporting disciplined, value-added growth 2019 Growth Inventory Cash 2020 generation 16 16
Slide 17: Balanced Capital Allocation Framework
BALANCED CAPITAL ALLOCATION FRAMEWORK 2020 allocation of capital $2.7bn Sustaining attributable free cash flow12 $1.2bn FY 2020 dividend at 40% of underlying earnings Discretionary capital options Portfolio upgrade Future project options Additional shareholder returns $2.4bn Discretionary options: g
Slide 18: Value Adding Life Extension Projects
VALUE ADDING LIFE EXTENSION PROJECTS Sustaining capex18 $bn ~$0.6bn deferred from 2020 0.9 0.8 0.7 0.5 ~$0.6bn Collahuasi desalination plant 0.3 3.3 3.3 3.0 3.0 Lifex: Venetia UG, Aquila, Kolomela 2.3 2020 2021 2022 2023 LT Growing portfolio Lifex SIB & Stripping 18 18
Slide 19: Value Adding, Future Enabling Growth
VALUE ADDING, FUTURE ENABLING GROWTH Growth capex18 $bn ~20% Production growth by 20236 0.5 Woodsmith 1.5-2.0 1.5-2.0 1.5-2.0 2021 2022 2023 ~25% Production growth by 20256 Margin accretive & value disciplined Innovation & technology enabled 19 19
Slide 20: Well Sequenced, Disciplined Investment
WELL SEQUENCED, DISCIPLINED INVESTMENT Quellaveco (Copper) Marine Namibia (Diamonds) ~$1.5bn capex18 to go ~$0.1bn18 capex in 2021 >15% IRR >25% IRR ~10% Cu Eq6 growth (~2022) ~1% Cu Eq6 growth (~2023) Collahuasi (Copper) Mogalakwena (PGMs) Phase 1: ~$0.6bn capex18 ~$0.8-1.4bn capex18 >20% IRR, ~2%
Slide 21: Well Sequenced, Disciplined Investment
WELL SEQUENCED, DISCIPLINED INVESTMENT Sishen (Iron Ore) Woodsmith (Crop Nutrients) UHDMS project, ~$0.2bn capex18 ~$0.5bn capex18 in 2021 >30% IRR Technical review nearing completion Grade and quality increase +5% Cu Eq6 growth (subject to technical review) Moranbah-Grosvenor (Metallurgical Coal) T
Slide 22: Improvement Initiatives on Track for 2022 Delivery
IMPROVEMENT INITIATIVES ON TRACK FOR 2022 DELIVERY Operating Model & P101 Technology & Innovation Project Delivery Copper mine & plant performance ✓ Predictive Maintenance ✓ On track… ✓ Minas-Rio ramp up ✓ Next… Quellaveco Next… Bulk Ore Sorting rollout Marine Namibia Diamonds Operational stability
Slide 23: Balanced and Disciplined Approach
BALANCED AND DISCIPLINED APPROACH Cash returns Resilient balance sheet $6.1bn <1.5x Dividends & buybacks since 2017 Bottom of cycle net debt:EBITDA7 Attractive growth Strong margin ~20% ~45-50% Production growth by 20236 Mining EBITDA margin8 23 23
Slide 24: Positioned for a Sustainable Future
POSITIONED FOR A SUSTAINABLE FUTURE Mark Cutifani
Slide 25: Diamonds – Strong Fundamentals
DIAMONDS – STRONG FUNDAMENTALS Demand driven by 3% pa growth in income Supply outlook flat to down Personal Disposable Income20 GDP20 Global production forecast range23 Mct 200 150 100 50 0 2020 2025 2030 2019 2021 2023 2025 ~$80bn pa diamond jewellery market21, correlates to GDP growth ~20% of glob
Slide 26: De Beers – Focusing Across Value Chain
DE BEERS – FOCUSING ACROSS VALUE CHAIN Targeting cost savings & operational efficiency Implementing technology & digital architecture Improving selling efficiency De Beers Jewellery & Brands Higher quality Product to customer Unlock price growth customer relationships faster potential 26 26
Slide 27: PGM Prices – Reflecting Strong Fundamentals
PGM PRICES – REFLECTING STRONG FUNDAMENTALS Auto loadings drive Pd/Rh Significant industrial demand Basket shift towards Rh & Pd Chemical Gasoline autocat PGM loadings24 Platinum (Pt) demand25 PGMs price basket Glass Electrical ~40% Autocatalyst Medical Petroleum Other 32% 32% Industrial 13% 23% 20
Slide 28: Well Positioned in the PGM Industry
WELL POSITIONED IN THE PGM INDUSTRY Diverse products driving margins Industry supply constrained PGMs business revenue at spot prices (own mined) ~20% >$3,000/PGM oz Copper Chrome Nickel Gold Iridium Ruthenium ~70% Industry supply base depletion by 204027 Rhodium margin Existing mines deeper Palladi
Slide 29: Portfolio Positioned for a Sustainable Future
PORTFOLIO POSITIONED FOR A SUSTAINABLE FUTURE Greener World Electrified World Consumer World Cu Eq production5 ~55% ~65% Future Future Enabling Enabling Diamonds Copper PGMs Nickel & manganese Crop nutrients Steel-making28 Thermal coal 29 29
Slide 30: Active Route to a Greener World
ACTIVE ROUTE TO A GREENER WORLD 2020 2021-22 2030 2040 8% ✓ SA Thermal Coal operations 30% 30% Carbon energy exit29 improvement in net reduction in neutrality efficiency5 energy efficiency5 GHG emissions5 across our 22% ✓ Chile & Brazil energy 8 sites Net positive operations30 saving in GHG carbon n
Slide 31: Ambitious and Holistic Carbon Strategy
AMBITIOUS AND HOLISTIC CARBON STRATEGY Scope 1 & 2 targets in place Portfolio evolution Downstream partnerships Controllable improvement Growing greener commodities, Focus on technology, Optimise products for low carbon thermal coal operations exit partnering with sustainable processing, ocean freig
Slide 32: Re-imagining Mining to Improve People's Lives
RE-IMAGINING MINING TO IMPROVE PEOPLE’S LIVES Effectiveness Efficiency Sustainability >10% 15-20% 7 Pillars of Value Free Cash Flow32 ROCE10 embedded 32 32
Slide 33: Q&A: Our Investment Proposition
Q&A Our investment proposition… Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” 33 33
Slide 34: Footnotes
FOOTNOTES 1. Recordable incidents. Data relates to subsidiaries and joint operations over which 14. Bulks excludes thermal coal businesses. Anglo American has management control. Since 2018 data for fatalities, TRCFR 15. Price variance calculated as increase/(decrease) in price multiplied by current
Slide 35: Appendix
AngloAmerican APPENDIX Real Mining. Real People. Real Difference.
Slide 36: Simplified Earnings & Guidance
SIMPLIFIED EARNINGS & GUIDANCE
Slide 37: 2020 Simplified Earnings by BU
2020 SIMPLIFIED EARNINGS BY BU $m (unless stated) De Beers Copper PGMs Kumba Minas-Rio Met Coal Thermal Coal Nickel Other1 Total (Diamonds) (Iron Ore) Sales volume (mined share) 21.4Mct2 648kt 1,916koz3 39.8Mt 23.8Mt 16.9Mt4 21.1Mt5 43.0kt Average benchmark price n/a $6,173/t6 n/a $109/t7 $120/t8 $1
Slide 38: 2020 Simplified Earnings by BU - Notes
2020 SIMPLIFIED EARNINGS BY BU - NOTES PGMs basket price Iron ore realised price Coal blended prices & unit costs Own mined Coal weighted average Unit Price Volume Revenue Kumba Minas-Rio Price Volume PGMs basket market prices & unit cost cost Platinum $876/oz 792koz $694m Market price $109/t7 $120/
Slide 39: Guidance Summary: All Guidance Unchanged
GUIDANCE SUMMARY: ALL GUIDANCE UNCHANGED Earnings Capex1 Other Volumes: See slide 40-41 2021 $5.7-6.2bn Quellaveco copper project - Growth $2.0-2.5bn Unit costs: See slide 42 Includes Woodsmith ~$0.5bn - 2021 capex3: 100% $1.3-1.6bn; 2021 depreciation: $3.2-3.4bn - Sustaining ~$3.7bn our share $0.8-
Slide 40: Production Outlook
PRODUCTION OUTLOOK Units 2019 2020 2021F 2022F 2023F Diamonds1 Mct 31 25 32-34 30-33 30-33 Copper2 kt 638 647 640-680 680-790 890-1,000 Platinum Group Metals3 Moz 4.4 3.8 4.2-4.6 4.2-4.6 4.2-4.6 Iron ore4 Mt 66 61 64-67 65-68 66-69 Metallurgical coal5 Mt 23 17 18-20 22-24 23-25 Thermal coal6 Mt 26 2
Slide 41: Production Outlook – Supplementary Guidance
PRODUCTION OUTLOOK – SUPPLEMENTARY GUIDANCE Units 2019 2020 2021F 2022F 2023F (New) Chile: 580-640 Chile: 590-650 Copper2 kt 638 647 640-680 Peru: 100-150 Peru: 300-350 Pt: 1.8 Pt: 1.9-2.1 Pt: 1.9-2.1 Pt: 1.9-2.1 Platinum Group Metals – M&C by Moz 4.4 Pd: 1.2 Pd: 1.4-1.5 Pd: 1.4-1.5 Pd: 1.4-1.5 meta
Slide 42: Unit Costs Performance by Business Unit
UNIT COSTS PERFORMANCE BY BUSINESS UNIT De Beers (US$/ct)1 Copper (C1 USc/lb)2 PGMs (US$/PGM oz)3 Kumba (FOB US$/t)4 63 57 ~55 126 113 ~120 703 713 ~700 33 31 ~34 2019 2020 2021F 2019 2020 2021F 2019 2020 2021F 2019 2020 2021F Minas-Rio (FOB US$/t)5 Met Coal (US$/t)6 Thermal Coal SA export (US$/t)7
Slide 43: Earnings Sensitivities
EARNINGS SENSITIVITIES Impact of 10% change Sensitivity Analysis – 20201 in price / FX Commodity / Currency 31 December spot Average realised EBITDA ($m) Copper (c/lb)2 351 299 390 Platinum ($/oz) 1,075 880 58 Palladium ($/oz) 2,370 2,214 144 Rhodium ($/oz) 17,000 10,628 101 Kumba: 115 Iron Ore ($/t
Slide 44: High-Returning Growth Options and Business Improvement Drive Near-Term Capex
HIGH-RETURNING GROWTH OPTIONS AND BUSINESS IMPROVEMENT DRIVE NEAR-TERM CAPEX Capex1 ($bn) Capex guidance unchanged Woodsmith ~$0.5bn capex in 20211 Woodsmith ~0.5 1.5-2.0 1.5-2.0 Growth 1.5-2.0 Collahuasi ~$0.6bn deferred from 2020 ~0.3 desal2 ~0.3 Lifex ~0.7 ~0.9 ~0.8 ~$0.6bn2 Collahuasi desalinati
Slide 45: Life Extensions Sustain High Quality Production
LIFE EXTENSIONS SUSTAIN HIGH QUALITY PRODUCTION Major components of lifex1 ($bn) ~$0.9bn ~0.1 ~$0.8bn ~$0.7bn ~0.1 ~0.1 Mototolo (PGMs) Jwaneng (Diamonds) ~0.1 ~0.1 ~0.2 Kolomela (Iron Ore) ~0.2 ~0.2 Venetia (Diamonds) ~0.2 ~0.4 ~0.3 Aquila (Met Coal) ~0.1 2021F 2022F 2023F 1. Cash expenditure on pr
Slide 46: Life Extensions Will Deliver Value; Higher Near-Term Sustaining Capex
LIFE EXTENSIONS WILL DELIVER VALUE; HIGHER NEAR-TERM SUSTAINING CAPEX Sustaining capex1 2021 2022 2023 Long-term ~$3.7bn ~$4.2bn ~$4.1bn ~$3.0bn 2021-2023 capex driven by deferrals from 2020, life extensions & foreign exchange + lifex Lifex projects – subject to disciplined capital allocation framew
Slide 47: Margin Accretive Projects Drive Growth Capex
MARGIN ACCRETIVE PROJECTS DRIVE GROWTH CAPEX Major components of growth capex1 ($bn) + $0.5bn Woodsmith $1.5 - 2.0bn p.a. ~0.1 ~0.1 ~0.1 Namibia (Diamonds) 0.5-0.6 ~0.5 Sishen (Iron Ore) 0.8 - 1.0 ~0.1 Quellaveco (Copper) 0.2 - 0.3 ~0.3 0.3 - 0.5 Mogalakwena (PGMs) ~0.2 Technology & innovation ~0.3
Slide 48: Attractive Greenfield and Brownfield Options
ATTRACTIVE GREENFIELD AND BROWNFIELD OPTIONS Long life greenfields and fast returning brownfields Capex Volume From1 Returns Quellaveco (Copper) $2.7bn to $2.8bn2 +180ktpa 2022 ~4 year payback >15% IRR >50% margin Marine Namibia (Diamonds) ~$0.2bn3 +0.5Mctpa3 2022 ~3 year payback >25% IRR >60% margi
Slide 49: Quellaveco Financial Modelling
QUELLAVECO FINANCIAL MODELLING Ownership Anglo American 60%, Mitsubishi 40% Accounting treatment Fully consolidated with a 40% minority interest Shareholder loans from minority shareholder consolidated in Anglo American net debt Project capex (nominal)1 $5.3-5.5 billion (100% basis - Anglo American
Slide 50: Quellaveco Accounting
QUELLAVECO ACCOUNTING Anglo American consolidates 100% of Quellaveco’s P&L and Balance Sheet. Mitsubishi’s 40% share is shown as a non-controlling interest. After the initial $0.8bn equity injection by Mitsubishi, the project is now funded 60:40 through shareholder debt. Group net debt by the end of
Slide 51: Liquidity
AngloAmerican LIQUIDITY Real Mining. Real People. Real Difference.
Slide 52: Strong Liquidity & Limited Near-Term Debt Maturities
STRONG LIQUIDITY & LIMITED NEAR-TERM DEBT MATURITIES Liquidity1 Debt repayments ($bn) 2.1 1.8 $17.5bn 1.4 1.5 1.5 $7.5bn cash 1.1 + 0.7 0.8 $10.0bn undrawn committed facilities 0.6 0.5 0.4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2050 Majority of cash held centrally in US dollars Subsidiary
Slide 53: Portfolio Results
PORTFOLIO RESULTS New image Copper: renewables-driven electrification PGMs: air quality & lower emissions Diamonds: aspiration & growing prosperity Quality bulks: modern infrastructure development
Slide 54: Diamonds – Significant Covid-19 Impact on Demand
DIAMONDS – SIGNIFICANT COVID-19 IMPACT ON DEMAND Sales Average Realised Underlying Mining Production1 Unit cost4 Capex (Cons.)2 price index price3 EBITDA margin5 2020 25.1Mct 21.4Mct 104 $133/ct $57/ct $417m 54% $381m vs. 2019 $18% $27% $10% $3% $10% $25% #11pp $33% Underlying EBITDA ($m) 58 (33) 55
Slide 55: Copper – Strong Cost Performance
COPPER – STRONG COST PERFORMANCE Underlying Mining Production Sales1 Realised price1 C1 unit cost2 Capex4 EBITDA margin3 2020 647kt 648kt 299c/lb 113c/lb $1,864m 45% $1,433m vs. 2019 #1% #1% #10% $10% #15% #1pp #34% Underlying EBITDA ($m) 53 (60) 2,023 46 (205) 1,864 412 1,618 2019 Price FX Inflatio
Slide 56: PGMs – 51% Increase in Basket Price
PGMs – 51% INCREASE IN BASKET PRICE Realised basket Underlying Mining Production1 Sales2 Unit cost3 Capex price2 EBITDA margin4 2020 3,809koz 2,869koz $2,035/PGM oz $713/PGM oz $2,555m 51% $571m vs. 2019 $14% $38% #51% #1% #28% #11pp 0% Underlying EBITDA ($m) (81) 3,689 256 (92) (885) 1,606 (214) 2,
Slide 57: Kumba Iron Ore – Record Margins
KUMBA IRON ORE – RECORD MARGINS Realised price Unit cost Underlying Mining Production Sales Capex (FOB)1 (FOB) EBITDA margin 2020 37.0Mt 39.8Mt $115/t $31/t $2,702m2 55% $354m vs. 2019 $13% $5% #19% $6% #20% #5pp $9% Underlying EBITDA ($m) (55) 237 (284) 2,778 (11) 2,702 (65) 637 2,243 2019 Price FX
Slide 58: Minas-Rio – Continued Strong Performance
MINAS-RIO – CONTINUED STRONG PERFORMANCE Iron Ore Realised price Unit cost Underlying Mining Sales Capex Production (FOB) (FOB) EBITDA margin 2020 24.1Mt1 23.8Mt1 $107/t1 $21/t1 $1,863m2 62% $163m vs. 2019 #4% #4% #35% 0% #60% #12% $20% Underlying EBITDA ($m) (80) 1,921 1,863 165 0 (58) 672 1,164 20
Slide 59: Metallurgical Coal – A Challenging Year
METALLURGICAL COAL – A CHALLENGING YEAR Metallurgical Metallurgical FOB realised Underlying Mining Unit cost3 Capex production1 sales1 price2 EBITDA4 margin 2020 16.8Mt 16.9Mt $109/t $86/t $50m 3% $683m vs. 2019 $26% $25% $34% #37% $97% $42pp #2% Underlying EBITDA ($m) Grosvenor restart • Queensland
Slide 60: Thermal Coal – Price and Covid-19 Impacts
THERMAL COAL – PRICE AND COVID-19 IMPACTS Underlying Export prod. Sales FOB price3 Unit cost4 Mining margin EBITDA SA Capex SA1 / Col SA2 / Col SA / Col SA / Col SA6 / Col SA5 / Col 2020 16.5Mt / 4.1Mt 16.6Mt / 4.5Mt $57/t / $46/t $38/t / $39/t $(15)m / $0m (6)% / 0% $184m vs. 2019 $7% / $52% $9% /
Slide 61: Nickel – Consistent Performance
NICKEL – CONSISTENT PERFORMANCE Realised C1 unit Underlying Mining Production1 Sales1 Capex price cost EBITDA margin 2020 43.5kt 43.0kt 563c/lb 334c/lb $206m2 36% $33m vs. 2019 #2% #3% $10% $12% #8% #3pp $21% Underlying EBITDA ($m) 206 191 14 (13) 184 8 (72) 78 2019 Price FX Inflation Cost & volume
Slide 62: Portfolio Overview
PORTFOLIO OVERVIEW New image Copper: renewables-driven electrification PGMs: air quality & lower emissions Diamonds: aspiration & growing prosperity Quality bulks: modern infrastructure development
Slide 63: Portfolio Overview – Key Assets
PORTFOLIO OVERVIEW – KEY ASSETS De Beers Copper Botswana (Debswana) Los Bronces Namibia (Debmarine) Collahuasi South Africa (Venetia) Quellaveco Project Canada (Gahcho Kué) Bulks Trading Minas-Rio (Iron ore) PGMs Kumba (Iron ore) Mogalakwena Moranbah-Grosvenor (Met coal) Amandelbult Nickel & Mangane
Slide 64: Asset Quality: Differentiated Portfolio
ASSET QUALITY: DIFFERENTIATED PORTFOLIO Revenue by product1 Capital employed by geography2 Nickel & Manganese 4% Other Thermal coal Diamonds 9% 4% (De Beers) Australia Met coal 11% 10% 6% Copper South Africa 13% 25% Other Namibia & 20% Botswana PGMs 14% 18% Chile, Peru Brazil Iron ore & Colombia 20%
Slide 65: High Quality Diversified Portfolio
HIGH QUALITY DIVERSIFIED PORTFOLIO ~1Mt copper #11 producer currently, #6 post Quellaveco1 ~37Mct diamonds (De Beers) #1 producer by value, #2 by volume ~5Moz PGMs #2 producer ~75Mt high grade iron ore2 #5 export producer ~30Mt premium coking coal3 #3 export producer currently, #3 at ~30Mt ~75kt nic
Slide 66: Commodity Outlook
COMMODITY OUTLOOK Medium-to-long term commodity outlook • Demand recovery and growing disposable income drives demand Diamonds • Supply peaking due to mine exhaustion • Demand robust long term. China remains main driver. Green economy presents upside Copper • Supply disrupted by covid in the short-t
Slide 67: De Beers: World Leader in Diamonds
DE BEERS: WORLD LEADER IN DIAMONDS Best-in-class business… …focused on consumers Global demand3 Mining EBITDA margin1 Rest of world 54% India Gulf USA China Trading margin (typical level)2 Self purchases4 Millennials4 ~7% ~33% ~60% of demand of US demand 1. Represents the underlying EBITDA margin fo
Slide 68: A Growing, World Class Copper Business
A GROWING, WORLD CLASS COPPER BUSINESS Quality assets with growth High value portfolio with long term potential Collahuasi 277ktpa 1 (our share) ~1Mtpa 1 from ~2023 at mid to low Q2 cost position Los Bronces 325ktpa 1 With further growth potential from: • existing assets (e.g. Collahuasi & Los Bronc
Slide 69: World Leader in PGMs
WORLD LEADER IN PGMs Asset focused PGM Own mined production split by volume $2,065/PGM oz Mogalakwena Base metals Other Platinum 6% 3% Rhodium 2% Palladium 8% 62% Platinum Ruthenium Rhodium 45% Palladium Gold Mining EBITDA margin Iridium 36% Basket price PGM Own mined production split by revenue Ama
Slide 70: PGMs Market
PGMS MARKET Platinum demand1 Basket price driven by Pd and Rh Autocatalyst Rhodium +792% 32% 32% Industrial 13% 23% Investment Jewellery Robust long-term autos PGM demand2 Global light duty vehicle production outlook (million vehicles) 98 84 PGM Basket +207% Battery Hybrid (Pt, Pd, Rh) Palladium Gas
Slide 71: 5E Platinum Group Metals
5E PLATINUM GROUP METALS Platinum Palladium Rhodium Global mined supply1 ~2 ~6 ~1 ~7 ~0.3 ~0.8 Pt & Pd convert Our supply Industrial Other See previous slide for demand data 15% harmful carbon monoxide & ~90% Autocatalysts demand Pt & Pd interchangeable in autocats hydrocarbons to CO2 Converts harmf
Slide 72: Structural Trends Favouring High Quality Bulks
STRUCTURAL TRENDS FAVOURING HIGH QUALITY BULKS Iron ore: premium, high grade products Metallurgical coal: world class operations Kumba production Minas-Rio production High quality portfolio ~64%Fe ~67%Fe 80% of which 68% is lump Pellet feed products Hard coking coal1 Production (Mt)1 Production (Mt)
Slide 73: Woodsmith: A Clear Strategic Fit
WOODSMITH: A CLEAR STRATEGIC FIT Quality asset Competitive Product Well Progressed Project 27 year life1 10Mtpa ~$1.3bn invested to date Based on reserves POLY4 produced post ramp up Key permits in place $40-50/t unit cost >50% margin ~$0.5bn 2021 capex Low energy, green process Offtake agreements f
Slide 74: Our Transformation Journey
AngloAmerican OUR TRANSFORMATION JOURNEY
Slide 75: A Transformed Business…
A TRANSFORMED BUSINESS… Covid disruption Production index1 +99% Productivity2 Productivity index2 Portfolio restructuring Cu Eq unit cost3 108 (30)% Unit costs3 Operating model and technical improvements 2012 2013 2014 2015 2016 2017 2018 2019 2020 1. Copper equivalent production is calculated using
Slide 76: …With an Improved Competitive Position
…WITH AN IMPROVED COMPETITIVE POSITION Average quality adjusted cost curve position1 Improved from 49th percentile 42% (in 2013) 36% Peer range 28% 108 Anglo American Peers 1. 2019 estimate. Source: Wood Mackenzie; AAP; De Beers; McKinsey Minespans; CRU. Excludes non-AA mined commodities (e.g., zinc
Slide 77: Our Asset Improvement Journey
OUR ASSET IMPROVEMENT JOURNEY Group 2019 2013 Group 36th percentile 49th percentile Diamonds (De Beers) Copper PGMs Iron Ore Met Coal Thermal Coal Mn Ni Nickel & Manganese Average margin adjusted Q1 Q3 Q4 cost curve position1 1. 2019 estimate. Source: Wood Mackenzie; AAP; De Beers; McKinsey Minespan
Slide 78: Leading Margin Curve Improvement
LEADING MARGIN CURVE IMPROVEMENT Average margin adjusted cost curve position1 (%) 49% 45% 13 p.p. 43% 42% 36% 36% 35% 33% 28% 27% Peer 1 Peer 2 Peer 3 Peer 4 Anglo 2013 2019 1. 2019 estimate. Source: Wood Mackenzie; AAP; De Beers; McKinsey Minespans; CRU. Excludes non-AA mined commodities (e.g., zin
Slide 79: Innovation & Technology
AngloAmerican INNOVATION & TECHNOLOGY Real Mining. Real People. Real Difference.
Slide 80: Innovation Driving Sustainability
INNOVATION DRIVING SUSTAINABILITY 1900 Today Future? 40kg Cu: 0.5% Cu 6m3 water 4% Cu 1t waste 3m3 water 10 KWhr 24t waste 160 KWhr 1t ore 8t ore Ever increasing scale Precise. Predictable. Reliable 80 80
Slide 81: Operational Excellence Underpins Transformation
OPERATIONAL EXCELLENCE UNDERPINS TRANSFORMATION Operating Model: delivering stable & predictable outcomes Stabilisation at higher Work is planned, scheduled and properly resourced performance Stable and consistent performance Stabilisation Further improvement at still higher Safer and lower cost imp
Slide 82: Innovative Technologies in Development & Roll-out
INNOVATIVE TECHNOLOGIES IN DEVELOPMENT & ROLL-OUT Bulk Ore Sorting Sensors determine ore content prior to processing Delivers improved feed grade to plants Waste rejected early: • Grade uplift: +7% to 20% • Energy, water & cost savings Capital cost $10m to $70m (volume dependent) 12 months full scal
Slide 83: Innovative Technologies in Development & Roll-out
INNOVATIVE TECHNOLOGIES IN DEVELOPMENT & ROLL-OUT Coarse Particle Recovery Flotation process changed Allows material to be crushed to larger particle size: • Throughput increase: +15% to 20% • 20% energy reduction • Up to 85% water recovery with hydraulic dry stack Capital cost $10m to $50m El Solda
Slide 84: Innovative Technologies in Development & Roll-out
INNOVATIVE TECHNOLOGIES IN DEVELOPMENT & ROLL-OUT Hydraulic dry stack Hydrogen powered haulage Engineer tailings facilities that dry out in weeks Full cost comparable to diesel today, parity by 2030 Geotechnically stable ~4-8oz platinum per truck vs ~2oz for diesel Can be repurposed and terraformed
Slide 85: Sustainability Performance
SUSTAINABILITY PERFORMANCE
Slide 86: A Sustainable, Responsible & Transparent Business
A SUSTAINABLE, RESPONSIBLE & TRANSPARENT BUSINESS ESG ratings 80/100 Only diversified miner to be included ‘A’ rated ‘Prime’ rated Overall score of 4.5 (out of 5), which puts us in both European & World Index (top 10% of Joint top diversified miner Joint top mining company in the top percentile and
Slide 87: Technology Minimises Our Environmental Footprint
TECHNOLOGY MINIMISES OUR ENVIRONMENTAL FOOTPRINT Energy & GHG emissions Water & biodiversity 30% Carbon neutral 50% Net positive reduction biodiversity impact reduction in freshwater biodiversity impact by 2030 by 2040 withdrawals1 by 2030 by 2030 2020 progress 2020 progress 2021 priorities Total en
Slide 88: Responsible Exit: SA Thermal Coal Operations
RESPONSIBLE EXIT: SA THERMAL COAL OPERATIONS Portfolio Progress on Reductions Exit: SA Thermal Coal operations3 Production (Mt)1 Current export production capacity 80 35 18-19Mtpa 2012 2020 Water reclamation plant Responsible approach to transition Demerger most likely route with primary JSE listing
Slide 89: Measuring Our ESG Progress: 2020 Targets
MEASURING OUR ESG PROGRESS: 2020 TARGETS New cases Inhalable HIV+ Recordable HIV status Safety & Fatal injuries injury rate occupational Noise exposure hazards known employees 0 disease YoY reduction exposure undergoing health YoY reduction YoY reduction 10% reduction >90% ART >90% Level 4-5 Energy
Slide 90: 2020 ESG Scorecard
2020 ESG SCORECARD New cases Inhalable HIV+ Safety & Recordable Noise HIV status Fatal injuries1 occupational hazards employees injury rate1 exposure2 known 2 disease1 exposure2 undergoing health 2.14 30 72% 6% 89% ART 93% Level 4-5 Energy savings3 GHG savings3 environmental Environment 8% 34% incid
Slide 91: Industry Leading Dam Safety Management
INDUSTRY LEADING DAM SAFETY MANAGEMENT Managing tailings safely Tailings dams in our portfolio Group Technical Specialists Internal risk assurance Independent Downstream/ other TRP BU Technical Standard expert Engineer of Record Upstream Southern Australia Operation Africa 6 levels of assurance: 2 i
Slide 92: Our Contribution to Society
OUR CONTRIBUTION TO SOCIETY Taxes1 Paid to governments $3.8bn Wages and benefits2 Paid to employees and contractors $3.4bn Local procurement Paid to suppliers $10.0bn 1. Borne and collected. Taxes Borne include the current tax charge accrued in the income statement (corporate income tax, withholding
Slide 93: Investor Relations
INVESTOR RELATIONS Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Robert Greenberg robert.greenberg@angloamerican.com Tel: +44 (0)20 7968 2124 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 93 93