Anglo American Plc · LSE:AAL
Anglo American — H1 2020 Earnings Presentation
79 slides from Anglo American's earnings presentation, Jul 30, 2020
Slide 1: 2020 Interim Results
2020 INTERIM RESULTS 30 July 2020
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: 2020 Interim Results Agenda
2020 INTERIM RESULTS AGENDA Delivering in Volatile Times Mark Cutifani The Numbers Stephen Pearce Positioned for the Future Mark Cutifani 33
Slide 4: Continued Improvement But More To Do
CONTINUED IMPROVEMENT BUT MORE TO DO Safety Health Environment Group TRCFR1,2 Fatalities1 Occupational health – new cases1,3 Significant incidents1,4 5.4 4.7 209 4.0 175 15 3.6 159 30 3.2 11 2.7 111 9 101 2.2 2.1 96 6 6 15 5 4 39 6 6 4 0 11 2 1 1 2013 2014 2015 2016 2017 2018 2019 H1 2013 2014 2015
Slide 5: H1 2020 Results
H1 2020 RESULTS Production5 EBITDA6 Mining EBITDA margin7 11% $3.4bn 38% Unit cost8 EPS9 ROCE10 4% 72c/share 11% 55
Slide 6: Proactive and Holistic Response to Covid
PROACTIVE AND HOLISTIC RESPONSE TO COVID WeCare – support where it is needed most Prevention Response Recovery Operating protocols Community support Safe & healthy operations Essential services Workforce & Education, healthcare, for communities community testing livelihoods 66
Slide 7: Robust Business Responding Flexibly
ROBUST BUSINESS RESPONDING FLEXIBLY Mining EBITDA margin7 Covid disruption 42% Portfolio restructuring 38% 30% Operating model & technical improvements 2012 2019 H1 2020 77
Slide 8: Diamond Market Structurally Attractive
DIAMOND MARKET STRUCTURALLY ATTRACTIVE Luxury goods: a growing global market De Beers: the leading diamond brand Diamond jewellery demand11 $bn 74 74 76 ~76 73 73 72 68 70 65 59 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e Covid impacts – jewellery stores closed De Beers – world’s leading
Slide 9: Asset Quality Positions Us Well for Recovery
ASSET QUALITY POSITIONS US WELL FOR RECOVERY Diamonds Copper Leading position World class growth Lower production in response to demand Strong cost performance Business transformation accelerated H2 production +5% PGMs Bulks Leading position Quality niche products Production impact 25% in H1 Strong
Slide 10: The Numbers
AngloAmerican THE NUMBERS Stephen Pearce Real Mining. Real People. Real Difference.
Slide 11: H1 2020 Results
H1 2020 RESULTS EBITDA6 EPS9 Capital expenditure12 $3.4bn $0.72/sh $1.8bn Unit cost8 Dividends Free cash flow13 4% $0.28/sh $(0.5)bn 11 11
Slide 12: Solid Margins and Diversification
SOLID MARGINS AND DIVERSIFICATION Diamonds Copper $2m $706m 49% mining EBITDA margin7 45% mining EBITDA margin7 $3.4bn PGMs Bulks $610m $2,068m 27% mining EBITDA margin7 38% mining EBITDA margin7 12 12
Slide 13: Resilient Earnings in Challenging Times
RESILIENT EARNINGS IN CHALLENGING TIMES EBITDA6 $bn (0.6) 0.4 (1.1) (0.4) Met coal (0.6) PGMs (0.2) 5.5 (ACP) 0.4 108 4.2 3.4 H1 2019 Price14 Currency Covid Operational Cost & volume16 Other H1 2020 & CPI15 incidents 13 13
Slide 14: Robust Balance Sheet
ROBUST BALANCE SHEET Net debt $bn 0.2 7.6 1.4 Net debt:EBITDA6 1.1x 0.5 Diamonds 0.5 PGMs 0.2 Copper & Kumba 1.4 0.4 Quellaveco Working capital unwind 0.7 Sirius Minerals H2 2020 & 2021 4.6 New South African capital flows system 2019 Growth Working capital Other H1 2020 14 14
Slide 15: Capex Flexibility While Protecting Asset Integrity
CAPEX FLEXIBILITY WHILE PROTECTING ASSET INTEGRITY Capex $bn 5.0 - 5.5 ~$1bn lower spend with non-critical project deferrals & FX benefits Growth 4.0 - 4.5 (incl Quellaveco & 1.8-2.0 Crop Nutrients) Committed to disciplined, 1.3-1.5 value-added growth Sustaining 3.2-3.5 Diamonds vessel in Namibia, 2
Slide 16: Balanced Capital Allocation Framework
BALANCED CAPITAL ALLOCATION FRAMEWORK H1 2020 allocation of capital $0.6bn 2019 final base dividend paid Discretionary capital options $1.5bn Discretionary options: growth capex ($0.6bn), M&A ($0.7bn), share buyback ($0.2bn) Future project Additional Portfolio upgrade options shareholder returns 16
Slide 17: Balanced and Disciplined Approach
BALANCED AND DISCIPLINED APPROACH Cash returns Resilient balance sheet ~$5bn <1.5x Dividends & buybacks since 2017 Bottom of cycle net debt:EBITDA6 Attractive growth Strong margin ~20-25% ~45-50% Cu Eq production – by 20235 Mining EBITDA margin7 17 17
Slide 18: Positioned for the Future
POSITIONED FOR THE FUTURE Mark Cutifani
Slide 19: Quellaveco Restart Under Way
QUELLAVECO RESTART UNDER WAY Project suspension ~3 months to July 2020 Restart staggered leading health protocols in place Water & pipeline on schedule Mine progressing optimised mine plan targets value enhancement Plant concrete good progress, now erecting steel & other equipment Overall schedule 2
Slide 20: Crop Nutrients: Good Progress at Woodsmith
CROP NUTRIENTS: GOOD PROGRESS AT WOODSMITH Acquisition cost18 2020 Capex12 $0.7bn ~$0.3bn Acquisition of Sirius Minerals completed on 17 March Covid operating procedures implemented Strong progress continues on major works POLY4 fertiliser market development identifies strong interest Tunnel progres
Slide 21: Responsible Transition Out of SA Thermal Coal
RESPONSIBLE TRANSITION OUT OF SA THERMAL COAL Weighting in portfolio already reduced Exit from SA thermal coal operations Production (Mt)19 80 ~32 2012 2020F Water reclamation plant Responsible approach to transition % Group revenue20 De-merger most likely route with primary JSE listing 13% 5% Timef
Slide 22: Hydrogen Drives Long Term Platinum Demand
HYDROGEN DRIVES LONG TERM PLATINUM DEMAND A clean & potentially abundant fuel… …with applications using PGMs High energy density Easy transport & storage Alstom, hydrogen train Clean at point of use PGMs used in transport fuel cells Particularly suited to heavy duty applications Potential green prod
Slide 23: Active Route to a Greener World
ACTIVE ROUTE TO A GREENER WORLD Carbon neutral operations Technology minimises by 2040 environmental footprint Renewables sourced power, Bulk sorting installation hydrogen storage & haulage at Copper, PGMs & Nickel 8 sites carbon neutral Coarse particle recovery by 2030 being installed in Copper 203
Slide 24: Portfolio Positioned for a Sustainable Future
PORTFOLIO POSITIONED FOR A SUSTAINABLE FUTURE Consumer world Electrified world Greener world Cu Eq production5 ~55% ~65% later later cycle cycle Diamonds Copper PGMs Nickel & manganese Crop nutrients Steel making22 Thermal coal 24 24
Slide 25: Committed to Delivery
COMMITTED TO DELIVERY Effectiveness Efficiency Sustainability >10% >20% Embedded in Free cash flow23 ROCE10 performance pillars 25 25
Slide 26: 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” 26 26
Slide 27: Footnotes
FOOTNOTES All metrics in presentation shown on an underlying basis. 1. Recordable incidents. Data relates to subsidiaries and joint operations over which 12. Cash expenditure on property, plant and equipment including related derivatives, Anglo American has management control. Since 2018 data for fa
Slide 28: Appendix
&S AngloAmerican APPENDIX wi. = Real Mining. Real People. Real Difference.
Slide 29: Simplified Earnings & Guidance
SIMPLIFIED EARNINGS & GUIDANCE
Slide 30: H1 2020 Simplified Earnings by BU
H1 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) 8.5Mct2 294kt 295koz Pt3 18.8Mt 12.7Mt 7.8Mt4 10.4Mt5 20.4kt Average benchmark price n/a $5,490/t6 n/a $91/t7 $104/t8 $
Slide 31: H1 2020 Simplified Earnings by BU - Notes
H1 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 $859/oz 295koz $253m Market price $91/t7 $10
Slide 32: Guidance Summary
GUIDANCE SUMMARY Earnings Capex1 Other Volumes: See slide 33 2020 $4.0-4.5bn Quellaveco copper project Unit costs: See slide 34 - Growth $1.3-1.5bn - Our share of capex included in - Sustaining $2.7-3.0bn capex guidance 2020 depreciation: $2.7-2.9bn2 2021- $4.7-5.5bn 2020 effective tax rate: 31-33%2
Slide 33: Production Outlook
PRODUCTION OUTLOOK Units 2018 2019 2020F1 2021F 2022F Diamonds2 Mct 35 31 25-27 34-36 33-35 Chile: 600-660 Copper3 kt 668 638 620-670 620-680 Peru: 100-150 Platinum – M&C4 Moz 2.5 2.15 1.5-1.75 2.0-2.25 2.0-2.25 Palladium – M&C4 Moz 1.6 1.45 1.0-1.25 ~1.45 1.4-1.55 Iron ore (Kumba)6 Mt 43 42 37-39 4
Slide 34: Unit Costs Performance by Business Unit
UNIT COSTS PERFORMANCE BY BUSINESS UNIT De Beers (US$/ct)1 Copper (C1 USc/lb) PGMs (US$/Pt oz)3 Kumba (FOB US$/t) Previously: Previously: <$1,600/Pt oz3 ~$36/t4 Previously: ~125c/lb2 63 62 ~60 126 1,543 1,675 ~1,600 33 29 ~32 ~110 107 2019 H1 2020 2020F 2019 H1 2020 2020F 2019 H1 2020 2020F 2019 H1
Slide 35: Earnings Sensitivities
EARNINGS SENSITIVITIES Impact of 10% change Sensitivity Analysis – H1 20201 in price / FX Commodity / Currency 30 June spot Average realised EBITDA ($m) Copper (c/lb)2 274 250 158 Platinum ($/oz) 814 857 18 Palladium ($/oz) 1,905 2,141 58 Rhodium ($/oz) 8,000 8,985 49 Kumba: 93 Iron Ore ($/t) 101 26
Slide 36: High-Returning Growth Drives Near-Term Capex
HIGH-RETURNING GROWTH DRIVES NEAR-TERM CAPEX $4.7 - 5.5bn Excludes ~$0.3bn at Woodsmith in 2021 $4.0 - 4.5bn Includes ~$0.3bn at Woodsmith 1.5-2.0 Growth 1.3-1.5 3.2-3.5 Sustaining 2.7-3.0 2.8-3.1 2020F1 2021-22F Long-term per annum1 sustaining1 Excludes Mitsubishi share of Quellaveco capex1 which i
Slide 37: Attractive Greenfield and Brownfield Options
ATTRACTIVE GREENFIELD AND BROWNFIELD OPTIONS Long life greenfields and fast returning brownfields1 Our share: From: Quellaveco (Copper) $2.7bn to $2.8bn2 +180ktpa 2022 ~4 year payback >15% IRR >50% margin Marine Namibia (Diamonds) ~$0.2bn +0.5Mctpa 2022 ~3 year payback >25% IRR >60% margin Woodsmith
Slide 38: Life Extensions Will Deliver Value; Higher Near-Term Sustaining Capex
LIFE EXTENSIONS WILL DELIVER VALUE; HIGHER NEAR-TERM SUSTAINING CAPEX 2020 sustaining capex1 2021-22 sustaining capex1,2 Long-term sustaining capex1 $2.7-3.0bn pa $3.2-3.5bn pa ~$2.8-3.1bn driven by lifex driven by lifex for expanded portfolio Lifex projects – subject to disciplined capital allocati
Slide 39: 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 to be consolidated in Anglo American Group net debt Project capex (nominal) $5.3-5.5 billion (100% basis - Angl
Slide 40: 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 41: Liquidity
AngloAmerican LIQUIDITY Real Mining. Real People. Real Difference.
Slide 42: Strong Liquidity of $15.5bn at June 2020
STRONG LIQUIDITY OF $15.5BN AT 30 JUNE 2020 $6.3bn Majority of cash held centrally in US dollars Cash + Investment grade credit ratings $9.2bn Undrawn committed facilities No plc financial covenants in debt facilities 42 42
Slide 43: Limited Near-Term Debt Maturities
LIMITED NEAR-TERM DEBT MATURITIES Debt repayments ($bn) 2.5 2.1 1.6 1.5 1.3 1.1 0.9 0.8 0.5 0.6 0.4 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Subsidiary Euro Bonds US$ Bonds GBP bond Other Bonds Financing % of portfolio 32% 49% 3% 1% 15% Bank 11% Capital markets 85% Other 4% US bonds Eu
Slide 44: 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 45: 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 ~49% India Gulf USA China Trading margin (typical level)2 Self purchases3 Millennials4 ~7% ~30% ~60% of demand of US demand 1. Represents the underlying EBITDA margin f
Slide 46: A Growing, World Class Copper Business
A GROWING, WORLD CLASS COPPER BUSINESS Quality assets with growth High value portfolio with long term potential Collahuasi 249ktpa 1 (our share) ~1Mtpa at ~120c/lb 1 Los Bronces 335ktpa 1 With further growth potential from: • existing assets Quellaveco • new projects • exploration ~300ktpa 1 1. Repo
Slide 47: Quellaveco – A World Class Copper Project
QUELLAVECO – A WORLD CLASS COPPER PROJECT Attractive returns Focus on execution Successfully syndicated Low cost with significant All key permits in place, syndication transaction in further potential execution progressing well 2018 IRR Payback Mitsubishi subscription > 15% 4 years $851m Real, post-
Slide 48: World Leader in PGMs
WORLD LEADER IN PGMs Asset focused PGM Own mined production split by volume $5,681/Pt oz Mogalakwena Platinum 6% 3% Other 2% Base metals Palladium 7% 57% Palladium Ruthenium Rhodium 45% Gold Mining EBITDA margin Platinum Iridium 37% Basket price PGM Own mined production split by revenue Amandelbult
Slide 49: PGMs Market
PGMS MARKET Platinum demand1 Basket price driven by Pd and Rh Jewellery Other autocatalysts ~22% ~13% European light duty autocatalysts ~10% Industrial & other ~55% Rhodium +253% Robust long-term autos PGM demand2 Global light duty vehicle production outlook (million vehicles) 104 89 Battery PGM Bas
Slide 50: 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 65% is lump Pellet feed products Hard coking coal1 Production (Mt) Production (Mt)
Slide 51: Woodsmith: A Clear Strategic Fit
WOODSMITH: A CLEAR STRATEGIC FIT Quality asset Competitive Product Well Progressed Project 29 year life 10Mtpa ~$1.3bn invested to date Based on JORC reserves POLY4 produced post ramp up Key permits in place $40-50/t unit cost >50% margin ~$3.3bn to completion Low energy, green process Offtake agree
Slide 52: Portfolio Overview – Key Assets
PORTFOLIO OVERVIEW – KEY ASSETS De Beers Copper Botswana (Debswana) Los Bronces Namibia (Namdeb) Collahuasi South Africa (Venetia) Quellaveco Project Trading Bulks PGMs Minas-Rio (Iron ore) Mogalakwena Kumba (Iron ore) Amandelbult Moranbah-Grosvenor (Met coal) Processing Nickel & Manganese Crop Nutr
Slide 53: Asset Quality: Differentiated Portfolio
ASSET QUALITY: DIFFERENTIATED PORTFOLIO Revenue by product1 Capital employed by geography2 Nickel & Manganese 4% Other Thermal coal Diamonds 9% 5% (De Beers) Australia Met coal 9% 10% 7% Copper Brazil 12% 25% Other Namibia & 20% Botswana PGMs 14% 18% Chile, Peru South Africa Iron ore & Colombia 21%
Slide 54: 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 based on data available at H1 2020. Source: Wood Mackenzi
Slide 55: 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. Estimate based on data available at H1 2020. Source: Wood Mackenzie; AAP; De Beers; McKinsey Minespans; CRU. Excludes non-A
Slide 56: 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 H1 2020 11.3Mct 8.5Mct 109 $119/ct $62/ct $2m 49% $159m vs. H1 2019 $27% $45% $8% $21% 0% $100% $6pp $43% Underlying EBITDA ($m) 518 27 (1
Slide 57: Copper – Strong Cost Performance
COPPER – STRONG COST PERFORMANCE Underlying Mining Production Sales1 Realised price1 C1 unit cost2 Capex4 EBITDA margin3 H1 2020 314kt 294kt 250c/lb 107c/lb $706m 45% $729m vs. H1 2019 $2% $4% $11% $21% $11% #1pp #201% Underlying EBITDA ($m) 789 693 56 (45) 706 (179) (32) (6) 117 H1 2019 Price FX In
Slide 58: PGMs – ACP Issues & Covid-19 Impacts
PGMs – ACP ISSUES & COVID-19 IMPACTS Realised basket Underlying Production1 Pt sales2 Unit cost3 Mining margin4 Capex price2 EBITDA Pt: 748koz Pt: 436koz H1 2020 $5,520/Pt oz $1,675/Pt oz $610m 27% $200m Pd: 532koz Pd: 383koz vs. H1 2019 $25% / $21% $57% / $50% #106% #8% $26% $11pp $8% Underlying EB
Slide 59: Kumba Iron Ore – Production Impacted by Covid-19
KUMBA IRON ORE – PRODUCTION IMPACTED BY COVID-19 Realised price Unit cost Underlying Mining Production Sales Capex (FOB)1 (FOB) EBITDA margin H1 2020 17.9Mt 18.8Mt $93/t $29/t $1,028m2 54% $174m vs. H1 2019 $11% $12% $14% $15% $25% $3pp $6% Underlying EBITDA ($m) 1,366 (292) (29) 185 (180) 1,050 1,0
Slide 60: 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 H1 2020 12.6Mt1 12.7Mt1 $88/t1 $19/t1 $799m2 59% $61m vs. H1 2019 #17% #19% $4% $10% #19% $1% $34% Underlying EBITDA ($m) (57) 799 166 670 693 (12) (54) 89 H1
Slide 61: Metallurgical Coal – Two Operational Incidents
METALLURGICAL COAL – TWO OPERATIONAL INCIDENTS Metallurgical Metallurgical FOB realised Underlying Mining Unit cost3 Capex production1 sales1 price2 EBITDA margin H1 2020 7.8Mt 7.8Mt $120/t $97/t $(10)m4 (1)% $287m vs. H1 2019 $22% $22% $36% #43% $101% $51pp #13% Underlying EBITDA ($m) 906 (454) 502
Slide 62: Thermal Coal – Covid-19 Impacts
THERMAL COAL – 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 H1 2020 7.8Mt / 2.7Mt 7.2Mt / 3.2Mt $61/t / $46/t $39/t / $35/t $20m / $13m 1% / 9% $88m vs. H1 2019 $13% / $35% $22% / $29% $5%
Slide 63: Nickel – Strong Performance
NICKEL – STRONG PERFORMANCE Realised C1 unit Underlying Mining Production1 Sales1 Capex price cost EBITDA margin H1 2020 21.7kt 20.4kt 502c/lb 336c/lb $64m 28% $12m vs. H1 2019 #11% #10% $11% $18% #23% #6pp $40% Underlying EBITDA ($m) 64 2 52 54 8 (2) (34) 38 H1 2019 Price FX Inflation Cost & volume
Slide 64: High Quality Diversified Portfolio
HIGH QUALITY DIVERSIFIED PORTFOLIO ~1Mt copper #10 producer currently, #7 post Quellaveco1 ~37Mct diamonds (De Beers) #1 producer by value, #2 by volume ~5Moz PGMs #2 producer ~75Mt high grade iron ore #5 export producer ~30Mt premium coking coal2 #3 export producer currently, #2 at ~30Mt ~75kt nick
Slide 65: Commodity Outlook
COMMODITY OUTLOOK Medium-to-long term commodity outlook • 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 growth requirements deferred to mid/end 2020s. • I
Slide 66: Our Transformation Journey
AngloAmerican OUR TRANSFORMATION JOURNEY SS =<
Slide 67: A Transformed Business…
A TRANSFORMED BUSINESS… Covid disruption Production index1 +89% 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 H1 2020 1. Copper equivalent production is calculated us
Slide 68: …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. Estimate based on data available at H1 2020. Source: Wood Mackenzie; AAP; De Beers; McKinsey Minespans; CRU. Excludes non-AA
Slide 69: FutureSmart Mining
FUTURESMART MININGTM Our innovation-led approach to sustainable mining
Slide 70: 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 70 70
Slide 71: 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 72: Innovative Technologies in Development & Roll-out
INNOVATIVE TECHNOLOGIES IN DEVELOPMENT & ROLL-OUT Bulk Ore Sorting Coarse Particle Recovery Sensors determine ore content prior to processing Flotation process changed Waste rejected early: Allows material to be crushed to larger particle size: • Grade/throughput improvement; +5% to 25% • 20% more t
Slide 73: Energy Efficiency and GHG Emission Reductions
ENERGY EFFICIENCY AND GHG EMISSION REDUCTIONS Energy usage 2030 target Renewable energy usage Increased efficiency 30% Reduction in energy usage Total energy usage: 87 million GJ (2018: 84 million GJ) Carbon neutral by 2040 Greenhouse Gases 2030 target Gas capture 30% Reduction in GHG emissions Tota
Slide 74: Water Management Integral to the Business
WATER MANAGEMENT INTEGRAL TO THE BUSINESS New technologies Bulk ore sorting to pre-concentrate Coarse particle recovery to allow water abstraction from tailings Management of key operational risks Improving efficiencies Grey water usage at Los Bronces Evaporation management 2030 target Investment Po
Slide 75: 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 76: Our Contribution to Society
OUR CONTRIBUTION TO SOCIETY Taxes Paid to governments $3.0bn Wages and benefits Paid to employees and contractors $3.5bn Local procurement Paid to suppliers $3.8bn >550,000 >360,000 >205,000 >258,000 people provided with water people benefiting from people benefiting from people benefiting from jobs
Slide 77: A Sustainable, Responsible & Transparent Business
A SUSTAINABLE, RESPONSIBLE & TRANSPARENT BUSINESS Recognised as a sustainability leader in our sector #2 in diversified mining overall with the highest #2 extractives company (including oil and management scores in the sector. Perceived risk gas) in the FTSE 100 based on commitments associated with
Slide 78: Additional Ratings & Accreditations
ADDITIONAL RATINGS & ACCREDITATIONS BBB (average) in line with peers Additional ESG ratings 71/100 and included in European Index. Rated ‘Industry Mover’ Rated as prime – placing us as joint top mining company Accreditations & memberships 78 78
Slide 79: 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 79 79