Anglo American Plc · LSE:AAL
Anglo American — BofAML 2015 Global Metals, Mining & Steel Conference
20 slides from Anglo American's conference presentation, May 14, 2015
Slide 1: Quality Diversification and Disciplined Growth
QUALITY DIVERSIFICATION AND DISCIPLINED GROWTH BofAML 2015 GLOBAL METALS, MINING & STEEL CONFERENCE. 12-14 MAY 2015 Copper – Los Bronces plant
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: Our Value Proposition
OUR VALUE PROPOSITION We are creating a business that is emerging from significant restructuring… DIVERSIFIED PORTFOLIO …mitigating risk with quality development opportunities. OPERATING DISCIPLINE …building sustainable competitive performance. QUALITY ASSET BASE …and significant restructuring
Slide 4: Setting the Scene – Establish Control
SETTING THE SCENE – ESTABLISH CONTROL Our approach to building performance is simple…and continuous… Value CAPABILITY Realise Potential Build Capability Establish Stability Operations • Brownfield STABILITY options • Resource potential Markets • Debottleneck • Priority capital options People •
Slide 5: Delivery in Action - Copper
DELIVERY IN ACTION - COPPER Performance improvement at Los Bronces has been significant… Los Bronces plant utilisation “approaching benchmark” Labour productivity in the top quartile Tonnes of copper / Person (including contractors) 95% 94% Chile 1 52 92% Peru 1 51 Los Bronces 44 88% Collahuasi 43 P
Slide 6: Delivery in Action - Metallurgical Coal
DELIVERY IN ACTION - METALLURGICAL COAL We now have two of the most productive longwalls in Australia… Underground FOB cash costs (excl. royalty) Top 15 Australian longwall productivity 2014 ROM tonnes ‘000 per employee -44% 0 2 4 6 8 10 12 14 16 18 113 109 LW 1 LW 2 LW 3 83 80 LW 4 70 Grasstree 63
Slide 7: Delivery in Action - Platinum
DELIVERY IN ACTION - PLATINUM Stabilising and then growing Mogalakwena with minimal capital invested… Mogalakwena equivalent refined production (Pt koz) Mogalakwena cash operating margin (%) (1) 1,532 51% 50% 98 100 45% 96 86 87 88 89 87 83 38% 78 1,192 74 71 69 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 8: The Near Term Imperative
THE NEAR TERM IMPERATIVE We are rebuilding our portfolio and our performance engine… Attributable EBIT $bn @ 30 June 2013 prices and FX 1.5 $7.3bn 1.6 0.9 $4.7bn 0.9 0.9 $3.3bn $1.7bn of attributable EBIT Delivered in 2014 2012 Projects Asset Reviews Value Disposals and 2016 2016 at consensus Leakag
Slide 9: Near Term Imperative - Financial Position
NEAR TERM IMPERATIVE - FINANCIAL POSITION While the pricing environment is deteriorating… Capex ($bn) Net debt profile ($bn) Long term net debt target $10bn to $12bn 14.0 6.0 13.5 ~5.2 Projects in 12.9 execution 3.9 3.3 Stripping SIB 10.7 (1) 2014 2015 2016 2017 2013 2014 2015 guidance Note: (1) Ass
Slide 10: Progressing on Our Divestment Programme
PROGRESSING ON OUR DIVESTMENT PROGRAMME Our strategic intent is on focussing the portfolio… Lafarge Tarmac 2015 sale on track (£885m) • Conditional on Holcim/Lafarge merger. Platinum • Union and Rustenburg: progressing on dual-track process. Copper • Mantos Blancos/Mantoverde – sale process un
Slide 11: Setting the Scene – Establish Control
SETTING THE SCENE – ESTABLISH CONTROL Our approach to building performance is simple…and continuous… Value CAPABILITY Realise Potential Build Capability Establish Stability Operations • Brownfield STABILITY options • Resource potential Markets • Debottleneck • Priority capital options People •
Slide 12: Diversification and Value
DIVERSIFICATION AND VALUE Diversification across three primary dimensions... Commodity Geography Cycle EBIT EBIT EBIT (excluding Corporate and Exploration - % of total) (excluding Corporate and Exploration - % of total) (excluding Corporate and Exploration - % of total) 28% 27% 35% 45% 14% 5% 39% 37
Slide 13: Portfolio…Building on Quality
PORTFOLIO…BUILDING ON QUALITY More focus on Priority assets…with less labour… Number of mines(1)(2) Employees & contractors (‘000)(1) Production (Cu eq. tonnes ‘000)(1)(3) -31% -32% -7% 58 151 ~4,100 3,820 40 102 Before After Before After Before After Platinum Copper Nickel Iron Ore Coal De Beers Ni
Slide 14: Portfolio Quality…Competitive Positions
PORTFOLIO QUALITY…COMPETITIVE POSITIONS Reflecting current project completions and portfolio restructure… Aggregate Business Unit cost curve position - 2014 Cu equiv. production 400kt De Beers Jwaneng With After Before Copper disposals Quellaveco Quellaveco After Barro Alto Before re-build Nickel Af
Slide 15: Setting the Scene – Establish Control
SETTING THE SCENE – ESTABLISH CONTROL Our approach to building performance is simple…and continuous… Value CAPABILITY Realise Potential Build Capability Establish Stability Operations • Brownfield STABILITY options • Resource potential Markets • Debottleneck • Priority capital options People •
Slide 16: Portfolio of Assets
PORTFOLIO OF ASSETS Focus on the “best of the best” opportunities… Jwaneng Orapa Los Bronces Moranbah North Quellaveco Venetia Collahuasi Minas-Rio Mogalakwena Phosphates Grosvenor Sishen/Kolomela …which demand capable leadership and business disciplines.16 16
Slide 17: Realising Potential - Resource Optionality
REALISING POTENTIAL - RESOURCE OPTIONALITY Scalable resources in our commodities of choice… • Gahcho Kué De Beers • Quellaveco Copper • Collahuasi further expansion • Life extension options at • Los Bronces District Debswana and Venetia • South African export life extensions • Mogalakwena optimisati
Slide 18: Our Value Proposition
OUR VALUE PROPOSITION DIVERSIFIED PORTFOLIO …remains a core pillar of the strategy. OPERATING DISCIPLINE …operational turnaround delivering…accelerate from here. QUALITY ASSET BASE …further enhanced with disposal/improvement programmes. ORGANIC POTENTIAL …realising potential primarily through br
Slide 19: Appendix
APPENDIX
Slide 20: Production Outlook
PRODUCTION OUTLOOK(1) 2013 2014 2015 2016 2017 Copper (2) 775Kt 748kt 720-750kt 720-750kt 710-740kt Nickel(3) 34kt 37kt 20-25kt 40-45kt 42-45kt Iron ore (Kumba)(4) 42Mt 48Mt 47-48Mt 49-51Mt 49-51Mt Iron ore (Minas-Rio)(5) - 0.7Mt 11-14Mt 24-26.5Mt 26.5Mt Metallurgical coal 19Mt 21Mt 20-21Mt 21-22Mt
Anglo American — BofAML 2015 Global Metals, Mining & Steel Conference on 6ix