Antofagasta Plc · LSE:ANTO
Antofagasta — Bank of America Merrill Lynch 2017 Global Metals, Mining & Steel Conference
19 slides from Antofagasta's conference presentation, May 16, 2017
Slide 1: Bank of America Merrill Lynch 2017 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2017 Global Metals, Mining & Steel Conference 16th May 2017 Alfredo Atucha – CFO
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
Agenda Operating Financial Review & Overview Investment Case Overview Growth Opportunities 3
Slide 4: Overview
, ANTOFAGASTA PLC <6 Kt NU PS | gf /u Overview
Slide 5: Safety First
Safety First Safety Performance • Committed to zero fatalities 5 40% reduction in • Critical risk reporting increased LTIFR • New set of leadership practices deployed 2.5 throughout the Group 2 1.7 2.0 2 • Increased focus on near miss reporting to 1 1.9 1 1.5 create learning opportunities 2012 2013
Slide 6: Antofagasta at a glance - 2016
Antofagasta at a glance - 2016 Antucoya Group o 70% owned o 65% owned by Luksic Group, 35% free float o Copper production: 66,200 t o Market cap: $9.7 billion (10/05/2017) o Remaining mine life(1): 19 years o Reserves(2): 697 million t @ 0.33% Cu o FTSE 100 Mining division Centinela o 70% owned o Co
Slide 7: Framework for sustained value creation
Framework for sustained value creation Creating long Emphasis on Focus on cost term value Positioned for disciplined and operating through growth production reliability sustainability & innovation • Only profitable • Protect margins • Community • Positive copper production • Embedded Cost & engageme
Slide 8: 2016 – strong performance
2016 – strong performance Cu Production Revenue Net Cash Costs EBITDA 709,400t $3,622 million $1.20/lb $1,626 million ↑12.5% compared to last year ↑12.3% compared to last year ↓20.0% compared to last year ↑78.7% compared to last year EBITDA Margin (1) Capital Expenditure Earnings per Share (2) Divid
Slide 9: Operating focus
Operating focus Los Pelambres Centinela Antucoya Zaldívar ✓New community ✓ Completed installation of ✓ Commercial production ✓ Integration complete engagement model paste thickeners started 2016 ✓ Higher copper recoveries ✓Resolved long standing court ✓ Ramp-up complete ✓ Approved EIA for Second cas
Slide 10: Financial Overview
®) » ANTOFAGASTA PLC Financial Overview
Slide 11: Productivity improvements embedded
Productivity improvements embedded Cash costs fell by 16% in 2 years despite a 12% Cost and Competiveness Programme decrease in grade $31m $152m $176m $140m Services Productivity $1.83 $1.81 $0.40 $1.54 $1.55 $0.31 Contractors productivity $0.34 $0.25 $1.43 $1.50 0.76% $1.20 $1.30 0.68% 0.67% 0.64%
Slide 12: Strong Balance Sheet
Strong Balance Sheet Capital Expenditure ($m) (1) Net Cash/(Debt) Gross Basis ($m) 4,000 Cash Cash Debt Sub Debt Net Debt Others $2,375m $2,049m Mine Development 2,000 $1,732m $1,646 Sustaining Development 97 0 (1.6) 64 (1,024) (1,072) (2,000) 399 $1,049 ($2,376m) ($2,755m) 38 ($3,120m) $900 (4,000)
Slide 13: Operating Review & Growth Opportunities
Operating Review & Growth Opportunities 13
Slide 14: Copper market - Medium and long-term price strength expected
Copper market - Medium and long-term price strength expected Observations Copper Price & Exchange Inventories o China consumption growth estimated at some 3%pa cents/lb 300 Tons 900,000 despite recent market uncertainty 800,000 250 o Reflationary environment & global growth outlook both 700,000 posi
Slide 15: Capital allocation – drives decision making
Capital allocation – drives decision making 2016 Decision factors Operating Cash Flow $1,457m Copper • Stress test forecasts at various price copper prices Sustaining Capex & Free cash • Future free cash flow generation $482m Mine Development flow • Cash buffer • Upcoming capital expenditure 35% Cap
Slide 16: Phased growth opportunities
Phased growth opportunities Encuentro Oxides(1) Centinela Second Concentrator(4) Cu: 50ktpa(2) Cu: 140ktpa(2) Capex: $635m Capex: $2.7bn 2017 2018 2019 2020 2021+ Centinela Moly Plant(1) Los Pelambres Phase 1 Los Pelambres Phase 2 Incremental Expansion(1) Incremental Expansion(4) Mo: 2,400tpa(2) Cu:
Slide 17: Investment Case
A, ANTOFAGASTA PLC Investment Case 17
Slide 18: Investment Case
Investment Case High- Cash Cost Capital quality generation control discipline assets • Strong and growing • Cost and • Disciplined capital production Competitiveness allocation Programme • Large resource base • Strong and flexible • Technical innovation balance sheet • Low cost and long- life assets
Slide 19: Bank of America Merrill Lynch 2017 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2017 Global Metals, Mining & Steel Conference 16th May 2017 Alfredo Atucha – CFO
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