Antofagasta Plc · LSE:ANTO
Antofagasta — Corporate Update (December 2023)
17 slides from Antofagasta's corporate update, Dec 20, 2023
Slide 1: Centinela Second Concentrator: Creating a Tier 1 Mining District
Centinela Second Concentrator Creating a Tier 1 Mining District Iván Arriagada | Chief Executive Officer Mauricio Ortiz | Chief Financial Officer 20 December 2023
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: Centinela Second Concentrator: Project approval
Centinela Second Concentrator Project approval • Antofagasta plc is pleased to announce that the construction of the Centinela Second Concentrator Project has been approved. Critical path works will begin immediately with full construction expected to commence after definitive project finance docume
Slide 4: Second Concentrator: Building a Tier 1 mining district
Second Concentrator: Building a Tier 1 mining district Brownfield expansion leveraging 20-years of experience UNLOCKING VALUE DELIVERING GROWTH FIRST kt QUARTILE 36 year mine life based on 170 additional production, COSTS Material fall in C1 cost substantial 2.0Bt ore creating a top 15 global due to
Slide 5: Unlocking Centinela's resource potential
Unlocking Centinela’s resource potential District containing two concentrators and two SXEW plants Mirador Mine Project summary (oxides) • Primary crusher and conveyor belt system (connecting mine c.20 Km SXEW Plant Llano (Oxides) and plant). • 95ktpa concentrator incorporating HPGR1 technology. • E
Slide 6: Infrastructure: Leveraging existing investments
Infrastructure: Leveraging existing investments Reducing construction risk Antucoya • Port operations: Expansion of existing facilities at Michilla, Northern Chile. Concentrate port • Concentrate pipeline: Expansion of existing pumping capacity, increasing pipe diameter in sections. Pipeline (Concen
Slide 7: Centinela District: Top global copper mine
Centinela District: Top 15 global copper mine Becoming one of Chile’s largest gold producers ADDITIONAL PRODUCTION: COPPER AND BYPRODUCTS1 +170ktpa CuEq Copper production (ktpa) • Annual copper equivalent production to increase by 170kt following construction, including additional byproducts. 0 144k
Slide 8: Technology and Innovation: Boosting competitiveness
Technology and Innovation: Boosting competitiveness Developing an asset for the next 36 years CENTINELA DISTRICT MOVING TOWARDS FIRST QUARTILE C1 Key drivers for cost savings COST FOLLOWING EXPANSION • Expanding existing fleet autonomy. Mining • Larger fleet (373 tonne haul trucks). 1st Quartile 2nd
Slide 9: Capex composition: Brownfield nature reduces risk
Capex composition: Brownfield nature reduces risk Investing in our assets for industry-leading growth PROJECT COST: $4.4BN PROJECT CAPEX COMPOSITION ADVANCED DETAILED ENGINEERING ESTIMATE INCLUDES BROWNFIELD EXPANSION MEANS NEARLY 60% OF INVESTMENT • ADDITIONAL CONTINGENCY PROVISIONS TO BE ON MINING
Slide 10: Investment and financing timeline
Investment and financing timeline Smoothing cashflow via 12-year debt facility Project finance ($2.5 billion) • Facility structured at the project level (Centinela). 4.5-year grace period • Term: 12-year facility: o 4.5-year grace period. o 7.5-year amortisation schedule. • Disbursements to be made
Slide 11: Growth with capital allocation discipline
Growth with capital allocation discipline Maintaining a consistent approach CONSISTENT APPROACH TO CAPITAL ALLOCATION DELIVERING SHAREHOLDER RETURNS ALONGSIDE A SOLID BALANCE SHEET OPERATING CASH FLOW +200% 125% 2.5 Shareholder returns (% of total earnings) CAPITAL OUTFLOW SUSTAINING CAPEX & MINE DE
Slide 12: Centinela: Delivering responsible copper
Centinela: Delivering responsible copper Committed to Chile and local communities RESPONSIBLE SAFE INVESTING IN REGIONAL PRODUCTION OPERATIONS CHILE EMPLOYMENT 100% 0.83 900 60% Lost time injury Additional new roles at Of Centinela employees 100% renewable electricity1 Centinela following from Antof
Slide 13: Projects pipeline and delivering our strategy
Projects pipeline and delivering our strategy Pipeline for 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 medium to long term. Los Pelambres
Slide 14: Second Concentrator: Building a Tier 1 mining district
Second Concentrator: Building a Tier 1 mining district Brownfield expansion leveraging 20-years of experience UNLOCKING VALUE DELIVERING GROWTH FIRST kt QUARTILE 36 year mine life based on 170 additional production, COSTS Material fall in C1 cost substantial 2.0Bt ore creating a top 15 global due to
Slide 15: Appendices
Developing mining for a better future Appendices
Slide 16: Antofagasta: At a glance
Antofagasta: At a glance Top 10 copper producer with production of 640-670kt in 2023 Antucoya Group • 70% owned • 65% owned by Luksic Group, 35% free float. • Copper production1: 79,200 t • Market cap: $21.1 billion (19 December 2023). • Remaining mine life2: 21 years • Constituent of FTSE 100 and F
Slide 17: Centinela Second Concentrator: One page summary
Centinela Second Concentrator One page summary Operational parameters Fiscal parameters Ownership ANTO 70%, Marubeni 30% Tax stability agreement applicable at Centinela, with new royalty starting to apply from 2030. $4.4 billion for concentrator, including associated Development capital water, power