Anglo American Plc · LSE:AAL

Anglo American — BofAML 2014 Global Metals, Mining & Steel Conference

21 slides from Anglo American's conference presentation, May 13, 2014

  1. Slide 1: BofAML 2014 Global Metals, Mining & Steel Conference

    BOFAML 2014 GLOBAL METALS, MINING & STEEL CONFERENCE, 13 MAY 2014 Mark Cutifani, CEO

  2. 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

  3. Slide 3: The Anglo American Story

    THE ANGLO AMERICAN STORY We have acknowledged where we have made mistakes… Performance Disappointments – Operations delivery has been unacceptable – Project schedules and budgets have been missed – Capital spending has inflated the Balance Sheet Critical Issues – Poor operations and project planning

  4. Slide 4: The Anglo American Story: What We Have Done

    THE ANGLO AMERICAN STORY We have acknowledged where we have made mistakes… So…what have we done – Asset Review.....completed to help understand critical risks and opportunities – Identified short term opportunities…Driving Value to double EBIT by 2016 – Restructure and recruit to rebuild technical a

  5. Slide 5: Strategic Clarity: Major Diversified Mining Company

    STRATEGIC CLARITY… We are a “Major Diversified Mining Company”... Share of 2013 EBITDA by commodity Commodity Diversification Peer 1 Peer 2 Peer 3 Peer 4 Anglo American Aluminium Manganese Thermal Coal Nickel Platinum Petroleum Alloys Iron ore Metallurgical Coal Copper Zinc Diamonds Fertilisers Note

  6. Slide 6: Strategic Clarity: Differentiated Downstream Market Mix

    STRATEGIC CLARITY… We are a “Major Diversified Mining Company”... Share of 2013 EBITDA by commodity Commodity Diversification INFRASTRUCTURE Peer 1 Peer 2 Peer 3 Peer 4 Anglo American Aluminium Manganese Thermal Coal Nickel Platinum Petroleum Alloys Iron ore Metallurgical Coal Copper Zinc Diamonds F

  7. Slide 7: Strategic Clarity: Infrastructure & Energy

    STRATEGIC CLARITY… We are a “Major Diversified Mining Company”... Share of 2013 EBITDA by commodity Commodity Diversification INFRASTRUCTURE & energy Peer 1 Peer 2 Peer 3 Peer 4 Anglo American Aluminium Manganese Thermal Coal Nickel Platinum Petroleum Alloys Iron ore Metallurgical Coal Copper Zinc D

  8. Slide 8: Strategic Clarity: Infrastructure & Other Markets

    STRATEGIC CLARITY… We are a “Major Diversified Mining Company”... Share of 2013 EBITDA by commodity Commodity Diversification INFRASTRUCTURE & OTHER MARKETS Peer 1 Peer 2 Peer 3 Peer 4 Anglo American Aluminium Manganese Thermal Coal Nickel Platinum Petroleum Alloys Iron ore Metallurgical Coal Copper

  9. Slide 9: Doing What We Said: Predictability Continues to Improve

    DOING WHAT WE SAID... Predictability continues to improve across operations… 4 Quarters to Q1 2013 Q1 2014 71% 48% 48% on budget 40% Cerrejón Sishen Sishen Kolomela Kolomela Capcoal Moranbah Collahuasi Los Bronces Capcoal Jwaneng Mogalakwena Los Bronces Orapa 11% on budget Collahuasi Jwaneng Mogalak

  10. Slide 10: Understanding Our Resources

    UNDERSTANDING OUR RESOURCES We can see where we have resource opportunities… Platinum Asset Reserves and Margins a Mogalakwena 50 40 Average contribution margin 2013 % Mototolo Mogalakwena 30 20 Kroondal Unki Dishaba Tumela Modikwa Bathopele 10 Siphumelele Thembelani Union 0 1,600 2,000 2,400 2,800

  11. Slide 11: Mining Strategy Delivery: Los Bronces

    MINING STRATEGY DELIVERY Los Bronces – mining strategy and plan delivery… Mine Extraction (ktpd) Mine Movement (ktpd) 700 700 650 600 600 550 500 500 450 400 400 350 300 300 250 200 200 150 100 100 50 0 0 Jul-13 Oct-13 Jan-14 Apr-14 Jul-13 Oct-13 Jan-14 Apr-14 Extraction UCL LCL Mean Movement UCL LC

  12. Slide 12: Operating Model Supports Improvement

    OPERATING MODEL SUPPORTS IMPROVEMENT The focus on a manufacturing approach to mining..… Strong productivity increases 100% at Moranbah Underground Australian productivity (ROM tonnes/FTE) Productivity based on period-end FTE’s LW hours pw +23% 120 100 80 60 13,400 10,900 40 9,000 Longwall move/ Drif

  13. Slide 13: Sishen...Still Lots to Do

    SISHEN…STILL LOTS TO DO We have stabilised ore production… Sishen production Sishen waste Mt 36 37 Mt ~270 35 ~250 31 ~220 168  Q1 8.7Mt x Q1 39Mt 2013 2014e 2015e 2016e 2013 2014e 2015e 2016e • New mine plan (pushback design) in place 2015 • Business Process Framework implementation (mining equipm

  14. Slide 14: Minas-Rio 88% Complete, First Ore on Ship on Track for 2014

    MINAS-RIO 88% COMPLETE….FOOS ON TRACK FOR 2014 Progress - 88% complete (at end of March) Operational readiness Mine 100%  • Mine stripping complete – ore mining in process • Beneficiation plant on schedule for Q4 commissioning – Benefication currently 30 days behind plan Plant 87% x • Other commiss

  15. Slide 15: Focus on Returns: Attributable ROCE Target 15% by 2016

    FOCUS ON RETURNS - ATTRIBUTABLE ROCE TARGET IS 15% ROCE BY END OF 2016… Attributable ROCE(1) (%) and EBIT ($bn) 2012 to 2016 Target ($m) @ 30 June 2013 prices and FX Identified Defined Plans Achieved in 2013/Q1 2014 0.5 7.3 1.3 0.5 0.2 1.2 0.6 0.3 0.3 Focus 2014 0.9 0.6 H1 results 3.3 Delivery On Tr

  16. Slide 16: Balance Sheet Flexibility

    BALANCE SHEET FLEXIBILITY Delivering projects through ’14 – ’16…a different point in capex cycle… Net debt consensus forecast ($bn)1 • Increasing net debt levels in the near term headroom reflect capex peak in 2014 supporting Minas- 17 16 Rio and Grosvenor projects 14 ~10 • Current liquidity headroo

  17. Slide 17: Managing the Portfolio

    MANAGING THE PORTFOLIO Focus on Tier 1 delivery and potential…Tier 2 consistency and potential… 2013 EBIT contribution in $bn Number of EBIT $bn operations 4.0- 3.8bn -40 3.0- -30 Increasing complexity with marginal benefit 2.0- -20 31 1.0- -10 19 0.7bn 19 0.1bn Tier 1 – Top Priority Tier 2 – Solid

  18. Slide 18: Summary

    SUMMARY Focus on ROCE reflects business delivery and capital discipline… – 2014 is about rebuilding our performance foundations  Minas-Rio first ore on ship  Sishen production of 35Mt  Platinum portfolio and Rustenburg positioning to be defined  Deliver the numbers with focus on critical assets

  19. Slide 19: Appendix

    APPENDIX

  20. Slide 20: Production Outlook – 2014 Copper / Platinum Revised

    PRODUCTION OUTLOOK – 2014 COPPER / PLATINUM REVISED COMMODITY 2012 2013 2014 2015 2016 Copper (1) 660kt 775kt 710 - 730kt c.700kt c.700kt 700–720Kt previously Nickel(2) 31kt 34kt 30-35kt 20-25kt 35-38k Iron ore (Kumba)(3) 43Mt 42Mt 44-46Mt 45-47Mt 46-48Mt Iron ore (Minas-Rio) (4) - - N.M. 11-14Mt 24

  21. Slide 21: 30 June 2013 Spot Prices and FX (ROCE Calculation)

    30 JUNE 2013 SPOT PRICES AND FX (ROCE CALCULATION) Commodity 30 June 2013 Current (spot at 11 May 2014) Iron Ore FOB Australia $108/t [CFR $116] $95/t [CFR $103] Thermal FOB South Africa $74/t $76/t Thermal FOB Australia $78/t $73/t HCC FOB Australia $172/t $114/t Copper 306c/lb 308/lb Nickel 619/lb

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