Anglo American Plc · LSE:AAL
Anglo American — BMO 31st Global Metals & Mining Conference (February 2022)
20 slides from Anglo American's conference presentation, Feb 28, 2022
Slide 1: Anglo American – 28 February 2022
28 February 2022 Processing plant, Quellaveco Anglo American
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the written materials/slides for a presentation concern
Slide 3: SHE performance – drive for a safe & healthy future
SHE performance – drive for a safe & healthy future Safety Health Environment Group TRCFR1,2 Fatalities1 Occupational health – new cases1,3 Level 3 & above significant incidents1,4 5.42 30 209 3.17 101 96 2.66 15 H1: 2.33 2.21 2.14 6 2.24 39 9 30 H2: 2.16 16 2 5 4 1 1 1 2 1 2013 2017 2018 2019 2020
Slide 4: Our improvement journey
Our improvement journey Portfolio restructuring P101 cost & volume Technical reconfiguration Incremental growth & debottlenecking Operating Model & processes New projects Mining EBITDA margin5 Margin based on long- term consensus commodity prices (which are ~36% lower than the 2021 basket price) 56%
Slide 5: Operational excellence underpins transformation
Operational excellence underpins transformation Operating Model: delivering stable & predictable outcomes Stabilisation at Work is planned, scheduled and properly resourced higher performance Stable and consistent performance Stabilisation at still Further improvement higher impacting stability perf
Slide 6: Significant improvement in our cost curve position
Significant improvement in our cost curve position Average margin adjusted cost curve7 position over time -20% 49% -8% -21% 45% +13% +3% 43% 41% 39% 37% 36% 29% 27% 22% Peer 1 Peer 2 Peer 3 Peer 4 20137 2021F 6 Anglo American
Slide 7: FY 2021 results
FY 2021 results EBITDA8 EPS8 Net debt $20.6bn $7.22/sh $3.8 bn Unit cost, FX neutral9 Shareholder returns10 Free cash flow11 10% $6.2bn $9.6bn Up 16% including FX Ordinary & special dividends and buyback 7 Anglo American
Slide 8: Strong margins drive record EBITDA
Strong margins drive record EBITDA Diamonds Base Metals 12 $1.1bn $4.3bn 47% mining EBITDA margin5 60% mining EBITDA margin5 $20.6bn 14 PGMs Bulks 13 $7.1bn $8.1bn 62% mining EBITDA margin5 55% mining EBITDA margin5 8 Anglo American
Slide 9: Balanced, disciplined and sustainable approach
Balanced, disciplined and sustainable approach Cash returns Attractive growth $12.3bn ~18 % Dividends & buybacks since 201710 Production growth by ~202315 Resilient balance sheet Capital employed by geography16 Other Chile 13% & Peru 0.2x Australia 23% 9% Botswana 12% 2021 Net debt:EBITDA8 & Namibia
Slide 10: Driving towards a sustainable future
Driving towards a sustainable future Greener World Electrified World Consumer World Cu Eq production15 Met Coal Diamonds Transition enabling High quality Copper Iron Ore ~85% Future enabling Crop Nutrients Nickel & PGMs Manganese 10 Anglo American
Slide 11: Quellaveco on track for mid 2022 delivery
Quellaveco on track for mid 2022 delivery Operations – Autonomous haul trucks Quellaveco Greenfield copper project On track for mid 2022 delivery despite Covid challenges • First ore delivered October 2021 • Processing plant – Line 1 ~90% complete, pre-commissioning underway • Water dam complete – p
Slide 12: Quellaveco – a world class asset
Quellaveco – a world class asset Papujune processing plant Growth: ~10% CuEq growth (~300ktpa18) Unit costs: since approval, first 5 years’ unit cost down from ~96c/lb to ~85c/lb (2018 real basis)(nominal: ~105c/lb to ~95c/lb) Production: +400kt18 of production brought forward – significant value en
Slide 13: Portfolio complemented by high value growth options
Portfolio complemented by high value growth options20 Moranbah-Grosvenor Mogalakwena Collahuasi Phase 2 Sakatti Woodsmith (Metallurgical Coal) (PGMs) (Copper) (Copper) (Crop Nutrients) ~2025 from ~2026 ~2028 ~2028 ~TBC ~$0.3bn capex on Number of options being Next stage expansion, Rich polymetallic
Slide 14: By 2040 - operations carbon neutral & 50% cut in Scope 3
By 2040 - operations carbon neutral & 50% cut in Scope 3 See footnotes 21 & 22 14 Anglo American
Slide 15: Technical innovation unlocks value & sustainability benefits
Technical innovation unlocks value & sustainability benefits Carbon Neutrality Energy VOXEL Strategy & APC Hydrogen Truck Bulk Ore Sorting Hydraulic Dry Stack CPR P101 15 Anglo American
Slide 16: Innovative technologies in development & roll-out
Innovative technologies in development & roll-out Hydrogen truck – zero emission haulage solution Developing world’s largest hydrogen powered mine haul truck, including associated refuelling infrastructure • 50% to 70% reduction in emissions (scope 1 and 2), while maintaining operating costs • Deliv
Slide 17: Value-adding, future-enabling growth
Value-adding, future-enabling growth >90% growth capex ~50 % margin 23 allocated to future-enabling products projects focus on high quality, low-cost assets Cu Eq production15 +35% +21% +18% Baseline portfolio ~2023 ~2025 ~203015 Met Coal Iron Ore PGMs Copper Crop Nutrients 17 Anglo American
Slide 18: Purpose: to re-imagine mining to improve people's lives
Purpose: to re-imagine mining to improve people’s lives Effectiveness Efficiency Sustainability >10 % 15-20% 7 Free Cash Flow24 ROCE 25 Pillars of Value (on capital employed) 2021 31% 43% Embedded 18 Anglo American
Slide 19: Q&A – Our investment proposition
Q&A Our investment proposition Competitive Differentiated Sustainable assets capabilities returns Strong cost position Technology-led EBITDA improvement $3.5-4.5bn Long term growth +35%15 Sustainability leader Disciplined capital allocation 19 Anglo American
Slide 20: Footnotes
Footnotes 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has 18. 100% basis. 300kt average annual production over first ten years. 400kt production brought forward is management control. Since 2018 data for fatalities, TRCFR and environmental met
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