Antofagasta Plc · LSE:ANTO
Antofagasta — Shareholder Meeting (May 2020)
18 slides from Antofagasta's shareholder meeting presentation, May 20, 2020
Slide 1: Annual General Meeting CEO's Presentation
Annual General Meeting CEO’s Presentation Iván Arriagada Chief Executive Officer 20 May 2020 1
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: Our Purpose: Developing mining for a better future
OUR PURPOSE Developing mining for a better future 3
Slide 4: Strategic Framework
STRATEGIC FRAMEWORK PILLARS OF OUR STRATEGY • People • Safety and Sustainability • Competitiveness • Growth • Innovation Developing mining OUR VISION for a better future To be an international mining company based in Chile, focused on copper and its by-products, known for its operating efficiency, c
Slide 5: COVID-19 Response
COVID-19 RESPONSE Maintaining a safe and healthy environment Health of our people and local communities Implemented health measures and strict protocols, including: ► Social distancing and pandemic PPE ► Preventative controls over symptoms ► Dedicated air and road transport for shift changes ► High
Slide 6: COVID-19 Response: Sustaining operational continuity
COVID-19 RESPONSE Maintaining a safe and healthy environment Sustaining operational continuity ► All sites have kept operating ► Workforce at site reduced by one-third. 25- 30% of workforce teleworking successfully ► With no shutdown we expect limited impact on copper production in 2020 ► Los Pelamb
Slide 7: People
PEOPLE In 2019, our people included: ► 25,100: employees (26%) and contractors (74%) • 10% women • Over 50% from local areas Labour negotiations ► 74% of employees unionised ► Company´s first strike resolved after 18 days ► Contractors to pay ethical minimum wage set by Antofagasta1 We advanced our
Slide 8: Safety
SAFETY The safety of our people is our top priority ► Record safety performance Safety performance: Fatalities and LTIFR 2.00 ► No fatal accidents 1.61 1.53 1.57 1.01 ► Lost Time Injury Frequency 2 Rate reduced (LTIFR 1.01) 1 1 ► Mining Division: 0.75 2015 2016 2017 2018 2019 ► Transport Division: 4
Slide 9: Community Relations
COMMUNITY RELATIONS From mitigating impacts to shared development ► “Somos Choapa” and “Dialogos para el Desarrollo” programmes ► Antofagasta Region public-private Mining Cluster ► Prioritising local suppliers and employment ► Regional development $40.7 million 175 scholarships 600 people Awarded to
Slide 10: Drought in Central Chile
DROUGHT IN CENTRAL CHILE ► Engagement with authorities and communities ► Working with authorities and communities to find ways to alleviate impact of water shortage in the short, medium and long term ► Prioritising water for human consumption ► Pumping water into the Choapa river from underground ►
Slide 11: Energy and Water
ENERGY AND WATER ► Group’s sea water consumption: 46% of total • Centinela: 86% • Antucoya: 97% ► Los Pelambres building a desalination plant, which will increase sea water usage further ► Increasing proportion of our energy comes from renewable sources ► From 2022 onwards, 100% of mining division’s
Slide 12: Climate Change
CLIMATE CHANGE Committed to reducing our greenhouse gas emissions ► 5-year1 target to reduce emissions by 300,000 tonnes of CO2 emissions ► Adopting recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) ► Applying Water Stewardship Framework of the International Council o
Slide 13: 2019 Production and Costs
2019 PRODUCTION AND COSTS ► Record copper production of Copper production (in kt) and 770,000 tonnes net cash costs (in $/lb) 770 ► Increase of 6.2% on 2018 709 704 725 630 ► Higher production at Los Pelambres, Centinela and 1.50 Zaldívar 1.20 1.25 1.29 1.22 ► Net cash costs were $1.22/lb ► 5.4% low
Slide 14: Growth Opportunities
GROWTH OPPORTUNITIES 2019 2020 2021 2022 2023+ LOS PELAMBRES EXPANSION - PHASE 1 (under construction) PHASE 2 (currently in FS stage) Cu +60 ktpa | Capex $1.3 bn (including $0.5 bn desalination plant) Cu +35 ktpa | Capex $0.5 bn1 15 year LOM extension Completion dates will depend on Organic impact o
Slide 15: Innovation
INNOVATION ► Strategic Initiatives • Leaching of primary sulphides – industrial scale testing underway • Low cost bulk material movement technologies • Thickened tailings and real time monitoring ► Online Collaboration Platform • Open online collaboration platform with over 20 initiatives in executi
Slide 16: 2019: A Solid Year
2019: A SOLID YEAR Record safety and production performance ► No fatal accidents and LTIFR of 1.01 ► Record copper production 770 kt ► Net cash costs $1.22/lb ► EBITDA $2,439 million ► EBITDA margin 49% ► Earnings per share 50.9 c/share 16
Slide 17: Our Priorities for 2020
OUR PRIORITIES FOR 2020 Continuing our record of zero fatalities Maintaining operating resilience and flexibility Minimising impact of COVID-19 Accelerating digital transformation and innovation portfolio Reducing cash expenditure Advancing growth projects Returns to shareholders 17
Slide 18: Annual General Meeting CEO's Presentation
Annual General Meeting CEO’s Presentation Iván Arriagada Chief Executive Officer 20 May 2020 18