Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (December 2023)
40 slides from Anglo American's investor presentation, Dec 8, 2023
Slide 1: Investor update 8 December 2023
AngloAmerican Investor update 8 December 2023
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This document has been prepared by Anglo American plc (“Anglo American”) and comprises the written Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be materials/slides for a presentation co
Slide 3: Agenda
Agenda 2023 performance Duncan Wanblad, Chief Executive Unlocking value Duncan Wanblad Guidance: 2023-26 John Heasley, Finance Director High quality portfolio funding attractive growth Duncan Wanblad Anglo American 3
Slide 4: Committed to delivering safe operations
Committed to delivering safe operations 2.24 2.19 2.14 TRIFR1,2 The Operating Model underpins well planned work 1.85 Increased leadership time in the field Fatalities1,3 Focus on contractor performance management 3 2 2 2 2020 20213 2022 YTD 2023 Anglo American 4
Slide 5: 2023 performance
2023 performance Duncan Wanblad 5
Slide 6: Attractive growth enhancing our quality portfolio
Attractive growth enhancing our quality portfolio Steelmaking Diamonds Coal High quality, long life assets High quality Iron Ore Production Copper mix from Manganese long-term Leading market positions Crop portfolio4 Nutrients Nickel Attractive growth options PGMs Anglo American 6
Slide 7: Deliberate & decisive actions to enhance returns
Deliberate & decisive actions to enhance returns Global economic weakness, particularly affecting consumer-focused diamonds & PGMs Costs impacted by strong & prolonged inflationary pressure Anglo American 7
Slide 8: 2023 operating performance
2023 operating performance Copper & Nickel PGMs Quellaveco fully ramped-up Solid operational performance Copper Chile & Nickel impacted Limited impact from load curtailment by grade declines Macro pressures weighing on prices Iron ore De Beers Minas-Rio’s strong performance Steelmaking coal Solid op
Slide 9: Unlocking value
Unlocking value Duncan Wanblad 9
Slide 10: Unlocking significant value from a streamlined & resilient business
Unlocking significant value from a streamlined & resilient business ~$0.5bn support cost saving by mid-2024: 1 programme well advanced Further ~$0.5bn cost saving forecast in 2024: 2 performance improvements across all businesses Rigorous capital discipline: 3 ~$1.8bn savings in 2023-265 Anglo Ameri
Slide 11: Copper: decisive action to improve returns
Copper: decisive action to improve returns Lowering unit costs by ~15% at Los Bronces Challenging ore phase: moving to one plant will reduce unit costs & capex Significant resource potential: studies progressing the underground project Safely navigating geotech fault at Quellaveco Rephasing producti
Slide 12: Iron ore: aligning to logistics
Iron ore: aligning to logistics Kumba: addressing logistics constraints Rebalancing the value chain & reducing year- end product stockpile by ~2Mt Adjusted production enables structural cost & capex reductions to protect margins Minas-Rio: focusing on operational stability Combining maintenance with
Slide 13: Steelmaking coal: safe & stable production
Steelmaking coal: safe & stable production Gas, depth & strata challenges at the Moranbah & Grosvenor longwalls Significant cost focus to reconfigure footprint to current safe production levels Strong progress on methane: capturing ~60% Anglo American 13
Slide 14: PGMs: driving resilience during market weakness
PGMs: driving resilience during market weakness Targeting significant & sustainable improvement in all-in-sustaining costs Lower third party processing arrangements as contracts conclude Focused investment at world class Mogalakwena, at the right time Anglo American 14
Slide 15: World class PGM assets well positioned for market recovery
World class PGM assets well positioned for market recovery Leader Integrated processing capacity in PGMs H1 positions on margin curve PGMs positioned Closely linked to discretionary spending for consumer Prices reflect aggressive consensus recovery on pace of ICE decline Robust Consensus BEV forecas
Slide 16: Building sustainable value at De Beers
Building sustainable value at De Beers Streamlining business to position for price rebound: ~$0.1bn overhead savings Prioritising capital on highest value opportunities Reinvigorate marketing & retail offer Anglo American 16
Slide 17: Woodsmith: world class asset & future-enabling product
Woodsmith: world class asset & future-enabling product Tier 1 asset Modern & sustainable Large scale: 13Mtpa Minimal footprint Long life: >40 years6 Embeds FutureSmart Mining Highly cash generative POLY4 Q1 cost curve Multi-nutrient, holistic solution >50% EBITDA margin Low carbon 7, organic Anglo A
Slide 18: Guidance: 2023-26
Guidance: 2023-26 John Heasley 18
Slide 19: 2023 full year guidance
2023 full year guidance Production4 Capex9 Working capital build ~+3% ~$5.8bn ~$1.5bn Tax rate10 Dividend payout policy Unit costs8 ~+5% ~39% 40% impacted by mix of profits of underlying earnings Anglo American 19
Slide 20: Adapting volumes in a dynamic environment
Adapting volumes in a dynamic environment Copper (kt)11 PGMs (Moz)11 De Beers (Mct)11 Lower grade Quellaveco mine plan & Third party processing at Collahuasi Collahuasi grade recovery arrangements 31.5 33.5 720 790 730- 760- 3.3- 29- 30- 32- 690- 3.0- 3.0- 790 820 3.7 32 33 35 750 3.4 3.4 2024F 2025
Slide 21: Lower unit costs more than offset cost inflation
Lower unit costs more than offset cost inflation Copper (c/lb)12 PGMs ($/PGM oz)12 De Beers ($/ct)12 Venetia UG temporary -5% -6% +7% transition impact Q1 positions ~165 ~157 at Que & Coll ~980 ~920 ~75 ~80 ~75 2023F 2024F 2023F 2024F 2023F 2024F 2026F+ Iron ore ($/t)12 Steelmaking coal ($/t)12 Grou
Slide 22: Significant capex savings of ~$1.8bn
Significant capex savings of ~$1.8bn Capex (now includes Woodsmith)9 $bn ~5.7 ~5.7 Safety, asset integrity & reliability prioritised ~5.3 Growth ~1.2 ~1.3 ~1.3 Streamlined discretionary capex while preserving optionality Sustaining ~4.5 Woodsmith spend beyond 2024 subject to ~4.4 ~4.0 Board approval
Slide 23: High quality portfolio funding attractive growth
High quality portfolio funding attractive growth Duncan Wanblad 23
Slide 24: Unique portfolio of high quality assets that together drive long term value
Unique portfolio of high quality assets that together drive long term value Life of Asset13 Quellaveco High quality, long life assets Collahuasi Los Bronces Mogalakwena Venetia Clear portfolio roles Namibia13 Woodsmith Barro Alto Robust capital allocation approach Minas-Rio Sishen Moranbah Grosvenor
Slide 25: Attractive growth options in copper & crop nutrients
Attractive growth options in copper & crop nutrients - well sequenced by permitting timelines Attributable production4 +25% With further optionality Los Bronces underground Approval Quellaveco plant decision in to ~150ktpd early 2025 Base Collahuasi Woodsmith Collahuasi Sakatti14 Long-term Quellavec
Slide 26: Unwavering commitment to responsible & sustainable mining
Unwavering commitment to responsible & sustainable mining Value-focused approach to sustainability: most ESG investments are NPV positive Good progress on our decarbonisation ambitions: Envusa & VAM Underpins licence to operate & key growth enabler: Los Bronces & Sakatti permit approvals Anglo Ameri
Slide 27: Global mega-trends underpin long term outlook
Global mega-trends underpin long term outlook Decarbonisation Improving living standards Food security Anglo American 27
Slide 28: To ask a question
To ask a question Copper PGMs Iron ore & Steelmaking coal Nickel Diamonds Crop Nutrients UK & other +44 20 3481 4247 / SA +27 105 348 155 / US +1 800 715 9871 Conference ID: 8726837 Anglo American 28
Slide 29: Footnotes
Footnotes 1. Data relates to subsidiaries and joint operations over which Anglo American has management control. Data excludes results from De Beers’ joint operations in Namibia and Botswana. 2. Total Recordable Injury Frequency Rate per million hours worked. YTD 2023 is the 11 months to November. 3
Slide 30: Appendix
AngloAmerican Appendix
Slide 31: Guidance summary
Guidance summary Earnings Capex¹ Other (numbers in brackets are previous guidance) (numbers in brackets are previous guidance) Volumes See slide 32-33 2023 ~$5.8bn (~$6.0bn) Net debt: EBITDA : <1.5x bottom of cycle Growth ~$1.4bn (~$1.5bn) Unit costs See slide 34 2023 net interest paid: ~$0.7bn Sust
Slide 32: Production outlook
Production outlook Units 2022 2023F 2024F 2025F 2026F (new) Copper1 kt 664 ~825 730-790 690-750 760-820 (prev. 830-870) (prev. 910-1,000) (prev. 840-930) Nickel2 kt 40 ~40 36-38 35-37 35-37 (prev. 38-40) (prev. 39-41) (prev. 37-39) Platinum Group Metals3 Moz 4.0 ~3.8 3.3-3.7 3.0-3.4 3.0-3.4 (prev. 3
Slide 33: Production outlook – supplementary guidance
Production outlook – supplementary guidance Units 2022 2023F 2024F 2025F 2026F (new) Chile: ~505 Chile: 430-460 Chile: 380-410 Chile: 562 (prev. ~520) (prev. 550-600) (prev. 530-580) Chile: 440-470 Copper1 kt Peru: 102 Peru: ~320 Peru: 300-330 Peru: 310-340 Peru: 320-350 (prev. 310-350) (prev. 360-4
Slide 34: Unit costs outlook by Business
Unit costs outlook by Business Copper (C1 c/lb)1 Nickel (C1 c/lb) PGMs ($/PGM oz)2 -5% +7% -6% Chile: Chile: ~200 ~190 ~165 ~157 Peru: ~600 937 ~980 154 (prev. ~205) 513 ~560 (prev.~1,000) ~920 Peru: ~110 ~110 (prev. ~100) 2022 2023F 2024F (new) 2022 2023F 2024F (new) 2022 2023F 2024F (new) De Beers
Slide 35: Capex guidance
Capex guidance Capex (now includes Woodsmith)1 $bn Growth2 ~1.4 ~1.2 ~1.3 (prev. ~1.5 ) (prev. ~1.8) (prev. ~1.8) ~1.3 ~0.4 ~0.2 ~0.4 (prev. ~0.3) Collahuasi desal (prev. ~0.3) ~0.7 Lifex ~0.6 ~0.7 (prev. ~0.5) ~0.5 ~3.4 ~3.4 ~3.5 ~3.5 3.0-3.5 Baseline sustaining (prev. 3.2-3.7) (prev. 3.5) (prev. 3
Slide 36: Life extension capex
Life extension capex Major components of lifex¹ ($bn) Guidance ~0.6 ~0.7 ~0.7 (prev. ~0.5) ~0.5 ~0.1 Mototolo – Der Brochen2 (PGMs) ~0.1 Kolomela (Iron Ore) ~0.1 ~0.3 ~0.3 ~0.1 ~0.1 Jwaneng3 (Diamonds) Venetia (Diamonds) ~0.2 ~0.1 ~0.1 ~0.1 Mogalakwena4 (PGMs) 2023F 2024F 2025F 2026F Forecast Return
Slide 37: Key projects driving growth capex
Key projects driving growth capex Major components of growth capex¹ ($bn) Guidance ~1.4 ~1.2 ~1.3 ~1.3 (previously ~1.5) (previously ~1.8) (previously ~1.8) Collahuasi2 (Copper) ~0.2 ~0.1 ~0.1 Quellaveco3 (Copper) ~0.1 Woodsmith4 ~0.7 ~0.9 ~1.0 ~1.0 Technology & innovation ~0.3 ~0.2 ~0.1 ~0.1 2023F
Slide 38: Attractive greenfield and brownfield growth options
Attractive greenfield and brownfield growth options Forecast Returns Capex1 Volume (pa) From1 Payback IRR Margin Collahuasi 5th ball mill (Copper) ~$0.1bn2 +15kt2 Nov 2023 ~4 years >30% >70% Sishen3 (Iron Ore) Project plan under review Woodsmith (Crop Nutrients)4 Optimisation of development timeline
Slide 39: Sustainability summary
Sustainability summary Sustainability twice-yearly update presentations FutureSmart MiningTM → For presentations and webinar replays, visit: To deliver on our Purpose, we are changing the way we mine through smart angloamerican.com/investors/investor-presentations innovation across technology, digit
Slide 40: Investor Relations
Investor Relations Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 Juliet Newth juliet.newth@angloamerican.com Tel: +44 (0)20 7968 8830 Michelle Jarman michelle.jarman@angloamerican.com Tel: +44 (0)20 7
Anglo American — Investor Presentation (December 2023) on 6ix