Antofagasta Plc · LSE:ANTO
Antofagasta — H1 2024 Earnings Presentation
36 slides from Antofagasta's earnings presentation, Aug 20, 2024
Slide 1: Delivering Performance and Growth
Delivering Performance and Growth Half Year 2024 Financial Results Antofagasta plc | Half Year 2024 Financial Results (August 2024) 20 August 2024
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: Antofagasta: Investment case
Antofagasta: Investment case Developing mining for a better future PURE-PLAY EXPOSURE TO COPPER GROWTH1 CHILE: INVESTMENT GRADE CREDIT RATING2 A 100% EBITDA (FY 2023) Contribution to Other 50% Iron Ore 0% Copper Antofagasta Diversified Diversified Diversified Diversified miner 1 miner 2 miner 3 mine
Slide 4: Safety: Building a safety-first culture
Safety: Building a safety-first culture Delivering 10 years of progress and moving ahead of peers BENCHMARKING PERFORMANCE: ICMM AVERAGE BENCHMARKING PERFORMANCE: CHILEAN MINING TOTAL RECORDABLE INJURY FREQUENCY RATE INDUSTRY LOST TIME INJURY FREQUENCY RATE 8 3 Total Recordable Injury Frequency Rate
Slide 5: H1 2024 – Resilient financial performance
H1 2024 – Resilient financial performance Strong balance sheet, cash flow generation and EBITDA margins Production and costs Strong financial performance • Higher ore throughput across • Revenue $3.0Bn (+2%) all four mines • EBITDA $1.4Bn (+5%) • Copper production: 284.7kt • EBITDA margin 47.2% (+1p
Slide 6: Financial review
Financial review Mauricio Ortiz | Chief Financial Officer Antofagasta plc | Half Year 2024 Financial Results (August 2024) 6 Image: Initial construction work at the Centinela Second Concentrator Project
Slide 7: Financial highlights H1 2024
Financial highlights H1 2024 Revenue and margin growth; continuing to deliver shareholder returns REVENUE UNDERLYING EARNINGS PER SHARE1 +2% (H1 2024: $2,955m) 22.4 cents (H1 2023: 33.5 cents) EBITDA NET DEBT / EBITDA +5% (H1 2024: $1,394m) 0.46x (As at Dec-2023: 0.38x) EBITDA MARGIN INTERIM DIVIDEN
Slide 8: Production and cash costs
Production and cash costs Key drivers and variances YoY Copper production 59.5 295.5 kt (1.6) 284.7 kt (22.2) (0.8) (45.7) H1 2023 Grades Throughput Recovery Work-in-progress ROM/Others H1 2024 & inventories Cash costs External: -$0.26/b Controllable: $0.43/b 0.27 0.13 $2.65/lb $2.48/lb 0.69 (0.21)
Slide 9: Competitiveness Programme
Competitiveness Programme Securing the present to enable the future 65% PROGRESS ON THE 2024 TARGET OF 1 Achieving $130 million in $200 MILLION operational and costs Throughput above design improvements in H1, equivalent to capacity a unit cash cost of 20.7 c/lb Balance $34 for 2024 target $70 Contr
Slide 10: EBITDA and margin
EBITDA and margin Maintaining strong EBITDA margins 1 1 46.1% 47.2% $ million +$63m 229 9 30 3 $1,394m 2 (21) $1,331m (25) (164) 2023 HY Sales volumes Realised Mining costs Exploration Corporate Costs Non operating Associates Transport 2024 HY EBITDA2 and TC/RCs prices & evaluation expenses & JVs di
Slide 11: Balance sheet
Balance sheet Supporting a balance of growth investment and shareholder distributions Net debt/EBITDA ratio (Dec 2023) Net debt/EBITDA ratio (Jun 2024) 0.38x 0.46x $ million $(279)m 165 1,319 (317) (1,059) $(1,160)m (78) (113) 4 40 (240) $(1,439)m Net cash EBITDA from Working Tax Capex Net interest
Slide 12: Well-positioned for delivery
Well-positioned for delivery Strong balance sheet and consistent cashflow underpins growth investments STRONG CONSISTENT LOW LEVERAGE WITHIN COPPER PEER GROUP STABLE CASH FLOW FACILITATES INVESTMENT 5,000 6.00 Cash flow from cont. ops ($, million) 4,000 Antofagasta (H1 2024) Net Debt / EBITDA 4.00 3
Slide 13: A focus on growth and returns
A focus on growth and returns Allocating capital in a disciplined and consistent manner CONSISTENT APPROACH TO CAPITAL ALLOCATION COMMITMENT TO SHAREHOLDER RETURNS OPERATING CASH FLOW CAPITAL OUTFLOW SUSTAINING CAPEX & MINE DEVELOPMENT Interim Dividend COMMITTED DIVIDENDS (35% PAY-OUT) STRONG BALANC
Slide 14: Responsible Operations
Responsible Operations Alejandra Vial| Vice President of Sustainability Antofagasta plc | Half Year 2024 Financial Results (August 2024) 14 Image: Opening of the newly-built CESFAM medical facility in the central region of Chile, March 2023.
Slide 15: Sustainability highlights H1 2024
Sustainability highlights H1 2024 Producing copper responsibly HEALTH AND SAFETY PEOPLE 0.67 Lost time injury frequency rate in line 24.5% Female representation in our workforce (2023: 0.63) (2023: 23.6%) 1 COMMUNITIES EMISSIONS 155 Initiatives have been completed under the Somos 50% Scope 1 and 2 e
Slide 16: Communities
Communities Partnering to foster development and transparent engagement LOCAL COMMUNITY PROJECTS SUPPLIERS FOR A BETTER FUTURE PROGRAMME Image: Opening of the Ancestral Recipe book programme. Image: Award ceremony “Development programme for regional SMEs" in partnership with . Universidad Católica d
Slide 17: Emissions reduction targets
Emissions reduction targets 50% emissions target in parallel with planned production increase Projects initiated during 2024 SCOPE 1 AND 2 TARGET: ✓ FIRST STEPS PILOTING TROLLEY ASSIST TECHNOLOGY AT LOS PELAMBRES PRE-FEASIBILITY OF PIT 50% REDUCTION BY 2035 (ABSOLUTE BASIS)1 ✓ ELECTRIFICATION AT LOS
Slide 18: Growth and Strategy
Growth and Strategy Iván Arriagada | Chief Executive Officer Antofagasta plc | Half Year 2024 Financial Results (August 2024) Image: Inspecting plans at the site of the Centinela Second Concentrator 18
Slide 19: Copper: Positive market fundamentals
Copper: Positive market fundamentals Growth linked to energy transition driving positive medium-term outlook MINED COPPER SUPPLY 20231 KEY DEMAND GROWTH AREAS: RENEWABLES, ELECTRIFICATION AND 22 Mt 8 ELECTRIC VEHICLES3 Copper demand (Mt) +2Mt 6 ESTIMATED STRUCTURAL DEFICIT (2034)2 4 4.75 Mt 2 +1Mt +
Slide 20: Chile: the world's leading supplier of copper
Chile: the world’s leading supplier of copper Long-standing expertise as a top copper producer ESTABLISHED STABLE #1 GLOBAL COPPER PRODUCER (24%) INVESTMENT GRADE JURISDICTION 7,000 Chile Annual primary copper supply (kt) 6,000 Chile Mexico Sovereign credit rating 5,000 Peru 4,000 Indonesia 3,000 Pe
Slide 21: Organic growth pipeline to 900kt
Organic growth pipeline to 900kt Investments underway to deliver strategic goal Scale of impact on production profile (indicative): 120+ ktpa Cu Development 50 ktpa Cu stage projects 35 ktpa Cu Advanced stage projects 15 ktpa Cu (permitting / construction) Encierro Cachorro Centinela 2nd Delivering
Slide 22: Centinela Second Concentrator: Work underway
Centinela Second Concentrator: Work underway Key growth project to add 170ktpa CuEq production from 2027 Image: View across accommodation camps, which will house near 6,000 workers at Image: View of site of new concentrator, with concrete foundations being laid and the peak of construction of the Se
Slide 23: Los Pelambres: Next phase underway
Los Pelambres: Next phase underway Key enabling projects for next phase of growth DESALINATION PLANT EXPANSION NEW CONCENTRATE PIPELINE Image: Sites (circled) for ultrafiltration, reverse osmosis and pumps relating to the Image: Piping received at the Company’s port at Los Vilos, in advance of const
Slide 24: Los Pelambres: Development Options
Los Pelambres: Development Options Ensuring operation continuity beyond 2035 • Project to extend Los Pelambres’ mine life until 2051, to continue contributing to the development of the province, the region, and the country. • Operate primarily with seawater to help address the effects of climate cha
Slide 25: Delivering Performance and Growth
Delivering Performance and Growth Half Year 2024 Financial Results Antofagasta plc | Half Year 2024 Financial Results (August 2024) 20 August 2024 25
Slide 26: Appendix
Appendix Antofagasta plc | Half Year 2024 Financial Results (August 2024) 26 Image: Sunset at Centinela
Slide 27: At a glance
At a glance Antucoya Group • 70% owned • 65% owned by Luksic Group, 35% free float • Copper production1: 77,800 t • Market cap: $18.0 billion (14 August 2024) • Remaining mine life2: 20 years • FTSE 100 Index constituent • Reserves3: 727 Mt @ 0.31% Cu Mining division1 Centinela • Top 10 copper produ
Slide 28: Revenues
Revenues $ million $65m 233 (140) (3) $2,955m (16) (5) (3) (1) $2,890m HY 20231 Realised Copper sales Copper sales Gold sales - Molybdenum Silver sales - Trasnport sales HY 20241 copper - price - volume - TC/RCs mainly volume sales - volume mainly volume & price 1 Excludes Zaldívar and JVs Antofagas
Slide 29: Net earnings
Net earnings $ million $-109m 18 65 (32) $330m 39 $260m (136) 52 221 (18) (58) 1 HY 2023 Revenues Associates Mining on- Depreciation Finance items Tax Non- HY 2024 Exceptional HY 2024 Underlying and JVs site cost & and controlling Underlying items Net earnings net earnings other costs amortization i
Slide 30: Cash flow
Cash flow $ million $1,513m 1,682 (78) 165 $4,432m (240) (3) 1,319 (317) 40 4 $2,919m (1,059) Initial cash at EBITDA from Working Tax outflow Net Capex Capital Dividends Net Net Interest Dividends to Others Final cash 1st January subsidiaries capital increase from borrowings Aplc at 30th 2024 moveme
Slide 31: 2024 HY production cost breakdown
2024 HY production cost breakdown $/lb 0.60 $2.98/lb 0.71 $2.65/lb Labour Energy 12% 13% (0.27) Others $1.94/lb 9% Other inputs 8% $1,872m 30% Services 5% Sulphuric acid 8% Fuel and Lubricants 14% Materials and spare parts Net cash costs By-products Gross cash TC/RC & Mine Production H1 2024 credits
Slide 32: Production and metals prices
Production and metals prices Group production Metal prices 2020 2021 2022 2023 HY 2024 2024E1 2020 2021 2022 2023 HY 2024 Copper ('000 tonnes) Copper ($/lb) Los Pelambres 359.6 324.7 275.0 300.3 132.5 335-350 Realised 2.98 4.37 3.84 3.89 4.40 Centinela Concentrates 153.5 185.4 149.3 162.7 43.6 Marke
Slide 33: Unit cash costs
Unit cash costs Group cash costs 2020 2021 2022 2023 HY 2024 2024E1 Group cash costs ($/lb) Los Pelambres 1.27 1.59 1.84 1.92 2.16 2.05 Centinela 1.85 1.87 2.44 2.57 3.31 2.30 Antucoya 1.82 2.04 2.50 2.63 2.58 2.50 Zaldívar3 1.80 2.39 2.39 2.95 2.97 2.95 Cash costs before by-products credits ($/lb)
Slide 34: Reserves and resources as of December 2023
Reserves and resources as of 31 December 2023 Attributable Tonnage Tonnage (millions tonnes) Copper (%) Molybdenum (%) Gold (g/t) (millions tonnes) 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Ore Reserves Los Pelambres 848.6 905.5 0.58 0.59 0.020 0.020 0.05 0.05 509.2 543.3 Centinela Concentra
Slide 35: Antofagasta contacts
Antofagasta contacts Rosario Orchard rorchard@antofagasta.co.uk Rob Simmons rsimmons@antofagasta.co.uk Director, London Office Tel: +44 20 7808 0988 Investor Relations Manager Tel: +44 20 7808 0988 Antofagasta plc | Half Year 2024 Financial Results (August 2024) 35
Slide 36: www.antofagasta.co.uk
www.antofagasta.co.uk Antofagasta plc | Half Year 2024 Financial Results (August 2024) 36