Slide 1: The New Leader in Global Copper - Second Quarter 2013
The New Leader in Global Copper August 1, 2013 Second Quarter 2013
Slide 2: Cautionary Note Regarding Forward-Looking Statement
Cautionary Note Regarding Forward-Looking Statement Certain statements and information contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such for
Slide 3: Q2 2013 Highlights
Q2 2013 HIGHLIGHTS Strong production against Q2 2012 with financials impacted by weaker prices Revenue $869m, including $230m contribution from Kevitsa and acquired sites (up 20% vs. Q2 2012) Copper production 103.7k tonnes (up 44% or 31.5k tonnes vs. Q2 2012) with 29.0k tonnes from Kevitsa and
Slide 4: Production
PRODUCTION Copper Production (‘000 tonnes) – Up 31.5k tonnes from Q2 2012 Kansanshi 1.1k tonnes higher with oxide and mixed circuit benefiting from plant expansions partially offset by lower sulphide ore grade processed. Guelb Moghrein higher than Q2 2012 from higher grade and recoveries. Kevitsa(1)
Slide 5: Copper C1 Cost
COPPER C1 COST Group Copper C1 reduced by 12% to $1.34/lb for quarter Q2 2013 Q2 2012 Q1 2013 $/lb Group 1.34 1.53 1.52 Pre-acquisition Operations 1.47 1.53 1.55 Kansanshi 1.48 1.52 1.55 Guelb Moghrein 1.36 1.61 1.43 Kevitsa (1) 1.78 n/a 1.94 Acquired Operations 0.94 0.65 1.52 Las Cruces (2) 1.44 1.
Slide 6: Nickel C1 Cost
NICKEL C1 COST Group Nickel C1 for the quarter below full year market guidance $/lb Q2 2013 Q2 2012 Q1 2013 Group 5.45 5.70 5.34 Ravensthorpe 5.65 5.70 5.36 Kevitsa 4.71 n/a 5.29 Ravensthorpe: C1 Costs is lower than Q2 2012 with processing efficiencies, lower cost of sulphur and a higher cobalt by-p
Slide 7: Financial Overview
FINANCIAL OVERVIEW $ millions Q2 2013 Q2 2012 Q1 2013(3) Revenue 869 722 901 Gross Profit excluding fair value adjustments (1) 264 275 322 Gross Profit 201 275 310 Operating Profit 154 243 243 EBITDA 284 275 310 Comparative EBITDA (2) 332 276 358 Comparative Earnings (2) 106 142 154 Comparative EPS
Slide 8: Gross Profit - Q2 2013 vs. Q2 2012
GROSS PROFIT – Q2 2013 VS. Q2 2012 Lower copper prices (Q2 2013 LME average $3.24/lb Mainly due to commencing use of projects at Price vs. Q2 2012 $3.57/lb), nickel ($6.78/lb vs. Q2 2012 Depreciation Kansanshi. $7.78/lb) and gold prices ($1,419/ounce vs.$1,491/ounce Q2 2012). Kevitsa commercial prod
Slide 9: Quarterly Net Cash (Debt) Flow Movement
QUARTERLY NET CASH (DEBT) FLOW MOVEMENT $m Opening Net Cash (Debt) at start of Quarter (794) EBITDA 284 Working capital and other 31 Taxes paid (84) Dividends to shareholders (66) Capital expenditure (740) Net Interest paid(1) (106) Inmet acquisition(2) (343) Net cash (debt) movement (1,024) Closing
Slide 10: Market Guidance
MARKET GUIDANCE Production guidance remains unchanged from previously disclosed guidance Copper Production Nickel Production Gold Production Post Full Year Tonnes ('000) Full Year Ounces ('000) Full Year Tonnes ('000) Acquisiton(1) proforma (2) Kansanshi 250 - 270 250 - 270 Ravensthorpe 31 - 35 Kans
Slide 11: Market Guidance
MARKET GUIDANCE Copper C1 Cost guidance Nickel C1 Cost guidance Copper C1 Cost Nickel C1 Cost $1.40 - $1.50 / lb $5.50 - $6.00 / lb Copper cash costs per lb of copper remains unchanged Nickel cash cost per lb of nickel unchanged from from prior guidance. prior guidance. Capital Expenditure • Pre-acq
Slide 12: Appendix to Second Quarter 2013 Results
Appendix to Second Quarter 2013 Results
Slide 13: Appendix 1: Financial Impact of Fair Value Adjustments on Acquisition
APPENDIX 1: FINANCIAL IMPACT OF FAIR VALUE ADJUSTMENTS ON ACQUISITION Gross profit and net earnings in the quarter impacted by fair value adjustments Fair Value Adjustments Total before Pre Inventory (2) Acquired Fair Value Depreciation (1) $m Acquisition (Non- Q2 2013 Q2 2012 Operations Adjustments