Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (August 2014)
15 slides from Anglo American's investor presentation, August 2014
Slide 1: Anglo American Coal South Africa
ANGLO AMERICAN COAL SOUTH AFRICA Merrill Lynch Investor & Analyst site visit August 2014
Slide 2: Disclaimer
DISCLAIMER Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. T
Slide 3: Summary
SUMMARY • World class assets in South Africa • Coal South Africa is a consistently performing business – Stable cash generating business and consistent contributor to Anglo American operating profit – Positioned competitively on the industry seaborne margin curve – Leading regional EBIT margin relat
Slide 4: Continuously striving to ensure a safer working environment
CONTINUOUSLY STRIVING TO ENSURE A SAFER WORKING ENVIRONMENT… • A safe working environment positively contributes to LTIFR (Lost time injury frequency rate) productivity • Regrettably 3 fatalities during 2013 1.2 • Improved safety performance with other metrics trending in the right direction. 1.0 •
Slide 5: Supported by a skilled and motivated workforce
…SUPPORTED BY A SKILLED AND MOTIVATED WORKFORCE Working in a mature and mechanised environment underpinned by an established collective bargaining system • Stable workforce – Labour turnover less than 2% ( past 2 Years) Future Technology Development – Stable employee relations climate (even during w
Slide 6: Committed to being a responsible and sustainable miner
COMMITTED TO BEING A RESPONSIBLE AND SUSTAINABLE MINER Environment Winter school classes at Empucukweni Secondary School South Africa, the Voluntary Counselling In 2013, significant resources were and Testing (VCT) retesting rate is 93% invested in programmes that are across the business in 2013. Ne
Slide 7: Our Business
OUR BUSINESS
Slide 8: Demand for coal to continue into the future
DEMAND FOR COAL TO CONTINUE INTO THE FUTURE Coal grows to support Asian economic growth Vast majority of current installed capacity remain in service to 2050 50% of installed capacity 500+ MW • 23% of capacity was installed in last 5 years, and more than half of 360 Total global capacity per age seg
Slide 9: Geographical location provides optionality
GEOGRAPHICAL LOCATION PROVIDES OPTIONALITY SA Coal exports can swing relatively easily and profitably between the Pacific and Atlantic basins Both markets have partially independent dynamics and can have price differences in short term Atlantic basin Pacific basin SA suppliers can shifted between ma
Slide 10: Portfolio of operating coal mining assets
PORTFOLIO OF OPERATING COAL MINING ASSETS Strategically located within the greater Witbank Basin Location of South African Coal operations / complexes South African Coal Operations: attributable Export (Mt) production 2013 Total Domestic SACE complex Holding Mine (Mt) 1.Goedehoop 100% 4.7 - 4.7 Mt 2
Slide 11: Mining method is critical to optimal reserve extraction
MINING METHOD IS CRITICAL TO OPTIMAL RESERVE EXTRACTION… Surface / opencast mining Underground mining Doze over shovel & truck Dragline strip mining Bord & pillar mining Longwall mining Resources Resources Resources Resource Reserves Reserves Reserves Reserves s (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) (M
Slide 12: Enabling the delivery of a 28% attributable ROCE for Anglo American
…ENABLING THE DELIVERY OF A 28% ATTRIBUTABLE ROCE FOR ANGLO AMERICAN Historic production split for Coal South Africa Coal South Africa EBIT delivery $m Export sales 900 Domestic sales 9% 7% 7% 7% 4% 4% 5% 29% 600 71% 775 736 300 482 414 442 426 356 0 2007 2008 2009 2010 2011 2012 2013 Average produc
Slide 13: Anglo American Inyosi Coal (AAIC)
ANGLO AMERICAN INYOSI COAL (AAIC) A HDSA company controlled by Anglo American (73%) and Inyosi Coal (27%) Transaction overview Operations and dividends • Completed in 2007 • 27% HDSA ownership on equity basis (14% HDSA women) • AAIC owns Kriel colliery, the new Zibulo multiproduct colliery • Purchas
Slide 14: New Largo Project
NEW LARGO PROJECT Securing long-term coal supply to Kusile Power Station • New Largo Project will supply ~570 Mt to the Kusile power station over a 47 year period • The Project consists of both a mine and a conveyor • The Project will produce between 10mtpa and 16mtpa of coal from opencast pits • Th
Slide 15: New Largo Project
NEW LARGO PROJECT Securing long-term coal supply to Kusile Power Station • In 2006, Eskom and Anglo American started discussions on what is today known as New Largo • Anglo American Inyosi Coal (AAIC) approved the pre-feasibility study in 2010 • The Feasibility study for Stage 1 was approved by AAIC