Anglo American Plc · LSE:AAL
Anglo American — Morgan Stanley Industrials & Natural Resources Summit 2015
21 slides from Anglo American's conference presentation, Sep 10, 2015
Slide 1: Morgan Stanley Industrials & Natural Resources Summit
MORGAN STANLEY INDUSTRIALS & NATURAL RESOURCES SUMMIT Tony O’Neill, Technical Director, 10 September 2015 Kolomela mine – Kumba Iron Ore
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 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 con
Slide 3: Focus on Delivery
FOCUS ON DELIVERY At the mid-point of our transformation programme… $1.7bn delivered 2013, 2014 & H1 2015 • MAJOR PROJECTS…on track and below budget 0.6 1.7 0.3 • OPERATIONS…improvements accelerating 1.1 0.3 • VALUE LEAKAGE…revenues and cost focus Volume - Costs Total productivity Operating costs St
Slide 4: Portfolio Quality…Competitive Positions
PORTFOLIO QUALITY…COMPETITIVE POSITIONS Reflecting current project completions and portfolio restructure… Aggregate Business Unit cost curve position - 2014 De Beers Jwaneng With After With Before Copper Quellavecodisposals Quellaveco(1) Quellaveco After Barro Alto Before re-build Nickel After dispo
Slide 5: Technical Excellence Is Driving Business Performance
TECHNICAL EXCELLENCE IS DRIVING BUSINESS PERFORMANCE Working together with operations to deliver step change value… T&S plays a key role in all four strategic imperatives: – Deliver Driving Value – Focus the portfolio – Develop core business processes – Create high performance culture …through integ
Slide 6: Creating a High Performance Culture
CREATING A HIGH PERFORMANCE CULTURE Leverage the Business Units’ delivery… We have the right people in place: Technical Leverage Capability and deep knowledge Geosciences Mining Processing Building on a strong foundation Implementing the Operating Model Focus on core assets Projects Asset Strategy W
Slide 7: Implementation of the Operating Model Is Accelerating Delivery of Driving Value
IMPLEMENTATION OF THE OPERATING MODEL IS ACCELERATING DELIVERY OF “DRIVING VALUE” Ensuring that we have the right architecture… Operational planning Operating Model – key attributes Specifications for the most cost effective way to Labour, Materials & Equipment operate a business Plan Operational Pl
Slide 8: Three Principles of the Operating Model
THREE PRINCIPLES OF THE OPERATING MODEL 1. Provide clarity Copy of Generic Control Chart (3) Control Limits - Set 3: UCL = 4,595, Mean = 4,303, LCL = 4,010 (06/06/2014 - 07/07/2014) (mR = 2) 2. Produce stability UCL = 4588 UCL = 4707 UCL = 4595 4,500 Mean = 4303 Mean = 4047 LCL = 4010 4,000 Mean = 3
Slide 9: Operating Model – Rolling Out Across the Group
POTENTIAL OPERATING MODEL – ROLLING OUT ACROSS THE GROUP Implementation well progressed at Sishen and Minas Rio… 2014 2015 2016 2017 2018 Sishen - North mine Sishen - rest of mine Kolomela Minas-Rio Mogalakwena Tumela De Beers Los Bronces Moranbah North Australia Coal - other SA Coal - other Phospha
Slide 10: Taking Us to the Next Level
0 2 4 6 8 10 12 0 1 2 3 4 Jan-2006 Jan-2006 May-2006 May-2006 Sep-2006 Sep-2006 Jan-2007 Jan-2007 May-2007 May-2007 Sep-2007 Sep-2007 Jan-2008 Jan-2008 May-2008 May-2008 Sep-2008 Sep-2008 Jan-2009 Jan-2009 May-2009 May-2009 Sep-2009 Sep-2009 Jan-2010 Jan-2010 May-2010 May-2010 Sep-2010 Sep-2010 Jan-
Slide 11: Los Bronces Mine Productivity
LOS BRONCES MINE PRODUCTIVITY KOM930 Annual Operating Hours • Significant improvements in truck operating +17% hours delivered 6,379 6,093 • Now focused on achieving leading practice 5,715 5,472 2012 2013 2014 2015 YTD 11
Slide 12: Developing Core Business Processes
DEVELOPING CORE BUSINESS PROCESSES It’s the detail that matters… Mining “What good looks like” example Processing “What good looks like” example Drill & blast Mine-to-Plan compliance >90% Processing Adaptive processing to ensure stability stability Load & haul Payloads consistently at 95-100%
Slide 13: Minas Rio: Ramp Up
50.000 43305,43 40.000 37439,32 36678,17 MINAS RIO: RAMP UP 30.000 29542,07 20546,64 20.000 18039,47 On track 13490,57 for 2015 production between 11 and 14Mt (wet basis)... 10.000 7065,68 Filtration 0 Production (wmt) 73819,49 72037,64 63270,49 70.000 60.000 66290,65 54406,68 60.000 50.000 50.000 4
Slide 14: Los Bronces: Focus on Delivering the Plan
LOS BRONCES: FOCUS ON DELIVERING THE PLAN Mine plan spatial compliance Tonnes and Metal Reconciliation YTD 2015 97% 91% 35 35 78% 30 30 67% 25 25 20 20 15 15 10 10 5 5 0 0 2012 2013 2014 2015 YTD Ore tonnes mined Total metal tonnes delivered Budget Actual 14
Slide 15: Los Bronces: Load and Haul Opportunity
LOS BRONCES: LOAD AND HAUL OPPORTUNITY Whole of life Komatsu 930E industry cost comparison Current maintenance approach delivers cost per hour in line with industry average Higher early life cost vs peers Industry leading component life performance for wheel motors and hoist cylinders Cumulative Cos
Slide 16: Los Bronces: Value Based Grade Control
LOS BRONCES: VALUE BASED GRADE CONTROL Grade control determines ore destination (flotation, leach, waste) Traditional grade control based on Cu grade only Substantial additional value by taking into account Mo content, flotation and leach recovery No capex requirement Value based grade control sends
Slide 17: Improvement Initiatives Are Delivering Results Across All of Our Key Assets
IMPROVEMENT INITIATIVES ARE DELIVERING RESULTS ACROSS ALL OF OUR KEY ASSETS Inventory JIG plant optimisation optimisation Sishen mine plan HME fleet size optimisation reduction Water Longwall cutting management at hours and rates Los Bronces 17
Slide 18: Focussing the Portfolio
FOCUSSING THE PORTFOLIO Optimising our capex, undeveloped projects and exploration expenditure… Capital expenditure ($bn) Capex excludes operating cash profits and losses capitalised ~25% decline in SIB capex between 2012 and 2015 -1.7 Lower expansion capex as projects are completed 6.2 6.3 6.2 $0.7
Slide 19: Barro Alto: Furnace Rebuild Ahead of Schedule
BARRO ALTO: FURNACE REBUILD AHEAD OF SCHEDULE Furnace 2 throughput (tonnes dry ore feed) Project's strategic planning for success Ramp 4,000 Pre-rebuild Shutdown Completion up 3,500 Best practices in safety. Project is LTI free to date 3,000 Step change 2,500 First rebuild commissioned ahead of sche
Slide 20: Delivering Step Change Value Through Integrated Technical Excellence
DELIVERING STEP CHANGE VALUE THROUGH INTEGRATED TECHNICAL EXCELLENCE Delivering Driving Value Accelerating implementation of the Operating Model Delivering results from “Wave One” initiatives Focussing the portfolio Focussing efforts on key world class assets Improving cash flow by optimising our ca
Slide 21: Investor Relations
INVESTOR RELATIONS London Paul Galloway Tel: +44 20 7968 8718 Ed Kite Tel: +44 20 7968 2178 21
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