Antofagasta Plc · LSE:ANTO
Antofagasta — Shareholder Meeting (May 2019)
16 slides from Antofagasta's shareholder meeting presentation, May 22, 2019
Slide 1: Antofagasta Plc Annual General Meeting 2018 Performance
Antofagasta Plc Annual General Meeting 2018 Performance Iván Arriagada Chief Executive Officer 22 May 2019
Slide 2: Our Purpose: Developing mining for a better future
OUR PURPOSE Developing mining for a better future 2
Slide 3: Copper for a modern and low carbon economy
COPPER FOR A MODERN AND LOW CARBON ECONOMY • Copper is a key component of the wiring, plumbing, heating and cooling, lighting and roofing. • It’s also crucial in the transport, power and telecommunications systems in modern cities. • The metal is also important in renewable energy. Solar and wind po
Slide 4: Vision and pillars of our strategy
STRATEGY Is presented through the following 5 pillars: • People PILLARS OF OUR STRATEGY • Safety and Sustainability • Competitiveness • People • Growth • Innovation • Safety and Sustainability • Competitiveness • Growth • Innovation PURPOSE Developing mining for a better future CULTURE OUR VISION Sh
Slide 5: People
People PEOPLE In 2018, our people included: ► 6,500 direct employees ► 15,000 Contractors ► Of which 9% were women ► And 54% from local areas We successfully closed 6 labour negotiations ► 2 at Los Pelambres and 4 in the Transport Division We advanced our Diversity & Inclusion strategy As of Decembe
Slide 6: Safety
Safety and Sustaintability SAFETY ► Fatal accidents Regrettably in 2018, after 26 months without a 1 fatality, a contractor suffered a fatal accident. ► Lost Time Injury Frequency Rate (LTIFR 1.6) ► Reduction of high-potential incidents 40% 2018 compared with 2017 6
Slide 7: Community Relations
Safety and Sustaintability COMMUNITY RELATIONS ► No material incidents were reported by communities. One incident involving an unusual amount of dust due to climaticconditions at Los Pelambres. ► In 2014 we developed an innovative local engagement framework called Somos Choapa which we continue to c
Slide 8: Pelambres Somos Choapa
Safety and Sustaintability PELAMBRES SOMOS CHOAPA 2014-2018 Green areas Water resources 51,224 m2 of parks built for 18,029 inhabitants benefiting communities. from rural drinking water systems and sanitation Sports infrastructure solutions. 1,049 beneficiaries of 6,615 m of improved canals. 26,209
Slide 9: Energy and Water
Safety and Sustaintability ENERGY AND WATER ► Group’s seawater consumption 45% 30.4 29.2 26.5 • Centinela 86% million • Antucoya 96% of m3 2016 2017 2018 ► Group renewable energy consumption (wind and solar) 23% 23% 21% • Los Pelambres 59% 17% • New energy contracts for Zaldívar (2020) and Antucoya
Slide 10: Climate Change
Safety and Sustaintability CLIMATE CHANGE We are committed to reducing greenhouse gas emissions, with a reduction of 300,000 tonnes of CO2 emissions during the five-year period 2018-2022. HOW? ► Greater use of energy from renewable sources ► Improve energy efficiency of processes and projects ► CO2
Slide 11: Tailings Dams
Safety and Sustaintability TAILINGS DAMS Group operates two major concentrators producing tailings • Los Pelambres: El Mauro dam designed for extreme weather and severe earthquakes. • Centinela: Thickened tailings. Low population, low vegetation location. • Independent review twice a year by a panel
Slide 12: Transport Division
Competitiveness TRANSPORT DIVISION ► Safety – Zero fatalities in 2018 ► Celebrated 130th anniversary ► Commissioned 7 new replacement locomotives ► 3 new long-term transport contracts for copper concentrate ► Rail yard re-development studies underway 12
Slide 13: 2018: A Solid Year
Competitiveness 2018: A SOLID YEAR ► Record production 725,300 tonnes Cu ► Net cash costs $1.29/lb ► EBITDA $2,228m ► EBITDA Margin 47% ► Dividend per share 43.8 cents 13
Slide 14: Growth Opportunities
Growth GROWTH OPPORTUNITIES 2018 2019 2020 2021 2022+ Los Pelambres Expansion Phase 1 Phase 2 Cu +60 ktpa | Capex $1.3 bn Cu +35 ktpa | Capex $0.5 bn1 (including $0.5 bn desalination plant) 15 year LOM extension Organic Moly plant Centinela 2nd concentrator Growth Mo 2.4 ktpa Cu Eq +180 ktpa | Capex
Slide 15: Innovation
Innovation INNOVATION ► Strategic Initiatives • Primary sulphide leaching • Thickened tailings • Material movement ► Open innovation collaboration platform • InnovaMinerals – initiatives from employees, contractors and suppliers ► Digital Roadmap • Autonomy • Integrated remote operating centre • Dat
Slide 16: Our Priorities for 2019
OUR PRIORITIES FOR 2019 Zero fatalities Continue to deliver on guidance Maintain operating reliability and efficiency Achieve further cost savings Advance Los Pelambres expansion and Centinela expansion feasibility study Progress innovation portfolio Returns to shareholders 16