Slide 1: Developing mining for a better future
Developing mining for a better future Full Year 2022 Results 21 February 2023
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: Agenda
Agenda 1 Overview 2 Financial review 3 Sustainability performance 4 Guidance and growth Antofagasta plc | 2022 Full Year Results
Slide 4: Overview
Overview 2022 Full Year Results Iván Arriagada | Chief Executive Officer Antofagasta plc | 2022 Full Year Results 4
Slide 5: Our purpose: to deliver value for all our stakeholders
Our purpose Developing mining for a better future Our vision of a better future is for the benefit of: We will achieve this through our five strategic pillars Planet Ensuring mining’s critical role in the energy transition, economic progress and improved livelihoods is sustainable and responsible Sa
Slide 6: 2022 Highlights
2022 Highlights Record safety performance Dividends $2.9bn EBITDA 59.7cps 50% EBITDA margin 0 Fatalities -35% High Potential Incidents Net increase in mineral resources Net cash costs 920Mt 100% renewable energy $1.61/lb Los Pelambres Expansion project 93% complete Copper production 646.2kt Social v
Slide 7: Safety and health
Safety and health Record year for safety Zero fatalities 217 since July 2021 86 65 42 1.34 1.01 0.86 0.84 1 2019 2020 2021 2022 1 Fatalities Lost Time Injury Frequency Rate (LTIFR) High Potential Incidents (HPI) 1 High Potential Incidents • Mining division LTIFR improved 32% to 0.76 decreased by 35%
Slide 8: Copper market
Copper market Carbon neutral world requires more metals Short term outlook Longer term outlook ▪ Global economic and geopolitical uncertainty ▪ Decarbonisation and clean energy targets are ▪ China reopening supportive for copper demand increases ▪ Low copper inventories ▪ Urbanisation and electrific
Slide 9: Current political and fiscal situation in Chile
Current political and fiscal situation in Chile Proposed new mining royalty • Includes ad valorum and increased operating profit royalties • In January 2023 Bill approved by the Senate Mining and Energy Committee and passed to the Senate Treasury Committee for discussion • Will then be debated in th
Slide 10: Financial review
Financial review 2022 Full Year Results Mauricio Ortiz| Chief Financial Officer Antofagasta plc | 2022 Preliminary Financial Results 10
Slide 11: 2022 financial highlights
2022 financial highlights Robust results in a complex environment Underlying earnings Balance sheet ROCE Dividends per share 1 Net debt/EBITDA 2 59.7cps 59.7 c/share 14.1% ↓ 58% ↓ 58% 0.3x ↓ 19 ppt 100% pay-out ratio 3 4 Revenue Net cash costs EBITDA EBITDA margin $5.9bn $1.61/lb $2.9bn 50% ↓ 22% ↑
Slide 12: Production and cash costs
Production and cash costs Impacted by drought and grades Copper production 721.5kt (37.2) 6.9 0.6 646.2kt (33.5) (12.1) FY 2021 Throughput Grades Recoveries Work-in-progress ROM/Other FY 2022 & inventories Cash costs External: $0.25/lb Controllable: $0.15/lb 0.13 0.13 $2.19/lb 0.22 $1.79/lb 0.03 (0.
Slide 13: Cost and Competitiveness Programme
Cost and Competitiveness Programme Technology and cost discipline Results CCP1 2022 $ million Technology & AI 36 148% 1242 $88m Savings 88 Savings (5c/lb) 50 Contract 52 36 Productivity (2c/lb) management Target Actual Cash costs before Centinela by product credits $36m throughput 36 Productivity -7
Slide 14: EBITDA and margin
EBITDA and margin Resilient margins 1 1 65% (15) ppt 50% $(1,906)m $4,836m (987) (644) 1 11 $2,930m (260) (10) (17) 2021 FY Sales volumes Realised Mining costs Exploration Associates Corporate costs Transport 2022 FY EBITDA2 and TC/RCs prices & evaluation & JVs & non operating division EBITDA2 expen
Slide 15: Strong balance sheet
Strong balance sheet Net debt/EBITDA 0.3x $ million $(1,427)m 2,778 (39) (787) $541m 50 (1,879) (45) (97) Antofagasta Shareholders (65) (1,343) $(886)m Net cash/ EBITDA from Working capital Tax Capex Net interest Other Dividends from Dividends Other Net cash/ (debt) subsidiaries non-cash associates
Slide 16: Capital allocation framework
Capital allocation framework Creating sustainable value & shareholder returns over the long term Dividend, capex & pay-out ratio Macro $ million, % Operating Cash Flow Perspective 100% 100% 100% Value Optimisation 65% Sustaining Capex & Mine Development Committed Dividends (35% pay-out) Decision 35%
Slide 17: Sustainability performance
Sustainability performance 2022 Full Year Results René Aguilar| Vice President of Corporate Affairs and Sustainability Antofagasta plc | 2022 Full Year Results
Slide 18: Sustainability
Sustainability Setting ourselves high standards Safety and Health People Suppliers • Zero fatal accidents • Wellbeing Strategy • Suppliers for a Better since July 2021 rolled out Future programme • 35% reduction • 20.6% of our employees launched High Potential Incidents are women1 • Set targets for
Slide 19: Diversity and Inclusion Strategy
Diversity and Inclusion Strategy In 2022, 1 in 5 of our employees were Promoting inclusive workspaces female 20.6 Female employees 17.4 +18% Mining division 14.7 16.6 Chilean mining industry 15.5 12.4 8.9 9.5 8.4 8.6 2017 2018 2019 2020 2021 2022 • Increased female participation by 18% in 2022 • Set
Slide 20: Environment and climate change
Environment and climate change Committed to emissions reduction and efficient water use 100% renewable energy since April 20221 Nearly 1 million tCO2e reduction2 in Scope 2 emissions 84% of water used is recirculated3 45% of water used is from the sea3 GHG emission targets Sea and recirculated water
Slide 21: Communities
Communities Creating social and economic value for all Improved access to drinking water for human consumption and irrigation Expanded our EnRed infrastructure and digital skills programme and implemented a digital literacy for local suppliers, entrepreneurs and schools Our scholarship programme sup
Slide 22: Guidance and growth
Guidance and growth 2022 Full Year Results Iván Arriagada| Chief Executive Officer Antofagasta plc | 2022 Full Year Results 22
Slide 23: 2023 Guidance
2023 Guidance Responsible and reliable copper producer Group production Net cash costs Capital expenditure3 Guidance Guidance Guidance 670-710 kt $1.9bn $1.65/lb $1,880m 646 kt 59 $1.61/lb 0.01 0.03 Transport & corporate 676 Growth Mine development 583 562 Sustaining (mining) 2022 2023E Net cash cos
Slide 24: Reliable and responsible copper producer
Reliable and responsible copper producer With embedded growth portfolio 120 ktpa Cu 50 ktpa Cu Sized to 50 ktpa 35 ktpa Cu for illustrative 15 ktpa Cu purpose only Encierro Cachorro Centinela 2nd Concentrator Los 900ktpa Phase 2 Centinela 2nd Pelambres target once Portfolio projects Concentrator Exp
Slide 25: Growth portfolio update
Growth portfolio update Developing our project Los Pelambres Expansion Phase 1 Centinela Second Concentrator • 93.4% complete 1 • Board decision expected during 2023 • 400 l/s desalination plant and concentrator expansion • Estimated capital cost $3.7 billion to 190,000 tpd • 95,000 tpd throughput 1
Slide 26: Recent exploration success
Recent exploration success Group mineral resources increased by 920Mt Cachorro • Inferred resources 242Mt @1.21% Cu. 70% increase since 2021 Cachorro • Important manto-type deposit in the coastal metallogenic belt of northern Chile • Drilling continues in 2023 • Located between Antucoya and Centinel
Slide 27: Innovation and technology update
Innovation and technology update Improves operations’ costs and productivity Autonomous trucks Autonomous drilling • Operating at Esperanza Sur pit • At Los Pelambres and Centinela • Reduces operator risk • Increased utilisation by 10% • Increases efficiency compared with conventional system Integra
Slide 28: Developing mining for a better future
Developing mining for a better future Sustainable returns to shareholders and delivering value to all stakeholders • Committed to keeping our people and communities safe and healthy while creating further social value • Embedding climate change and sustainability strategy across all decision making
Slide 29: Appendix
Appendix Antofagasta plc | 2022 Full Year Results 29
Slide 30: At a glance
At a glance Antucoya Group • 70% owned • 65% owned by Luksic Group, 35% free float • Copper production1: 79,200 t • Market cap: $20.8 billion (20 February 2023) • Remaining mine life2: 21 years • FTSE 100 • Reserves3: 717.6 million t @ 0.31% Cu Mining division1 Centinela • 70% owned • Top 10 copper
Slide 31: Revenue
Revenue $ million $(1,608)m $7,470m (704) 23 $5,862m (799) (124) (4) 1 1 FY 2021 Copper price Copper sales By-products TC/RC Transport division FY 2022 1 Excludes Associates and JVs Antofagasta plc | 2022 Full Year Results 31
Slide 32: Net earnings
Net earnings $ million $(816)m 945 $1,533m $1,404m 495 $588m 729 (1,890) (55) (11) (84) 2021 EBITDA Depreciation Associates Net 2 Tax Non- 2022 Exceptional 2022 Underlying from 1 and and JVs finance costs controlling Underlying items Net earnings net earnings subsidiaries amortisation interests net
Slide 33: Cash flow
Cash flow $ million $(1,322)m 2,778 (39) (787) $3,713m 9 50 (1,879) (45) (66) $2,391m (1,343) Cash at EBITDA from Working Tax Capex Net Net Dividends Dividends Other Cash at 31 1 Jan 2022 subsidiaries capital interest borrowings from Dec 2022 associates Antofagasta plc | 2022 Full Year Results 33
Slide 34: 2022 production cost breakdown
2022 production cost breakdown Other Energy $/lb 6% 11% 0.56 $2.51/lb Other inputs 11% 0.58 $2.19/lb Labour 11% (0.24) Sulphuric acid $1.61/lb 9% $3,576m Fuel and Lubricants 11% 20% Other services Materials and spare parts 12% 10% Net Cash By- Gross TC/RC Mine Production Maintenance services Cost FY
Slide 35: Production and metals prices
Production and metals prices Group production Metal prices 2018 2019 2020 2021 2022 2023E1 2019 2020 2021 2022 Copper ('000 tonnes) Copper ($/lb) Los Pelambres 357.8 363.4 359.6 324.7 275.0 320-335 Realised 2.75 2.98 4.37 3.84 Centinela Concentrates 155.5 195.5 153.5 185.4 149.3 LME 2.72 2.80 4.23 3
Slide 36: Unit cash costs
Unit cash costs Group cash costs (c/lb) 2019 2021 2022 2023E Group cash costs Los Pelambres 1.40 1.59 1.84 1.85 Centinela 1.83 1.87 2.44 2.55 Antucoya 2.17 2.04 2.50 2.45 Zaldívar 1.75 2.39 2.39 2.70 Cash costs before by-products credits 1.65 1.79 2.19 2.20 By-products credits (0.43) (0.59) (0.58) (
Slide 37: Reserves and resources as of 31 December 2022
Reserves and resources as of 31 December 2022 Attributable Tonnage Tonnage (millions tonnes) Copper (%) Molybdenum (%) Gold (g/t) (millions tonnes) 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Ore reserves Los Pelambres 905.5 956.1 0.59 0.59 0.020 0.020 0.048 0.049 543.3 573.7 Centinela Concent
Slide 38: Antofagasta contacts
Antofagasta contacts Andrew Lindsay alindsay@antofagasta.co.uk Rosario Orchard rorchard@antofagasta.co.uk Director, London Office Tel: +44 20 7808 0988 Investor Relations Manager Tel: +44 20 7808 0988 Antofagasta plc | 2022 Full Year Results 38
Slide 39: www.antofagasta.co.uk
www.antofagasta.co.uk Antofagasta plc | 2022 Full Year Results