Anglo American Plc · LSE:AAL
Anglo American — BMO Global Metals & Mining Conference 2020
22 slides from Anglo American's conference presentation, Feb 24, 2020
Slide 1: Focus on Delivery
FOCUS ON DELIVERY BMO Global Metals & Mining Conference, 24 February 2020
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: 2019 Results
2019 RESULTS EBITDA1 Underlying EPS3 Capital expenditure4 $10.0bn $2.75/sh $3.8bn Unit cost2 Dividends Net Debt: EBITDA 6% $1.09/sh 0.5x 33
Slide 4: EBITDA Driven by Strong Margins
EBITDA DRIVEN BY STRONG MARGINS Diamonds Copper $0.6bn $1.6bn 43% mining EBITDA margin 44% mining EBITDA margin 1 $10.0bn PGMs Bulks $2.0bn $5.9bn 40% mining EBITDA margin 43% mining EBITDA margin 44
Slide 5: Continued Improvement
CONTINUED IMPROVEMENT Safety Health Environment Group TRCFR13,14 Fatalities Occupational health – new cases13,15 Significant incidents13,16 209 30 5.4 4.7 175 159 4.0 15 3.6 3.2 111 11 101 15 2.7 96 9 2.2 6 6 5 4 39 6 6 4 2 1 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013
Slide 6: Focus on Delivery
FOCUS ON DELIVERY Effectiveness Efficiency Sustainability Margins drive Cash Flow Capital Discipline Quality Assets $3.4bn FCF5 19% ROCE6 ESG & balance sheet 66
Slide 7: Our Transformation Journey
Ansioamerican OUR TRANSFORMATION JOURNEY Real Mining. Real People. Real Difference.
Slide 8: A Transformed Business…
A TRANSFORMED BUSINESS… Production index7 +105% Productivity8 Productivity index8 Portfolio restructuring Cu Eq unit cost2 108 (29)% Operating model and Unit costs2 technical improvements 2012 2013 2014 2015 2016 2017 2018 2019 88
Slide 9: …With an Improved Competitive Position
…WITH AN IMPROVED COMPETITIVE POSITION Average quality adjusted cost curve position9 Improved from 47% 49th percentile (in 2013) Peer range 36% 34% 108 Anglo American Peers 99
Slide 10: Delivering Margin Improvement
DELIVERING MARGIN IMPROVEMENT Mining EBITDA margin10 +40% 42% 30% Commodity price basket down 5% 2012 2019 10 10
Slide 11: With More Improvement Targeted
WITH MORE IMPROVEMENT TARGETED Operating Model and P101 Technology and Digitalisation Project Delivery Met Coal longwalls Bulk ore sorting Quellaveco (Copper) Minas-Rio Coarse particle recovery Moranbah-Grosvenor (Met Coal) Target: ~$1.5bn Target: up to ~$1.0bn Target: up to ~$1.5bn Achieved: $0.5bn
Slide 12: Disciplined Growth
DISCIPLINED GROWTH Mark Cutifani
Slide 13: Projects on Time and Budget
PROJECTS ON TIME AND BUDGET Quellaveco (Copper) Marine Namibia (Diamonds) 2020 capex4 ~$0.1bn High value diamonds Construction under way Aquila (Met Coal) 2020 capex (100%) 2020 capex4 ~$1.5bn to ~$1.7bn ~$0.1bn Our share4: ~$0.9bn to ~$1.0bn High quality met coal Plant earthworks complete, concrete
Slide 14: Sirius Minerals: A Compelling Fit and Opportunity
SIRIUS MINERALS: A COMPELLING FIT AND OPPORTUNITY Clear Strategic Fit Competitive Product Well Progressed Project Potential Tier 1 asset Multi-nutrient, low-chloride Attractive returns Long life, low cost, scaleable, POLY4 contains established nutrients, $1.1bn invested, key permits in place, minima
Slide 15: Balanced & Disciplined Capital Allocation
BALANCED & DISCIPLINED CAPITAL ALLOCATION Attractive growth Strong margin Resilient balance sheet ~20-25% ~45-50% <1.5x Cu Eq production – by 20237 Mining EBITDA margin10 Bottom of the cycle net debt:EBITDA 15 15
Slide 16: Positioned for the Future
POSITIONED FOR THE FUTURE Mark Cutifani
Slide 17: Positioning Ourselves for the Future
POSITIONING OURSELVES FOR THE FUTURE Quality Portfolio Aligning FutureSmart MiningTM suited to People & furthers future themes Processes transformation Growing population & wealth Operating Model efficiencies Technology-driven efficiency Urbanisation & electrification Platform for step-change Smalle
Slide 18: FutureSmart Mining Driving Our Sustainable Approach
FUTURESMARTTM DRIVING OUR SUSTAINABLE APPROACH Energy Greenhouse Gases Water 30% 30% 50% targeted reductions by 203012 18 18
Slide 19: Asset Quality Driven Portfolio
ASSET QUALITY DRIVEN PORTFOLIO Diamonds Copper World leader World class growth PGMs Bulks World leader High quality niche 19 19
Slide 20: Investment Proposition
INVESTMENT PROPOSITION Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” 20 20
Slide 21: Q&A
Q&A Copper: renewables-driven electrification PGMs: air quality & lower emissions Diamonds: aspiration & growing prosperity Quality bulks: modern infrastructure development …ARE PRODUCTS THAT IMPROVE PEOPLE’S LIVES 21 21
Slide 22: Footnotes
FOOTNOTES All metrics in presentation shown on an underlying basis. 1. Underlying EBITDA is operating profit before special items and remeasurements 10. Margin represents the Group’s underlying EBITDA margin for the mining adjusted to include the Group’s attributable share of associates’ and joint b
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