Anglo American Plc · LSE:AAL
Anglo American — H1 2023 Earnings Presentation
83 slides from Anglo American's earnings presentation, Jul 27, 2023
Slide 1: Anglo American H1 2023 results
AngloAmerican H1 20. 27 July 2023
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This document has been prepared by Anglo American plc (“Anglo American”) and comprises the written Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be materials/slides for a presentation co
Slide 3: H1 2023 results agenda
Replace this image. Potentially use it elsewhere but not early in the deck. H1 2023 results agenda Operating performance Duncan Wanblad The numbers Stephen Pearce Long term outlook Duncan Wanblad Anglo American 3
Slide 4: Committed to delivering safe operations
Committed to delivering safe operations Safety Health Environment Occupational health - new cases1,3 Level 3 & above significant incidents1,4 30 2.24 2.19 2.14 TRIFR1,2 1.92 16 Fatalities1 5 1 1 1 2 2 2 0 0 1 2020 20211 2022 H1 2023 2020 2021 2022 H1 2023 2020 2021 2022 H1 2023 Improving safety perf
Slide 5: Healthy environment & thriving communities focus
Healthy environment & thriving communities focus GHG emissions Water Livelihoods Mt CO2e (Scopes 1 & 2)5 Billion litres (water scarce areas)1 Cumulative jobs supported off site (‘000)6 15 37 37 36 137 15 13 115 105 92 5 14 2020 2021 2022 May YTD 2020 2021 2022 May YTD 2020 2021 2022 H1 2023 2023 202
Slide 6: H1 2023 results summary
H1 2023 results summary Production7 EBITDA8 10% $5.1bn Group basket price Unit costs9 19% 1% Anglo American 6
Slide 7: H1 2023 operating performance
H1 2023 operating performance Copper & Nickel PGMs Los Bronces integrated licence approved Robust processing performance despite load curtailment & planned maintenance Expected grade challenges at Copper Chile & Nickel Macro pressures impacting basket price De Beers Iron ore Steelmaking coal Strong
Slide 8: Quellaveco successfully ramped up & delivering strong results
Quellaveco successfully ramped up & delivering strong results Strong operational Production since start-up performance Moly plant near steady-state 240kt 2023F production 2023F unit cost 310-350kt ~100c/lb Anglo American 8
Slide 9: De Beers agrees in principle renewal of partnership with Botswana
De Beers agrees in principle renewal of longstanding partnership with Botswana 10 New 25 year Debswana partnership extended to 2054 mining licences Underpins continued development of the most valuable diamond mines in the world New sales arrangements to 2033 New 10 year De Beers allocation commences
Slide 10: Established the platform for the next phase of value delivery
Established the platform for the next phase of value delivery Refreshed Tighter Executive Leadership Team leadership team drives next phase of value creation Functional expertise to support Effective operational & strategic delivery organisation ~$0.5bn annual cost savings Sustainability Commitment
Slide 11: The numbers
The numbers Stephen Pearce 11
Slide 12: H1 2023 financial results
H1 2023 financial results EBITDA8 DPS Net debt $5.1bn $0.55 $8.8bn EPS8 Dividend yield11 ROCE12 $1.38 ~4% 18% Anglo American 12
Slide 13: Resilient 41% group margin
Resilient 41% group margin Copper & Nickel PGMs $1.6bn EBITDA8 $0.7bn EBITDA8 41% mining margin13 37% mining margin13 Diamonds Iron ore Steelmaking coal $0.3bn EBITDA8 $1.8bn EBITDA8 $0.6bn EBITDA8 50% mining margin13 48% mining margin13 31% mining margin13 Anglo American 13
Slide 14: EBITDA reflects weaker commodity prices
EBITDA reflects weaker commodity prices EBITDA8 $bn 8.7 (4.5) 5.1 (0.5) 108 4.5 0.6 0.8 H1 2022 Price14 FX CPI15 Volume & cost 16 H1 2023 Anglo American 14
Slide 15: Higher volumes mitigating cost pressure
Higher volumes mitigating cost pressure H1 2023 unit cost performance9 2023F unit cost outlook9 ~3% estimated unit cost increase (6)% 7% Volumes benefit from Quellaveco 1% Reflects stronger Chilean peso & (3)% 3% Brazilian real CPI & input FX Volumes Other17 H1 2023 costs Anglo American 15
Slide 16: Transparent taxes & royalties in host countries
Transparent taxes & royalties in host countries $2.5bn Taxes and royalties18 UK Paid in host countries $0.2bn Peru Australia/Asia 36-38% $0.1bn Brazil $0.8bn 2023F effective tax rate8 Other Africa $0.2bn $0.5bn Chile Reflects expected deferred tax $0.3bn South Africa $0.4bn impact of new Chile royal
Slide 17: Sustaining capex underpins stable operations
Sustaining capex underpins stable operations Capex19 (Previously 6.0-6.5) $bn ~6.0 ~1.5 Woodsmith core infrastructure progressing well FY growth capex guidance lowered by ~$0.3bn 2.7 FY sustaining capex guidance of ~$4.5bn Growth 0.6 ~4.5 • SIB projects to ramp-up in H2 2023 • Reflects investment in
Slide 18: Committed to maintaining a flexible balance sheet
Committed to maintaining a flexible balance sheet Net debt $bn (0.4) 8.8 0.6 0.9 Increase driven by weaker prices 6.9 0.7 & investment in value-adding projects Build in working capital – diamonds inventory & lower PGMs prices impacting POC creditor & customer prepayment 21% gearing FY 2022 Working D
Slide 19: Balanced capital allocation framework
Balanced capital allocation framework H1 2023 allocation of capital Sustaining attributable free cash flow20 H1 2023 dividends at 40% of underlying earnings Growth capex19 Anglo American 19
Slide 20: Enhancing resilience in an uncertain macro context
Enhancing resilience in an uncertain macro context Operational re-focus to Stay-in-business capital reduce costs & drive investment underpins consistent performance operational stability Working capital remains a Business support savings critical focus area Capex reduction of ~$0.3bn ~$0.5bn pa Angl
Slide 21: Long term outlook
Long term outlook Duncan Wanblad 21
Slide 22: Unique portfolio supplying the world's needs & wants
Unique portfolio supplying the world’s needs & wants Steelmaking Decarbonisation Coal Copper High quality Production Improving living Iron Ore mix7 Nickel standards Manganese Crop PGMs Nutrients Diamonds Food security Anglo American 22
Slide 23: Economic development underpins demand outlook
Economic development underpins demand outlook Significant increase in all commodities required Level of investment required implies for decarbonisation & just transition sustained higher prices are needed Copper (kg) per person21 Steel (tonnes) per person21 Global installed stock21 233 14 1,761 107
Slide 24: Clear value creation model
Clear value creation model +25% Operating Model drives safety and operational excellence +5% P101 targets constraints in value chain FutureSmart MiningTM is our sustainability-led approach to technology Pipeline of high margin projects will upgrade portfolio 2022 2023F ~2032F Production growth vs 20
Slide 25: Copper: quality organic options to grow to >1Mtpa
Copper: quality organic options to grow to >1Mtpa 23 +300ktpa +150ktpa +100ktpa 22 23 23 Quellaveco greenfield Collahuasi brownfield Sakatti greenfield …with further brownfield options from Quellaveco expansion and Los Bronces underground 23 Anglo American 25
Slide 26: Woodsmith: portfolio cornerstone asset for the future
Woodsmith: portfolio cornerstone asset for the future >40 years 24 +3-5% crop yields Low carbon 26 13Mtpa 25 Q1 cost curve Organic 27 Anglo American 26
Slide 27: Good progress at Woodsmith
Good progress at Woodsmith Service shaft Production shaft ~500m 28 ~245m 28 sunk of ~1.6km sunk of ~1.6km Mineral transport tunnel Shallower MTS shafts ~24km 28 all 3 excavated of 37km from mine to port Anglo American 27
Slide 28: FutureSmart Mining integrates innovative technology & sustainability
FutureSmart MiningTM integrates innovative technology & sustainability Technology Sustainable Mining Plan Delivering holistic sustainable outcomes Envusa Energy: southern Africa renewables South America & Australia renewable electricity Los Bronces integrated water solution Anglo American 28
Slide 29: Operational excellence & sustainability focus underpins value creation
Operational excellence & sustainability focus underpins value creation through the cycle Strong balance sheet Operational Relentless stability focus on costs Sustainable shareholder returns Organisational Capital effectiveness discipline Attractive high-margin growth Anglo American 29
Slide 30: To ask a question
To ask a question Copper PGMs Iron ore & Steelmaking coal Nickel Diamonds Crop Nutrients UK & other +44 20 3481 4247 / SA +27 105 003 945 / US +1 646 307 1963 Conference ID: 3643225 Anglo American 30
Slide 31: Footnotes
Footnotes 1. Data relates to subsidiaries and joint operations over which Anglo American has management margin (ie flat unit costs, before CPI). For assets with no prior period comparative (eg in ramp up) all control. Data excludes results from De Beers’ joint operations in Namibia and Botswana. His
Slide 32: Appendix
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Slide 33: Simplified earnings and guidance
Simplified earnings and guidance
Slide 34: H1 2023 simplified earnings by Business
H1 2023 simplified earnings by Business De Beers Steelmaking $m (unless stated) Copper1 Nickel PGMs Iron Ore2 Other3 Total (Diamonds) Coal Sales volume (mined share) 389kt 19.1kt 1,185koz4 15.3Mct5 30.3Mt 6.9Mt6 Average benchmark price $8,686/t7 $24,207/t7 n/a n/a $123/t $287/t8 Product premium/(dis
Slide 35: H1 2023 simplified earnings by Business - notes
H1 2023 simplified earnings by Business - notes PGMs basket price Iron Ore realised price Steelmaking Coal blended price Own mined Market price Sales Volume PGMs basket Realised price Volume Revenue Total iron ore Kumba Minas-Rio HCC $294/t 5.4Mt Platinum $1,033/oz 511koz $528m Market price31 $123/t
Slide 36: Guidance summary
Guidance summary Earnings Capex¹ Other Volumes See slide 37-38 2023 ~$6.0bn Net debt: EBITDA: <1.5x bottom of cycle (prev. $6.0-6.5bn) Unit costs See slide 39 Growth ~$1.5bn3 (prev. ~$1.8bn) Includes: 2023 depreciation $3.0-3.2bn • Woodsmith ~$0.7bn (prev. ~$0.8bn) (prev. $3.3-3.5bn) Sustaining ~$4.
Slide 37: Production outlook
Production outlook Units 2020 2021 2022 H1 2023 2023F 2024F 2025F Copper1 kt 647 647 664 387 840-930 910-1,000 840-930 Nickel2 kt 44 42 40 20 38-40 39-41 37-39 Platinum Group Metals3 Moz 3.8 4.3 4.0 1.8 3.6-4.0 3.6-4.0 3.5-3.9 Diamonds4 Mct 25 32 35 17 30-33 29-32 32-35 Iron Ore5 Mt 62 64 59 31 57-6
Slide 38: Production outlook – supplementary guidance
Production outlook – supplementary guidance Units 2020 2021 2022 H1 2023 2023F 2024F 2025F Chile: 562 Chile: 249 Chile: 530-580 Chile: 550-600 Chile: 530-580 Copper1 kt 647 647 Peru: 102 Peru: 138 Peru: 310-350 Peru: 360-400 Peru: 310-350 Pt: 1.8 Pt: 2.0 Pt: 1.9 Pt: 0.8 Pt: 1.6-1.8 Pt: 1.6-1.8 Pt: 1
Slide 39: Unit costs performance by Business
Unit costs performance by Business Copper (C1 USc/lb)1 Nickel (C1 USc/lb) PGMs (US$/PGM oz)2 Chile: ~205c/lb 154 179 ~166 Peru: 513 550 ~560 937 993 ~1,000 ~100c/lb 2022 H1 2023 2023F 2022 H1 2023 2023F 2022 H1 2023 2023F De Beers (US$/ct)3 Iron Ore (FOB US$/t)4 Steelmaking Coal (US$/t)5 Kumba: ~$43
Slide 40: Earnings sensitivities
Earnings sensitivities Impact of 10% Sensitivity analysis – H1 20231 change in price / FX Commodity / Currency 30 June spot Average realised 6-month EBITDA ($m) 2 Copper (c/lb) 372 393 331 3 Nickel ($/lb) 9.13 9.04 52 Platinum ($/oz) 897 1,008 57 Palladium ($/oz) 1,254 1,532 77 Rhodium ($/oz) 4,300
Slide 41: Capex guidance
Capex guidance Capex1 $bn Woodsmith ~0.7 (prev. ~0.8) ~0.82 Growth ~0.82 (prev. ~1.0) (prev. ~1.0) ~0.82 ~0.3 (prev. ~1.0) Collahuasi desal ~0.4 ~0.7 ~0.3 Lifex ~0.6 (prev. ~0.7) ~0.5 Baseline ~3.5 3.5-4.0 3.2-3.7 3.0-3.5 sustaining (prev. 3.1-3.6) + lifex 2023F 2024F 2025F Long-term (2022 real)1 To
Slide 42: Life extension capex
Life extension capex Major components of lifex¹ ($bn) Guidance ~0.6 ~0.7 ~0.5 (previously ~0.7) Mototolo – Der Brochen (PGMs) ~0.1 ~0.1 ~0.1 Kolomela (Iron Ore) (prev. ~0.2) ~0.3 ~0.3 Venetia (Diamonds) ~0.2 2023F 2024F 2025F Lifex projects – subject to disciplined capital allocation framework Forec
Slide 43: Key projects driving growth capex
Key projects driving growth capex Major components of growth capex¹ ($bn) Guidance ~0.8 + ~0.7 Woodsmith ~0.8 ~0.8 (previously ~0.8) (previously ~1.0) (previously ~1.0) (previously ~1.0) Quellaveco2 (Copper) ~0.12 Mogalakwena (PGMs) ~0.2 ~0.4 ~0.1 Technology & innovation3 ~0.33 ~0.33 ~0.23 2023F 202
Slide 44: Attractive greenfield and brownfield options
Attractive greenfield and brownfield options Growth capex¹ ($bn) Long life greenfields and fast returning brownfields Forecast Returns Capex Volume (pa) From¹ Payback IRR Margin Collahuasi 5th Ball Mill (Copper) ~$0.1bn2 +15kt2 Q4 2023 ~3 years >30% >70% Sishen3 (Iron Ore) Project plan under review
Slide 45: Results by business
Results by business
Slide 46: Copper Total – Quellaveco offsetting lower production in Chile
Copper Total – Quellaveco offsetting lower production in Chile Realised Underlying Mining Production Sales1 Unit cost2 Capex price EBITDA margin3 H1 2023 387kt 389kt 393c/lb 179c/lb $1,492m 43% $878m vs. H1 2022 42% 47% 2% 19% 28% 4pp 8% Underlying EBITDA ($m) 1,492 88 1,166 24 469 (144) (111)
Slide 47: Copper Chile – production challenges & higher unit costs
Copper Chile – production challenges & higher unit costs Realised Underlying Mining Production Sales1 Unit cost2 Capex price EBITDA margin3 H1 2023 249kt 238kt 393c/lb 205c/lb $691m 29% $657m vs. H1 2022 9% 10% 2% 37% 41% 18pp 14% Underlying EBITDA ($m) 1,166 24 (144) (111) 935 (332) 691 88 H1 2022
Slide 48: Copper Peru – reached commercial production levels in June
Copper Peru – reached commercial production levels in June Realised Underlying Mining Production Sales Unit cost Capex1 price EBITDA margin H1 2023 138kt 151kt 394c/lb 132c/lb $801m 65% $221m vs. H1 2022 n/a n/a n/a n/a n/a n/a 41% Underlying EBITDA ($m)2 801 801 0 H1 2022 Cost & volume H1 2023 1. I
Slide 49: Nickel – impacted by lower prices
Nickel – impacted by lower prices Realised Underlying Mining Production1 Sales1 Unit cost Capex price EBITDA margin H1 2023 19.6kt 19.1kt $9.04/lb $5.50lb $110m 29% $41m vs. H1 2022 0% 14% 22% 13% 54% 30pp 28% Underlying EBITDA ($m) 239 (116) 120 1 (4) (6) 110 (4) H1 2022 Price FX Inflation Cost &
Slide 50: PGMs – impacted by lower basket price and volumes
PGMs – impacted by lower basket price and volumes Realised Underlying Mining Production1 Sales2 Unit cost4 Capex basket price3 EBITDA margin5 H1 2023 1,844koz 1,807koz $1,885/PGM oz $993/PGM oz $667m 37% $449m vs. H1 2022 7% 12% 29% 5% 76% 18pp 14% Underlying EBITDA ($m) 2,732 (1,832) 1,283 (104) 48
Slide 51: Diamonds – soft demand & prices, with higher costs
Diamonds – soft demand & prices, with higher costs Average Realised Underlying Mining Production1 Sales (Cons.)2 Unit cost4 Capex price index price3 EBITDA margin5 H1 2023 16.5Mcts 15.3Mcts 137 $163/ct $63/ct $347m 50% $302m vs. H1 2022 2% 0% 2% 23% 7% 63% 3pp 21% Underlying EBITDA ($m) 944 (407) (5
Slide 52: Iron Ore Total – impacted by lower prices
Iron Ore Total – impacted by lower prices Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1 (FOB)1 EBITDA margin H1 2023 30.7Mt 30.3Mt $105/t $36/t $1,775m 48% $382m vs. H1 2022 12% 7% 22% 10% 23% 3pp 11% Underlying EBITDA ($m) 2,298 (927) 1,775 41 1,500 234 212 (83) H1
Slide 53: Kumba (Iron Ore) – impacted by lower prices
Kumba (Iron Ore) – impacted by lower prices Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1,2 (FOB)1 EBITDA Margin H1 2023 18.7Mt 19.0Mt $106/t $39/t $1,105m 51% $277m vs. H1 2022 6% 3% 21% 9% 30% 3pp 22% Underlying EBITDA ($m) 1,570 (518) 1,191 (74) 1,105 213 (86) 0 H1
Slide 54: Minas-Rio (Iron Ore) – strong production offset by prices
Minas-Rio (Iron Ore) – strong production offset by prices Realised price Unit cost Underlying Mining Production1 Sales1 Capex (FOB)1 (FOB)1 EBITDA margin H1 2023 12.0Mt 11.4Mt $104/t $32/t $670m 44% $105m vs. H1 2022 22% 31% 22% 9% 8% 1pp 46% Underlying EBITDA ($m) 728 670 41 (409) 320 309 (1) (
Slide 55: Steelmaking Coal – higher volumes offset by lower prices
Steelmaking Coal – higher volumes offset by lower prices Realised Underlying Mining Production1 Sales1 Unit cost3 Capex price2 EBITDA margin H1 2023 6.9Mt 6.9Mt $274/t $135/t $615m 31% $273m vs. H1 2022 42% 33% 31% 16% 56% 32pp 3% Underlying EBITDA ($m) 1,399 (1,087) (363) 615 665 95 (94) 313 H1
Slide 56: Liquidity
Liquidity
Slide 57: Strong liquidity & limited near-term debt maturities
Strong liquidity & limited near-term debt maturities Liquidity1 Debt repayments ($bn)1 2.4 $14.9bn 1.7 1.8 +$7.8bn cash 1.5 +$7.1bn undrawn committed facilities 1.2 1.0 0.9 0.9 Majority of cash held centrally in US dollars 0.7 0.7 0.8 0.6 0.5 0.4 Strong Investment Grade credit metrics and ratings, w
Slide 58: Portfolio overview
Portfolio overview
Slide 59: Portfolio overview – key assets
Portfolio overview – key assets1 Diamonds (De Beers) Gahcho Kué Copper 2.8Mcts2 Woodsmith project PGMs ~13Mtpa3 Iron Ore Steelmaking Coal Nickel Crop Nutrients Barro Alto 40kt Moranbah, Grosvenor, Quellaveco Jwaneng/Orapa Namibia Aquila and open pits 240kt4 24.1Mcts2 2.1Mcts2 15Mt8 Col
Slide 60: A differentiated portfolio of high quality assets
A differentiated portfolio of high quality assets Revenue by product1 Capital employed by geography2 % % Iron Ore 22 Chile & Peru 28 PGMs 21 South Africa 21 Copper 21 Brazil 21 Diamonds (De Beers) 17 Namibia & Botswana 10 Steelmaking Coal 12 Australia 9 Corporate & Other3 3 U
Slide 61: Commodity outlook – medium to long term
Commodity outlook – medium to long term • Demand is robust in the long term, given its critical role in decarbonisation as well as traditional industrial applications Copper • Consensus estimates continue to underestimate the complexity and lead times involved in the commissioning of new supply • Wh
Slide 62: A growing, world class copper business
A growing, world class copper business Quality assets with growth High value portfolio with long term potential Collahuasi 251 ktpa 1 (our share) Up to 1 Mtpa Reserve life 84 years2 Los Bronces 271 ktpa 1 664 ~900 Up to 1,000 Reserve life 34 years2 20223 2023F 2024F Quellaveco 102 ktpa With further
Slide 63: World leader in PGMs
World leader in PGMs Asset focused Own mined production Own mined production - by volume - by revenue 1. Mogalakwena 2. Amandelbult 49% 30% Mining EBITDA margin Mining EBITDA margin % % 3. Processing purchased concentrate1 ⚫ Platinum 46 ⚫ Palladium 34 ⚫ Palladium 35 ⚫ Rhodium 30 18% ⚫ ⚫ ⚫ Ruthenium
Slide 64: PGMs sector
PGMs sector Platinum demand1 3E PGM prices and basket price movement since 2019 % Platinum ⚫ Automotive 40 Palladium ⚫ Industrial 40 Rhodium ⚫ Jewellery 20 Basket ICE to maintain high share in light vehicles2 Global light duty vehicle production outlook (million vehicles) 102 82 ⚫ Battery ⚫ Hybrid (
Slide 65: 5E Platinum group metals
5E Platinum group metals Platinum Palladium Rhodium Global mined supply1 ~2 ~6 ~1.2 ~6.5 ~0.2 ~0.7 Our supply See previous slide for demand data Industrial Pt & Pd convert harmful ~90% carbon monoxide & of demand is autocatalysts demand ~$1.75bn Pt & Pd interchangeable in autocatalysts ~$1.7bn 14% h
Slide 66: De Beers: world leader in diamonds
De Beers: world leader in diamonds Best-in-class business… …focused on consumers Mining EBITDA margin1 Global Diamond Jewellery Demand3 % 50% ⚫ USA ⚫ China 55 10 ⚫ India 6 ⚫ Japan 5 Trading margin (typical level)2 ⚫ Gulf 4 ⚫ Rest of world 20 ~7% Self purchases4 Growing Gen Z5 LGD discount continues6
Slide 67: Structural trends favouring high quality bulks
Structural trends favouring high quality bulks Iron Ore: high quality products Steelmaking Coal: premium products Kumba production Minas-Rio production High quality portfolio ~64% Fe ~67% Fe ~80% of which 67% is lump Pellet feed products Hard coking coal (typical level)2 20-25% lower GHG emissions f
Slide 68: Woodsmith: a world class asset with a differentiated product
Woodsmith: a world class asset with a differentiated product Quality asset Competitive product Progressing project infrastructure >40 year 13Mtpa ~$0.7bn3 2023 capex asset life1 planned development capacity2 focused on shafts and tunnel Q1 unit cost expected Low carbon4, organic5 ~$1.0bn annual cape
Slide 69: POLY4 is a multi-nutrient fertiliser
POLY4 is a multi-nutrient fertiliser Key nutrients N P K Nitrogen Phosphates Potassium Secondary nutrients S Ca Mg Sulphur Calcium Magnesium Other key attributes Low Organic1 & Micro-nutrients chloride low carbon2 POLY4 nutrients 1. Organically certified. Currently certified for organic use in EU an
Slide 70: POLY4 is differentiated from traditional fertilisers
POLY4 is differentiated from traditional fertilisers Current main potassium fertiliser sources MOP (Muriate of potash)1 SOP (Sulphate of potash)1 POLY41 Chloride Chloride Chloride Sulphur Calcium Magnesium Potassium Potassium Sulphur Potassium ~68Mt2 ~7Mt2 Low cost, high value in use substitute High
Slide 71: Innovation & technology
Innovation & technology
Slide 72: Operational excellence underpins transformation
Operational excellence underpins transformation Operating Model: delivering stable & predictable outcomes Stabilisation at Work is planned, scheduled and properly resourced higher performance Stable and consistent performance Stabilisation at still Further improvement higher impacting stability perf
Slide 73: Technology & innovation will transform the physical footprint of mining
Technology & innovation will transform the physical footprint of mining $0.1–0.3bn1 pa capex to support FutureSmart MiningTM & the delivery of our Sustainable Mining Plan targets Initiative Application Impact Progress • Los Bronces (Copper) Confluencia Plant (~65% of complex feed) unit operational w
Slide 74: Sustainability performance
Sustainability performance
Slide 75: Our Sustainable Mining Plan at the heart of our strategy
Our Sustainable Mining Plan at the heart of our strategy Anglo American 75
Slide 76: Active route to a more sustainable world
Active route to a more sustainable world 2020 2021-23 2025 2030 2040 8% SA Thermal Coal demerger 100% 3-5 GW 30% Carbon completed2 energy renewable electricity renewable energy absolute reduction in neutrality across efficiency1 Cerrejón sale of shareholding powering Australian generated from Envusa
Slide 77: Operations carbon neutral by 2040
Operations carbon neutral by 2040 Scopes 1 & 2 - GHG emissions Three solar PV plants in 2030 goal – 30% reduction South Africa of GHG emissions vs 20161 South America Ongoing roll-out of 100% renewable integrated solar and energy Australia 100% Electrification of wind generation in energy sources fo
Slide 78: Ambition: 50% reduction in Scope 3 emissions by 2040
Ambition: 50% reduction in Scope 3 emissions by 2040 Driving scope 3 emissions reduction within our sphere of influence and control 15-20% 10-15% 15-20% ~45-55% 50% Emissions 10-15% reduction target 2020 baseline Kumba emission Minas-Rio emission Steelmaking coal 50% reduction 2040 intensity levers
Slide 79: Tailings dam safety management
Tailings dam safety management Managing tailings safely Tailings storage facilities in our portfolio 1 Group Technical Specialists 62 24 TSFs managed in total TSFs inactive or in care & maintenance 29 9 Internal risk assurance Independent TSFs in active use TSFs closed or rehabilitated Technical Rev
Slide 80: ESG integrated into management remuneration
ESG integrated into management remuneration SHE targets in annual bonus Individual 10% Health & Environment EPS 10% 34% 10% Safety All employees incentivised on safety1 30% strategic and individual measures that can contain additional ESG-linked metrics 16% 20% Sustainable Strategic attributable FCF
Slide 81: Measuring our ESG progress: 2023 targets
Measuring our ESG progress: 2023 targets1 Pillar of value Metric H1 2023 H1 2022 Target Target achieved Safety & health Work-related fatal injuries 1 1 Zero Not achieved Total recordable injury frequency rate per million hours 1.92 2.36 Reduction year on year On track New cases of occupational disea
Slide 82: Sustainability summary
Sustainability summary Sustainability twice-yearly update presentations: FutureSmart MiningTM: → For presentations and webinar replays, visit: To deliver on our Purpose, we are changing the way we mine through smart angloamerican.com/investors/investor-presentations innovation across technology, dig
Slide 83: Investor Relations
Investor Relations Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 Juliet Newth juliet.newth@angloamerican.com Tel: +44 (0)20 7968 8830 Michelle Jarman michelle.jarman@angloamerican.com Tel: +44 (0)20 7