Slide 1: The New Leader in Global Copper – Third Quarter 2013
The New Leader in Global Copper October 31, 2013 Third Quarter 2013
Slide 2: Cautionary Note Regarding Forward-Looking Statement
Cautionary Note Regarding Forward-Looking Statement Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. These forward-looking statements
Slide 3: Sentinel Project – Plant Area Looking North-East
Sentinel Project Plant Area Looking North-East 3
Slide 4: Sentinel Project – Mill Area, Rougher Flotation
Sentinel Project Mill Area, Rougher Flotation 4
Slide 5: Sentinel Project – Concentrate Handling, Filtration and Reagents Area
Sentinel Project Concentrate Handling, Filtration and Reagents Area 5
Slide 6: Cobre Panama Project – Road from Site to Coast
Cobre Panama Project Road from Site to Coast 6
Slide 7: Cobre Panama Project – Site Accommodation
Cobre Panama Project Site Accommodation 7
Slide 8: Cobre Panama Project – Breakwater Construction
Cobre Panama Project Breakwater Construction 8
Slide 9: Q3 2013 Highlights
Q3 2013 HIGHLIGHTS Strong production against Q3 2012 with contribution from acquired operations and lower costs more than offsetting weaker commodity prices Revenue $885m, including $243m contribution from acquired operations (up 22% vs. Q3 2012) Copper production 114.5k tonnes (up 36% or 30.3k
Slide 10: Production
PRODUCTION Copper Production (‘000 tonnes) – Up 30.3k tonnes from Q3 2012 Kansanshi in line with Q3 2012, with higher throughput from plant expansions offset by lower grade for oxide. Guelb Moghrein in line with Q3 2012 production. Kevitsa(1) production of 4.0k tonnes is 0.4k tonnes higher than Q2 2
Slide 11: Copper C1 Cost
COPPER C1 COST Group Copper C1 reduced by 19% to $1.16/lb for quarter Q3 2013 Q3 2012 Q2 2013 $/lb Group 1.16 1.44 1.34 Pre-acquisition Operations 1.32 1.44 1.47 Kansanshi 1.25 1.46 1.48 Guelb Moghrein 1.83 1.43 1.36 Kevitsa (1) 1.56 0.11 1.78 Acquired Operations 0.73 0.75 0.94 Las Cruces (2) 0.69 0
Slide 12: Nickel C1 Cost
NICKEL C1 COST Group Nickel C1 for the quarter below full year market guidance $/lb Q3 2013 Q3 2012 Q2 2013 Group 4.90 6.24 5.45 Ravensthorpe 4.85 6.43 5.65 Kevitsa 5.51 3.79 4.71 Ravensthorpe: lower than Q3 2012 with lower mining costs, processing efficiencies, lower cost of sulphur and a higher co
Slide 13: Financial Overview
FINANCIAL OVERVIEW Q3 2013 Q3 2012 Q2 2013 $ millions Revenue 885 725 869 Gross Profit excluding fair value adjustments (1) 335 261 264 Gross Profit 303 261 201 Operating Profit 253 231 154 EBITDA 393 276 284 Comparative EBITDA (2) 394 276 332 Comparative Earnings (2) 144 107 106 Comparative EPS (Ba
Slide 14: Gross Profit – Q3 2013 vs. Q3 2012
GROSS PROFIT – Q3 2013 VS. Q3 2012 Lower copper prices (Q3 2013 LME average $3.21/lb Mainly due to use of large projects capitalized Price vs. Q3 2012 $3.50/lb), nickel (LME average $6.32/lb subsequent to Q3 2012 at Kansanshi, combined vs. Q3 2012 $7.41/lb) and gold prices (LBMA average Depreciation
Slide 15: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT $m Opening Net Debt at start of Quarter (1,818) EBITDA 393 Working capital and other (306) Taxes paid (42) Dividends to shareholders(1) (41) Capital expenditure (736) Net Interest paid(2) (20) Investments (6) Net cash (debt) movement (758) Closing Net Debt at end of Quart
Slide 16: Market Guidance
MARKET GUIDANCE Production guidance has been increased from previously disclosed guidance Copper Production Nickel Production Gold Production Post Full Year Post Tonnes ('000) Tonnes ('000) Full Year Ounces ('000) Acquisition (1) Proforma (2) Acquisition (1) Kansanshi 260 - 267 260 - 267 Ravensthorp
Slide 17: Market Guidance
MARKET GUIDANCE Copper C1 Cost guidance Nickel C1 Cost guidance Copper C1 Cost Nickel C1 Cost $1.37 - $1.45 / lb $5.20 - $5.60 / lb Copper cash cost per lb of copper has been reduced from Nickel cash cost per lb of nickel has been reduced by previous guidance of $1.40 to $1.50. $0.40 from previous g