Vedanta Resources — Mining Indaba 2016
20 slides from Vedanta Resources's conference presentation, Feb 9, 2016
Slide 1: Vedanta Resources Plc Mining Indaba – Cape Town
Vedanta Resources Plc Mining Indaba – Cape Town 9 February 2016
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Safety and Sustainability – Key to Excellence
Safety and Sustainability – Key to Excellence Safety LTIFR1 (per million man-hours worked) • 11 fatalities in 9M FY2016 • Focus on bringing in a culture of Zero-Harm 0.83 – Implementing programs to eliminate fatalities and control injuries – Performance incentives linked to safety performance 0.55 0
Slide 4: Vedanta: A Global Diversified Natural Resources Company
Vedanta: A Global Diversified Natural Resources Company Group Structure • Portfolio of large, structurally low cost, long life Tier-I assets Vedanta plc – Significant near term growth with well invested asset (Listed on LSE) base not requiring large capex – Well positioned to capitalize on India’s a
Slide 5: Recent volatility in commodities mainly driven by China
Recent volatility in commodities mainly driven by China Commodity Price Performance & Chinese Stock Index (rebased to 100) 110 100 % Δ June- till date 90 Aluminium -16% 80 Copper -27% Iron Ore -28% 70 Oil -57% 60 Zinc -32% 50 Aluminium Copper Iron ore Zinc Oil Shanghai composite index 40 1-Jun-15 1-
Slide 6: Diversified, Low-Cost, Tier-I Assets
Diversified, Low-Cost, Tier-I Assets Positioning R&R Life1 FY2015 Production Capacity2 Oil & Gas (Cairn India) Top 20 global independent E&P; Platts 2013: Fastest growing energy 15 212kboepd 225+ kboepd company globally Zinc India (HZL) 2 nd largest zinc miner globally 25+ 887kt 1.2mtpa Silver (HZL)
Slide 7: Q3 FY2016 Results - Resilient Portfolio in volatile commodity environment
Q3 FY2016 Results - Resilient Portfolio in volatile commodity environment EBITDA Mix: Q3 FY2016 Strong production across all commodities 2% − New capacities commissioned at Power businesses Zinc Delivering strong results in a volatile market Oil & Gas 21% Aluminium − Q3 EBITDA of c.$500 mn with an E
Slide 8: Relentless focus on Opex, Capex and Free Cash Flow Optimisation
Relentless focus on Opex, Capex and Free Cash Flow Optimisation Pragmatic decisions under current market conditions Strong focus on opex Cost in 1st/2nd quartile of the global cost curve across all major businesses Cost restructuring and optimisation at all businesses Ready to restructure operations
Slide 9: Well-invested assets to deliver near-term growth with minimal capex
Well-invested assets to deliver near-term growth with minimal capex Total Production (copper equivalent kt) Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas 3,000 Contribution to copper equivalent production growth (%) 2,500 8%1 +66% 2,000 6% 16% 1,500 42% 1,000 10% 2% 500 15% 0 Near Term
Slide 10: Making a Positive Contribution
Making a Positive Contribution Environment • Significant investments (US$250mn+ over last 3 years) • Indian operations signed World Business Council of Sustainable Development (WBCSD) Pledge for access to safe Water, Sanitation and Hygiene (WASH) • Partnering with IUCN – Cairn India and BMM Stakehol
Slide 11: Vedanta in Africa
Vedanta in Africa We've had a presence in Africa since 2004 Our Presence in Africa Mining copper in Zambia at Konkola Copper Mines South Africa (KCM) Zinc-lead-silver Producing zinc & lead concentrate in South Africa at • Black Mountain Black Mountain Mining (BMM) • Gamsberg Project Producing Specia
Slide 12: Making a Positive Contribution in Africa
Making a Positive Contribution in Africa In Zambia - +40,000 people access our CSR programmes every year KCM operates 2 hospitals and 8 clinics; 63,000 people access these healthcare services Helped +500 people into local and foreign universities and tertiary schools in past 11 years About 2,200 you
Slide 13: Copper Zambia
Copper Zambia Volume (kt) and C1 Cash Cost (Usc/lb) – 9M FY2016 • High quality asset, significantly invested – c.$3 billion of capital invested since acquisition – Increased life of Konkola mine from 10 years to +30 years; constructed a world class smelter • Focus on ramping up production from Konko
Slide 14: Copper Zambia – Current challenges and responses
Copper Zambia – Current challenges and responses Zambia is experiencing significant power shortages. KCM is preparing for the contingency if these shortages persist for longer period than previously anticipated − Current power consumption stands at 210MW − Power prices have increased significantly.
Slide 15: Zinc International: Commitment, Delivery & Our Focus
Zinc International: Commitment, Delivery & Our Focus Acquired the Zinc International grouping of assets in 2 to 3 year extension of life of mine at each operation 2010, which comprise of Life of Mine − Black Mountain Mining (South Africa), Skorpion Zinc (Namibia) and the Lisheen Mine (Ireland) BMM (
Slide 16: Gamsberg – Large, Scalable Resource
Gamsberg – Large, Scalable Resource Gamsberg East 1 Gamsberg Project 3 Underground o 13 year mine life with further o Underground option for 150mt of resources available Gamsberg East 2.5 Mtpa o Current project 4.4 Mtpa ROM; o Possible expansion of 250 ktpa Zn MIC underground by using sub- level cav
Slide 17: Zinc International - Project Update
Zinc International - Project Update GAMSBERG Modular approach to project execution and development First Blast – Jul 2015 – Pre-stripping progressing in line with plan with 4Mt of wasted excavated since July 2015 Concentrator discussions underway with various EPC vendors (21-24 Month expected time t
Slide 18: Vedanta’s Priorities in Africa – Delivering on Commitments
Vedanta’s Priorities in Africa – Delivering on Commitments Focus Financial on support safe production to operations build-up at Konkola Delivering an operational Cost Actively reduction engaged initiatives with thewith government dedicated teams to deliver turnaround at KCM Actively VAT credit: enga
Slide 19: Strategic Priorities Remain Unchanged
Strategic Priorities Remain Unchanged Production Growth and Asset optimisation − Disciplined approach towards ramp up: positive FCF at each segment a top priority Deliver the Balance Sheet − Optimising opex and capex to maximise cash flows − Deliver cost and marketing savings of US$1.3bn − Reduce ne
Slide 20: Thank You
Thank You