Anglo American plc · LSE:AAL
Anglo American — Investor Day (November 2019)
10 slides from Anglo American's investor day presentation, Nov 12, 2019
Slide 1: Positioned for the Future
POSITIONED FOR THE FUTURE Seamus French, Bulks CEO Bulks Seminar & Site Visit: Brisbane, 12 November 2019
Slide 2: Bulks: A High Quality Business
BULKS: A HIGH QUALITY BUSINESS High quality products for Proven track record of Further improvement & future demand operational excellence value growth to come 22
Slide 3: Continued Shift Towards High Quality Steelmaking
CONTINUED SHIFT TOWARDS HIGH QUALITY STEELMAKING Bulk commodities Moranbah ~35Mt export 82 36 Grosvenor ~47Mt domestic Premium quality HCC 30 22-24 Minas-Rio ~68% HCC 17 ~30Mt, 67% Fe iron ore 75 65-66 Kumba: Kumba 43 ~45Mt, 64.5% Fe iron ore ~43Mt, ~64% Fe 2012 2019 Long-term Iron ore Metallurgical
Slide 4: Today's Messages: High Quality Bulks Business
TODAY’S MESSAGES: HIGH QUALITY BULKS BUSINESS 2019 upgrades 2019 summary Long-term potential Minas-Rio production Total iron ore production Total iron ore production ~23Mt 10% upgrade ✓ ~65-66Mt ~75Mt Minas-Rio unit cost1 Met Coal production Met Coal production ~$24/t 10% improvement2 ✓ ~22-24Mt ~30
Slide 5: Investment Proposition
INVESTMENT PROPOSITION “Leading capabilities actively improving a world-class asset base to drive sustainable, competitive returns” Assets Capabilities Returns Focus on quality Operating Model Capital discipline Long life FutureSmart MiningTM Dividend payout ratio Technology & Sustainability Low cos
Slide 6: Footnotes
FOOTNOTES 1. FOB unit cost excludes royalties, depreciation, off-site overheads and study costs. Thermal coal unit cost comprises the trade mines only. 2. Improvement vs original unit cost guidance issued for 2019. FOB unit cost excludes royalties, depreciation off-site overheads and study costs. Th
Slide 7: Appendix
AngloAmerican APPENDIX Real Mining. Real People. Real Difference.
Slide 8: Production & Unit Costs Guidance
PRODUCTION & UNIT COSTS GUIDANCE Units 2018 2019F 2020F 2021F 2022F Iron ore (Minas-Rio)1 Mt 3 ~23 22-24 24-26 23-25 (previously 20-22) (previously 21-23) (previously 22-24) Iron ore (Kumba)2 Mt 43 42-43 43-44 43-44 43-44 (previously ~43-45) (previously ~43-45) Metallurgical coal3 Mt 22 22-24 22-24
Slide 9: Bulks: H1 2019 Simplified Earnings by BU
BULKS: H1 2019 SIMPLIFIED EARNINGS BY BU $m (unless stated) Kumba Minas-Rio Met Coal Thermal Coal Nickel Manganese Total Sales volume (mined) 21.4Mt 10.6Mt 9.9Mt1 13.6Mt2 18.6kt Benchmark price $91/t3 $106/t4 $191/t5 $69/t6 $12,324/t7 Product premium/discount per unit $18/t8 $4/t9 $(8)/t10 $(6)/t11
Slide 10: Bulks: H1 2019 Simplified Earnings by BU - Notes
BULKS: H1 2019 SIMPLIFIED EARNINGS BY BU - NOTES Coal blended price & unit cost Iron ore realised price Coal weighted average market Unit cost Price Volume Iron ore realised price Kumba Minas-Rio prices & unit cost HCC $205/t 8.2Mt Benchmark price $91/t7 $106/t8 PCI $125/t 1.7Mt Fe premium $3/t $4/t