Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (April 2011)
13 slides from Anglo American's investor presentation, Apr 4, 2011
Slide 1: The Supply Side Outlook
The Supply Side Outlook John MacKenzie, CEO, Copper
Slide 2: Overall Macro Economic and Market Context
OVERALL MACRO ECONOMIC AND MARKET CONTEXT 1. Industrial Recovery 2. Weak USD 65 Manufacturing activity 90 USD indexed to exchange rate basket May – Nov – % Purchasing managers’ index, 50 = no change US Sept – Greek US 60 % Quantitative Easing Lehman failure rescue package QE2 85 55 50 80 45 40 75 US
Slide 3: Strong Emerging Market Growth Will Continue
STRONG EMERGING MARKET GROWTH WILL CONTINUE • Growing middle class in emerging economies will US$ billion, constant 2005 prices and exchange rates continue to drive demand 1000 Investment in infrastructure • China and the US will continue to drive 900 infrastructure growth 800 2008 2030 Middle class
Slide 4: The Copper Market Outlook
THE COPPER MARKET OUTLOOK 40,000 • We expect a CAGR of approx. 4% between 2010 and 2015. Others are forecasting as 35,000 much as 6% 30,000 • Supply side issues relating to bottlenecks, Mine Supply (kt Cu) 25,000 disruptions and falling ore grades continue to impact production at existing operations
Slide 5: Anglo American - A Major Copper Producer
ANGLO AMERICAN - A MAJOR COPPER PRODUCER • 623kt copper in 2010, plus molybdenum and silver by-products • Two world class assets at Los Bronces and Collahuasi Los Bronces (100%) Collahuasi (44%) Mantoverde (100%) El Soldado (100%) Mantos Blancos (100%) Chagres (100%) 5
Slide 6: Delivering Substantial Near Term Growth
DELIVERING SUBSTANTIAL NEAR TERM GROWTH • Los Bronces 278ktpa copper expansion on schedule for first production Q4 2011 • Production at Los Bronces scheduled to increase to 490ktpa over first 3 years, average 400ktpa over first 10 years • Positioned firmly in the lower half of the cost curve, estima
Slide 7: Minimum Total Endowment of Key Copper Belts
MINIMUM TOTAL ENDOWMENT OF KEY COPPER BELTS 2% 2% 1% 2% 6% 1% 10% 3% 1% 2% 1% 1% 5% 3% 1% 7% 6% 1% 22% 1% 6% 18% Top 10 key Cu belts Other key Cu belts Source: and Metals Economics Group and Anglo American analysis 7
Slide 8: A Focused Exploration Programme
A FOCUSED EXPLORATION PROGRAMME • Major new Resources announced at Los Sulfatos, San Enrique Monolito and West Wall Alaska Colombia Indonesia Brazil Peru DR Congo Chile, Argentina Copper exploration presence 8
Slide 9: Growth in Supply
GROWTH IN SUPPLY • Over the last 2 decades, the top 10 producing countries have supplied ~80% of the total 100% Other • Chile grew supply significantly during 1992 - 90% DRC Poland 2001 but has remained relatively flat since 80% Kazakhstan then Canada 70% Russian Federation • North America has decre
Slide 10: New Supply: Latin America Centre Stage
NEW SUPPLY: LATIN AMERICA CENTRE STAGE 100% • There are a limited number of large scale projects (>100ktpa Cu production) in the 90% Other pipeline 80% • Over 50% of these large scale greenfield DRC Zambia projects are located in Latin America 70% Poland China 60% 150 Peru 50% 125 Russian Federation
Slide 11: A Strong Pipeline of Projects
A STRONG PIPELINE OF PROJECTS • Brownfield projects being studied at the majority of operations • 3 major greenfield projects in Peru and the US, with approval of Quellaveco expected this year Los Bronces District (100%) Collahuasi (44%) Quellaveco, Peru (82%) Michiquillay, Peru (100%) Pebble, USA (
Slide 12: Ideally Positioned for Growth in a Highly Attractive Industry
IDEALLY POSITIONED FOR GROWTH IN A HIGHLY ATTRACTIVE INDUSTRY 2,000 • Our strategy is focused on four key value 1,800 drivers 1,600 1,400 – Safety & sustainability 1,200 – Operational excellence 1,000 Current projects 800 – Project delivery 600 – Portfolio management 400 200 • Our strong project pip
Slide 13: Thank You
THANK YOU 13