Anglo American Plc · LSE:AAL
Anglo American — Bank of America 2022 Global Metals & Mining Conference
18 slides from Anglo American's conference presentation, May 17, 2022
Slide 1: Bank of America 2022 Global Metals & Mining conference
Bank of America 2022 Global Metals & Mining conference 17 May 2022 Anglo American
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking the written materials/slides for a presentation concernin
Slide 3: Global themes drive demand for our products
Global themes drive demand for our products Circular Economy Health Hydrogen Economy Biodiversity Low Carbon Inequality Transition Populism GHG Activism Abatement Population Future of Urbanisation Work Diversity Income Automation Digital Geopolitical & Big Data Fracturing Blockchain & Cryptocurrency
Slide 4: A carbon neutral world requires metals and minerals
A carbon neutral world requires metals and minerals Copper demand (Mt) for the energy transition from key sectors in a 1.5°C scenario1 ~17 ~60 new copper Vehicles Power generation & grid mines the size of Quellaveco needed ~6 by 2040 2020 2040e 4 Anglo American
Slide 5: Supply is constrained in a depleting industry
Supply is constrained in a depleting industry Committed mined copper supply 2 >10 years to bring Copper scrap in smelting 2 Refined copper demand 1 Mt 40 on new mines 35 30 Depleting resource base ~18 Mt 25 Grade decline 20 15 Smaller, deeper deposits 10 Complex permitting & sustainability focus 5 I
Slide 6: Do today's elevated prices need to persist to deliver a 1.5°C world?
Do today’s elevated prices need to persist to deliver a 1.5°C world? Copper price $/t ~10,000 ~7,700 ~7,700 Elevated pricing needed for next 10-20 years? 20 year Consensus Incentive average price3 long-term price4 price?5 6 Anglo American
Slide 7: Metals & minerals must be sustainably produced
Metals & minerals must be sustainably produced Our pathway to 2040 scopes 1 & 2 carbon neutrality6 2040 scope 3 ambition7 Fossil fuels 50% ~80% reduction if steel industry achieves a 1.5°C pathway Electricity purchased Diesel 2030 freshwater abstraction target8 Fugitive methane Carbon Negative Techn
Slide 8: Technology will deliver improvements in safety, efficiency and sustainability
Technology will deliver improvements in safety, efficiency and sustainability Hydrogen truck Unlocking ore bodies Delivering safer outcomes Efficient, sustainable production Please click here to view the video: https://youtu.be/IkKpODtXqEQ 8 Anglo American
Slide 9: Our unique ecosystem approach to decarbonisation is a catalyst for economic development
Our unique ecosystem approach to decarbonisation is a catalyst for economic development within host countries Partnership with EDF Renewables Increased grid capacity (3 – 5 GW) Investment majority funded by equity partners & debt financing Supporting Just Energy Transition 9 Anglo American
Slide 10: Sustainable & long-term development opportunities for all stakeholders
Sustainable & long-term development opportunities for all stakeholders Collaborative Regional Development Partnership-based model Spatial & economic analysis Partner of choice Scalable & sustainable development Foster thriving & prosperous communities 10 Anglo American
Slide 11: Attractive, high margin growth options
Attractive, high margin growth options Moranbah-Grosvenor Mogalakwena Collahuasi Phase 2 Sakatti Woodsmith (Metallurgical Coal) (PGMs) (Copper) (Copper) (Crop Nutrients) ~$0.3bn capex9 on Number of options being Next stage expansion, Rich polymetallic deposit in Multinutrient, low chloride, washplan
Slide 12: Quellaveco copper project delivering ~10% volume growth
Quellaveco copper project delivering ~10% volume growth in a future-enabling product Quality asset Low cost Expansion potential +300ktpa 10 ~95c/lb 12 ~1.5Bt resource 11 36 year life 11 Competitive 6.1Mt copper 11 12 Anglo American
Slide 13: Our diversified portfolio
Our diversified portfolio Suite of future-enabling products within a geographically diversified portfolio Copper equivalent production13 Attributable capital employed14 Diamonds Met Coal Other Chile 13% & Peru 23% Australia 9% High quality Copper Iron Ore ~85% Botswana 12% Future & Namibia enabling
Slide 14: Our balanced offering
Our balanced offering Strong balance sheet Attractive returns Quality growth 0.2x 40% payout >90% 2021 base, through the cycle growth capex in high margin & net debt:EBITDA15 dividend16 future-enabling products17 14 Anglo American
Slide 15: Continuing to evolve our customer offering
Continuing to evolve our customer offering Mining Metals & Minerals Materials Company Company Solutions Provider Traditional model of extract Our Business Model is aligned Customer offering in new profit and sell on market with evolving customer needs pools along value chain 15 Anglo American
Slide 16: Focusing on our strategic priorities
Focusing on our strategic priorities 1 Safety 2 Stability 3 Sustainability 4 Growth 16 Anglo American
Slide 17: Purpose: to re-imagine mining to improve people's lives
Purpose: to re-imagine mining to improve people’s lives Our investment proposition Competitive Differentiated Sustainable assets capabilities returns Strong cost position Technology-led >45% EBITDA margin18 Long term growth +35%13 Sustainability leader Disciplined capital allocation 17 Anglo America
Slide 18: Footnotes
Footnotes 1. Source: Anglo American internal analysis, based on sector outlooks in Wood Mackenzie’s 1.5 Degree Scenario, March 2022. 2. Source: Wood Mackenzie, Global Strategic Planning Outlook, March 2022, Base Case Outlook. 3. Real 2022 terms. Source: Wood Mackenzie. 4. Real 2022 terms. Source: Mo
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