Anglo American Plc · LSE:AAL
Anglo American — BMO Capital Markets 2011 Global Metals & Mining Conference
20 slides from Anglo American's conference presentation, Feb 28, 2011
Slide 1: BMO Capital Markets 2011 Global Metals & Mining Conference
BMO CAPITAL MARKETS 2011 GLOBAL METALS & MINING CONFERENCE Cynthia Carroll Chief Executive 28 February 2011
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 – US Sept – Greek US Purchasing managers’ index, 50 = no change Quantitative Lehman rescue QE2 60 Easing failure package 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 CHINA AND US WILL CONTINUE TO DRIVE ECONOMIES WILL CONTINUE TO DRIVE DEMAND INFRASTRUCTURE GROWTH Middle Classes by region, mn US$ billion, constant 2005 prices and exchange rates 1000 Investment in infrastructure 900 800 2
Slide 4: 2010 Financial Overview
2010 FINANCIAL OVERVIEW Underlying EPS – $ Key financials 4.36 2.14 4.13 ($bn) 2010 2009 change Core operating profit(1) 9.1 4.5 +104% Operating profit 9.8 5.0 +97% Effective tax rate 31.9% 33.1% 2.90 Underlying earnings 5.0 2.6 +94% 2.29 1.84 Capex(2) 5.0 4.8 1.46 1.23 EBITDA 12.0 6.9 +73% 0.91 Net
Slide 5: Major improvement in safety performance
MAJOR IMPROVEMENT IN SAFETY PERFORMANCE Fatalities LTIFR 50 44 1.5 51% improvement 40 68% reduction 1.16 1.15 40 1.04 28 1 0.76 30 20 0.57 20 14 0.5 10 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 • Safety practices embedded and delivering further improved results, particularly at SA underg
Slide 6: 2010 Operational Highlights
2010 OPERATIONAL HIGHLIGHTS Copper: Operating profit of $2.8bn, up 40%. Production 623k, down 7% in line with expectations due to lower grades with exception of strike action at Collahuasi. Los Bronces expansion on track for 1st production Q4 2011 Nickel: Operating profit $96m. Production up 2% year
Slide 7: Significant outperformance of asset optimisation and procurement targets
SIGNIFICANT OUTPERFORMANCE OF ASSET OPTIMISATION AND PROCUREMENT TARGETS Asset Optimisation Procurement $m +86% $m 2,150 2011 323 +52% $1bn target2 800 279 87 1,158 526 208 2011 81 466 $1bn 201 target1 1,548 253 749 247 192 2009 2010 2009 2010 OMI Core- one-off benefits Core - sustainable benefits O
Slide 8: A world class mining company
A WORLD CLASS MINING COMPANY Outperforming the industry1 Well diversified portfolio2 Structurally attractive commodities3 Op Profit ($bn) Op Profit Margin (%) 12 45% Diamonds China’s share of global consumption (%) 10% 40% 10 35% 21% 11% 8 30% Iron Ore & 27% 62% Manganese 25% 6 24% Platinum 20% 24%
Slide 9: A unique and well diversified portfolio
A UNIQUE AND WELL DIVERSIFIED PORTFOLIO Attributable earnings by Business Unit1 Attributable earnings by geography % % PRECIOUS 2% BULKS 15% 47% 5% 9% 6% 22% 42% 44% 9% 37% 38% 10% BASE 1% 12% Platinum Copper Met Coal KIO ROW Australia/Asia De Beers Nickel Thermal Coal Samancor South America South A
Slide 10: In structurally attractive commodities
….IN STRUCTURALLY ATTRACTIVE COMMODITIES China’s share of global consumption (%) 11% 21% Thermal 62% Coal 27% Palladium imports Met Platinum Coal 32% Nickel Iron ore 60% Copper 38% Steel 43% Source: AME, Brook Hunt, a Wood Mackenzie company, Johnson Matthey. Thermal Coal represents share of internat
Slide 11: The near term pipeline will increase production by 50% to 2015
THE NEAR TERM PIPELINE WILL INCREASE PRODUCTION BY 50% TO 2015, WITH FURTHER VOLUME GROWTH BEYOND THAT 100% 200 Selected projects Jacaré I, Morro Sem Boné 180 50% Indexed production growth (2009 = 100) Michiquillay, Collahuasi 160 Barro Alto 140 Various Platinum Los Bronces Projects Quellaveco 120 1
Slide 12: Equivalent growth profile of approved projects
EQUIVALENT GROWTH PROFILE OF APPROVED PROJECTS (JPMORGAN CAZENOVE) 130 CAGR 2010-2014 6.4% 125 6.0% 120 4.6% 115 3.6% 110 105 100 95 90 2010 2011 2012 2013 2014 AAL BHP RIO XTA Source: JPMorgan Cazenove,15 February 2011 12
Slide 13: Significant further growth optionality from a world class project pipeline
WITH SIGNIFICANT FURTHER GROWTH OPTIONALITY FROM A WORLD CLASS PROJECT PIPELINE Approved Feasibility Future Growth Options BMR Unki Siphumelele Venetia Thembelani 1 Khomanani Base and Precious Jwaneng Cut 8 Expansion Mer Decline Underground UG2 Gahcho Mer Decline Siphumele Kué UG2 Khuseleka Dishaba
Slide 14: Delivering near-term growth: Barro Alto
DELIVERING NEAR-TERM GROWTH Barro Alto, Brazil • Barro Alto 36 ktpa nickel project on schedule for first production March 2011 • Open pit mining and proven processing technology – standard rotary kiln – electric furnace • Life of mine 20 yrs; 47.5 Mt @ 1.68% Ni, with an Additional Measured and Indic
Slide 15: Delivering near-term growth: Los Bronces
DELIVERING NEAR-TERM GROWTH Los Bronces, Chile • Los Bronces 278 ktpa copper expansion on schedule for first production Q4 2011 • Production at Los Bronces scheduled to increase to 490 ktpa over first 3 yrs, average 400 ktpa over first 10 yrs • Positioned firmly in the lower half of the cost curve,
Slide 16: Delivering near-term growth: Kolomela
DELIVERING NEAR-TERM GROWTH Kolomela, South Africa • Kolomela 9 Mtpa iron ore project on schedule for first production Q2 2012 • At full capacity the mine will deliver 9 Mtpa of high quality seaborne iron ore • Reserves of 202.4Mt at an average grade of 64.3% Fe (cut-off at 48% Fe) • Measured and In
Slide 17: Delivery of project pipeline: Minas-Rio
DELIVERY OF PROJECT PIPELINE Minas-Rio, Brazil • Significant progress made with licences and permits; Mining permit in August and LI part 2 in December • LI part 2 is final primary installation licence, supports commencement of the civil works for beneficiation plant and tailings dam, expected to st
Slide 18: Next wave of projects set for approval
NEXT WAVE OF PROJECTS SET FOR APPROVAL Quellaveco Copper Project, Peru • Average production of 225 ktpa over the first 10 years • Feasibility study complete. Subject to Board approval in 2011 pending water permits • First production estimated in 2015 • Capex estimated ~ $3bn • Targeted to operate in
Slide 19: Summary
SUMMARY • Operational excellence is delivering significant bottom line enhancement • Commodity positions moving down to the lower half of the cost curve • Major volume growth underway one of the largest near term expansion profiles – with $16bn approved in the next 3 years – 50% growth to 2015 • Str
Slide 20: Q&A
Q&A
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