Anglo American Plc · LSE:AAL
Anglo American — Exane 15th Basic Materials Virtual Conference (March 2020)
73 slides from Anglo American's conference presentation, Mar 31, 2020
Slide 1: Exane 15th Basic Materials Virtual Conference
EXANE 15TH BASIC MATERIALS VIRTUAL CONFERENCE 31 March 2020
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: Contents
CONTENTS Our Transformation Journey 4-8 Financials 9-18 Disciplined growth 19-21 Positioned for the future 22-25 Simplified earnings 29-30 Guidance summary including production & unit costs 31-34 Capex projects summary 35-36 Quellaveco 37-38 Business Unit performance summaries 39-46 Business Unit ad
Slide 4: Focus on Delivery
FOCUS ON DELIVERY Effectiveness Efficiency Sustainability Margins drive Cash Flow Capital Discipline Quality Assets $3.4bn FCF1 19% ROCE2 ESG & balance sheet 44
Slide 5: Continued Improvement
CONTINUED IMPROVEMENT Safety Health Environment Group TRCFR3,4 Fatalities3 Occupational health – new cases3,5 Significant incidents3,6 209 30 5.4 4.7 175 159 4.0 15 3.6 3.2 111 11 101 15 2.7 96 9 2.2 6 6 5 4 39 6 6 4 2 1 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014
Slide 6: A Transformed Business…
A TRANSFORMED BUSINESS… Production index7 +105% Productivity8 Productivity index8 Portfolio restructuring Cu Eq unit cost9 108 (29)% Operating model and Unit costs9 technical improvements 2012 2013 2014 2015 2016 2017 2018 2019 66
Slide 7: …With an Improved Competitive Position
…WITH AN IMPROVED COMPETITIVE POSITION Average quality adjusted cost curve position10 47% Improved from 49th percentile (in 2013) Peer range 36% 34% 108 Anglo American Peers 77
Slide 8: Delivering Margin Improvement
DELIVERING MARGIN IMPROVEMENT Mining EBITDA margin11 +40% 42% 30% Commodity price basket down 5% 2012 2019 88
Slide 9: Financials
AngloAmerican FINANCIALS Stephen Pearce Real Mining. Real People. Real Difference.
Slide 10: 2019 Results
2019 RESULTS EBITDA12 Underlying EPS13 Capital expenditure14 $10.0bn $2.75/sh $3.8bn Unit cost9 Dividends Free cash flow1 6% $1.09/sh $3.4bn 10 10
Slide 11: EBITDA Driven by Strong Margins
EBITDA DRIVEN BY STRONG MARGINS Diamonds Copper $0.6bn $1.6bn 43% mining EBITDA margin 44% mining EBITDA margin 12 $10.0bn PGMs Bulks $2.0bn $5.9bn 40% mining EBITDA margin 43% mining EBITDA margin 11 11
Slide 12: Minas-Rio Drives EBITDA Improvement
MINAS-RIO DRIVES EBITDA IMPROVEMENT $bn (0.1) 0.4 (0.1) (0.1) 0.1 Copper PGMs Kumba External factors 0.1 (0.1) 0.6 0.4 108 0.4 10.0 (0.5) 9.4 9.2 Diamonds midstream market 2018 Price15 Currency Minas-Rio Cost & Other 2019 EBITDA12 & CPI16 recovery volume17 EBITDA12 12 12
Slide 13: Maintained Balance Sheet Strength
MAINTAINED BALANCE SHEET STRENGTH Net debt ($bn) Net debt : EBITDA12 4.6 Mitsubishi share of debt 0.3 <0.5x 4.3 Gearing18 13% 13 13
Slide 14: Attractive Shareholder Returns
ATTRACTIVE SHAREHOLDER RETURNS Dividends Buyback Payout policy $1.4bn $0.8bn 40% $3.9bn ordinary dividends of up to $1bn by March of underlying earnings since 2017 2020 every 6 months 14 14
Slide 15: Balanced Capital Allocation Framework
BALANCED CAPITAL ALLOCATION FRAMEWORK $2.3bn attributable free cash flow1 3.4 Add back $1.1bn discretionary spend $1.4bn 2018 final & 2019 interim dividend paid (1.5) Other adjustments19 Discretionary capital options $1.1bn discretionary spend (growth capex, exploration/evaluation) (1.9) Future proj
Slide 16: High-Returning Growth Drives Near-Term Capex
HIGH-RETURNING GROWTH DRIVES NEAR-TERM CAPEX $4.7 - 5.2bn $4.7 - 5.5bn Growth 1.5-1.7 1.5-2.0 Sustaining 3.2-3.5 3.2-3.5 2.8-3.1 2020F14 2021-22F Long-term per annum14 sustaining14 Excludes Mitsubishi share of Quellaveco capex14 which is: ~$0.6bn ~$0.4bn pa Excludes Sirius Minerals 16 16
Slide 17: Targeting $3-4bn Cost & Volume Improvement
TARGETING $3-4BN COST & VOLUME IMPROVEMENT Operating Model and P101 Technology and Digitalisation Project Delivery Met Coal longwalls Bulk ore sorting Quellaveco (Copper) Minas-Rio Coarse particle recovery Moranbah-Grosvenor (Met Coal) Target: ~$1.5bn Target: up to ~$1.0bn Target: up to ~$1.5bn Achi
Slide 18: Balanced & Disciplined Approach
BALANCED & DISCIPLINED APPROACH Attractive growth Strong margin Resilient balance sheet ~20-25% ~45-50% <1.5x Cu Eq production – by 20237 Mining EBITDA margin11 Bottom of the cycle net debt:EBITDA12 18 18
Slide 19: Disciplined Growth
DISCIPLINED GROWTH Mark Cutifani
Slide 20: Projects on Time and Budget
PROJECTS ON TIME AND BUDGET Quellaveco (Copper) Marine Namibia (Diamonds) 2020 capex14 ~$0.1bn High value diamonds Construction under way Aquila (Met Coal) 2020 capex (100%) 2020 capex14 ~$1.5bn to ~$1.7bn ~$0.1bn Our share14: ~$0.9bn to ~$1.0bn High quality met coal Plant earthworks complete, concr
Slide 21: Sirius Minerals: A Compelling Fit and Opportunity
SIRIUS MINERALS: A COMPELLING FIT AND OPPORTUNITY Clear Strategic Fit Competitive Product Well Progressed Project Potential Tier 1 asset Multi-nutrient, low-chloride Attractive returns Long life, low cost, scaleable, POLY4 contains established nutrients, $1.1bn invested, key permits in place, minima
Slide 22: Positioned for the Future
POSITIONED FOR THE FUTURE Mark Cutifani
Slide 23: Positioning Ourselves for the Future
POSITIONING OURSELVES FOR THE FUTURE Quality Portfolio FutureSmart MiningTM Aligning suited to furthers People and future themes transformation Processes Growing population & wealth Technology-driven efficiency Operating Model efficiencies Urbanisation & electrification Smaller energy & water footpr
Slide 24: Asset Quality Driven Portfolio
ASSET QUALITY DRIVEN PORTFOLIO Diamonds Copper World leader World class growth PGMs Bulks World leader High quality niche 24 24
Slide 25: Investment Proposition
INVESTMENT PROPOSITION Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” 25 25
Slide 26: Q&A: Products That Improve People's Lives
Q&A Copper: renewables-driven electrification PGMs: air quality & lower emissions Diamonds: aspiration & growing prosperity Quality bulks: modern infrastructure development …ARE PRODUCTS THAT IMPROVE PEOPLE’S LIVES 26 26
Slide 27: Footnotes
FOOTNOTES All metrics in presentation shown on an underlying basis. 1. ‘Cash flow after sustaining capital’ comprises attributable free cash flow excluding 12. Underlying EBITDA is operating profit before special items and remeasurements discretionary capex and exploration / evaluation expenditure.
Slide 28: Appendix
AngloAmerican APPENDIX ane Real Mining. Real People. Real Difference.
Slide 29: 2019 Simplified Earnings by BU
2019 SIMPLIFIED EARNINGS BY BU $m (unless stated) De Beers Copper PGMs Kumba Minas-Rio Met Coal Thermal Coal Nickel Other1 Total (Diamonds) (Iron Ore) Sales volume (mined share) 30.8Mct2 644kt 1,402koz Pt3 42.0Mt 22.9Mt 22.4Mt4 26.9Mt5 41.7kt Benchmark price n/a $5,997/t6 n/a $93/t7 $104/t8 $167/t9
Slide 30: 2019 Simplified Earnings by BU - Notes
2019 SIMPLIFIED EARNINGS BY BU - NOTES PGMs basket price Iron ore realised price Coal blended prices & unit costs Own mined Coal weighted average Unit Price Volume Revenue Kumba Minas-Rio Price Volume PGMs basket market prices & unit cost cost Platinum $862/oz 1,402koz $1,208m Market price $93/t7 $1
Slide 31: Guidance Summary
GUIDANCE SUMMARY Earnings Capex1 Other Volumes: See slide 32 2020 $4.7-5.2bn Quellaveco copper project Unit costs: See slide 33 - Growth $1.5-1.7bn - Our share of capex included in capex guidance 2020 depreciation: ~$3bn - Sustaining $3.2-3.5bn 2020 effective tax rate: 31-33%2 2021-2022 $4.7-5.5bn -
Slide 32: Production Outlook as of March 2020
PRODUCTION OUTLOOK AS OF 30 MARCH 2020 AND POST ANNOUNCEMENTS Units 2018 2019 2020F 2021F 2022F Diamonds1 Mct 35 31 32-34 34-36 33-35 Chile: 600-660 Copper2 kt 668 638 620-670 620-680 Peru: 100-150 Platinum – M&C3 Moz 2.5 2.14 2.0-2.24,5 2.0-2.24 2.0-2.24 Palladium – M&C3 Moz 1.6 1.44 ~1.44,5 ~1.44
Slide 33: Unit Costs Performance by Business Unit
UNIT COSTS PERFORMANCE BY BUSINESS UNIT De Beers (US$/ct)1 Copper (C1 USc/lb) PGMs (US$/Pt oz)2 Kumba (FOB US$/t) 60 63 ~60 134 126 ~125 1,561 1,543 <1,600 33 ~36 32 2018 2019 2020F 2018 2019 2020F 2018 2019 2020F 2018 2019 2020F Minas-Rio (FOB US$/t)3 Met Coal (US$/t)4 Thermal Coal SA export (US$/t
Slide 34: Earnings Sensitivities
EARNINGS SENSITIVITIES Impact of 10% change Sensitivity Analysis – 20191 in price / FX Commodity / Currency 31 December spot Average realised EBITDA ($m) Copper (c/lb)2 279 273 378 Platinum ($/oz) 971 861 140 Palladium ($/oz) 1,920 1,518 185 Rhodium ($/oz) 6,050 3,808 83 Kumba: 97 Iron Ore ($/t) 92
Slide 35: Attractive Greenfield and Brownfield Options
ATTRACTIVE GREENFIELD AND BROWNFIELD OPTIONS Long life greenfields and fast returning brownfields Our share: From: Quellaveco (Copper) $2.5bn to $2.7bn1 +180ktpa 2022 ~4 year payback >15% IRR >50% margin Marine Namibia (Diamonds) ~$0.2bn +0.5Mctpa 2022 ~3 year payback >25% IRR >60% margin Moranbah-G
Slide 36: Life Extensions Will Deliver Value; Higher Near-Term Sustaining Capex
LIFE EXTENSIONS WILL DELIVER VALUE; HIGHER NEAR-TERM SUSTAINING CAPEX 2020-22 sustaining capex1 Long-term sustaining capex1 $3.2-3.5bn pa ~$2.8-3.1bn driven by lifex for expanded portfolio Lifex projects – subject to disciplined capital allocation framework Venetia Underground (Diamonds) ~$0.2-0.4bn
Slide 37: Quellaveco Financial Modelling
QUELLAVECO FINANCIAL MODELLING Ownership Anglo American 60%, Mitsubishi 40% Accounting treatment Fully consolidated with a 40% minority interest Shareholder loans from minority shareholder to be consolidated in Anglo American Group net debt Project capex (nominal) $5.0-5.3 billion (100% basis - Angl
Slide 38: Quellaveco Accounting
QUELLAVECO ACCOUNTING Anglo American consolidates 100% of Quellaveco’s P&L and Balance Sheet. Mitsubishi’s 40% share is shown as a non-controlling interest. After the initial $0.8bn equity injection by Mitsubishi, the project is now funded 60:40 through shareholder debt. Group net debt by the end of
Slide 39: Diamonds – Impacted by Midstream Weakness
DIAMONDS – IMPACTED BY MIDSTREAM WEAKNESS Sales Average Realised Underlying Mining Production1 Unit cost4 Capex (Cons.)2 price index price3 EBITDA margin5 2019 30.8Mct 29.2Mct 116 $137/ct $63/ct $558m 43% $567m vs. 2018 $13% $8% $6% $20% #5% $55% $10pp #36% Underlying EBITDA ($m) 1,245 (523) (51) 78
Slide 40: Copper – Price Offsets Good Cost Performance
COPPER – PRICE OFFSETS GOOD COST PERFORMANCE Underlying Mining Production Sales1 Realised price1 C1 unit cost2 Capex4 EBITDA margin3 2019 638kt 644kt 273c/lb 126c/lb $1,618m 44% $1,078m vs. 2018 $5% $4% $4% $6% $13% $4pp #53% Underlying EBITDA ($m) 1,856 (150) 54 (49) 1,711 15 (108) 1,618 2018 Price
Slide 41: PGMs – Strong Palladium and Rhodium Prices
PGMS – STRONG PALLADIUM AND RHODIUM PRICES Realised basket Underlying Production1 Pt sales2 Unit cost3 Mining margin4 Capex price2 EBITDA Pt: 2,051koz Pt: 2,215koz 2019 $2,819/Pt oz $1,543/Pt oz $2,000m 40% $569m Pd: 1,386koz Pd: 1,521koz vs. 2018 #1% / #1% $ 9% / #1% #27% $1% #88% #11pp #15% Underl
Slide 42: Kumba Iron Ore – Higher Prices
KUMBA IRON ORE – HIGHER PRICES Realised price Unit cost Underlying Mining Production Sales Capex (FOB)1 (FOB) EBITDA margin 2019 42.4Mt 42.0Mt $97/t $33/t $2,243m2 50% $389m vs. 2018 $2% $3% #35% #3% #51% #7pp #26% Underlying EBITDA ($m) (75) 2,476 137 (167) (66) 2,243 925 1,489 2018 Price FX Inflat
Slide 43: Minas-Rio – Strong Recovery and Performance
MINAS-RIO – STRONG RECOVERY AND PERFORMANCE Iron Ore Realised price Unit cost Underlying Mining Sales Capex Production (FOB) (FOB) EBITDA margin 2019 23.1Mt (wet) 22.9Mt $79/wmt $21/t $1,164m1 50% $205m vs. 2018 n/a n/a n/a n/a n/a n/a #93% Underlying EBITDA ($m) 1,164 189 506 584 70 (95) 223 (115)
Slide 44: Metallurgical Coal – Solid Operational Delivery
METALLURGICAL COAL – SOLID OPERATIONAL DELIVERY Metallurgical Metallurgical FOB realised Underlying Mining Unit cost3 Capex production1 sales1 price2 EBITDA margin 2019 22.9Mt 22.4Mt $165/t $63/t $1,707m4 45% $670m vs. 2018 #5% #2% $13% $2% $21% $6pp #17% Underlying EBITDA ($m) 2,158 (497) 1,748 (23
Slide 45: Thermal Coal – Softer Demand
THERMAL COAL – SOFTER DEMAND Underlying Export prod. Sales FOB price3 Unit cost4 Mining margin EBITDA SA Capex SA1 / Col SA2 / Col SA / Col SA / Col SA6 / Col SA5 / Col 2019 17.8Mt / 8.6Mt 18.1Mt / 8.8Mt $61/t / $56/t $45/t / $33/t $(5)m / $130m (3)% / 26% $264m vs. 2018 $3% / $16% $1% / $13% $30% /
Slide 46: Nickel – Stable Performance
NICKEL – STABLE PERFORMANCE Realised C1 unit Underlying Mining Production1 Sales1 Capex price cost EBITDA margin 2019 42.6kt 41.7kt 624c/lb 380c/lb $191m 33% $42m vs. 2018 #1% $3% #6% #5% #6% #1pp #11% Underlying EBITDA ($m) (10) 212 25 (4) (17) 191 181 16 2018 Price FX Inflation Cost & Volume Other
Slide 47: De Beers: World Leader in Diamonds
DE BEERS: WORLD LEADER IN DIAMONDS Best-in-class business… …focused on consumers Global demand3 EBITDA mining margin1 Rest of world ~43% India Gulf USA China Trading margin (typical level) 2 Self purchases3 Millennials4 ~7% ~30% ~60% of demand of US demand 1. Represents the underlying EBITDA margin
Slide 48: A Growing, World Class Copper Business
A GROWING, WORLD CLASS COPPER BUSINESS Quality assets with growth High value portfolio with long term potential Collahuasi 249ktpa 1 (our share) ~1Mtpa at ~120c/lb 1 Los Bronces 335ktpa 1 With further growth potential from: • existing assets Quellaveco • new projects • exploration ~300ktpa 1 1. Repo
Slide 49: Quellaveco – A World Class Copper Project
QUELLAVECO – A WORLD CLASS COPPER PROJECT Attractive returns Focus on execution Successfully syndicated Low cost with significant All key permits in place, syndication transaction in further potential execution progressing well 2018 IRR Payback Mitsubishi subscription > 15% 4 years $851m Real, post-
Slide 50: World Leader in PGMs
WORLD LEADER IN PGMs Asset focused Own mined production split by volume $3,433/oz Mogalakwena Other Platinum 3% 8% 2% Base metals Palladium 56% Palladium Rhodium Gold Ruthenium 6% 46% Mining EBITDA margin Platinum Iridium Basket price Other 35% Own mined production split by revenue Amandelbult Trans
Slide 51: PGMs Market
PGMS MARKET Platinum demand1 Basket price driven by Pd and Rh Jewellery Other autocatalysts ~22% ~13% Rhodium +323% European light duty autocatalysts ~10% Industrial & other ~55% ICE/hybrid demand is set to grow2 ~95m units ~107m units 2% 5-10% Palladium +81% 98% 90-95% PGM Basket +79% Platinum 2019
Slide 52: Structural Trends Favouring High Quality Bulks
STRUCTURAL TRENDS FAVOURING HIGH QUALITY BULKS Iron ore: premium, high grade products Metallurgical coal: world class operations Kumba production Minas-Rio production High quality portfolio ~64%Fe ~67%Fe 83% of which 67% is lump Pellet feed products Hard coking coal1 Production (Mt) Production (Mt)
Slide 53: Portfolio Overview – Key Assets
PORTFOLIO OVERVIEW – KEY ASSETS De Beers Copper Botswana (Debswana) Los Bronces Namibia (Namdeb) Collahuasi South Africa (Venetia) Quellaveco project Trading PGMs Bulks Minas-Rio (Iron ore) Mogalakwena Kumba (Iron ore) Amandelbult Moranbah-Grosvenor (Met coal) Processing Thermal coal, Nickel & Manga
Slide 54: Business Unit Leadership
BUSINESS UNIT LEADERSHIP De Beers Base Metals Strategy Bruce Cleaver Ruben Fernandes Duncan Wanblad PGMs Bulks Marketing Chris Griffith Seamus French Peter Whitcutt 54 54
Slide 55: Asset Quality: Differentiated Portfolio
ASSET QUALITY: DIFFERENTIATED PORTFOLIO Revenue by product1 Capital employed by geography2 Nickel and Manganese Other 5% 5% Thermal coal PGMs Australia 6% 23% 11% Brazil 26% Met coal 13% Diamonds (De Beers) 16% Chile, Peru & Colombia Iron ore 24% 20% South Africa Copper Namibia & 24% 13% Botswana 14
Slide 56: Our Asset Improvement Journey
OUR ASSET IMPROVEMENT JOURNEY Group 2019 2013 Group 36th percentile 49th percentile Diamonds (De Beers) Copper PGMs Iron Ore Met Coal Thermal Coal Manganese Nickel Nickel & Manganese Average margin adjusted Q1 Q2 Q3 Q4 cost curve position1 1. Estimate based on data available at H1 2019. Source: Wood
Slide 57: Leading Margin Curve Improvement
LEADING MARGIN CURVE IMPROVEMENT Average margin adjusted cost curve position1 (%) 49% 47% 13 p.p. 45% 43% 38% 36% 36% 36% 34% 27% Peer 1 Peer 2 Peer 3 Peer 4 Anglo 2013 2019 1. Estimate based on data available at H1 2019. Source: Wood Mackenzie; AAP; De Beers; CRU. Includes non-AA mined commodities
Slide 58: High Quality Diversified Portfolio
HIGH QUALITY DIVERSIFIED PORTFOLIO ~1Mt copper #10 producer currently, #7 post Quellaveco1 ~37Mct diamonds (De Beers) #1 producer by value, #2 by volume ~5Moz PGMs #2 producer ~75Mt high grade iron ore #5 export producer ~30Mt premium coking coal #3 export producer ~30Mt export thermal coal #5 expor
Slide 59: Commodity Outlook
COMMODITY OUTLOOK Medium-to-long term commodity outlook • Demand robust medium to long term. China remains main driver. Green economy presents upside. Copper • Supply remains uncertain from mid 2020s. • Growing disposable income drives demand. Diamonds • Supply peaking due to mine exhaustion. • ICE/
Slide 60: IFRS 16: New Accounting Standard for Leases
IFRS 16: NEW ACCOUNTING STANDARD FOR LEASES • Leases mainly corporate offices, jewellery stores & shipping; also some mining equipment • Previously accounted for ‘off-balance sheet’ with lease costs taken to underlying EBITDA New accounting from 2019 • Lease commitments brought onto the balance shee
Slide 61: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET Strong liquidity of $15bn Limited near-term debt maturities ($bn) 1.9 $6.3bn + $8.7bn 1.4 1.4 Cash Undrawn committed facilities 1.1 1.1 1.0 0.7 Undrawn committed facilities 0.6 0.6 0.5 $4.7bn RCF Matures 2025 with no covenants 2020 2021 2022 2023 2024 2025 2026 2027 2028 2
Slide 62: FutureSmart Mining
FUTURESMART MININGTM Our innovation-led approach to sustainable mining
Slide 63: Innovation Driving Sustainability
INNOVATION DRIVING SUSTAINABILITY 1900 Today Future? 40kg Cu: 0.5% Cu 6m3 water 4% Cu 1t waste 3m3 water 10 KWhr 24t waste 160 KWhr 1t ore 8t ore Ever increasing scale Precise. Predictable. Reliable 63 63
Slide 64: Operational Excellence Underpins Transformation
OPERATIONAL EXCELLENCE UNDERPINS TRANSFORMATION Operating Model: delivering stable & predictable outcomes Stabilisation at higher Work is planned, scheduled and properly resourced performance Stable and consistent performance Stabilisation Further improvement at still higher Safer and lower cost imp
Slide 65: Innovative Technologies in Development & Roll-out
INNOVATIVE TECHNOLOGIES IN DEVELOPMENT & ROLL-OUT Bulk Ore Sorting Coarse Particle Recovery Sensors determine ore content prior to processing Flotation process changed Waste rejected early: Allows material to be crushed to larger particle size: • Grade/throughput improvement; +5% to 25% • 20% more t
Slide 66: Water Management Integral to the Business
WATER MANAGEMENT INTEGRAL TO THE BUSINESS New technologies Bulk ore sorting to pre-concentrate Coarse particle recovery to allow water abstraction from tailings Management of key operational risks Improving efficiencies Grey water usage at Los Bronces Evaporation management 2030 target Investment Po
Slide 67: Energy Efficiency and GHG Emission Reductions
ENERGY EFFICIENCY AND GHG EMISSION REDUCTIONS Energy usage 2030 target Renewable energy usage Increased efficiency 30% Reduction in energy usage Total energy usage: 87 million GJ (2018: 84 million GJ) 2030 target Greenhouse Gases Gas capture 30% Reduction in GHG emissions Total CO2 eq emissions: 17.
Slide 68: Our Responsible Transition Out of Thermal Coal
OUR RESPONSIBLE TRANSITION OUT OF THERMAL COAL Coal demand Production down 54% since 2012 Thermal coal makes up ~38% of the global electricity mix Production (Mt) Thermal coal1 as % Group revenue 82 80 79 IEA & other forecasts see a significant role for thermal coal in the global 74 74 6% 62 energy
Slide 69: Industry Leading Dam Safety Management
INDUSTRY LEADING DAM SAFETY MANAGEMENT Managing tailings safely Tailings dams in our portfolio Group Technical Specialists Internal risk assurance Independent Downstream/ other TRP BU Technical Standard expert Engineer of Record Upstream Southern Australia Operation Africa 6 levels of assurance: 2 i
Slide 70: Our Contribution to Society
OUR CONTRIBUTION TO SOCIETY Taxes Paid to governments $3.0bn Wages and benefits Paid to employees and contractors $3.5bn Local procurement Paid to suppliers $3.8bn 70 70
Slide 71: A Sustainable, Responsible & Transparent Business
A SUSTAINABLE, RESPONSIBLE & TRANSPARENT BUSINESS Recognised as a sustainability leader in our sector #2 in diversified mining overall with the highest Top extractives company (including oil and management scores in the sector. Perceived risk gas) in the FTSE 100 based on commitments associated with
Slide 72: Additional Ratings & Accreditations
ADDITIONAL RATINGS & ACCREDITATIONS BBB (average) in line with peers Additional ESG ratings 71/100 and included in European Index. Rated ‘Industry Mover’ Rated as prime – placing us as joint top mining company Accreditations & memberships 72 72
Slide 73: Investor Relations
INVESTOR RELATIONS Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Robert Greenberg robert.greenberg@angloamerican.com Tel: +44 (0)20 7968 2124 Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 73 73
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