Slide 1: Developing mining for a better future: 2022 Half Year Results
Developing mining for a better future 2022 Half Year Results 11th August 2022
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions: This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Exampl
Slide 3: Agenda
Agenda 1 Overview 2 Financial review 3 Sustainability performance 4 Growth opportunities 3
Slide 4: Overview
Overview 2022 HY Results Iván Arriagada | Chief Executive Officer 4
Slide 5: 2022 HY highlights
Developing mining… 2022 HY highlights Safety Production Financial Our top priority Resilient operations Strong balance sheet • HPIs1 decreased by 21% during H1 • Copper production 268,600 tonnes • $2.5 billion revenue ‒ lower sales 2022 at a net cash cost of $1.82/lb volume and realised copper price
Slide 6: 2022 HY highlights: environment, communities, growth
… for a better future 2022 HY highlights Environment Communities Growth opportunities Climate change Key stakeholders Creating value • All mining operations using 100% • Water programmes to help ensure • Los Pelambres project completion: renewable energy since April access to potable water in region
Slide 7: 2022 Guidance
2022 Guidance Copper production 2022 Group production (kt) 640-660,000 tonnes ‒ decrease reflects Los Pelambres Revised FY Guidance concentrate pipeline incident and water shortage 640-660 Production expected to increase quarter on quarter 370 - 390 Los Pelambres 269 • Concentrates stockpiled at pla
Slide 8: Current political and fiscal events in Chile
Current political and fiscal events in Chile Proposed new mining royalty Constitutional Convention • New proposal presented to the Senate in • 4th July - final draft proposed July for its consideration Constitution presented to the • Will then be passed to the Lower House Government • The industry i
Slide 9: Copper market: Fundamentals supportive of future prices
Copper market Fundamentals supportive of future prices Short term outlook Net long / short position 1 • Exchange stockpiles very low and constraints on COMEX Cu Long/Short positions Cu Price (c/lb) c/lb 100 6.00 logistics of supply chains 5.00 50 • Supply outlook is being revised downwards by many 4
Slide 10: Financial Review
Financial Review 2022 HY Results Mauricio Ortiz| Chief Financial Officer 10
Slide 11: 2022 HY financial highlights
2022 HY financial highlights Strong balance sheet to weather current challenges Revenue Net cash costs EBITDA EBITDA margin1 $2.5bn $1.82/lb $1.2bn 49% ↓ 30% ↑ 60% ↓ 47% ↓ 17 ppt Underlying earnings Balance sheet LTM ROCE Dividends per share Net debt/EBITDA 2 9.2 c/share 26.4 c/share 0.13x 23% ↓ 61%
Slide 12: 2022 HY operating performance
2022 HY operating performance 268,600 tonnes at $1.82/lb Los Pelambres Centinela Antucoya Cu production Cu production Cu production 98,400 tonnes 111,300 tonnes 36,400 tonnes Net cash costs $1.32/lb Net cash costs $1.98/lb Net cash costs $2.50/lb Zaldívar Transport Cu production 1 Tonnage transporte
Slide 13: Production and cash costs
Production and cash costs Copper production (92.9) kt (-26%) 361.5 kt (23.8) 0.6 0.5 268.6 kt (61.0) (9.2) HY 2021 Grades Throughput Recovery Work-in-progress ROM/Others HY 2022 & inventories Cash costs +$0.68/lb (+60%) 0.52 $2.37/lb 0.21 (0.06) (0.05) 0.55 $1.82/lb $1.73/lb 0.17 $1.14/lb 0.59 (0.15
Slide 14: EBITDA and margin
EBITDA and margin $ million and %1 66% (17) ppt 49% $(1,119)m $2,357m Los Pelambres concentrate stockpiled2 (937) 1 34 1 $1,238m (131) (82) (5) HY 2021 Sales Realised Mining costs Exploration Corporate Associates Transport HY 2022 EBITDA3 volumes prices & evaluation cost & non & JVs division EBITDA3
Slide 15: Resilient balance sheet
Resilient balance sheet Net debt/EBITDA 0.13x $ million $(1,032)m 553 1,130 (621) 50 To subsidiaries’ $541m (831) (26) (26) minorities To Antofagasta’s Shareholders (1,252) (9) $(491)m Net cash EBITDA Working Tax Capex Net interest Other Dividends Dividends Others Net debt Dec 2021 from capital non-
Slide 16: Capital allocation framework
Capital allocation framework • Economic outlook Macro • Various copper price scenarios Operating Cash Flow Perspective • Future capital expenditures Value Optimisation • Approved projects and those Sustaining Capex & Mine Development under evaluation Committed Dividends (35% pay-out) Decision Strong
Slide 17: Sustainability performance
Sustainability performance 2022 HY Results René Aguilar| Vice President of Corporate Affairs and Sustainability 17
Slide 18: Safety and health
Safety and health The safety and health of our people is our top priority 2022 safety and health performance 316 • High Potential Incidents decreased by 21% compared with same period 2021 219 • Lost Time Injury Frequency Rate (LTIFR) decreased by 23% compared with H1 last year 86 65 23 Current safet
Slide 19: Communities: Creating shared value
Communities Creating shared value Pipeline incident Water Engagement • 31 May ‒ outflow of 45m3 of • Updated Water Policy published. • Local procurement programme with concentrate affecting a limited area Safeguards availability of water more than 150 small businesses (0.2 hectares) resources for ou
Slide 20: Climate change
Climate change Committed to emissions reduction and efficient water use Climate change strategy GHG emissions management Water • All mining operations using 100% renewable • Sea and recirculated water on track to be energy since April 2022 more than 90% of total operational use by • 30% reduction ta
Slide 21: Growth opportunities
Growth opportunities 2022 HY Results Iván Arriagada| Chief Executive Officer 21
Slide 22: Reliable and responsible copper producer with embedded growth portfolio
Reliable and responsible copper producer With embedded growth portfolio 120 ktpa Cu 50 ktpa Cu Sized to 50 ktpa 35 ktpa Cu for illustrative 15 ktpa Cu purpose only Encierro Cachorro Centinela 2nd Los Esperanza Potential to Concentrator Pelambres Sur Pit Portfolio projects Phase 2 Expansion grow up t
Slide 23: Growth options
Growth options 2022 2023 2024 2025+ LOS PELAMBRES EXPANSION - PHASE 1 (in construction) Desalination Concentrator PHASE 2 plant plant (in FS stage) Cu +60 ktpa | Capex $2.2 bn1 Cu +35 ktpa | Capex $0.5 bn2 (including desalination plant) 15 year LOM extension Organic ESPERANZA SUR PIT CENTINELA 2ND C
Slide 24: Innovation and technology
Innovation and technology 2022 2023 2024 2025+ Remote Operation Centre Autonomous Trucks Centinela Centinela Remote Operation Centre Cuprochlor-T Los Pelambres (Q4 2022) Antofagasta plc | 2022 HY Financial Results 24
Slide 25: Growth projects update
Growth projects update Los Pelambres Expansion Phase 1 Zaldívar Chloride Leach Centinela Esperanza Sur Pit • 82% complete • Completed and in ramp-up • Completed • Desalinated water system of • Expected to increase recoveries • Improve flexibility to supply and 400 l/s, expected completion Q4 by 10 p
Slide 26: Centinela second concentrator
Centinela second concentrator Centinela to be 1st quartile cash cost producer Existing Moly plant Mining district consolidation Esperanza pit Existing concentrator • 95 ktpd second concentrator • Produces 170,000tpa CuEq during first 10 years • Moves expanded Centinela to 1st quartile cash costs New
Slide 27: Recent exploration success
Recent exploration success Cachorro and Encierro maiden resources announced Cachorro • Inferred resources 142 mt @1.21% Cu inferred resource Represents only part of its potential Cachorro • Latest Group discovery generated by our greenfield exploration programme • Potential to become one of the most
Slide 28: The Antofagasta investment case
The Antofagasta investment case Reliable and responsible producer with embedded growth High quality assets Four mines in two world-class districts in Chile Production growth Large and growing resource base Sustainability Strict safety and health Financial position controls Strong balance sheet Creat
Slide 29: Our priorities for 2022 and beyond
Developing mining for a better future Our priorities for 2022 and beyond • Responsible and reliable copper producer - Zero fatalities - Committed to keeping our people and communities safe and healthy while creating further social value - Embedding climate change and sustainability strategy across a
Slide 30: Appendix
a ANTOFAGASTA PLC
Slide 31: At a glance
At a glance Group Antucoya • 65% owned by Luksic Group, 35% free float • 70% owned • Market cap: $14.2 billion (August 8th 2022) • Copper production1: 78,600 t • Remaining mine life2: 22 years • FTSE 100 • Reserves3: 746 million t @ 0.32% Cu Mining division1 Centinela • Top 10 copper producer • 70%
Slide 32: Revenue
Revenue $ million $(1,063)m $3,591m (153) 13 6 $2,528m (824) (105) HY 20211 Copper price Copper sales By-products TC/RC Transport division HY 20221 1 Excludes Zaldívar and JVs Antofagasta plc | 2022 HY Financial Results 32
Slide 33: Net earnings
Net earnings $ million $(405)m $665m 285 $260m 414 30 26 (1,154) (6) HY 2021 EBITDA from Depreciation and Associates Net Tax Non-controlling HY 2022 Net earnings subsidiaries1 amortisation and JVs finance costs 2 interests Net earnings 1 Excludes Associates and JVs’ EBITDA 2 Includes foreign exchang
Slide 34: Cash flow
Cash flow $ million $(835)m 553 1,130 (621) 171 50 $3,713m (80) (831) (26) $2,878m (1,172) (9) Cash at EBITDA Working Tax Capex Net Net Dividends Div. to Div. to Others Cash at 30 1 Jan 2022 from capital interest borrowings from subsidiaries’ PLC Jun 2022 subsidiaries received associates minorities
Slide 35: 2022 HY production cost breakdown
2022 HY production cost breakdown $/lb 0.77 $2.91/lb Energy Labour 10% 11% 0.55 $2.37/lb Others 7% (0.23) $1.82/lb Other inputs 11% $1,721m 30% Services 8% Sulphuric acid 10% Fuel and Lubricants 13% Net cash By-products Cash costs TC/RC & Mine Production Materials and spare parts costs credits HY 20
Slide 36: Production and metals prices
Production and metals prices Group production Metal prices 2018 2019 2020 2021 HY 2022 2022E1 2018 2019 2020 2021 HY 2022 Copper ('000 tonnes) Copper ($/lb) Los Pelambres 357.8 363.4 359.6 324.7 98.4 290-300 Realised 2.81 2.75 2.98 4.37 4.13 Centinela Concentrates 155.5 195.5 153.5 185.4 66.2 LME 2.
Slide 37: Unit cash costs
Unit cash costs Group cash costs 2018 2019 2020 2021 HY 2022 2022E2 Group cash costs ($/lb) Los Pelambres 1.52 1.40 1.27 1.59 2.02 1.75 Centinela 1.89 1.83 1.85 1.87 2.68 2.30 Antucoya 1.99 2.17 1.82 2.04 2.50 2.30 Zaldívar1 1.94 1.75 1.80 2.39 2.14 2.20 Cash costs before by-products credits ($/lb)
Slide 38: Reserves and resources as of 31 December 2021
Reserves and resources as of 31 December 2021 Tonnage (millions tonnes) Copper (%) Molybdenum (%) Gold (g/t) Attributable Tonnage (millions tonnes) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Ore reserves Los Pelambres 956.1 1,010.5 0.59 0.59 0.020 0.020 0.05 0.05 573.7 606.3 Centinela Concent
Slide 39: Antofagasta contacts
Antofagasta contacts Andrew Lindsay alindsay@antofagasta.co.uk Rosario Orchard rorchard@antofagasta.co.uk Director, London Office Tel: +44 20 7808 0988 Investor Relations Manager Tel: +44 20 7808 0988 Antofagasta plc | 2022 HY Financial Results 39
Slide 40: www.antofagasta.co.uk
‘BaTORRGASTRISA, ACG wwwantofagasta.co.uk \ ANTOFAGASTA PLC