Slide 1: Results Presentation Year 2001
Results Presentation Year 2001 5 March 2002
Slide 2: Important notice
Antofagasta plc Important notice Statements in this presentation include "forward-looking statements" that express expectations of future events or results. All statements based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and u
Slide 3: Highlights Year 2001
Highlights Year 2001 • Copper production - 445,000 tonnes* (2000 - 351,100 tonnes) • Cash cost - 38.8 c/lb group average (2000 - 39.2 c/lb) • Los Pelambres - 361,500 tonnes produced (2000 - 298,800 tonnes) • El Tesoro - Design capacity reached & banking completion achieved • Michilla - Cost reductio
Slide 4: Financial highlights Year 2001
Financial highlights Year 2001 2001 2000 Copper price 71.6 c/lb 82.3 c/lb US$m US$m Revenues 769.5 766.1 EBITDA 283.1 354.9 Profit before tax 113.5 223.3 ROCE 6.6% 13.5% 4
Slide 5: Financial highlights Year 2001: EPS and dividends
Financial highlights Year 2001 2001 2000 cents cents EPS 31.4 70.0 (54.1 excl. Quiñenco Quiñenco)) Dividends : Ordinary (incl. interim) 22.00 19.34 Special 10.00 18.03 Total 32.00 37.37 5
Slide 6: Group Update Year 2001
ANTOFAGASTA @ PLC Group Update Year 2001
Slide 7: Group operations Overview: Copper mining (Chile)
Group operations Overview Copper mining (Chile) • Los Pelambres (60%) : 330,000 tpy in concentrates • El Tesoro (61%) : 85,000 tpy of cathodes • Michilla (74%) : 50,000 tpy of cathodes Exploration : Chile and Peru 7
Slide 8: Group operations Overview
Group operations Overview Northern Peru Chile Michilla Tesoro Port of Lima Antofagasta Esperanza Magistral Port for Los Pelambres Los Pelambres 8
Slide 9: Group operations Overview: Railway and road
Group operations Overview Railway and road • Antofagasta Railway - FCAB (100%) : Chile • Andino Railway - FCA (50%) : Bolivia • Record 3.9 million tonnes carried in 2001 Other investments • Quiñenco S.A. (33.61%) – Market value at 28 Feb : US$ 212m 9
Slide 10: Los Pelambres Year 2001 update: Copper production and cash costs
Los Pelambres Year 2001 update Copper production and cash costs 191 200 40.0 170 158 141 38.0 150 000 tonnes 37.0 36.0 c/lb 100 35.4 35.1 34.0 33.7 50 32.0 0 30.0 2000 H1 2000 H2 2001 H1 2001 H2 Production Cash cost 10
Slide 11: Los Pelambres Year 2001 update: Financial performance
Los Pelambres Year 2001 update Financial performance • EBITDA of US$ 239.4m • Bank debt reduced by US$ 87.3m to US$ 791.4m • US$ 43.7m dividend in July - bringing distribution to shareholders to US$ 152.1m since start of operations in 2000 (37% payback) 11
Slide 12: El Tesoro Year 2001 update: Copper production and cash costs
El Tesoro Year 2001 update Copper production and cash costs 7,000 70.0 6,000 60.0 Commissioning period 5,000 50.0 4,000 40.0 tonnes c/lb 3,000 30.0 2,000 20.0 1,000 10.0 0 0.0 Apr May Jun Jul Aug Sep Oct Nov Dec Production Cash cost 12
Slide 13: El Tesoro Year 2001 update
El Tesoro Year 2001 update • Construction completed: US$ 282m (US$ 14m under budget) • Copper production of 43,000 tonnes * • Plant is now operating at full capacity * 9,000 tonnes during the commissioning period (April-June) and 34,000 between July-December 13
Slide 14: El Tesoro Year 2001 update
El Tesoro Year 2001 update • EBITDA of US$ 27.2m • Guarantees released with early banking completion in December • US$ 24.4m subsequently released to shareholders from escrow • Final bank debt of US$ 197m 14
Slide 15: Michilla Year 2001 update: Production and cash costs
Michilla Year 2001 update Production and cash costs 14.0 75.0 71.6 12.0 70.0 10.0 67.4 65.0 000 tonnes 8.0 60.0 c/lb 60.9 58.8 6.0 55.0 4.0 50.0 2.0 45.0 0.0 40.0 2001 Q1 2001 Q2 2001 Q3 2001 Q4 Production Cash cost 15
Slide 16: Michilla Year 2001 update
Michilla Year 2001 update • 49,600 tonnes of cathodes produced • Cost reduction programme implemented in Q4 • 58.8 c/lb cash cost in Q4 (year average 64.5 c/lb) • EBITDA of US$ 4.3m • Minimal debt (US$ 1.6m) 16
Slide 17: Key exploration projects: Esperanza - Chile
Key exploration projects Year 2001 update Esperanza - Chile • Drilling campaign of 13,900 metres completed in 2001 • Total mineable reserves (70% proven & probable): – Sulphides: 295 million tonnes, 0.66% copper, 0.31 g/t gold – Oxides: 73 million tonnes, 0.41% copper – Average waste/ore ratio: 1.7:
Slide 18: Key exploration projects: Magistral - Peru
Key exploration projects Year 2001 update Magistral - Peru (51%) • Phase 3 drilling campaign completed • Geological resource reduced to 105 million tonnes of 0.74% copper and 0.052% molybdenum • 60% of the resource is now in the demonstrated category • Advanced conceptual study completed 18
Slide 19: Rail and road Year 2001 update
Rail and road Year 2001 update • Record tonnages of 3.9 million • Turnover of US$ 69.1 million • Exceptional profit before tax of US$ 3.5m from land sale 19
Slide 20: Financial analysis
Financial ANTOFAGASTA @ PLC analysis 20
Slide 21: Profit after tax & minority interests - Variances 2000 vs 2001
Financial analysis Profit after tax & minority interests - Variances 2000 vs 2001 160 140 120 100 80 25.8 138.2 60 -81.7 -0.6 7.9 40 0.9 3.0 62.1 20 -31.4 - Dec 2000 Mining Excep Quiñenco Railway Net Tax Minority Dec 2001 interest int. 21
Slide 22: Cash flow 2001
Financial analysis Cash flow 2001 700 47.6 600 265.9 500 -61.0 400 -91.6 300.1 -96.3 300 248.7 200 -113.9 -2.1 100 - Init. cash Operating New Net Debt Dividends Capex Other Final cash flow loans interest repaid paid cash paid 22
Slide 23: Group net debt
Financial analysis Group net debt Consolidated net debt Attributable net debt 1,200 700 1,057.4 615.8 1,000 600 808.7 500 800 248.7 396.3 400 219.5 600 300 400 200 200 100 - - Total Loans Cash Net Debt Attrib. Loans Attrib. cash Attrib. Net Debt Net Debt Attributable Net Debt = 0.66 = 0.43 Equity +
Slide 24: Outlook for 2002-2003
Outlook ANTOFAGASTA @ PLC for 2002-2003 24
Slide 25: Outlook and targets for 2002-2003: Los Pelambres
Outlook and targets for 2002-2003 Los Pelambres • Increase sustainable throughput to 112 ktpd • Production target of 327,000 tonnes for 2002 due to lower ore grades – further optimisation of operations • Development of basic engineering and environmental studies for an expansion to 175 ktpd 25
Slide 26: Outlook and targets for 2002-2003: El Tesoro and Michilla
Company outlook and targets for 2002-2003 El Tesoro • Production target 85,000 tonnes per year (13% above original project forecast) Michilla • Production target 52,000 tonnes for 2002 at cash cost below 60 c/lb • Improve the recovery of sulphide ores from 75% to over 80% (using cuprochlor process)
Slide 27: Antofagasta is a large scale, low cost copper producer
“Antofagasta is a large scale, low cost copper producer with good opportunities for growth” 27
Slide 28: Antofagasta contacts
Antofagasta contacts London Santiago de Chile (Antofagasta plc) (Antofagasta Minerals S.A.) Philip Adeane Managing Director Jean-Paul Luksic Chief Executive Officer Hussein Barma Chief Financial Officer Alejandro Rivera Chief Financial Officer Tel: +44 20 7382 7862 Tel: +562 377 5068 (Jean-Paul Luks
Slide 29: Results Presentation Year 2001
Results Presentation Year 2001 5 March 2002