Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (October 2023)
38 slides from Anglo American's investor presentation, Oct 3, 2023
Slide 1: Tom McCulley, CEO, Crop Nutrients
Tom McCulley CEO, Crop Nutrients 3 October 2023
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This document has been prepared by Anglo American plc (“Anglo American”) and comprises the written Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be materials/slides for a presentation co
Slide 3: Committed to delivering a safe project
Committed to delivering a safe project 2023 safety focus areas Dropped objects 2.08 2.07 1.89 1.89 1.85 Leadership development 1.56 1.39 1.26 1.25 Employee engagement Mental health & wellbeing Planned work & compliance to plan TRIFR1 Local charity pot accumulates on a daily basis Jan Feb Mar Apr May
Slide 4: Tier 1 asset positioned for the future
Tier 1 asset positioned for the future Large-scale Highly cash FutureSmart Future-enabling Long-life generative MiningTM product 13Mtpa, >50% EBITDA Technology Unique competitive >40yr2 margin2 Sustainability advantages Anglo American 4
Slide 5: Unique competitive advantages
Unique competitive advantages 1 2 3 4 Large-scale, high- Minimal waste Only 37km to No chemical grade, thick orebody deep water port processing Low cost Allows efficient bulk 1:1 ore to Efficient No tailings & Low carbon3 mining methods product ratio underground minimal water transport tunnel Anglo
Slide 6: World's largest polyhalite deposit
World’s largest polyhalite deposit ~2.0Bt at 84.1% >40yr Exclusive Mineral Life of Asset2 Resource4 1:1 13Mtpa ore:product ratio production minimal waste capacity2 North York Moors National Park Resource area — Lease area Anglo American 6
Slide 7: Woodsmith: One Project, One Team
Woodsmith One Project, One Team Anglo American
Slide 8: World class construction partners
World class construction partners • Global project delivery (EPCM) organisation • Shaft sinking EPCM experience • Leading global shaft sinking contractor • Recent Shaft Boring Roadheader (SBR) experience • Leading global tunnelling contractor Anglo American 8
Slide 9: Project reset in 2022 enabling strong drive forward
Project reset in 2022 enabling strong drive forward Focus on delivering long-term value • Planning for a 30% larger operation with a phased approach to invest capital at the right time • All major contractors fully mobilised and driving progress on critical path activities • Study program under way
Slide 10: The Project
The Project Anglo American 10
Slide 11: Developing a scalable operation
Developing a scalable operation Granulation capacity Bran Sands expansion Ventilation 25km -340m Upgraded conveyor -550m Not to scale. Graphic and information is illustrative only as studies are ongoing & subject to Board approval Shafts 1,600m access & hoisting shafts Mine Mechanised underground op
Slide 12: Shaft capacity optimised
Shaft capacity optimised • Two deep shafts of ~1,600m each • Service shaft: materials & personnel access Production shaft SBR began sink in January 2023 • Production shaft: ore transfer from production level (~1,600m) to mineral transport level (~360m) • 7.5m diameter – unlocks optionality • 13Mtpa
Slide 13: Deploying advanced shaft-boring roadheaders
Deploying advanced shaft-boring roadheaders Third generation technology Rotary cutter head breaks ground & excavates shaft according to pre-set programmes & parameters Remote operation through control cabin; autonomous operation possible for extended periods Excavation, mucking out, grouting & linin
Slide 14: Shaft sinking video
Shaft sinking video Please refer to https://www.youtube.com/watch?v=Hdk8vRd_8tY Anglo American 14
Slide 15: Efficient & consistent shaft sinking
Control Panel; Chiller; Compressor; Stabilisers Efficient & consistent Work Deck 12: Cable bucket shaft sinking Work Decks 11-4: • Muck chute 66m total height • Muck bunker • Fresh & waste water tank • Electrical panel 350t total weight 66m • Concrete hopper • Concrete remix tank 75-100 kN-m cutting
Slide 16: Production shaft Stratigraphy
Stratigraphy Today Production shaft Service shaft Progress through Sherwood Sandstone strata will inform shaft sinking schedule Expect to intersect around mid-2024 Anglo American 16
Slide 17: Multi-decade orebody with expansion potential
Multi-decade orebody with expansion potential ~290Mt at 88.8%5 ~25m Room & Pillar mining with continuous miners Ore Reserves Seam thickness ~2.0Bt at 84.1%4 1:1 ratio Low cost, high volume Exclusive Mineral Resources Ore:product Options to evolve to more efficient mining methods as studies progress
Slide 18: Tunnelling well progressed
Tunnelling well progressed 25.2km Anglo American 18
Slide 19: Efficient & reliable Mineral Transport System
Efficient & reliable Mineral Transport System Single ore transport tunnel from shaft to Materials Handling Facility • Length: ~37km • Diameter: 4.9m • Capacity: >13Mtpa Efficient, low cost, low impact transportation Reliable automated solution Tunnel will house single flight conveyor, operational po
Slide 20: Mineral Transport System tunnel construction
Mineral Transport System tunnel construction Excavation & lining via one Herrenknecht Hard Rock Tunnel Boring Machine (TBM) Executed by Strabag, driving from port area to mine Single mudstone strata; well understood geological conditions Reduced from previous three TBM strategy to a single TBM Curre
Slide 21: Elements of Herrenknecht Hard Rock TBM
Elements of Herrenknecht Hard Rock TBM 1 Cutterhead 1 2 4 Thrust cylinder Rotation & high contact 4 5 Hydraulic cylinders pressure to break the arranged around rock and drop cuttings circumference push the into the buckets TBM forward into the rockface ahead 2 Buckets 5 Tunnel lining Buckets pick up
Slide 22: Herrenknecht Hard Rock TBM in operation
Herrenknecht Hard Rock TBM in operation Please refer to https://youtu.be/9bHqx8cDUXQ?si=OiqnhSKhZV2THLzL Anglo American 22
Slide 23: Minimal processing at the Materials Handling Facility
Minimal processing at the Materials Handling Facility Crush & grind Mix Granulate Dry Coat Today Today Future Segment factory Steel cage Concrete welding casting MHF future facility Anglo American 23
Slide 24: Mine connected to deep water port by conveyors
Mine connected to deep water port by conveyors Today Future potential infrastructure Bran Sands expansion area Redcar Bulk Terminal port Anglo American 24
Slide 25: Studies will maximise long-term value
Studies will maximise long-term value Shaft options & mine development Materials transport & handling • Shaft fit-outs & ventilation • Tunnel fit-out • Mine level development • Phased conveyor system • Phased production increase • Materials Handling Facility Port & storage Product & marketing • Over
Slide 26: All major permitting on track
All major permitting on track All major permits needed to progress construction are in place Permitting amendments to reflect optimisation of project scope & design are on track Service shaft Anglo American 26
Slide 27: Developing a scalable operation to maximise value
Developing a scalable operation to maximise value 2023 priorities Prioritising core infrastructure for a commercial-led ramp-up from 2027 Continue progress on core infrastructure: • Sinking of the two deep shafts • Service shaft to ~700m: YTD 240m 2023 capex ~$0.7bn (~2 months for refurbishment) • P
Slide 28: Value driven technology opportunities
Value driven technology opportunities Emphasis on safety, cost & environment Optimising existing technology & exploring new opportunities: • Integrated Remote Operating Centre • Tele-remote / automated solutions in cutting machines, haulage, drilling / bolting • Optimising cutting tools • Minimising
Slide 29: The sustainable mine
~£1.2bn Contribution to regional economy to date1 The sustainable mine Environment Community People Sustainable mine design ~£1.2bn contribution ~1,650m ~60% Net positive biodiversity goal to regional economy to date7 direct jobs9 local workforce Low carbon, low water, ~£6m to local Foundation to da
Slide 30: Modern & sustainable approach to mining
Modern & sustainable approach to mining Minimum impact design Mine located in the North York Moors National Park • Sunken headframe • MHF outside National Park • Minimal mine buildings • Underground ore transport Woodsmith Mine, North Yorkshire, UK (future visual) Potash mine, UK • Landscaping Susta
Slide 31: Modern and sustainable approach to mining
Modern and sustainable approach to mining Please refer to https://youtu.be/Alo1ExioQPk?si=O9PsrQT3Ca2-JVEv Anglo American 31
Slide 32: Investing in Yorkshire & the North-East
Investing in Yorkshire & the North-East £1.2bn Contribution to regional economy £17.3m Total social investment10 £120m 2022 local procurement spend ~60% of workforce from local area Anglo American 32
Slide 33: Wrap up
Design team – please provide some new impactful image options here – something tech related Wrap up Anglo American 33
Slide 34: Large-scale, long-life Tier 1 asset delivering strong cash flow for decades
Large-scale, long-life Tier 1 asset delivering strong cash flow for decades Unique endowment >40 year ~13 Mtpa Life of Asset2 design capacity2 Commercial-led ramp-up ~2027 Up to ~5Mtpa first product available to market6 capacity from 20306 Highly cash generative ~$190/t Q1 long-term price with expec
Slide 35: Tier 1 asset positioned for the future
Tier 1 asset positioned for the future Large-scale Highly cash FutureSmart Future-enabling Long-life generative MiningTM product 13Mtpa, >50% EBITDA Technology Unique competitive >40yr2 margin2 Sustainability advantages Anglo American 35
Slide 36: Appendix
Appendix Anglo American 36
Slide 37: Proven Room & Pillar mining
Proven Room & Pillar mining Room & Pillar mining Underground mining method for flat, bedded deposits Recovers the mineral in open stopes by cutting or blasting & leaves pillars of ore to support the roof Lower risk of surface subsidence vs other methods Can be mechanised & relatively simple to execu
Slide 38: Footnotes
Footnotes 1. Total recordable injury rate per million hours worked. 2. Annual production is indicative only. Subject to final studies and Board approval. Life of Asset including Inferred Mineral Resources. Reserve Life is 27 years. 3. Relative to comparable fertiliser products. 4. Exclusive Mineral
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