Anglo American plc · LSE:AAL
Anglo American — Investor Presentation (December 2023)
29 slides from Anglo American's investor presentation, Dec 8, 2023
Slide 1: Investor update 8 December 2023
AngloAmerican Investor update 8 December 2023
Slide 2: Cautionary statement
[OFFICIAL] 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 pres
Slide 3: Agenda
[OFFICIAL] Agenda 2023 performance Duncan Wanblad, Chief Executive Unlocking value Duncan Wanblad Guidance: 2023-26 John Heasley, Finance Director High quality portfolio funding attractive growth Duncan Wanblad Anglo American 3
Slide 4: Committed to delivering safe operations
[OFFICIAL] Committed to delivering safe operations 2.24 2.19 2.14 TRIFR1,2 The Operating Model underpins well planned work 1.85 Increased leadership time in the field Fatalities1,3 Focus on contractor performance management 3 2 2 2 2020 20213 2022 YTD 2023 Anglo American 4
Slide 5: 2023 performance
[OFFICIAL] 2023 performance Duncan Wanblad 5
Slide 6: Attractive growth enhancing our quality portfolio
[OFFICIAL] Attractive growth enhancing our quality portfolio Steelmaking Diamonds Coal High quality, long life assets High quality Iron Ore Production Copper mix from Manganese long-term Leading market positions Crop portfolio4 Nutrients Nickel Attractive growth options PGMs Anglo American 6
Slide 7: Deliberate & decisive actions to enhance returns
[OFFICIAL] Deliberate & decisive actions to enhance returns Global economic weakness, particularly affecting consumer-focused diamonds & PGMs Costs impacted by strong & prolonged inflationary pressure Anglo American 7
Slide 8: 2023 operating performance
[OFFICIAL] 2023 operating performance Copper & Nickel PGMs Quellaveco fully ramped-up Solid operational performance Copper Chile & Nickel impacted Limited impact from load curtailment by grade declines Macro pressures weighing on prices Iron ore De Beers Minas-Rio’s strong performance Steelmaking co
Slide 9: Unlocking value
[OFFICIAL] Unlocking value Duncan Wanblad 9
Slide 10: Unlocking significant value from a streamlined & resilient business
[OFFICIAL] Unlocking significant value from a streamlined & resilient business ~$0.5bn support cost saving by mid-2024: 1 programme well advanced Further ~$0.5bn cost saving forecast in 2024: 2 performance improvements across all businesses Rigorous capital discipline: 3 ~$1.8bn savings in 2023-265
Slide 11: Copper: decisive action to improve returns
[OFFICIAL] Copper: decisive action to improve returns Lowering unit costs by ~15% at Los Bronces Challenging ore phase: moving to one plant will reduce unit costs & capex Significant resource potential: studies progressing the underground project Safely navigating geotech fault at Quellaveco Rephasi
Slide 12: Iron ore: aligning to logistics
[OFFICIAL] Iron ore: aligning to logistics Kumba: addressing logistics constraints Rebalancing the value chain & reducing year- end product stockpile by ~2Mt Adjusted production enables structural cost & capex reductions to protect margins Minas-Rio: focusing on operational stability Combining maint
Slide 13: Steelmaking coal: safe & stable production
[OFFICIAL] Steelmaking coal: safe & stable production Gas, depth & strata challenges at the Moranbah & Grosvenor longwalls Significant cost focus to reconfigure footprint to current safe production levels Strong progress on methane: capturing ~60% Anglo American 13
Slide 14: PGMs: driving resilience during market weakness
[OFFICIAL] PGMs: driving resilience during market weakness Targeting significant & sustainable improvement in all-in-sustaining costs Lower third party processing arrangements as contracts conclude Focused investment at world class Mogalakwena, at the right time Anglo American 14
Slide 15: World class PGM assets well positioned for market recovery
[OFFICIAL] World class PGM assets well positioned for market recovery Leader Integrated processing capacity in PGMs H1 positions on margin curve PGMs positioned Closely linked to discretionary spending for consumer Prices reflect aggressive consensus recovery on pace of ICE decline Robust Consensus
Slide 16: Building sustainable value at De Beers
[OFFICIAL] Building sustainable value at De Beers Streamlining business to position for price rebound: ~$0.1bn overhead savings Prioritising capital on highest value opportunities Reinvigorate marketing & retail offer Anglo American 16
Slide 17: Woodsmith: world class asset & future-enabling product
[OFFICIAL] Woodsmith: world class asset & future-enabling product Tier 1 asset Modern & sustainable Large scale: 13Mtpa Minimal footprint Long life: >40 years6 Embeds FutureSmart Mining Highly cash generative POLY4 Q1 cost curve Multi-nutrient, holistic solution >50% EBITDA margin Low carbon 7, orga
Slide 18: Guidance: 2023-26
[OFFICIAL] Guidance: 2023-26 John Heasley 18
Slide 19: 2023 full year guidance
[OFFICIAL] 2023 full year guidance Production4 Capex9 Working capital build ~+3% ~$5.8bn ~$1.5bn Tax rate10 Dividend payout policy Unit costs8 ~+5% ~39% 40% impacted by mix of profits of underlying earnings Anglo American 19
Slide 20: Adapting volumes in a dynamic environment
[OFFICIAL] Adapting volumes in a dynamic environment Copper (kt)11 PGMs (Moz)11 De Beers (Mct)11 Lower grade Quellaveco mine plan & Third party processing at Collahuasi Collahuasi grade recovery arrangements 31.5 33.5 720 790 730- 760- 3.3- 29- 30- 32- 690- 3.0- 3.0- 790 820 3.7 32 33 35 750 3.4 3.4
Slide 21: Lower unit costs more than offset cost inflation
[OFFICIAL] Lower unit costs more than offset cost inflation Copper (c/lb)12 PGMs ($/PGM oz)12 De Beers ($/ct)12 Venetia UG temporary -5% -6% +7% transition impact Q1 positions ~165 ~157 at Que & Coll ~980 ~920 ~75 ~80 ~75 2023F 2024F 2023F 2024F 2023F 2024F 2026F+ Iron ore ($/t)12 Steelmaking coal (
Slide 22: Significant capex savings of ~$1.8bn
[OFFICIAL] Significant capex savings of ~$1.8bn Capex (now includes Woodsmith)9 $bn ~5.7 ~5.7 Safety, asset integrity & reliability prioritised ~5.3 Growth ~1.2 ~1.3 ~1.3 Streamlined discretionary capex while preserving optionality Sustaining ~4.5 Woodsmith spend beyond 2024 subject to ~4.4 ~4.0 Boa
Slide 23: High quality portfolio funding attractive growth
[OFFICIAL] High quality portfolio funding attractive growth Duncan Wanblad 23
Slide 24: Unique portfolio of high quality assets that together drive long term value
[OFFICIAL] Unique portfolio of high quality assets that together drive long term value Life of Asset13 Quellaveco High quality, long life assets Collahuasi Los Bronces Mogalakwena Venetia Clear portfolio roles Namibia13 Woodsmith Barro Alto Robust capital allocation approach Minas-Rio Sishen Moranba
Slide 25: Attractive growth options in copper & crop nutrients
[OFFICIAL] Attractive growth options in copper & crop nutrients - well sequenced by permitting timelines Attributable production4 +25% With further optionality Los Bronces underground Approval Quellaveco plant decision in to ~150ktpd early 2025 Base Collahuasi Woodsmith Collahuasi Sakatti14 Long-ter
Slide 26: Unwavering commitment to responsible & sustainable mining
[OFFICIAL] Unwavering commitment to responsible & sustainable mining Value-focused approach to sustainability: most ESG investments are NPV positive Good progress on our decarbonisation ambitions: Envusa & VAM Underpins licence to operate & key growth enabler: Los Bronces & Sakatti permit approvals
Slide 27: Global mega-trends underpin long term outlook
[OFFICIAL] Global mega-trends underpin long term outlook Decarbonisation Improving living standards Food security Anglo American 27
Slide 28: To ask a question
[OFFICIAL] To ask a question Copper PGMs Iron ore & Steelmaking coal Nickel Diamonds Crop Nutrients UK & other +44 20 3481 4247 / SA +27 105 348 155 / US +1 800 715 9871 Conference ID: 8726837 Anglo American 28
Slide 29: Footnotes
[OFFICIAL] Footnotes 1. Data relates to subsidiaries and joint operations over which Anglo American has management control. Data excludes results from De Beers’ joint operations in Namibia and Botswana. 2. Total Recordable Injury Frequency Rate per million hours worked. YTD 2023 is the 11 months to
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