Anglo American plc · LSE:AAL
Anglo American — H1 2005 Earnings Presentation
14 slides from Anglo American's earnings presentation, 2005
Slide 1: Interim Results 2005
Interim Results 2005 Interim Results 2005 0
Slide 2: Summary Financial Results
Interim Results 2005 Summary Financial Results Operating Profit * Headline Earnings ROCE $ 800 35% $ 700 30% $ 600 25% $ 500 Earnings 20% ROCE $ 400 708 721 15% $ 300 568 602 525 434 10% $ 200 $ 100 5% $0 0% 2004 H1 2004 H2 2005 H1 * Before exceptional operating items 1
Slide 3: Headline Earnings by Asset
Interim Results 2005 Headline Earnings by Asset Los Bronces 203 Collahuasi 133 Loma 47 El Soldado 37 Mantoverde 36 Mantos Blancos 35 Codemin 34 Lisheen 21 Namakwa Sands 16 Chagres 11 Copper Catalao 6 Nickel, Niobium & Minerals Sands Black Mountain Zinc 4 Other Skorpion 1 Other* (60) (100) (50) - 50
Slide 4: Operational Highlights
Interim Results 2005 Operational Highlights Collahuasi z Mill motor failure z Moly plant on schedule z Conceptual study for further expansion underway Los Bronces z Solid operating performance z Optimisation/expansion conceptual study underway Mantos Blancos z Solid operating performance Palabora z
Slide 5: Operational Highlights
Interim Results 2005 Operational Highlights Loma de Niquel z Good operating performance in difficult circumstances Lisheen z Bog zone project approved z Underground paste fill issues being overcome Barro Alto z Feasibility study underway Codemin z Codemin II ramped up on schedule Catalão Skorpion z
Slide 6: Headline Earnings: H1 2005 vs H1 2004
Interim Results 2005 Headline Earnings: H1 2005 vs H1 2004 $ 800 $ 700 Headline Earnings $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $0 434 296 (9) (16) (5) (96) (11) 9 (78) 525 H1 Price FX Infl Vol Cash Non- Int Other H1 2004 Costs Cash 2005 Costs 5
Slide 7: Cost Pressures
Interim Results 2005 Cost Pressures 63c/lb Cost Increase 2003 - 2005 + 32% + 65% Market TC/RCs 48c/lb + 28% Freight + 10% Overhead, services, other + 6% Other consumables + 39% Explosives + 35% Reagents + 52% Fuel + 22% Power + 20% Labour 2003 2005 N.B. Exchange rate accounts for 15% of local cost i
Slide 8: Continuous Improvement
Interim Results 2005 Continuous Improvement Total Cost Volume/Profit Total Savings Improvements US$m 2001 16 8 24 2002 23 0 23 2003 37 11 48 2004 47 67 114 2005 H1 17 35 52 7
Slide 9: Copper Outlook
Interim Results 2005 Copper Outlook Average price in 2005 H1 151c/lb Smelter ‘bottleneck’ has eased with spot TC/RCs now on the retreat Market very tight – Lowest LME stocks for over 30 years – Record prices on LME and Comex Global demand growth has slowed from 9% in 2004 to estimated 2.5% i
Slide 10: Nickel Outlook
Interim Results 2005 Nickel Outlook Average price in 2005 H1 of $7.20/lb – Tight market conditions – Historically low inventories – Nickel supply unable to keep pace with underlying demand MEC demand flat but China 2005 H1 growth ~ 50%! Risks are price-induced substitution and increased scrap
Slide 11: Zinc Outlook
Interim Results 2005 Zinc Outlook Average price in 2005 H1of 59c/lb – Market remains in deficit though not as tight as Cu and Ni – Stocks are trending down but still well above critical levels Global demand slowing from ~ 7% in 2004 to an estimated 4 to 5% this year – Modest 2% projected for the
Slide 12: Project Update
Interim Results 2005 Project Update Skorpion – ramp up - Achieved 100% design capacity in June 05 Codemin II – life extended to 30 years - Commissioned Dec 04 below budget, ramp up on schedule Chagres – expansion - On schedule for commissioning in Dec 05 Collahuasi – Moly plant - Commissioni
Slide 13: Exploration
Interim Results 2005 Exploration Near mine resource additions – Los Bronces 560mt @ 0.75% Cu – El Soldado 24mt @ 0.8% Cu – Catalao 6mt @ 1.5% Nb2O5 Exploration projects – Morro Sem Bone, Brazil Est. resource 47Mt @ 1.76% Ni. Conceptual study – Jacare, Brazil Est. resource 430Mt @ 1.33% Ni. Indep
Slide 14: Interim Results 2005
Interim Results 2005 Interim Results 2005 13