Anglo American Plc · LSE:AAL
Anglo American — BAML Global Metals & Mining Conference 2012
17 slides from Anglo American's conference presentation, May 15, 2012
Slide 1: BAML Global Metals & Mining Conference
BAML GLOBAL METALS & MINING CONFERENCE CYNTHIA CARROLL – 15 May 2012
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: Delivering Real and Sustainable Value
DELIVERING REAL AND SUSTAINABLE VALUE Proceeds from divestments (excludes AA Sur) Improving cost positions Gross proceeds 1 Copper Nickel Platinum Export Export Hard Iron Ore Coking Coal $million a 100% Tarmac 551 2nd half 80% cost curve Scaw 1,538 60% Zinc 1,599 1st half 40% Coal 594 cost curve 20%
Slide 4: Strong Production Performance; Projects Ramping Up to Full Capacity
STRONG PRODUCTION PERFORMANCE; PROJECTS RAMPING UP TO FULL CAPACITY Copper production (Q1 12 vs. Q1 11) Iron Ore, Kolomela (Mt) 21% 3% 78% (13%) 2011 1.5 (18%) (18%) 2012 production Q1 2012 peak utilisation Anglo Peer 1 Peer 2 Peer 3 Peer 4 American Copper, Los Bronces (kt) Iron Ore production (Q1 1
Slide 5: Industry Wide Capital and Operating Cost Pressure Remains
INDUSTRY WIDE CAPITAL AND OPERATING COST PRESSURE REMAINS 2011 vs. 2010 % cost increase Costs and commodity prices indexed to 100 Chile South Africa Australia Oil Hot rolled Copper Premium hard sheet steel price coking coal price 160 140 120 32% 27% 26% 25% 22% 100 15% 16% 8% 5% 0 Electricity Labour
Slide 6: Resilient Portfolio with Balanced Exposure to All Stages of Development
RESILIENT PORTFOLIO WITH BALANCED EXPOSURE TO ALL STAGES OF DEVELOPMENT Unique portfolio composition Long term fundamentals remain robust 2011 EBITDA % Indexed intensity of use – China 1.1 2011e 1.0 0.9 Peer 1 Demand per GDP 0.8 0.7 Peer 2 0.6 0.5 Peer 3 Steel 0.4 Copper Autocat PGMs 0.3 Peer 4 Diam
Slide 7: A Challenging and Evolving Supply Landscape
A CHALLENGING AND EVOLVING SUPPLY LANDSCAPE Key Risks Taxes/ Royalties Availability of Human Resources Mongolia Canada Access to Infrastructure Community Opposition Licensing / Permitting Access to Water Guinea Electricity Supply USA Philippines DRC Peru Brazil Indonesia Australia Chile South Africa
Slide 8: Taking the Lead in Sustainable Mining
TAKING THE LEAD IN SUSTAINABLE MINING Anglo American is the only mining company to achieve Platinum status in the UK’s leading voluntary benchmark of corporate responsibility, the Business in the Community Corporate Responsibility Index Tripartite Health and Safety Significant contributor to Initiat
Slide 9: Strategic Project Management Approach
STRATEGIC PROJECT MANAGEMENT APPROACH Metallurgical Coal delivering four longwalls in the same region offers value accretive synergies Project delivery Our approach Target outcomes Benefits objectives Project Cost Planned growth profile 1. One standard design Progressive engineering 120% 100% requir
Slide 10: Most Diversified and Balanced Growth Options
MOST DIVERSIFIED AND BALANCED GROWTH OPTIONS Advanced stage projects (Approved or Feasibility) Minas-Rio Phase 1; Grosvenor Iron ore, Phase 1; Roman (Peace River >100% metallurgical Coal); Sishen Expansion Project Investment coal, phase 1B; Drayton South; Groote manganese Eylandt Expansion Project (
Slide 11: Industry Leading Growth in Highly Attractive Metallurgical Coal
INDUSTRY LEADING GROWTH IN HIGHLY ATTRACTIVE METALLURGICAL COAL Met Coal production Competitor growth comparison (Hard Coking Coal) 2010 - 2020 12% CAGR 13.9 Mt 6% CAGR 3% CAGR 2011 2012 2013 Future Anglo American BHP Billiton Teck potential Advanced stage projects Capital intensity for Grosvenor Pr
Slide 12: Flexibility to Grow High Quality and Low Cost Iron Ore Business
FLEXIBILITY TO GROW HIGH QUALITY AND LOW COST IRON ORE BUSINESS Iron Ore Production 1 Average cash cost iron ore delivered to China $/t Range of Pilbara producers 41.3 Mt India Pilbara Sishen Minas-Rio 2011 2012 2013 Future Producers 3 at full production 4 potential Projects A quality proposition 10
Slide 13: Prioritising the Next Phase of Copper Growth Options
PRIORITISING THE NEXT PHASE OF COPPER GROWTH OPTIONS Copper production Hypothetical copper demand / supply gap Mt Cu 25 Demand 20 599 kt Supply 15 (firm supply excl. uncommitted projects) 10 Future 0 2011 2012 2013 2000 2004 2008 2012 2016 2020 potential Source: Anglo American Projects Copper supply
Slide 14: Consolidating Control of the World's Leading Diamond Company
CONSOLIDATING CONTROL OF THE WORLD’S LEADING DIAMOND COMPANY Access to significant reserve base and sustainable Emerging supply demand gap production / competitive growth position New production unable to keep pace with growing demand Hope PWP (polished wholesale price) Expected Expecteddemand deman
Slide 15: Replenishing Tier One Assets with Industry Leading Exploration
REPLENISHING TIER ONE ASSETS WITH INDUSTRY LEADING EXPLORATION Industry leading exploration Discovery of world leading Tier 1 deposits Copper discovery & acquisition costs ($/lb) 5.50 • Industry leading greenfield exploration expertise delivering value • Sakatti is a significant grass roots discover
Slide 16: Committed to Delivering Return and Value for Shareholders
COMMITTED TO DELIVERING RETURN AND VALUE FOR SHAREHOLDERS Annual dividends ($bn) • Reviewing the shape and size of Platinum portfolio in pursuit of maximising shareholder Minority value and returns through the cycle Interests 0.8 0.8 1.4 • Continue to prioritise the most value accretive options in o
Slide 17: Summary
SUMMARY Capital allocation • Consistent strategy and simplified organisational structure delivering results 140 % Capex 1 Net equity distribution 2 Net acquisitions 3 • Driving Tier 1 assets to deliver robust performance against a backdrop of challenging 120 % conditions • Delivery and strong ramp-u
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