Anglo American Plc · LSE:AAL
Anglo American — Debswana Diamond Company (Proprietary) — Corporate Update (November 2016)
14 slides from Anglo American's corporate update, November 2016
Slide 1: Debswana Diamond Company (Proprietary) Limited
DEBSWANA DIAMOND COMPANY (PROPRIETARY) LIMITED
Slide 2: Overview: Debswana, a 50/50 joint venture between the GRB and De Beers
Overview: Debswana, a 50/50 joint venture between the GRB and De Beers comprises two of the world’s most valuable diamond mines, Jwaneng and Orapa Regime Damtshaa Mine Orapa Mine c.300 employees c.2,300 employees 2015 production 0.2m carats c.2,000 contractors Life of Mine 2032* 2015 production 9.9m
Slide 3: Our company leadership live our values
Our company leadership live our values by setting the highest standards, encouraging innovation and pursuing brilliance in all areas, while creating a great place to work Balisi Bonyongo MD Albert Milton Lynette Bokani Esther Bonny Ntoti Mosetlhe Keith Blanchard Lephimotwe GM Armstrong Motlhabani Ka
Slide 4: Jwaneng Mine management committed to making Jwaneng the world's leading diamond mine
Jwaneng Mine management is committed to making Jwaneng the world’s leading diamond mine in every respect Albert Milton GM Sed Serumola Rory Philip Lisindi Tshepang Dr Mwamba Kean McCallum Thatayaone Neville Pollard Tumelo Koolatotse Snr Ore Greyvensteyn Snr Finance Mazwigwila Nsebola Snr MRM Keitume
Slide 5: Safety: our focus is to achieve zero harm
Safety: our focus is to achieve zero harm at our operations through our behaviour-based programmes and focus on critical controls Safety Performance 2010-2016 Debswana (Jwaneng, OLDM and DCC) 100 1.60 90 1.40 80 1.20 70 1.00 60 50 0.80 40 0.60 30 0.40 20 0.20 10 0 0.00 2010 2011 2012 2013 2014 2015
Slide 6: Meeting shareholder and customer needs
Meeting shareholder and customer needs: Debswana continues to improve its efficiency and is delivering strong shareholder returns. Debswana’s performance is crucial for the GRB, as the Botswana economy relies on diamond revenues 25 16,000 14,000 20 11 12,000 10 10 11 8 10 10,000 15 9 8,000 10 6,000
Slide 7: Production: In 2015 Debswana reduced production in line with demand
Production: In 2015 Debswana reduced production in line with demand Production down 9% in H1 2016 with planned reductions at Orapa (plant 1 on partial care and maintenance) and Damtshaa (on care and maintenance) Mct H1 0.1 5.7 10.9 1.6 0.9 5.4 11.5 2015 0.3 Q3 1.9 2.0 0.1 4.1 2015 11.8 3.1 1.1 -9% H
Slide 8: Jwaneng Mine Resource: the "Prince of mines"
Jwaneng Mine Resource: nicknamed the “Prince of mines”, Jwaneng Mine has one of the richest kimberlite ore bodies, by value, in the world • Three main pipes (Centre, North and South) • Life of mine 2035* • Open pit reserves 149.2M¢ from 113Mt of ore, grade 132.0cpht(1) • Open pit resource 207.5M¢ fr
Slide 9: Cash Containment: Jwaneng
Cash Containment: By focusing on operational efficiencies and other cost containment opportunities, management has saved US$60 million (100% basis) YTD October 2016, of which US$42 million is from Jwaneng Operating model Improved scheduling and resourcing of planned activities resulting in improved
Slide 10: Jwaneng efficiency improvements
Jwaneng efficiency improvements Shovels (t/hr) Loading cycle (mins) Average tyre life (hours) Target Target Target +12% +21% Actual -17% Actual Actual 1,700 4.2 6,000 28 213 1,672 5,787 3.5 1,514 3.6 4,940 -0.1 2015 2016 2015 2016 2015 2016 YTD YTD YTD 10
Slide 11: Jwaneng Cut-8 approaching first ore in 2017
Jwaneng Cut-8 approaching first ore in 2017 Jwaneng 109,813 110,000 FY 2015 H1 2016 53,066 9,764 8,000 7,695 7,603 6,199 6,000 4,855 4,253 4,000 2,000 0 Waste mined Ore mined Tonnes treated Carats recovered (tonnes ‘000s) (tonnes ‘000s) (tonnes ‘000s) (cts ‘000s) • Cut-8: ~80% of the 500 million ton
Slide 12: Investing in the future: capex and waste capitalisation
Investing in the future: development for future production through waste capitalisation forms a major part of capital expenditure, primarily at Jwaneng Capex overview (100% basis) US$m Stay in Business (SIB) Waste Expansionary FY 2014 318 220 57 595 FY 2015 212 240 72 524 H1 2016 81 96 43 220 Waste
Slide 13: Production flexibility: Tailings Processing Plants
Production flexibility: Tailings Processing Plants provide ability to respond effectively to market conditions at lower cost Jwaneng Modular Tailings Plant Letlhakane Modular Tailings Plant Commissioned in 2014 Funding for construction approved in Nov 2014 A total of US$103m (100% basis) worth
Slide 14: Your tour: Following the diamonds
Your tour: Following the diamonds Open pit Main treatment plant Recrush plant Diamond Trading Company Botswana Aquarium Tailings dumps and slimes dams Orapa, Letlhakane and Damtshaa Mines Sources 14
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