Anglo American Plc · LSE:AAL
Anglo American — Deutsche BRICS Metals and Mining Conference 2011
11 slides from Anglo American's conference presentation, Nov 2, 2011
Slide 1: Deutsche BRICS Metals and Mining Conference
DEUTSCHE BRICS METALS AND MINING CONFERENCE Cynthia Carroll, Chief Executive 2 November 2011
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: A Consistent Strategy and Simplified Organisation Delivering Results
A CONSISTENT STRATEGY AND SIMPLIFIED ORGANISATION DELIVERING RESULTS Well diversified portfolio(1) Improving productivity performance(3) Diamonds Iron Ore 150 & Manganese Copper 11% 140 26% 130 Kumba Platinum 23% 120 110 Met Coal 11% Platinum Met Coal 100 2% Nickel 11% 90 16% Thermal Coal 80 Copper
Slide 4: Material Growth in the Short and Long Term
MATERIAL GROWTH IN THE SHORT AND LONG TERM 220 >100% 200 180 Indexed production growth (2010 = 100) >65% 160 >35% 140 120 Continuing to 100 Nickel Existing invest in Future growth Copper operations Near term exploration options 80 & approved approvals and projects restocking the PGM pipeline 60 40 M
Slide 5: Moving to Industry Leading Cost Positions
MOVING TO INDUSTRY LEADING COST POSITIONS Export Hard Copper Nickel Platinum Export Iron Ore Coking Coal 100% 80% 2nd half cost 60% curve 40% 1st half 20% cost curve 0% 2008 2015 2008 2015 2009 2015 2008 2015 2008 2015 Anglo American Platinum cost curve based on internal estimates; all other data so
Slide 6: Long Term Demand Growth Remains Healthy
LONG TERM DEMAND GROWTH REMAINS HEALTHY Chinese Regional Urbanisation(1) 2009 China’s expected growth 2010 to 2018 Heilongjiang Truck output 100% Jilin Inner Mongolia Liaoning Xinjiang Huang River Beijing Car output 85% Tianjin Hebei Shanxi Qinghai Shandong Ningxia Gansu Jiangsu Urban floor space 84
Slide 7: Set to Benefit from the Shift in Commodities Demand
SET TO BENEFIT FROM THE SHIFT IN COMMODITIES DEMAND Chinese share of global demand 60% Nickel 50% Copper 40% Finished Steel Light duty vehicles 30% 20% Polished diamonds 10% 0% 2000 2005 2010 2015 2020 Source: Anglo American Commodity Research 7
Slide 8: Supply Consistently Under Delivers
SUPPLY CONSISTENTLY UNDER DELIVERS Infrastructure project delays Copper industry grade declines, Copper mine a long term downward trend underperformance ‘04 – ‘11e 3 1.7 9.0 1.6 8.0 2 2 ? 20101.5 7.0 planned Copper grade Cu % 2 6.0 1.4 Years 5.0 1.3 4.0 1 1.2 1 3.0 1.1 2.0 1.0 1.0 0 0.9 0.0 DBCT 7X
Slide 9: Future Supply Will Be Impacted by Increasing Capital Intensity
FUTURE SUPPLY WILL BE IMPACTED BY INCREASING CAPITAL INTENSITY $ per t/yr Cu 25,000 Conc Producers SxEw Annual Prod Scale kt/yr Cu 20,000 Projects Under Construction Projects Probable 15,000 10,000, 30 5,000 15 5 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: Brook Hunt – Wood Mackenzie
Slide 10: Strategic Project Management Approach
STRATEGIC PROJECT MANAGEMENT APPROACH Delivering four longwalls in the same region offers fantastic synergy Project Delivery Our Approach Target Outcomes Benefits Objectives Project Cost Planned growth profile 1. One standard Longwall Progressive engineering 120% 100% requires a project that: & CHPP
Slide 11: Delivering Value from a Consistent Strategy
DELIVERING VALUE FROM A CONSISTENT STRATEGY • Consistent strategy and simple organisational Operational improvements realised across businesses structure delivering results Indexed productivity(2) (2008 = 100) 150 Copper • Comprehensive improvements undertaken 140 over the last three years 130 Kumba
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