Anglo American Plc · LSE:AAL

Anglo American — Anglo American Platinum — Corporate Update (November 2016)

19 slides from Anglo American's corporate update, Nov 23, 2016

  1. Slide 1: Anglo American Site Visit – Mogalakwena Mine – Platinum

    PLATINUM ANGLO AMERICAN SITE VISIT MOGALAKWENA MINE – PLATINUM 23 NOVEMBER 2016 Mogalakwena Mine – load and haul operations including rope shovel

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared for Anglo American Platinum Limited and the entities in the Anglo American Platinum group (“Anglo American Platinum”) and comprises the written materials/slides for a presentation concerning Anglo American Platinum. By attending th

  3. Slide 3: Mogalakwena Mine – Overview

    MOGALAKWENA MINE – OVERVIEW  The Northern Limb of the Bushveld Mogalakwena overview(1) Complex is located in the Limpopo Ore Reserves ~116.0 Province of South Africa (Contained 4E million troy ounces) Inclusive Resources ~286.4  The Northern Limb is approximately (Contained 4E million troy ounces)

  4. Slide 4: Mogalakwena Leadership Team

    MOGALAKWENA LEADERSHIP TEAM World class leadership team adding value through the cycle 4

  5. Slide 5: Safety Performance

    SAFETY PERFORMANCE Safest platinum mine in the world Lost time injury frequency rate (per 200,000 hrs) 0.45  Mogalakwena operation benchmarks 0.42 favourably with international best Incidents per 200 000 hours 0.36 practice safety performance  The team has a well structured safety 0.21 strategy in

  6. Slide 6: Geology and Resources

    GEOLOGY AND RESOURCES 6

  7. Slide 7: Geological Setting & Regional Activity

    GEOLOGICAL SETTING & REGIONAL ACTIVITY Uniquely positioned for open pit mining  The Northern Limb complex of the Waterberg Bushveld complex has a strike of 120km PGM Activity  Mogalakwena is the only operational Mining Harriet’s Wish mine in the region currently Sylvania Actively exploring Not exp

  8. Slide 8: Resource Endowment

    RESOURCE ENDOWMENT Most valuable PGM resource in the world ≈ 6.5km ≈ 2.0km ≈ 8.0km Boikgantsho Mogalakwena super-pit Zwartfontein Sandsloot Tweefontein North Tweefontein Hill 100 600 1 100 metres 1 600 2 100 2 600 3 100 3 600 Exclusive Drenthe Scheduled Mohlosane Sandsloot Dolomite Pre resource reso

  9. Slide 9: Delivering Value

    DELIVERING VALUE Valuable basket of metals in high quality concentrate 2015 revenue split between metals  Highest Rand basket price in the 32,850 (1) industry at R32,850 per platinum ounce 20% 23,961 23,413 23,500  The major differentiator of 14% 6% 6% Mogalakwena concentrate is base metal loading

  10. Slide 10: Operational Performance

    OPERATIONAL PERFORMANCE 10

  11. Slide 11: A Focus on Continuous Improvement

    A FOCUS ON CONTINUOUS IMPROVEMENT Mining strategy improvements creating significant value Planned mining volumes (Mt) 220 200 180  Mine planning driving 160 140 significant value 120 100 80  Optimised cut-back schedule 60 40 20  Strike extensions preferred 0 34 14 16 18 20 22 24 26 28 30 32 36 38

  12. Slide 12: Delivering Higher Production and Cash Flow

    DELIVERING HIGHER PRODUCTION AND CASH FLOW Mogalakwena production continues to improve Platinum production (‘000 ounces) 392 c.400  Record production performance in 2015 376 23 – up 6% to 392 koz 341 22 305 16  Forecast to improve production in 2016 1 400 354 369  Unit costs reduced 7% in 2015 du

  13. Slide 13: A Focus on Continuous Improvement

    A FOCUS ON CONTINUOUS IMPROVEMENT Ongoing concentrator improvements Annual throughput (tonnes milled kt)  Concentrator capacity increase – exceeding expectation 12,754 34,848  Baobab opportunity seized with further 11,731 11,725 11,031 benefits to come through as a result of 10,480 33,215 the Pand

  14. Slide 14: Tonnes Mined

    TONNES MINED Focus on stability and removing volatility has led to an increase in tonnes mined Annual mining volumes (tonnes mined kt) 267  Average daily tonnes mined increased 263 48% between 2012 and 2016F 259  Focus on maintaining stability and removing volatility in mining  Improvement in ove

  15. Slide 15: Overall Equipment Effectiveness

    OVERALL EQUIPMENT EFFECTIVENESS World-class performance from a world-class fleet Komatsu 930E truck fleet hours for 2016 (annualised)  Benchmarking of 170 operations globally places Mogalakwena in the top 10% of all global Komatsu 930E Mogalakwena fleet average truck fleets in terms of overall Ø 6,

  16. Slide 16: Baobab Concentrator Throughput

    BAOBAB CONCENTRATOR THROUGHPUT Baobab increasing throughput with further value to be realised from Pandora transaction Baobab average monthly throughput (kt milled) +94%  Optimised feed ore ratio resulting in 73 increased throughput 51 50 38  Integrated into Mogalakwena North concentrator dry circ

  17. Slide 17: Social Performance

    SOCIAL PERFORMANCE CLIMATE Community relations improving through engagement at all levels  Good relations with the National Union of Mineworkers (NUM) – the major union  All engagement structures in place and effective  High literacy level with minimum entry level matric mathematics and science 

  18. Slide 18: Conclusion

    CONCLUSION  World class operation in the Northern limb with the only operational open-pit mine  Safest platinum mine in the world – no fatalities for 5 years  Extremely long life asset with large reserves and resources  Expansion potential – but competing for capital in current environment  Sus

  19. Slide 19: Platinum Q&A

    PLATINUM Real Mining. Real People. Real Difference.

Anglo American Platinum — Corporate Update (November 2016) on 6ix