Anglo American Plc · LSE:AAL
Anglo American — Anglo Coal — Investor Presentation (August 2005)
12 slides from Anglo American's investor presentation, August 2005
Slide 1: Anglo Coal Investor Presentation August 2005
ANGLO COAL Investor Presentation August 2005 1 Investor Presentations – August 2005 1
Slide 2: Participants
Participants Chief Executive Officer John Wallington Anglo Coal Chief Financial Officer Norman Mbazima Anglo Coal Head of Energy – AA plc Roger Wicks 2 Head of Global Marketing - Anglo Coal Investor Presentations – August 2005 2
Slide 3: Business Overview
Business Overview 9 Leading producer of thermal ► 6th largest producer and metallurgical coal ► 4th largest global producer 9 Geographic diversity ► Australia – 12.7 Mt (29%) for H1 2005 (attributable saleable tons) ► South Africa – 26.6 Mt (60%) for H1 2005 (attributable saleable tons) ► South Amer
Slide 4: Interim Financial Review
Interim Financial Review Financial synopsis Headline earnings of US$263m in H1 2005, an increase of 78% over H1 2004 Improved performance due to more favourable commodity prices and production efficiencies Australia impacted by operating difficulties at Dartbrook and carry over tonnage at Mora
Slide 5: Interim Financial Review: Geographical synopsis (H1 2005)
Interim Financial Review Geographical synopsis (H1 2005) 1,479 800 681 700 600 536 500 US$m 476 Australia 400 374 South Africa South America 300 262 231 205 263 200 142 136 121 109 85 100 48 36 5 0 Turnover Operating profit Headline earnings EBITDA Investor Presentations – August 2005 5
Slide 6: Interim Financial Review: Salient issues (H1 2005)
Interim Financial Review Salient issues (H1 2005) Australia ► Results negatively impacted by geological difficulties at Dartbrook thermal coal mine and the effect of carryover tonnage at Moranbah North metallurgical coal mine ► Operating profit of US$48m includes Moranbah North insurance claim of US
Slide 7: Topical Issues
Topical Issues SA Mining Charter Ownership ► Facilitated establishment of Eyesizwe, Leeuw Mining & Exploration, Imbani (Charter target 26% by 2014) Coal, Mafube Colliery ► 21% of Anglo Coal’s potential production sold to BEE companies Procurement ► R471 m sourced from BEE companies in H1 2005 ► 27%
Slide 8: Market Overview
Market Overview Key Factors Anglo Coal Response ► Comprehensive product range being Diverse sectors, drivers, structures, pricing enhanced mechanisms and power margins (spreads) ► Sector specific marketing strategies ► Customer survey Varying levels of consolidation ► Competitive market share permit
Slide 9: Price History
Price History Commodity price trends 140 Export Hard Coking Coal (Goonyella Benchmark) 120 Export Thermal Coal (Japan/Newcastle Benchmark basis 6322 GAR) Export Thermal Coal (RBCT basis 6000 NAR) 100 US$/t FOB 80 60 40 20 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 199
Slide 10: Project Pipeline
Project Pipeline Canada Russia China Cerrejon India US$50 m Indonesia 2 Mtpa Export Thermal 2007* Dawson Valley Grasstree Isibonelo Mafube US$107 M US$43 m US$377 m US$65 m 4 Mtpa 1 Mtpa Western 6 Mtpa 5 Mtpa Export Met Export Thermal Complex Export Met & Sasol 2007* 2008* Thermal 2006* 2007* Lake *
Slide 11: Adjacency Strategies (Horizon 3)
Adjacency Strategies (Horizon 3) Current initiatives Coal bed/mine methane ► Dawson (Australia) ► Waterberg (South Africa) ► German Creek (Australia) Monash Energy 9 Long lead time ► Power and low sulphur diesel 9 High capital cost ► Carbon capture and storage 9 New skill base ► Government support C
Slide 12: Outlook and Conclusion
Outlook and Conclusion ► Thermal coal prices have remained close to the US$50 level for some time, but have softened slightly of late. Expectations are for reasonable firmness through 2006 ► Metallurgical prices are also expected to remain relatively firm ► Infrastructure constraints are still an is