Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — CRU World Copper Conference 2002
15 slides from Bhp's conference presentation, Mar 19, 2002
Slide 1: Profiting from Change in the Copper Industry
Profiting from Change in the Copper Industry Brad Mills - BHP Billiton Base Metals CRU World Copper Conference Santiago Chile, 19-21 March 2002
Slide 2: BHP Billiton Executive Committee
BHP Billiton Executive Committee Office Office of of the the Chief Chief Executive Executive Paul Paul Anderson Anderson CEO CEO && Managing Managing Director Director Brian Brian Gilbertson Gilbertson Deputy Deputy CEO CEO Senior SeniorMinerals MineralsExecutive Executive Chief Chief Financial Fina
Slide 3: Escondida – Chile (BHPB – 57.7%)
Escondida – Chile (BHPB – 57.7%) BHPB’s Share of Production in Calendar 2001 Cu 443,683 tonnes Au 43,691 oz Page 3 February 2002
Slide 4: Tintaya – Peru
Tintaya – Peru Production in Calendar 2001 Cu 82,260 tonnes Au 34,588 ounces Page 4 February 2002
Slide 5: Cerro Colorado – Chile
Cerro Colorado- Chile Production in Calendar 2001 Cu 133,605 tonnes Page 5 February 2002
Slide 6: Cannington – Australia
Cannington - Australia Production in Calendar 2001 Zn 64,396 tonnes Pb 204,291 tonnes Ag 29,987,837 ounces Page 6 February 2002
Slide 7: Joint Ventures
Joint Ventures Antamina: Peru Cu 26,198 tonnes Zn 16,010 tonnes Ag 690,188 oz Highland Valley Copper Canada Cu 60,606 tonnes Ag 716,982 oz Alumbrera: Argentina Cu 46,209 tonnes Au 153,934 oz Ag 214,975 oz Page 7 February 2002
Slide 8: Total BHP Billiton Production for Calendar 2001 (excl OK Tedi)
Total BHP Billiton Production for Calendar 2001 (excl OK Tedi) Copper 827,777 t Zinc 136,512 t Lead 209,520 Gold 270,886 oz Silver 33,285,827 oz Page 8 February 2002
Slide 9: The Relationship Between IP, Stocks and Price
The Relationship Between IP, Stocks and Price Copper Price Vs Stocks Prcice c/lb Global IP % Y-O-Y Stocks <3 3-6 >6 18 160 64 73 81 Nominal price per pound 800 16 Prices 140 700 65 73 81 Stocks in Weeks 14 120 Consumption 12 100 600 67 73 81 10 80 500 70 76 83 8 60 6 400 73 81 88 4 40 Stocks 20 300
Slide 10: Impact of Production Cuts
Impact of Production Cuts LME Cash Price vs Inventory Stocks Price 1,000,000 $1,650.00 $1,600.00 950,000 $1,550.00 900,000 PD $1,500.00 $1,450.00 850,000 $1,400.00 800,000 $1,350.00 Codelco $1,300.00 750,000 BHPB $1,250.00 700,000 $1,200.00 1-Oct 22-Oct 12-Nov 3-Dec 27-Dec 21-Jan 9-Feb Page 10 Febru
Slide 11: US$ Real Total Returns for Mining Companies
US$ Real Total Returns for Mining Companies for 2001, 5 Years to 2001 and 10 years to 2001 2001 5 Years to 2001 10 Years to 2001 Industry average = -14.1% Industry average = -2.1% Industry average = 8.9% -100% -50% 0% 50% 100% -40% -20% 0% 20% 40% -40% -20% 0% 20% 40% Page 11 February 2002 Source: N
Slide 12: Even the Optimistic Forecasts Show a large Stock Overhang
Even the Optimistic Forecasts Show a large Stock Overhang Assumed Copper Stocks kt 1800 1600 1400 1200 1000 800 600 400 200 0 2001 2002 2003 2004 Forecasts by Bloomsbury Economics, Brook Hunt, CRU, IWCC and Macquarie Bank Page 12 February 2002
Slide 13: CRU Forecast Balance and Stocks
CRU Forecast Balance and Stocks World Balance kt CRU 2002 18000 18000 Spence 17500 17500 17000 17000 Tintaya 16500 16500 Escondida 16000 16000 15500 15500 Rest Of 15000 15000 World 14500 14500 Demand 14000 14000 1999 2000 2001 2002 2003 2004 2005 2006 LME+COMEX Stocks (kt) 1200 1000 800 600 400 200
Slide 14: Future Industry Returns Are in Our Hands
Future Industry Returns Are in Our Hands Will it be more of the same? Over production, booms, busts and write offs? Or a Great Leap forward for the Industry. Page 14 February 2002
Slide 15: The End
The End Thank You Page 15 February 2002