Anglo American plc · LSE:AAL
Anglo American — Bulks Seminar & Site Visit, Brisbane 2019
11 slides from Anglo American's conference presentation, Nov 12, 2019
Slide 1: Iron Ore Marketing
IRON ORE MARKETING Timo Smit, Head of Iron Ore Marketing Bulks Seminar & Site Visit: Brisbane, 12 November 2019 Açu Port, Minas-Rio
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: World-Class Capabilities, Global Footprint
WORLD-CLASS CAPABILITIES, GLOBAL FOOTPRINT World-class capabilities Value-In-Use laboratory Market Intelligence Freight desk Price Risk Management Integrated sales & operations planning Performance management Global footprint European Marketing Hub London, UK Shanghai Marketing Office China Asia-Pac
Slide 4: Focus on Quality
FOCUS ON QUALITY 2019 Export volumes (Wet Mt)1,2 H1 2019 Average Fe content comparison (%)1 320-330 277-302 273-286 65.2 64.6 60.8 60.7 170-175 57.7 65-66 Rio Tinto Vale BHP FMG Anglo Anglo Vale Rio Tinto BHP FMG American American3 44
Slide 5: Premium Products with Unique Advantages
PREMIUM PRODUCTS WITH UNIQUE ADVANTAGES Kumba: lump Unique advantages Applications 64-65.2% Fe grade Direct charge ore Superior physical qualities Kumba: fines 63.2-64.6% Fe grade Sintering Coarseness: excellent sintering properties Minas-Rio: pellet feed Pelletising 66-68% Fe grade Ultra-low contam
Slide 6: Structural Changes Support Quality Premiums
STRUCTURAL CHANGES SUPPORT QUALITY PREMIUMS Lump premium (Platts, US$/dmtu)4 Beijing air quality (PM 2.5)4 Annual average Tighter emissions standards Escalating sinter costs 85 80 0.28 73 0.25 ~0.21 58 54 0.17 0.15 0.15 Sinter displaced by lump 0.14 35 2014 2015 2016 2017 2018 2019 Long- 2014 2015 2
Slide 7: Right Products, Right Customers, Right Time
RIGHT PRODUCTS, RIGHT CUSTOMERS, RIGHT TIME Integrated Sales and Operational Planning (ISOP) Kumba Minas-Rio Kumba + Minas-Rio Blending intermediate products to meet Upgrade product portfolio, phasing out Blend Kumba fines with Minas-Rio pellet customer Si & Al requirements 65.5% Fe product feed: cr
Slide 8: Evolving Global Iron Ore Customer Base
EVOLVING GLOBAL IRON ORE CUSTOMER BASE Customer base increasingly diversified 11% 10% 15% 1% 19% 23% 15% 2012 H1 2019 50% 2024F 55% 2% 68% 10% 14% 5% 3% China Other Asia Japan & Korea Europe MENA Increasing China share of seaborne iron ore market 30% 28% 34% 2012 H1 2019 2024F 66% 70% 72% China RoW
Slide 9: Marketing Supporting Price Premium Benefits
MARKETING SUPPORTING PRICE PREMIUM BENEFITS Kumba price premium ($/t vs Platts 62% index) Kumba realised price H1 2019 ($/t, FOB, dry) Fe grade premium (64.3% vs 62%) 9 3 Freight 15 Timing benefit 6 108 Marketing activity: 81 Lump premium $3/t premium (~68% of product) $6/t timing Platts 62% Minas-R
Slide 10: Premium Quality and Premium Customers: Driving Premium Prices
PREMIUM QUALITY AND PREMIUM CUSTOMERS: DRIVING PREMIUM PRICES 2018 realised FOB price6 ($/t) H1 2019 realised FOB price6 ($/t) Anglo American 72 Anglo American 106 Rio Tinto 63 Rio Tinto 85 BHP 61 BHP 85 Vale 56 Vale 83 FMG 37 FMG 73 10 10
Slide 11: Footnotes
FOOTNOTES 1. Source: Company reports, Wood Mackenzie. 2. Rio Tinto: CY2019 guidance range; BHP, FMG: Jun 2019-Jul 2020 guidance range; Vale: Estimated export volumes; Anglo American: Kumba volumes on dry basis. 3. Kumba: 64.3% Fe; Minas-Rio: 66.9% Fe. 4. Source: Beijing Urban Master Plan, 2030; CISA
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