Global Metals, Mining & Steel Conference Presentation
OPTIMISING PERFORMANCE
Operating unit costs, including Sustaining capital expenditure
EIII
IIIE
SOUTH 32
H1
H1
Unit
FY15 FY16 FY17 FY17e
Unit FY15 FY16 FY17 FY17e
AUSTRALIA MANGANESE (FOB)
US$/dmtu 2.40
28%
ILLAWARRA METALLURGICAL COAL
US$/t 104
1.72
TBC2
SOUTH AFRICA MANGANESE (FOB)
US$/dmtu
1%
SOUTH AFRICA ALUMINIUM
2.23
2.20
CERRO MATOSO
US$/lb
5.54
28%
MOZAL ALUMINIUM
3.98
88
US$/t 1,812
23%
1,398
US$/t 1,813
19%
1,470
CANNINGTON1
US$/t
182
15%
WORSLEY ALUMINA
US$/t
266
155
SOUTH AFRICA ENERGY COAL
US$/t
33
9%
BRAZIL ALUMINA
30
Achieved to date
Restructured and reset the cost base
Next phase of opportunity
Focused execution
US$/t
222
215
18%
218
•
Reduced controllable costs and capex by US$692M in FY16
•
To deliver consistent production performance
•
Implemented regional model
•
.
Right sized teams and functional support
Enabled by our Care Strategy: develop an inclusive culture, where work is well
designed and we continuously improve
Notes:
1.
2.
3.
•
Use technology and innovation as a key enabler to enhance safety and
productivity
Shows US dollar per tonne of ore processed. Periodic movements in finished inventory may impact operating unit cost as related marketing costs and treatment and refining charges may change.
Illawarra Metallurgical Coal FY17 unit cost guidance to be updated following the 10 May 2017 ASX, JSE & LSE announcement.
FY17e Operating unit cost guidance, including Sustaining capital expenditure, and Sustaining capital expenditure guidance, include royalties (where appropriate) and the influence of exchange rates, and are predicated on various assumptions for H2 FY17, including: an alumina price
of US$316/t; an average blended coal price of US$146/t for Illawarra Metallurgical Coal; a manganese ore price of US$6.79/dmtu for 44% manganese product; a nickel price of US$4.65/lb; a thermal coal price of US$84/t (AP14) for South Africa Energy Coal; a silver price of
US$17.04/troy oz; a lead price of US$2,267/t; a zinc price of US$2,746/t; an AUD:USD exchange rate of 0.75; a USD:ZAR exchange rate of 14.20; and a USD:COP exchange rate of 2,943; all of which reflected forward markets as at January 2017 or our internal expectations.
16 MAY 2017
BANK OF AMERICA MERRILL LYNCH - GLOBAL METALS, MINING & STEEL CONFERENCE
SLIDE 5
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