2022 Full Year Results Q&A
2022 Full Year Results Q&A
Thursday, 23rd February 2023
underground, we would be a lot more selective in how we mine. And we are looking at having
grades closer to the 4, 5, 6 gram per tonne instead of the run-of-mine from the open cut at
around that two to three gram per tonne. Looking over the next 10-15 years, as some of
those potential options become real, I think you will see some exciting things around that
grade profile improving.
Liam Fitzpatrick (Deutsche Bank): On the De Beers negotiations, coming back to your
comments about everything almost being done - should we take that as meaning that there is
not going to be any material change in the ownership and the economics as they have stood
for the last 10 years?
Secondly, Anglo is still a fairly complicated business when you look at how many assets you
have, the different regions and so on. Do you think about streamlining or divestment steps
from here just to perhaps take the simplification another step forward?
Duncan Wanblad: On De Beers, it is a negotiation
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one that happens every five years. And
it is in both parties' interests to come up with a value-accretive deal on both sides of the
fence. We are in the middle of this negotiation at this point in time, but it is being done in
good spirits on both sides of the fence.
From an Anglo structure point of view, if I had a blank sheet of paper, it would not look like
this from a structure point of view. What I am very comforted by is the quality of the
underlying asset base that exists in that structure. There is not a lot I can do about this in the
short run. But I know that we are quite effective at being able to manage through that
complexity and we will continue to do that for as long as we can.
Tyler Broda (RBC): The Woodsmith project, it is US$5 billion or U$1 billion a year for five
years, to get to the 5Mtpa. What is the capital intensity we should be looking at for the 5Mtpa
to 13Mtpa next step, and then, should we think that you go straight from 5Mtpa to 13Mtpa,
depending on how the market develops? Because when do we expect for this to become free
cash flow positive?
Duncan Wanblad: The rate at which we progress from 5Mtpa to 13Mtpa, is very much a
function on how the market strategies in terms of development are playing out. On the capital
intensity numbers it is about a third of the capital intensity to go from 5Mtpa to 13Mtpa, as it
was from zero to five million. And that is because of that pre-investment in the main elements
of infrastructure to get you there.
Tyler Broda: You are seeing a lot of talk now about M&A in the space. How do you think
Anglo American is viewing M&A at this point from an acquisition standpoint?
Duncan Wanblad: Same way we have always viewed M&A. To the extent that there is a
M&A opportunity for us where at the end of the day, we can make a differentiated outcome
from a value perspective, it is in play. It will always have to compete with any of the internal
options that we have. We look at it all of the time. None of that has changed.
Dominic O'Kane (JP Morgan): Duncan, you made the comment that Woodsmith is not
constraining your ability to move forward with your growth options, but I would argue that it
is having an impact on your shareholder distributions by virtue of your net debt number. Can
you remind us of what your guardrails are on excess capital distributions from this point
forward?
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