AngloAmerican Results Presentation Deck slide image

AngloAmerican Results Presentation Deck

Footnotes 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has management control. Data for fatalities, TRIFR and environmental metrics excludes results from De Beers' joint operations in Namibia and Botswana. 2021 fatalities was previously restated as a colleague tragically passed away in 2022 following complications after an accident in 2021. 2. Total Recordable Injury Frequency Rate per million hours worked. 234 3. New cases of occupational disease. Environmental incidents are classified in terms of a 5-level severity rating. Incidents with medium, high and major impacts, as defined by standard internal definitions, are reported as level 3-5 incidents. 5. Energy and emissions data has been restated to exclude Thermal Coal South Africa. Emissions refers to Scopes 1 and 2. While sites are assessed annually against all requirements applicable to their context, for consistency during the transition period, the metric reflects performance against the Social Way foundational requirements. 6. 7. 8. 9. 10. 11. 12. Metrics on an underlying basis - before special items and remeasurements adjusted to include the Group's attributable share of associates' and joint ventures' results. Group EBITDA also includes Crop Nutrients, third party thermal coal, shipping, exploration expenditure and unallocated corporate costs. Copper equivalent production is calculated including the equity share of De Beers' production and using long-term consensus parameters. It is normalised to reflect the demerger of the South Africa thermal coal operations and the sale of our interest in Cerrejón. Future production levels are indicative and subject to final approval, see Cautionary Statement slide. 2024F growth vs 2022 updated from Dec-22 investor update presentation to reflect higher 2022 performance. Margin represents the Group's underlying EBITDA margin for the mining business. It excludes the impact of non-mining activities (eg PGMs purchases of concentrate, sale of non-equity product by De Beers, third party trading activities performed by Marketing) & at Group level reflects Debswana accounting treatment as a 50/50 joint operation. Mining margin for De Beers on a stand alone basis is based on proportionate consolidation of mining businesses in De Beers only. Copper equivalent unit costs are shown on nominal terms and calculated as the total USD cost base divided by copper equivalent production. Copper equivalent unit cost is normalised to reflect the demerger of the South Africa thermal coal operations and the sale of our interest in Cerrejón. $2.4bn base dividend represents the dividend declared in respect of FY2022, of which $1.5bn was paid out during H2 2022 in respect of H1 2022. $2.4bn allocated to discretionary capital options includes $0.8bn additional returns (dividends and completion of buyback) paid out in respect of FY2021 earnings. Attributable ROCE is defined as attributable underlying EBIT divided by average attributable capital employed. It excludes the portion of the return and capital employed attributable to non-controlling interests in operations where the Group has control but does not hold 100% of the equity. Base metals consists of Copper (Chile and Peru) and Nickel. 13. 14. Bulks consists of Iron Ore, Steelmaking Coal and Manganese. 15. Price variance calculated as increase/(decrease) in price multiplied by current period sales volume. 16. Inflation variance calculated using CPI on prior period cash operating costs that have been impacted directly by inflation. Volume plus cost. Volume: increase/(decrease) in sales volumes multiplied by prior period EBITDA margin (ie flat unit costs, before CPI). For assets with no prior period comparative (eg in mp up) all EBITDA is included in the volume variance. Cost: change in total USD costs before CPI inflation. 18. Other includes the impact of items such as maintenance, deferred stripping and stock movements. 19. Includes $175m community social investment spend not shown on slide. 17. Anglo American 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 33. Taxes and royalties include all taxes and royalties borne and collected by the Group. This includes corporate income taxes, withholding taxes, mining taxes and royalties, employee taxes and social security contributions and other taxes, levies and duties directly incurred by the Group, as well as taxes incurred by other parties (eg customers and employees) but collected and paid by the Group on their behalf. Figures disclosed are based on cash remitted, net of entities consolidated for accounting purposes, plus a proportionate share, based on the percentage shareholding, of joint operations. Taxes borne and collected by equity accounted associates and joint ventures are not included. Indicative only. Subject to further studies and Board approval. Cash expenditure on property, plant and equipment including related derivatives, net of proceeds from disposal of property, plant and equipment and includes direct funding for capital expenditure from non- controlling interests. Consequently, for Quellaveco, growth capex reflects our attributable share. Collahuasi desalination capex shown includes related infrastructure. Guidance includes unapproved projects and is, therefore, subject to progress of growth project studies. Refer to appendix for more details. 34. Sustaining attributable free cash flow is defined as net cash inflows from operating activities net of capital expenditure (sustaining/lifex only), net interest paid, dividends paid to minorities and capital repayment of lease obligations. Source: Climate Action Tracker https://climate actiontracker.org/global/temperatures/. Data was originally published in November 2022, is protected by copyright and is published in this document with consent of Climate Analytics and NewClimate Institute. The data is based on the median of the combined low and high ends of current policy projections. Source: Anglo American internal analysis, based on sector outlooks in Wood Mackenzie's 1.5 Degree Scenario, March 2022. Source: Wood Mackenzie's 1.5 Degree Scenario, M&M Corporate Service, March 2022. Includes copper, aluminum, iron ore, zinc, nickel, lithium, cobalt, manganese, rare earths, bulk and noble alloys. Rounded to the nearest $100bn. 31. Long term 2023 real terms premia at 13Mtpa based on risk-weighted price outcomes. Long term 2023 real terms price at 13Mtpa based on a blend substitution pricing methodology (see footnote 30 for more details) plus a premia based on risk-weighted price outcomes. 32. Including Inferred Mineral Resources. Reserve Life is 27 years. Indicative, subject to further studies and Board approval. Refer to the Anglo American plc Ore Reserves and Mineral Resources Report 2022 for more details (published 6 March 2023). Production is subject to any subject to any socio-political effects and full ramp-up. Progress as at mid-February 2023. Subject to studies and final design. Long term 2023 real terms at 13Mtpa based on a blend substitution pricing methodology, which assesses whether a current fertiliser blend can be reassembled with the inclusion of POLY4 and the resulting price a purchaser would be willing to pay for the POLY4 without changing the total cost of the blend. In many cases, the inclusion of POLY4 offers further benefits such as providing Mg, Ca and micronutrients, enhancing the blend at no further cost. 38
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