ANGLO AMERICAN PLC - Anglo American: world-class assets driving sustainable competitive returns

Anglo American: world-class assets driving sustainable competitive returns

Anglo American plc (the “Company”)
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM

10 December 2019

Anglo American: world-class assets driving sustainable competitive returns

Anglo American plc (“Anglo American” or “the Group”) is today providing an update to investors
and analysts on the Group’s sustained operational and financial performance improvements and
outlook.

The briefing will cover guidance for the current and next three financial years, including in relation
to capital expenditure and production volumes, and a progress update on Anglo American’s
organic growth projects.

Mark Cutifani, Chief Executive of Anglo American, said: “We are building on the complete
transformation of both the quality of our portfolio and our performance over the last six years.
Anglo American is now amongst the very best in terms of our overall cost curve position as a
result of fundamental operating changes, the technical and product marketing expertise we have
applied, and the wholesale upgrade of our portfolio.

“We will continue to upgrade our asset portfolio over time and we see our progress continuing on
all fronts as we also bring a number of high quality growth projects online during the next three
years, delivering 20-25% production growth by 2023.”

Continued performance improvement during 2019 and confident outlook:

- 2019 unit costs expected to reduce by 5%;
- 2019 total production volumes to again increase;
- 2020 production expected to increase by 3%, with cost inflation largely absorbed by
  productivity and cost improvements; and
- expect to meet $3-4 billion target of incremental annual EBITDA between 2017 and 2022.

Stephen Pearce, Finance Director of Anglo American, added: “We are disciplined in investing to
deliver value-adding growth – focused on quality production volumes, margins and returns. As
we also progress our share buyback of up to $1 billion, our net debt is naturally increasing, albeit
well within our tolerance of less than 1.5x EBITDA. In the last three years, we have restored a
resilient balance sheet, substantially reducing net debt and returning $4.2 billion to our
shareholders.”

Mark Cutifani concluded: “We expect our next step change in performance to come from a
combination of:

- our P101 programme that is achieving new levels of industry best-practice equipment
  performance across our operations;
- volume growth from existing and new operations, such as Quellaveco; and
- the deployment of our FutureSmart Mining™ approach to technology, digitalisation and
  sustainability.

It is this approach that will transform how we discover, mine, process and market our products
and how our stakeholders experience our business – environmentally and socially.

“Anglo American’s portfolio spans the high quality products that are aligned to the demographic
and macro trends of a fast growing and urbanising global population in a cleaner, more electrified
and connected world. Combined with our multi-stakeholder mindset to create a sustainable
business in all dimensions, we believe we are well set to keep delivering.”

The presentation which contains the details relating to the information referred to above is
available on the Anglo American website at: www.angloamerican.com/investors/investor-
presentations/2019.

The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

For further information, please contact:

Media                                                 Investors
UK                                                    UK
James Wyatt-Tilby                                     Paul Galloway
james.wyatt-tilby@angloamerican.com                   paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759                              Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                      Robert Greenberg
marcelo.esquivel@angloamerican.com                    robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891                              Tel: +44 (0)20 7968 2124

Katie Ryall                                           Emma Waterworth
katie.ryall@angloamerican.com                         emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8935                              Tel: +44 (0)20 7968 8574

South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592

Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175

Notes to editors:

Anglo American is a leading global mining company and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and minerals that enable a cleaner,
more electrified world and that meet the fast growing consumer-driven demands of the world’s
developed and maturing economies. With our people at the heart of our business, we use
innovative practices and the latest technologies to discover new resources and mine, process,
move and market our products to our customers around the world – safely, responsibly and
sustainably.

As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron
ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our business partners and diverse stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate, and for society as a whole. Anglo American is re-imagining mining to improve people’s
lives.
www.angloamerican.com

Forward-looking statements

This announcement includes forward-looking statements. All statements other than statements
of historical facts included in this announcement, including, without limitation, those regarding
Anglo American’s financial position, business, acquisition and divestment strategy, dividend
policy, plans and objectives of management for future operations (including development plans
and objectives relating to Anglo American’s products, production forecasts and reserves and
resources positions), are forward-looking statements. By their nature, such forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Anglo American, or industry results, to be
materially different from any future results, performance or achievements expressed or implied
by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo
American’s present and future business strategies and the environment in which Anglo American
will operate in the future. Important factors that could cause Anglo American’s actual results,
performance or achievements to differ materially from those in the forward-looking statements
include, among others, levels of actual production during any period, levels of global demand and
commodity market prices, mineral resource exploration and development capabilities, recovery
rates and other operational capabilities, the availability of mining and processing equipment, the
ability to produce and transport products profitably, the availability of transportation infrastructure,
the impact of foreign currency exchange rates on market prices and operating costs, the
availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions
in relevant areas of the world, the actions of competitors, activities by governmental authorities
such as permitting and changes in taxation or safety, health, environmental or other types of
regulation in the countries where Anglo American operates, conflicts over land and resource
ownership rights and such other risk factors identified in Anglo American’s most recent Annual
Report. Forward-looking statements should, therefore, be construed in light of such risk factors
and undue reliance should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. Anglo American expressly disclaims
any obligation or undertaking (except as required by applicable law, the City Code on Takeovers
and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency
Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange
of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and
the Namibian Stock Exchange and any other applicable regulations) to release publicly any
updates or revisions to any forward-looking statement contained herein to reflect any change in
Anglo American’s expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.

Date: 10-12-2019 01:00:00
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