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ANGLO AMERICAN PLC - Anglo American: strong performance and balanced investment drive sustainable returns

Release Date: 11/12/2020 15:25
Code(s): AGL     PDF:  
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Anglo American: strong performance and balanced investment drive sustainable 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
JSE Share Code: AGL
NSX Share Code: ANM

11 December 2020

Anglo American: strong performance and balanced investment drive sustainable returns

Anglo American plc (“Anglo American” or “the Group”) is today providing an update to the
investment community on the Group’s sustained operational and financial performance during
2020. The update will also include the latest 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 growth projects.

Mark Cutifani, Chief Executive of Anglo American, said: “This year has brought numerous
challenges and I am immensely proud of how the 90,000 people of Anglo American have
responded to every aspect of the pandemic. Our agility to protect our people and communities
while sustaining our operations has enabled us to continue to improve the quality, resilience and
performance of our business in 2020. At the same time, we have continued to enhance our long
term business prospects.

“We expect to deliver sector leading volume growth of 20-25% over the next three to five years
that includes first copper production from Quellaveco in 2022. Together with our P101 and
technology improvement initiatives, we are on track to deliver our targeted $3-4 billion run-rate
of incremental annual improvement by the end of 2022.

“Looking further out, our diversified portfolio of world-class competitive operations, development
projects and undeveloped resources provide us with many further high quality and high returning
growth options. With the bulk of those options in copper, PGMs, and now also crop nutrients, we
are increasingly positioned to supply those metals and minerals that enable a cleaner, greener,
more sustainable world.”

Anglo American maintained a strong performance during 2020, in the face of Covid-19 related
and other operational impacts, and expects further performance improvement in 2021:

      •     Unit costs for 2020 expected to reduce by 2%, despite lower total production volumes;
      •     Mining EBITDA margin sustained at c.42%, supported by cost control and price strength
            across copper and iron ore;
      •     Forecast 2021 capex increased to $5.7-6.2 billion to reflect carry-over from 2020
            deferrals, additional investment in new business improvement opportunities, and the
            targeting of critical path items for the Woodsmith polyhalite project; and
      •     Production in 2021 expected to increase by 14%; unit costs to decrease by a further 3%.

Stephen Pearce, Finance Director of Anglo American, commented: “We are delivering strong
cash returns, with $5 billion returned to our shareholders since 2017, investing in quick payback
growth and maintaining our strong balance sheet. Our balanced investment programme is driving
considerable business improvement, with associated emissions and water benefits, while also

Anglo American plc
20 Carlton House Terrace London SW1Y 5AN United Kingdom
Registered office as above. Incorporated in England and Wales under the Companies Act 1985.
Registered Number: 3564138 Legal Entity Identifier: 549300S9XF92D1X8ME43
delivering margin-enhancing growth – taking us towards our longer term target of a 45-50%
mining EBITDA margin.”

Mark Cutifani added: “Anglo American offers a high quality differentiated investment proposition.
We have a diversified mix of premium products that are increasingly tilted towards a low carbon
economy and broad-based consumer demand. Combined with our integrated approach to
technology and sustainability, that will also help us achieve carbon neutrality across our
operations by 2040, we are well positioned to meet the expectations of our full breadth of
business and societal stakeholders.”

The presentation which contains the details relating to the information referred to above is
available on the Anglo American website at:

For further information, please contact:

 Media                                                 Investors
 UK                                                    UK
 James Wyatt-Tilby                                     Paul Galloway         

 Marcelo Esquivel                                      Robert Greenberg          

 Katie Ryall                                           Emma Waterworth               

 South Africa
 Sibusiso Tshabalala

 Nomonde Ndwalaza

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
operations, development projects and undeveloped resources, provides many of the metals and
minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing
consumer-driven demands of developed and maturing economies. With our people at the heart
of our business, we use innovative practices and the latest technologies to mine, process, move
and market our products to our customers – and to discover new resources – safely and

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in
development and thermal coal operations planned for divestment – we are committed to being
carbon neutral across our operations by 2040. We work together with our business partners and
diverse stakeholders to unlock sustainable value from precious natural resources for the benefit
of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.
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 Ore Reserves and Mineral Resource estimates), 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 effects of global pandemics
and outbreaks of infectious diseases, the availability of mining and processing equipment, the ability to
produce and transport products profitably, the availability of transport 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. Nothing
in this announcement should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced
from publicly available third-party sources. As such, it has not been independently verified and presents the
views of those third parties, though these may not necessarily correspond to the views held by
Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such
third-party information.

Legal Entity Identifier: 549300S9XF92D1X8ME43

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.

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 11-12-2020 03:25:00
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