Fourth Quarter & Full Year 2012

Transcription

1 Fourth Quarter & Full Year 2012 March 6 th, 2013 asdfasdf

2 FORWARD LOOKING INFORMATION Both these slides and the accompanying oral presentation contain certain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward looking statements include estimates, forecasts and statements as to the Company s expectations of production and sales volumes, expected timing of completion of project development at Kansanshi, Sentinel and Enterprise, the impact of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs, the outcome of mine permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, cobalt, nickel, PGE, and sulphuric acid, estimated mineral reserves and mineral resources, our exploration and development program, estimated future expenses, exploration and development capital requirements, the Company s hedging policy, and our goals and strategies. Often, but not always, forward-looking statements or information can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate or believes or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, assumptions about the price of copper, gold, nickel, PGE, cobalt and sulphuric acid, anticipated costs and expenditures and our ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to, future production volumes and costs, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland and Australia, adverse weather conditions in Zambia, Finland and Mauritania, labour disruptions, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, the production of off-spec material. See our Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of these factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein are qualified by this cautionary statement. 2

3 Q HIGHLIGHTS Operating profit up 79% against Q Revenue $775 million (up 37%) Copper production 84.9k tonnes (up 26% vs 2011) Nickel production 10.1k tonnes including 1.9k tonnes from Kevitsa Gold production 64.4k ounces (up 48% vs 2011) C1 copper $1.42/lb; lower than $1.53/lb Q C1 nickel $6.12/lb; lower than $6.24/lb Q Gross Profit benefited from: higher copper prices ($3.59/lb vs $3.40/lb Q LME average), higher gold prices ($1,721/ounce vs $1,687/ounce Q LBMA average), higher sales volumes at Kansanshi, and cost savings achieved at Guelb Moghrein Ravensthorpe and Kevitsa operations contributed to the overall result 3

4 FULL YEAR 2012 HIGHLIGHTS Strong production against 2011 Revenue $2,950 million (up 14%) Copper production 307.1k tonnes (up 16% vs 2011) Nickel production 36.8k tonnes including 3.9k tonnes from Kevitsa Gold production 201.9k ounces (up 15% vs 2011) C1 Copper $1.49/lb Full Year Gross Profit lower due principally to lower copper prices ($3.61/lb vs $4.00/lb 2011 LME average) and increased royalty rates ($46m impact) partly offset by higher sales volumes Solid progress made in delivering on long-term growth projects Sentinel construction continues to ramp up; with overall project progress now in excess of 22% Kansanshi copper expansion to 400,000 tonnes p.a. continues on schedule 4

5 PRODUCTION Q Q Q FY 2012 FY 2011 Copper ( 000 tonnes) Nickel ( 000 tonnes) Gold ( 000 ounces) Sulphide and mixed circuit copper production at Kansanshi similar to Q Oxide circuit marginally lower with benefit from the 7.2 Mtpa oxide expansion contributing to higher throughput offset by lower grade due to the stockpiling of high grade, high acid-consuming ore Guelb Moghrein copper production higher, benefiting from plant optimisation improvements Ravensthorpe and Kevitsa nickel production relatively in line with Q High Gold production attributable to commissioning Kansanshi regrind project in the quarter Copper, Nickel and Gold production higher than Q & Q Copper Production ( 000 tonnes) Nickel Production ( 000 tonnes) Gold Production ( 000 ounces)

6 FINANCIAL OVERVIEW $ millions Q Q Q FY 2012 FY 2011 Revenue ,950 2,584 Gross Profit ,101 1,308 Operating Profit ,189 1,120 (1) Comparative EBITDA ,143 1,284 (1) Comparative Earnings (1) Comparative EPS (Basic) ($) Closing Net Cash / (Net Debt) (88) (88) 389 Copper C1 Cost ($/lb) Nickel C1 Cost ($/lb) 6.12 N/A N/A (1) Comparative Effective Tax Rate (%) Performance against Q4 2011: Performance against 2011: Gross profit higher as a result of higher copper sales volumes at both Kansanshi and Guelb Moghrein, lower processing costs at Guelb (plant optimisation benefits), favourable copper and gold prices combined with the benefit of Ravensthorpe and Kevitsa operations. Lower effective tax rate predominately due to nonrecurring factors including recognising previously unrecognised tax losses. Gross profit impacted by lower copper prices combined with increased Zambian royalty rates at Kansanshi, partially offset by higher copper and gold sales volumes and the benefit from commencing operations at Ravensthorpe and Kevitsa. Ravensthorpe and Kevitsa contributed $43m and $24m the full year Gross Profit respectively. (1) FY12 comparative adjusted for $1,217.9 settlement of capital RDC claims and sale of assets. FY11 comparative adjusted for $48.4m bond inducement costs and costs attributable to discontinued operations; Frontier and Bwana / Lonshi. 6

7 OPERATING PROFIT Q VS Q Price Sales Volume Zambian royalties Higher Copper prices (Q LME average $3.59/lb vs Q $3.40/lb) combined with marginally higher Gold prices. Higher copper and gold sales volumes at Kansanshi and higher copper sales volumes at Guelb Moghrein. Impact of increase in Zambian royalty rates on Copper gross revenue to 6% from 3% and Gold gross revenue to 6% from 5% from 1 st April Other Cash Costs New Operations Kansanshi costs relatively stable between quarters. Favourable processing costs at Guelb Moghrein due to higher plant maintenance in Q and lower Group G&A Ravensthorpe commercial production declared December 28 th, Kevitsa commercial production declared August 18 th,

8 C1 COSTS Group Copper C1 within market guidance $/lb Q Q Q Kansanshi lower than Q due to lower mining costs and a higher gold credit partially offset by higher processing costs. Q Kevitsa Copper C1 Cost higher than last quarter due to expected cost ramp and lower by-product credits due to sale of pre-commercial production in Q Ravensthorpe Nickel C1 below market guidance FY 2012 FY 2011 Group Kansanshi Guelb Moghrein Kevitsa 1.75 N/A N/A $/lb Q Q Q FY 2012 FY 2011 Group 6.12 N/A N/A Ravensthorpe 6.05 N/A N/A Kevitsa 6.37 N/A N/A Ravensthorpe C1 Cost lower than Q with increased mining and ore development activities offset by reduced sulphur costs and processing circuit improvements. Q Kevitsa Nickel C1 Cost higher than last quarter due to expected cost ramp up and lower by-product credits. 8

9 QUARTERLY NET CASH FLOW MOVEMENT Opening Net Cash at start of Quarter 320 EBITDA 310 Working Capital Movements (164) Tax paid (85) Capital Expenditure (420) Dividends (23) Acquisitions & Investments (29) Other 3 Net Cash Movement (408) $m Closing Net Debt at end of Quarter (88) Comprising: Closing Cash 309 (1) Closing Debt (397) Available committed debt facilities 1,250 (1) Closing debt includes Senior Notes Issue ($339m), Kansanshi EIB Loan ($15m) and other short term borrowings ($43m) NB* An additional $500m ENRC receivable due March

10 MARKET GUIDANCE Delivered on market guidance in 2012 FY 2012 Q1 release Group Copper C1 ($/lb) Ravensthorpe Nickel C1 ($/lb) Copper Production ( 000 tonnes) Nickel Production ( 000 tonnes) Gold Production ( 000 ounces) Capital Expenditure ($ billion) Exceeded both Copper and Nickel C1 cost market guidance given in Q1. Exceeded Copper and Gold production guidance. Nickel production within guidance which included successful commissioning of the Kevitsa mine market guidance Group Copper C1 ($/lb) Group Nickel C1 ($/lb) Capex Approx $2 billion Copper Production ( 000 tonnes) Nickel Production ( 000 tonnes) Gold Production ( 000 ounces)