Antofagasta : Financial Reporting Document

2022 BMO Conference Presentation

Iván Arriagada

Chief Executive Officer

28 February 2022

• Thanks for the invitation and for organizing this conference.
• It's always great to be here, especially now, and I hope this is a sign that we are moving to combining the benefits of digital connection with direct person to person interactions.

• Let me start by pointing to our Purpose.
• This encapsulates what motivates all of us at Antofagasta and goes beyond the day-to-day tasks that everyone is expected to do in their specific roles.
• As a mining business, we work to produce metals for the benefit of all, by responsibly and safely mining metals that are essential for modern society, while at the same time providing economic and social development opportunities.
• This concept has been shown to be particularly important during the last years. With the pandemic requiring even greater levels of collaboration to address common and collective challenges.

• We remain committed to safety, which is our top priority.
• We are taking many actions to develop a resilient safety culture. This is supported by rigorous risk assessment and permanent supervision of all critical tasks, and an open and transparent reporting so as to understand all our unwanted events, and in particular those that could lead to High Potential Incidents or HPIs.
• As a result, we are emphasising the reduction of our HPIs as a key leading indicator.
• COVID has continued to impact how we run our operations and projects but with our preventative controls and the very high level of vaccination rates, now above 95% including our contractors, this impact has not prevented us maintaining continuity in our operations and from meeting our production and cost targets.

• Just a quick overview of our performance in 2021.
• During the year our mines and plants performed reliably and as planned with our key facilities at Pelambres and Centinela operating at, or above design capacity, impacted only by the continued drought in central Chile which is a temporary condition as we complete construction of the desalination plant at Pelambres.
• We are proud of our achievements, especially in the face of the challenges of COVID-19.
• We successfully achieved our production and cost guidance for the year with copper production of 721,500 tonnes at a net cash very competitive cost of $1.20/lb.
• Supported by a strong copper price, our EBITDA increased by 77% to $4.8 billion, a record for the Group, with an EBITDA margin of 65%, which is 11 points higher than in 2020, and our solid cash flow from operations allowed us to improve our already strong financial position, completely deleveraging our balance sheet to a Net Cash position of $540 million.
• Our Return on Capital Employed was a healthy 33% and we declared a final dividend that brought our total dividend for the year to the equivalent of a pay-out ratio of 100% of underlying net earnings.