Antofagasta : Financial Reporting Document

Centinela Second Concentrator

Creating a Tier 1 Mining District

Iván Arriagada | Chief Executive Officer Mauricio Ortiz | Chief Financial Officer

20 December 2023

Cautionary statement

This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions:

This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Examples of forward- looking statements include those regarding the Group's strategy, plans, objectives or future operating or financial performance; reserve and resource estimates; commodity demand and trends in commodity prices; growth opportunities; and any assumptions underlying or relating to any of the foregoing. Words such as "intend", "aim", "project", "anticipate", "estimate", "plan", "believe", "expect", "may", "should", "will", "continue" and similar expressions identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond the Group's control. Given these risks, uncertainties and assumptions, actual results could differ materially from any future results expressed or implied by these forward-looking statements, which apply only as of the date of this presentation. Important factors that could cause actual results to differ from those in the forward-looking statements include: global economic conditions; demand, supply and prices for copper; long-term commodity price assumptions, as they materially affect the timing and feasibility of future projects and developments; trends in the copper mining industry and conditions of the international copper markets; the effect of currency exchange rates on commodity prices and operating costs; the availability and costs associated with mining inputs and labour; operating or technical difficulties in connection with mining or development activities; employee relations; litigation; and actions and activities of governmental authorities, including changes in laws, regulations or taxation. Except as required by applicable law, rule or regulation, the Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Certain statistical and other information about Antofagasta plc included in this presentation is sourced from publicly available third party sources. Such information presents the views of those third parties and may not necessarily correspond to the views held by Antofagasta plc.

This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Antofagasta plc or any other securities in any jurisdiction. Further it does not constitute a recommendation by Antofagasta plc or any other person to buy or sell shares in Antofagasta plc or any other securities.

Past performance cannot be relied on as a guide to future performance.

2

Centinela Second Concentrator

Project approval

• Antofagasta plc is pleased to announce that the construction of the Centinela Second Concentrator Project has been approved. Critical path works will begin immediately with full construction expected to commence after definitive project finance documents have been executed during Q1 2024.
• This presentation serves to summarise the Second Concentrator Project, which will add an average of 170,000 tonnes of copper equivalent production per annum.1

1 Note: 10-year average for the Centinela Second Concentrator following ramp up.

Image: Centinela's existing concentrator, which has a design capacity of 105ktpd.

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Unlocking Centinela's resource potential

District containing two concentrators and two SXEW plants

			Mirador Mine
			(oxides)
Km	SXEW Plant		Llano (Oxides)
c.20
			Esperanza Mine
		Tailings
		facility
			Esperanza Sur Mine
			First
			Concentrator
			SXEW Plant
Tailings	Second	Primary	Encuentro Mine
(expanded)
facility	Concentrator	Crusher

Existing facility

Existing mine

New facility

Project summary

• Primary crusher and conveyor belt system (connecting mine and plant).
• 95ktpa concentrator incorporating HPGR1 technology.
• Expansion of existing water system (raw seawater).

Mine plan

• New concentrator initially fed by Esperanza Sur (ESS).
• Following expansion of existing Encuentro mine (ENC), new plant to be fed from two pits (ESS+ENC).

STRONG TRACK RECORD OF PRODUCTION

		BROWNFIELD EXPANSION LEVERAGING +20 YEARS OF EXPERIENCE
(ktpa)	300						Concentrates
200						Cathodes
Production
100						2023 Guidance
		0
				2002										2011												2
		2000	2001	2003	2004	2005	2006	2007	2008	2009	2010	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
1 High pressure grinding rolls.																		5

2 Mid-point of 2023 guidance shown (as published January 2023).

Infrastructure: Leveraging existing investments

Reducing construction risk

Concentrate port

Antucoya

Pipeline (Concentrate

& Water)

Centinela

Plant

• Port operations: Expansion of existing facilities at Michilla, Northern Chile.
• Concentrate pipeline: Expansion of existing pumping capacity, increasing pipe diameter in sections.
• Water: Expansion of existing system, pumping raw seawater to Centinela and Antucoya, following path of concentrate pipeline. Processing plant already configured to operate on 100% raw seawater as a result.

Overview: Centinela Second Concentrator (December 2023)

6

Technology and Innovation: Boosting competitiveness

Developing an asset for the next 36 years

CENTINELA DISTRICT MOVING TOWARDS FIRST QUARTILE C1

COST FOLLOWING EXPANSION

1st Quartile	2nd Quartile	3rd Quartile	4th Quartile
550
450
350
c/lb	Centinela YTD 2023
	$1.76/lb
250
150

50

-50

0%

1 Cost curve source: Wood Mackenzie (cost curve for 2028, dated Q3 2023).

	Key drivers for cost savings
Mining	• Expanding existing fleet autonomy.
• Larger fleet (373 tonne haul trucks).
costs
• Incorporating higher grade Encuentro deposit.
	• Lower energy consumption through modern
Processing	technology (high pressure grinding rolls).
• Higher power ball mills.
cost	• Operational synergies with existing infrastructure
	(water, molybdenum plant and tailings).
G&A	• Synergies in utilising existing services.
cost	• Economies of scale.
	• Deployment of modern technology and larger
Total (net)	equipment offering economies of scale.
cost	• Greater emphasis on concentrate production at
	Centinela (with associated byproducts).

Overview: Centinela Second Concentrator (December 2023)

8

Capex composition: Brownfield nature reduces risk

Investing in our assets for industry-leading growth

PROJECT COST: $4.4BN

ADVANCED DETAILED ENGINEERING ESTIMATE INCLUDES

•	ADDITIONAL CONTINGENCY PROVISIONS
•	ESCALATION FOR INFLATION
•	UPDATES TO LOCAL LABOUR REGULATIONS

PROJECT CAPEX COMPOSITION

BROWNFIELD EXPANSION MEANS NEARLY 60% OF INVESTMENT

TO BE ON MINING AND PROCESSING OPERATIONS

Contingency and

•	STRONGER LOCAL CURRENCY ESTIMATE

billions)	5

other

Project management costs

Mining

($,	4	0.7	4.4
	3.7
estimate	3
cost	2
Capital	1

and service contracts

Water, port and

other

infrastructure

Processing

0
Previously Announced Update (2022/23)	Updated estimate

Capex estimate includes the following inputs and assumptions:

• 3% CPI assumption.
• Capital cost estimate of $4.4Bn is valued as of January 2024.
• Figures exclude advancement of mine development costs at Encuentro.

Overview: Centinela Second Concentrator (December 2023)

9

Investment and financing timeline

Smoothing cashflow via 12-year debt facility

	Project finance ($2.5 billion)
4.5-year grace period	• Facility structured at the project level (Centinela).
• Term: 12-year facility:

1. 4.5-yeargrace period.

o 7.5-year amortisation schedule.

					• Disbursements to be made according to the progress in the execution of the project.
FIRST
DRAWDOWN					Shareholder contribution (Antofagasta share: $1.3 billion / Marubeni $0.6 billion)
2024
				• The water infrastructure sale and leaseback process may further strengthen Centinela's
					cash balance and reduce capex requirements.

FIRST

			PRODUCTION
			2027		7.5-year debt service and amortisation schedule
2024	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035

Concentrator and associated infrastructure ($4.4Bn)		Debt service
Overview: Centinela Second Concentrator (December 2023)	10