Anglo American plc

I don't have any acceptable cricket jokes to tell with my chairman in the room, so I'm just going to go straight into the presentation. So welcome everybody again, and thanks for joining us. And as usual, the presentation format that we've always followed will be the one that we follow again today. So I'll start, give a bit of a brief overview of our first half performance. Stephen will then follow me. with all the details of the numbers, and then I'll come back and talk a little bit about what the outlook for the rest of the year and the long term looks like for us. Now, as always, you would expect me to start with talking about safety, and that's what I'll do. It is our first priority and is the most important priority that we have in the business. And I hate to be standing up here and telling you that we've had another fatality in the group, which we had in February of this year at Colomela. And we're also investigating an aviation incident that occurred in Angola where the pilot who was doing some work for us on exploration on our De Beers leases lost his life in a plane accident. We will never stop working on finding a way to eliminate fatalities. We've done quite a lot of work this year actually to continue on our journey by specifically doing two things in the first half and we're going to do another thing in the second half that is looking to drive and change and shape behaviors as well as work processes. In the first of these, is we've made it obligatory for leaders in the business to spend more time at the work face. The whole idea here is that they get to talk to the people actually doing the work, not running the work from an office, not running the work from a boardroom, but actually properly engaging. They get an opportunity to understand what's working, what's not working, and how we might be able to change things for the better more deliberately than perhaps we've been able to do in the last little while. and very consistent with our operating model, which, by the way, is fundamentally premised on a very simple cycle of plan, do, check, and act, the most important of which is planning. If you get the planning right, the rest tends to come ahead of a lot better. And that's never more true than in safety operations. And our ability to do this and measure it We chose planned maintenance as the first element. So clearly you can understand the production benefits, the productivity benefits of more highly reliable equipment, et cetera, et cetera, in the business. But actually, it is also a great example of what we mean by planning the work in our operating model plan, do, check, act cycle. So we're measuring this extremely hard. And I think we're starting to see a few of those benefits. So certainly not at this particular point in time ready to declare victory on this. But we are, despite those fatalities, at the now lowest level of total recordable injury frequency rate in the business, in the whole history of the business. So we'll keep pushing on this. We'll keep driving it. And our ambition is, and we will get to zero at some point. Thirdly, the one thing that the analysis of our data and information has shown us is that almost half of our workforce is contractors, and most of our injuries and incidents are occurring within the contractor workforce. We've got a lot more to do to embed those contractors into our business and drive their performance in the same way we expect our performance to be driven. So we've just started a three-year program which is going to be looking at meaningfully helping and manage the planning processes, the resourcing processes. of our contractor teams for performance in the same way that we expect performance from our own operations. I'm equally pleased to report to you today that we've had no new cases of occupational disease or any environmental incidents. Right, so we do remain committed, as always, to delivering our products to our customers in the most sustainable way that we possibly can. And I am quite encouraged by the progress that we have continued to make across all of our operations during the first half of this year. So Kiweco is now 100% on renewable energy. And with the coal business in Australia converting its energy supply contracts to renewables by 2025, that'll put 60% of the whole of our portfolio on clean forms of energy. And that's a great step forward, given where we were just a few years ago. South Africa, of course, or Southern Africa, is now the only outstanding region in our business that is not on renewable energy. But there, we can't go to a market and acquire that energy in the same way we were able to do in many of the other jurisdictions of the business. So it needs a different solution. You've heard me speaking about INVUSA quite a lot, which is our joint venture with EDF Renewables. And the purpose of that joint venture is to stand up somewhere between three to five gigawatts of energy in Southern Africa. We've now got to the point where we are almost ready to financially close on the first of these projects, which is three sites, both solar and wind, attached to them in the Northern Cape. And we're about to also commence work on two large solar sites at Sishen and Mojalaquena. These projects don't only remove up to two million tons of carbon from our operations, but they also have a very meaningful and positive financial benefit to the business. particularly the South African business. But notwithstanding that, all the contracts that we swapped out across the world have all had a very positive NPV benefit to the business so far. So as you would expect, the team is continuing to work very hard on delivering these projects into INVUSA and getting the work done to complete the stability of our energy supply situation, particularly in South Africa, and renew our focus on carbon reduction across the portfolio. On water withdrawals, We are now already at 26% lower than our 2015 baseline. So that makes us slightly further than halfway to our 2030 goal. The Los Bronces integrated water solution that I spoke about in February is the next major milestone on this journey. And in the meantime, we have to and will continue to focus on the recycling and the reuse of water in the assets and in the countries particularly where water is scarce. And to that end, Our program, our future smart technology program, has two technologies embedded in that that are now starting to show some real fruits. That is coarse particle recovery and dry stacking, both of which, or hydraulic dry stacking of tailings, that is, and both of which are now in implementation at El Soldado and actually being able to prove measured benefits. So looking very much forward to being able to roll some more of that out at bigger scale across the business. our livelihoods programs focus on delivering lasting and meaningfully positive impacts to our host communities. This is about delivering economic value through procurement, through recruitment, and through business setups that support sustainable employment and economic diversification for our communities. And here we have a very ambitious goal of creating five jobs not related directly to mining or offsite for every one job that we have onsite in our employment. So this is our work and progressing reasonably well at this point. Stephen is going to come back now and talk about the details and the numbers, but production was up 10% in the first half of 22, primarily driven by the ramp-up of Kiveko. EBITDA of $5.1 billion is a satisfactory performance, I believe, given the 19% decrease in our basket price compared with this time of last year. We, of course, did have a little bit of a tailwind from foreign exchange, but the easing of the price response to the Russian-Ukraine invasion The slower than expected reopening of the Chinese economy and the ongoing inflationary pressures that we're seeing across the whole of the world in key markets has indeed weighed quite heavily on the demand for our products as well as on our cost base. Cost inflation for us was largely offset by the maiden first half contribution from Kibeco. Overall, production is on track to meet our full-year outlook, and as always, and especially in the current macro context, the one thing that we cannot and will not let go of is the fact that operational performance is going to be materially levered to cost control and operational production performance. So looking at the first half... business by business. In copper and nickel, Kiveco has continued its successful ramp-up, given that we started at around about this time last year. And I've got a slide specific on that to follow. Very pleased with the fact that we were able to get that permit for the Los Brontes integrated project earlier this year. That's been a game-changer for that asset and that business. And we're now working very hard to... to plumb the development options against this permit now for the open pit and the underground projects and trying quite hard to mitigate the impact of that licensing today to get the higher grade and the softer ores into the plan as early as we possibly can. As you know, and I mentioned to you in December last year, we're in a phase in most of our copper and nickel businesses where the ore grade is slightly lower than the long-term grade of the rest of the resource. So in PGMs, the team has managed, I think, extremely well through the ESCOM volatility. And that has had a relatively limited impact on our first half performance. We clearly are not out of the woods there yet. We still have a few months of winter to go. But without a doubt, ESCOM has performed a little bit better than we expected that it might do. And our ability and interface with the operations management of ESCOM has helped us to plan the business and manage around the load curtailments process. that we have seen. And at De Beers, we are absolutely delighted to have reached an agreement with the government of Botswana in principle on both the sales agreement and the extension of the mining licenses. Operational performance at De Beers has been really good, very strong during the first half of this year, and particularly at Arapa. We also just reached a major milestone at our Venetia underground project where we took our first production blast a couple of weeks ago. The macroeconomic conditions have indeed impacted on rough diamond demands, as it always does. And we are likely, I believe, given what's happening in China, to remain challenged during the second half of this year. And the consequent result of that is there'll be a little bit of buildup in the midstream inventory levels. In iron ore, Minas Rio had a great first half with a particularly strong second quarter, achieving a number of first-time performance records. I think that reflects the benefit of the operational improvement program that we set about implementing in the middle of last year. I think this also sets us up extremely well for a good second half there. Kumba too, operationally, has had a very solid performance, including a great recovery from Colomela, but is constrained now by Transnet quite materially. We continue to collaborate, as you would expect us to do, at all levels of the organization, from top to bottom of government and with Transnet. But until the Transnet performance improves, and there's quite a lot of work to still do here, those constraints will continue to exist for Kumba. And finally, at Steelmaking Coal, we saw a much improved contribution from the open pits following the very wet weather events that we had at the first half of last year. The underground operations in the first half of this year were impacted by the fact that we had two long mall moves, one at Grosvenor and one at Aquila, which won't happen in the second half of the year. And we also have some very difficult strata conditions that exist at Maramba. But performance is now improving. And given the fact that we don't have these two long warm moves planned for the second half of the year, we expect production volumes to step up quite strongly half on half. So this time last year, as I said, we had only just put the first tons through the mills at Keveco. A year later, we've produced 240,000 tons of copper. And I think that that's an incredible performance for a new project and the speed at which it's been able to ramp up. It's reached commercial production levels, and we defined that as being in June. And the molybdenum plant, which we spoke about as being in construction, almost ready to commission in February, is now commissioned and pretty much producing at its design levels of output. So we are on track at Keveco to meet our guidance at a very, very competitive unit cost position. The strong performance here, I think, is absolutely a testament to the caliber of the operations team that we have there, but also the interface that that operations team had with the project team in not only the building, but the commissioning and the ramp up of the project. I think it's a great example of how projects should be built, executed, and transitioned into operational management. At De Beers, as I say, very, very pleased to have been able to reach this agreement in principle with our long-standing partner, the government of Botswana. As you know, the mining licenses there were due to expire in 2029, and so securing a 25-year extension to these licenses, which take us all the way through to 2054, has completely opened up the dynamic and is critical to the investment pathway for what are the best diamond mining assets in the whole of the industry. Under this new 10-year agreement, which is a sales agreement, Botswana does have the option to directly market a larger share of the production. The licenses also recognize, I believe, the strength of the relationship and the partnership between De Beers and Botswana in so doing by the creation of the Diamonds for Development Fund that is designed to help accelerate Botswana's economic diversification. All parties are still working quite hard to ink these final agreements. So there are a couple of months of work for Al and the team to get all the I's dotted and the T's crossed. And then we're going to have to bring this agreement to the vote for the shareholders because it is indeed a related parties transaction. Now, as you know, one of my key priorities has been restoring the operational consistency and performance across the whole of the portfolio. And we had slightly slipped on that coming out of the couple of years of COVID. And in support of all of this, we've made some changes to the executive leadership and over the last 12 months, and we now have reorganized how we manage our production businesses and the functional expertise that supports these businesses. So these, plus other changes in work prioritization, are going to ensure that our operations are optimally supported to deliver responsibly, sustainably, and repeatably to the targets that we set for them. And thereby, I think, unlock considerable additional value from within the existing portfolio. As a result of this reorganization and our focus on cost management, we expect an additional annual cost savings from across the full range of business support activities to manifest in the form of approximately half a billion dollars per annum from about the middle of next year. Stephen will give you a little bit more color on our full financial performance lever shortly, but to be clear, this focus on operational performance and cost management is a priority for us in the business at the moment. Stephen? Thank you, sir. You don't have to call me sir anymore. You're going.

Should hear what I normally call you. Thanks, Duncan. And as usual, I'm going to open with my three key themes for you to take away. The first one, the weaker macro environment has weighed on our financial performance this half, but we are poised to deliver a significant step up in the second half. Two, we remain committed to our capital discipline, the 40% dividend payout and maintaining a strong balance sheet. And three, despite any near-term uncertainty, the longer-term outlook for our products is highly attractive and we continue to invest in our value-adding growth options that have the potential to add to our volumes over the next decade or so. So looking at the first half performance, EBITDA of $5.1 billion, and I'll break that down for you in a little bit, but weaker prices were the main driver. Translated to an EPS of $1.38, an interim dividend of $0.55 per share at our 40% dividend payout policy, and that gives you an annualised yield of around 4%. Net debt increased to 8.8 billion. Again, I'll unpack that for you shortly. And return on capital employed still at a healthy 18%. So, breaking down the EBITDA by each of the different production businesses. Copper and nickel, 1.6 billion EBITDA. In Chile, the operational performance was impacted by expected lower grades, as Duncan mentioned, as well as significant cost pressures from stronger currencies and inflation. Kayoveco delivered a 65% margin while still in ramp up and we're looking forward to an even stronger contribution in H2. PGM's 0.7 billion EBITDA hard hit from lower palladium and rhodium prices with the price basket there down 29% and that reverses some of that Ukraine lift that we saw in H1 of 22. 0.3 billion EBITDA. Strong operational performance, delivered a robust mining margin of 50%. Demand for rough diamonds though has slowed and it was of particularly strong base through 2022. 1.8 billion EBITDA. A strong operational performance at Minas Rio and looking for that to really continue through the second half as well. At Coomba, a decent performance in light of the challenges in the rail and port logistics. and for steelmaking coal, 0.6 billion EBITDA, a strong pickup in volumes at the open cuts after the exceptional level of rainfall that we had in the corresponding period. The price was robust, but significantly down on the record prices again we saw last year. So in terms of the drivers of EBITDA, prices down 19% year on year across the basket. You may recall that some prices were at very elevated levels through the first half of last year, and that price move is the single biggest contributor. Two thirds of that price move was driven by lower PGM and still making coal prices. Volumes and costs have benefited from the ramp-up at Cayo Vecco, as well as higher production from still-making coal operations. As I said, we should see further significant step-up in performance at those businesses during the second half. But we also had some operational headwinds, lower grades and cost pressures at both PGMs and in Copper Chili. Excluding the impact from prices, a pretty good performance. So, unit costs were up a net 1%. So, breaking that down, the combination of high input costs and inflation totalled 7%. Broadly, as expected, Chile and South Africa seeing the greatest pressure. Compared to the first half of 2022, we have seen some benefit from currencies, particularly the rand, helping to offset some of that inflation impact. volumes excuse me a further benefit of three percent and k of echo the key contributor there so looking to the full year you will have seen that we adjusted some of our cost guidance last week but that was just largely reflecting the currency movement since the beginning of the year the latest guidance translates to a three percent unit cost increase on the full year of 2022. So taxes and royalties paid for the half were 2.5 billion. It's lower than last year, but it reflects that weaker price environment, and that's how the system's supposed to work. Our effective tax rate was 37%. That is up on last year and that reflects the mix of profits that we have at our increasing geographic diversification, particularly in South America. South America does include some higher tax jurisdictions and 47% of our profit mix this half was up from 24% in the prior half. The full year tax rate is expected to be about 1% higher than previous guidance. We expect the new Chile royalty regime to be enacted during the second half, triggering re-measurement of our deferred tax positions. And the new regime is then expected to impact our current tax expense from 1 January 2024. But I have to say I'm reasonably happy with the outcome here. The government listened to industry feedback and has landed in a reasonably sensible place, something Queensland could learn from. Turning to capex, $2.7 billion in the half. Guidance for 2023 is lower at around $6 billion, partly reflecting some rescheduled spend at Woodsmith. We've also tightened our sustaining capital guidance to around $4.5 billion, the middle of the previous range. Sustaining spend will step up in the second half of the year as activities ramp up at some of the key projects, such as the Kolawasi desal plant and on the processing side at Minis Rio and in PGMs. despite the weaker price environment, it's critical that our assets still receive the stay in business capex they need to deliver that consistent operating performance through the cycle. As I say, we are committed, as ever, to a strong and flexible balance sheet. Net debt increased to $8.8 billion. Working capital increased by $0.7 billion. And that was on the back of lower PGM prices, which led to a reduction in the value of the POC and the payables, as well as the customer prepayment. And the softer market conditions led to a build-up in Diamonds Infantry. We paid out $0.9 billion to shareholders, reflecting the 40% payout from half to 22, and we continued to invest in the capital growth options. Our net debt to annualised EBITDA of 0.9 times remains well within our bottom of the cycle target of 1.5. So recapping the first half performance then against our capital allocation model. $0.2 billion of cash generation after funding sustaining capital, impacted by prices, but we have plans underway to enhance our margin resilience over the longer term, and $0.7 billion declared at the base of our 40% payout. We then allocated $0.6 billion to growth capex. So as Duncan touched on earlier, we are focused on driving effectiveness across the organisation through optimisation of both our organisational structure and work prioritisation. To reiterate, we are expecting to deliver a stronger second half off the back of improved volumes, which would also help our unit costs. And this is our biggest margin lever. We will continue to invest in our full breadth of stay-in-business capital projects. However, we are tightening our overall capital guidance to $6 billion, the lower end of our previous range, and we're also expecting significant annual cost savings of about $0.5 billion per annum across the breadth of our business support activities, with the full savings and run rate expected from the second quarter of next year. These organisational changes will enhance the resilience of our business over the longer term. We're committed to capital discipline and working capital remains a really critical focus. Duncan, back to you.

OK, so this next slide You've seen before, or a version of it, and I'm probably at risk of repeating myself, but it is the slide that I think makes me so excited about this industry and this business. The demand for our products continues to be underpinned by three key macro themes. The first of these is decarbonization, and that is obviously for us going to manifest through cleaner energy, industrial and transport systems. The second is improving living standards of an expected growing and urbanizing population across the whole of the globe. And I'm going to come back and unpack this point in the next few slides. And of course, food security as the third of these themes, where there is now, I think, a clear and increasing recognition that the huge strain on global agriculture to feed this growing population is going to have to be done in such a way that not only does this effectively from a nutrition point of view, but also does not continue to wreak havoc on the environment. And I think our current product mix and our future growth options play very, very strongly into these things. So not a lot not to be excited about there. Now, of these themes, decarbonization has dominated the agenda and I think is pretty well understood, pretty well discussed. But in addition to this green transition, I don't think we can or should ignore the fact that fundamental demand for improved living standards from a global population that is going to grow by 2 billion people between now and 2050, And, by the way, the consuming middle classes are going to grow by 1.3 billion between now and 2030. That people have everyday needs, such as homes, such as energy, such as transport, infrastructure, appliances, et cetera, et cetera. And it is the product of mining. or farming, so if it's not grown, it's probably mined and it's all around you, that are going to be able to enable these changes for development that help lift people out of poverty. It just simply cannot happen without sustainably produced mined metals and minerals. I don't think anybody needs much more convincing on the demand for our products, which are expected to grow. But just briefly a couple of examples. So copper, firstly, a massive beneficiary of the decarbonization theme, but to an even larger extent should be a much bigger beneficiary from the economic development theme. Today, the global installed stock of copper is around 61 kilograms per person. We're going to need a fourfold increase in that to reach the levels in the developing world to those that we see in the developed world today. And there's just no rational reason to believe that the underdeveloped world is not going to want to develop in the same way that the developed world has. So convergence towards Western-like living standards and achieving the first of the UN sustainable development goals, which is the eradication of global poverty, and doing that in a manner that is sustainable, will be massively metals and minerals intensive. And yet, it's becoming increasingly more difficult to find resources and bring resources online to supply into that demand. Secondly, steel. The simple fact is that steel remains the fundamental building block of economic growth and development. And when we look at steel, we see almost exactly the same situation as we do for copper. But everybody talks about copper a lot because it's a transition metal. But on the development side, it needs the same sort of growth as copper does, almost a fourfold increase in stock required to meet the convergence between developing and developed countries' aspirations. So this, of course, implies continued demand for iron ore, but also for steelmaking coal, and in particular, the higher quality varietals of those two inputs to steel. And while the steel industry itself is on its own pathway towards decarbonization, the simple fact is that for the majority of the world's steel demand over the next couple of decades, it will be met or has to be met by integrated blast furnaces. It's simply not easy just to add new units of supply in almost any commodity that is mined. And so I think, so what of all of that must mean that the outlook for prices is very, very positive. We are well positioned, I think, to deliver full value from our industry leading portfolio and strong operational and commercial capabilities. Operational excellence is our most important lever to create sustainable value while at the same time meeting our customers' needs. We have to continue and will continue to focus on safe, efficient and effective running of our operations day to day to realize the full potential from the installed capital base. Secondly, We are building on that stable platform to de-bottleneck the constraints within our value chain in the most capital efficient manner. So there's a lot of growth that we can still bring out of the existing portfolio by running the existing portfolio better just with the applications of operations discipline and some technology as we move forward. Thirdly, future smart mining is our technology-led and integrated approach to sustainable mining, and that helps us to unlock further these opportunities that I speak about to maximize the potential of our ore bodies and create optionality both outside and inside of the existing portfolio. And lastly, our attractive organic growth options offer a significant potential for us over the next decade or so. Kiweka was the first of these projects that we brought in from our growth pipeline, and that represents roughly 10% of that growth. It is successful delivery and ramp-up of that project that acts as a blueprint for our high-margin development options that we will have to continue to sequence at the right time and in the right way. Of course, we will retain flexibility to review our portfolio and compare our organic options against any inorganic opportunities that may arise. And we would always do that for value, but we know what the benchmark is. Within the portfolio, the vast majority of these growth options for us exist within our copper portfolio. Kiweco will deliver 300,000 tons a year, but there is long-term potential for more expansion on the existing asset at Kiweco, as well as regional potential, which we see emanating from our exploration program there. At Koyawasi, we have a brownfields expansion option that could deliver another 150,000 tons of copper, and that would be our share of Koyawasi's copper. And in Finland, we have the Sokrati Greenfield project, which we are well advanced in the permitting process for, which could deliver another 100,000 tons of copper. And there is future potential growth from the underground at Los Bronces, as we know. And all of these, I think, represent a scarce and very attractive set of options in relatively stable and familiar jurisdictions across the world. Now, I talked about food security a little while ago, and so that takes us into Woodsmith. Food security for 10 billion people and delivering that sustainably is really a major challenge for the agricultural industry. The product that Woodsmiths will produce, Poly4, will be able to increase crop yields, that's really important to farmers, by three to four percent. It will have a carbon footprint that is significantly lower than any comparative product, MOP or SOP, that's in the market today. and its natural and physical chemical properties serve to improve soil quality, health, and structure, and it is an organic product, and that barely needs any processing. So basically, it's about as close as you can get in certain applications to simply applying ore to the field. It will be a cornerstone of Anglo-American in the future. It is incredibly long life, is incredibly low cost, and it will produce strong cash flow for multiple decades after it comes into production. In terms of the project itself, we make good progress. We continue to be ahead of schedule on our core activities of shaft sinking and tunnel boring. So the tunnel is now almost two-thirds complete and ahead of plan. The sinking activities for the two deep shaft, the production shaft and the service shaft, are also progressing slightly ahead of our current plans. very pleased with the progress that we continue to make on the core infrastructure around the project. And in terms of the other major construction work, so this time last year, we had put in one of the three shallower shafts on top of the minerals transport tunnel. The purpose of these shafts, of course, is for access and ventilation. We have now completed the other two, so three of three now done ahead of schedule. As I set out earlier this year, the confidence that we've built in this asset and the product means that we are now planning to deliver a larger operation in a phased ramp-up approach. So at the end, we'll be 13 million tons per annum of polyhalite produced. And that's a 30% increase on what we had previously envisioned. We are undertaking now the further studies that maximize this long-term value. And while we do that work, we have rescheduled a few of the non-critical items around the project development pathway. And that means that CapEx for this year has been reduced, or guidance for CapEx this year has been reduced by $100 million to $0.7 billion. Our market development activities also continue and continue to focus now on on-farm trials and demonstrations. So we've moved from the trial stage to major demonstration stage, and they continue to go well and underpin the benefits that we've been talking about for the last year. Now, as we've talked about quite consistently, we must deliver our production from both our existing assets and our growth options as sustainably as we possibly can. This is actually where I believe Anglo-American has a different approach. With our sustainability considerations embedded deeply, not only into our strategy and value creation model, but also into the way we operate the assets. Our future smart mining program integrates innovative technologies and our approach to sustainability and drives us to consider holistically all the issues and opportunities where others might just see problems and challenges. we do really see real value creation opportunities within our portfolio across the industry and across the value chain. So just on energy, for example, the Nvusa Energy project that I spoke about a little bit earlier, or joint venture I spoke about a little earlier, is going to stand up the three to five gigawatts of energy in South Africa. not only should that increase grid stability and security of our electricity usage in that country, but also it will reduce our operating costs associated with electricity in that country. Swapping to renewable contracts across our South American and our Australia operations have both proved to be exceedingly positive from an NPV perspective. On water, the proposed water swap that I mentioned or spoke to you about in February of this year at Los Bronces is going to provide water that we need to run these operations more sustainably and more effectively, but it's also going to provide a lot of clean water to our communities in and around Australia. that business. This water will be supplied at a unit cost that is lower than the cost of water that we are able to get through alternative means at Los Bronces today. So our coarse particle recovery and hydraulic dry stack pilot projects, which are now at full commercial scale at El Soldado, are yielding some very, very promising results, as we'd hoped. And now we're working with Matt and his team to try and replicate those at scale through some of the businesses where they work best. These examples I think do demonstrate that sustainability is a key driver of commercial and stakeholder value today and tomorrow. I believe that this approach is key to demonstrating to our host communities, to governments, to our customers and partners, as well as to our current and potential shareholders and society more broadly, what responsible and sustainable mining looks like. And it is always guided by our very clear purpose to reimagine mining to improve people's lives. We aim to be the partner of choice to those who, like us, focus on long-term sustainable value creation. In summary now, I think a very good first half that sets us up for a strong second half. While the longer term key fundamentals for our products do remain strong, we are implementing decisive measures in the current environment to ensure that we are positioned to deliver on our operational and our strategic priorities and to capture what will inevitably be upside to a market recovery. We are focused on driving safe, consistent, and competitive operational performance, and we are optimizing our organizational culture and structure and work prioritization in support of all of that. We are focused on our costs throughout this business, and that includes our business support activities, whereas both Stephen and I said earlier, we expect to deliver an annual savings of half a billion dollars. In addition to that, we will continue to focus our optimization on working capital and capital expenditure. These near-term priorities will improve the resilience of our business and enhance our margins through the cycle. We are committed to maintaining a strong and a flexible balance sheet as always, and an attractive base dividend payout, while at the same time delivering sustainable long-term value for all of our stakeholders. We do have a uniquely diversified portfolio with a range of attractive organic growth options and continue to build our exposure to those three major global themes and trends that I spoke about earlier. We'll do that and develop all of these options sustainably and profitably all at the right time. And with that, I'm happy to take questions in the room.