Anglo American (AAL) investor relations material

Deal rationale and strategic fit

• Merger creates a world-leading critical minerals producer with over 1.2 million tonnes of annual copper production, more than 70% copper exposure, and a top five global copper producer position, leveraging complementary portfolios and operational strengths.

• Combined entity will have a diversified asset base, including world-class copper, premium iron ore, and zinc operations, with significant growth optionality in brownfield and greenfield projects.

• Headquarters will be in Vancouver, with significant presence in Canada, South Africa, and the UK, reflecting both companies' heritages and strategic markets.

• The merger supports national priorities in Canada and South Africa, including investment, employment, and Indigenous and community relations.

Financial terms and conditions

• Anglo American will issue 1.3301 new shares for each Teck share; Anglo American shareholders will own 62.4% and Teck shareholders 37.6% of the combined entity.

• Anglo American shareholders receive a $4.5 billion special dividend ($4.19 per share) ahead of closing.

• The merger is structured as a plan of arrangement under Canadian law, with exchangeable shares available for eligible Canadian shareholders.

Synergies and expected cost savings

• $800 million in pre-tax recurring annual synergies expected, with 80% realized by year two and full realization by year four post-completion.

• $1.4 billion annual average underlying EBITDA uplift from operational integration of Collahuasi and Quebrada Blanca, adding approximately 175,000 tonnes of copper production annually.

• Additional one-off $200 million cash synergy from improved working capital management expected within three years.

• Realization of synergies will require $700 million in one-off costs for recurring synergies and $1.9 billion for long-term operational synergies.

• Additional value from procurement, marketing, trading, and overhead streamlining.