Interim Results 2007
03 August, 2007
Anglo American announces record underlying earnings of $3.1 billion, up 22%, and an additional $4 billion capital return
- Operating profit(1) increased to $5.5 billion, up 19%
- Record underlying earnings(2) of $3.1 billion, up 22%
- EBITDA(3) of $6.6 billion, up 12%
- Strong performances from Platinum, Base Metals, Ferrous Metals and Industrial Minerals
- Further $4 billion buyback announced
- Interim dividend increased from 33 to 38 cents per share, up 15%
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Substantial $8.2 billion project pipeline:
- Acquisition of 49% interest in the MMX Minas-Rio iron ore project in Brazil for $1.15 billion
- Winning tender for Michiquillay copper project in Peru for $403 million
- Acquisition of a 50% stake in the Pebble copper project in Alaska for $1.4 billion
- Major Australian coal projects on track for 2007/08
- Sishen Expansion project on track for first commercial output Q4 2007
- Snap Lake diamonds to commence production at the end of Q3 2007
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Good progress in completing our restructuring:
- Decision taken to sell Tarmac
- Completion of demerger of Mondi
- Disposal of holding in Highveld Steel
- Unbundling of Hulamin from the Tongaat-Hulett Group
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Actions taken to improve poor safety performance
- Unacceptable safety performance, particularly in Platinum
- Immediate measures put in place at Rustenburg section platinum mine to address safety concern
- Strong management focus on operational improvements
| HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2007 US$ million (except per share) |
6 months ended 30 June 2007 |
6 months ended 30 June 2006 |
% change |
|---|---|---|---|
| Group revenue including associates(4) | 19,849 | 18,825 | 5.4% |
| Operating profit including associates before special items and remeasurements(1) | 5,452 | 4,563 | 19.5% |
| Profit for the period attributable to equity shareholders | 3,379 | 2,943 | 14.8% |
| Underlying earnings for the period(2) | 3,058 | 2,502 | 22.2% |
| EBITDA(3) | 6,554 | 5,856 | 11.9% |
| Net cash inflows from operating activities | 3,678 | 3,289 | 11.8% |
| Earnings per share(5) (US$): | |||
| Basic earnings per share | 2.41 | 2.00 | 20.5% |
| Underlying earnings per share | 2.18 | 1.70 | 28.2% |
| Interim dividend (US cents per share): | |||
| Interim dividend | 38 | 33 | 15.2% |
(1)Operating profit includes share of associates’ operating profit and is before special items and remeasurements, unless otherwise stated. See note 3 to the financial information. For definition of special items and remeasurements see note 6 to the financial information.
(2)See note 9 to the financial information for basis of calculation of underlying earnings.
(3)EBITDA is operating profit before special items and remeasurements, depreciation and amortisation of subsidiaries and joint ventures and share of EBITDA of associates. 'Total profit from operations and associates' is reconciled to EBITDA in note 13 to the financial information. EBITDA is reconciled to 'Cash inflows from operations' in the primary statements.
(4)The Group’s share of associates’ turnover is $2,903 million (2006: $2,650 million). See note 3 to the financial information.
(5)Going forward, the impact on Earnings per share of the demerger with Mondi is explained in note 18 of the financial information.