Interim Results 2008
31 July, 2008
Anglo American announces record half year underlying earnings of $3.5 billion
Half year financial results
- Record Group operating profit(1) of $6.2 billion, with operating profit from core operations(2) up 30% to $6.0 billion
- Highest ever total Group underlying earnings(3) of $3.5 billion up 14%
- Total Group underlying earnings per share up 33% to $2.90
- Strong performances from Ferrous Metals, Coal, Base Metals and Diamonds, with increased production of iron ore, coal and copper
- Total Group profit for the period attributable to equity shareholders up 27% at $4.3 billion
$45 billion pipeline driving production growth
- Approved project pipeline increased to $15 billion to deliver substantial volume growth in the most attractive commodity segments:
- Significant new iron ore and coal production on stream in 2008
- Collahuasi debottlenecking on schedule to enter production in Q4 2008
- Barro Alto nickel project 40% complete and on track for Q1 2010
- Minas-Rio – phase 1 of iron ore project under construction to start up during 2010
- Los Bronces copper expansion project on schedule for production in 2011
- Twickenham platinum expansion project approved to produce 180,000 oz per annum
- Michiquillay copper project – community agreements reached and exploration under way
Strong outlook for the full year
- Strong 2nd half expected from operational performance
- Executive team in place – including new CEOs for Anglo Platinum, Coal, Kumba Iron Ore and Anglo American South Africa
- New Order Mining Right conversions awarded across Anglo American’s South African mining businesses
- Good progress on safety, with LTIFR trending downwards
- Solutions to power supply constraints being implemented in South Africa
Dividend
- Interim dividend up 16% to 44 cents per share
| HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 June 2008 US$ million, except per share amounts |
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Change |
|---|---|---|---|
| Total Group revenue including associates(4) | 17,915 | 19,849 | (9.7%) |
| Operating profit including associates before special items and remeasurements – core continuing operations(1)(2) | 5,974 | 4,608 | 29.6% |
| Operating profit including associates before special items and remeasurements – total Group(1) | 6,181 | 5,452 | 13.4% |
| Underlying earnings for the period – total Group(3) | 3,483 | 3,058 | 13.9% |
| EBITDA – total Group(5) | 7,038 | 6,554 | 7.4% |
| Net cash inflows from operating activities – total Group | 3,822 | 3,678 | 3.9% |
| Profit for the period attributable to equity shareholders – total Group | 4,281 | 3,379 | 26.7% |
| Earnings per share (US$): | |||
| Basic earnings per share – total Group | 3.56 | 2.41 | 47.7% |
| Underlying earnings per share – total Group | 2.9 | 2.18 | 33.0% |
| Interim dividend (US cents per share) | 44 | 38 | 15.8% |
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(1) Operating profit includes share of associates’ operating profit (before share of associates’ tax, finance costs and minority interests) and is before special items and remeasurements, unless otherwise stated. See note 4 to the condensed financial statements for operating profit on a continuing Group basis. For definition of special items and remeasurements see note 6 to the condensed financial statements.
(2) Continuing operations considered core to the Group are Base Metals, Platinum, Ferrous Metals’ core businesses (Kumba Iron Ore, Scaw Metals, Samancor Manganese and Minas-Rio), Coal and Diamonds. See the operating profit and underlying earnings tables in the Financial review of Group results section for a reconciliation of operating profit and underlying earnings from core operations to total Group.
(3) See note 9 to the condensed financial statements for basis of calculation of underlying earnings.
(4) Represents total Group revenue (including the revenue of discontinued operations) and includes the Group’s share of associates’ revenue of $3,384 million (six months ended 30 June 2007: $2,903 million). See note 3 and 14 to the condensed financial statements.
(5) EBITDA is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures and share of EBITDA of associates. See note 13 to the condensed financial statements for analysis of EBITDA by continuing and discontinued operations.