Interim Results 2009
31 July, 2009
Anglo American announces further progress on delivery of value
Financial results
- Group operating profit(1) from core operations(2) of $2.1 billion
- Underlying earnings(3) of $1.1 billion and underlying earnings per share of $0.91
- Profit attributable to equity shareholders down 31% at $3.0 billion
- Net debt(4) of $11.3 billion at 30 June 2009
- Committed undrawn bank facilities and cash(5) of over $9 billion at 30 June 2009
Driving operational performance and delivering significant value
- Asset optimisation and procurement programmes delivered more than $450 million of benefits in H1 – expected to deliver over $1 billion in 2009 towards the $2 billion target in 2011
- Significant cost reductions achieved across the Group and global headcount reduction ahead of target
- Anglo Platinum – major restructuring completed, one shaft on care and maintenance and two other high cost shafts under review – 140koz of high cost production may be removed
- Delivery focused on high quality growth in most attractive commodities
- Development of three key strategic projects on track – Minas-Rio, Los Bronces and Barro Alto
- Major new discoveries at Los Sulfatos and San Enrique Monolito increase copper resources(6) by approximately 50%
- Minas-Rio iron ore resource increased to 4.6 billion tonnes
- Near term liquidity addressed – $6.5 billion raised through new financing and proceeds from sale of residual shareholding in AngloGold Ashanti
- Sale of Hulamin shareholding for approximately $148 million
Further progress on safety
- Safety – further good progress, with changes to safety practices delivering results:
- Further 19% improvement in Lost Time Injury rates compared to 2008
Appointment of Chairman
- Sir John Parker appointed as Chairman from 1 August 2009, to succeed Sir Mark Moody- Stuart
| HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2009 US$ million, except per share amounts |
6 months ended 30 June 2009 |
6 months ended 30 June 2008 |
Change |
|---|---|---|---|
| Group revenue including associates(7) | 11,132 | 17,915 | (37.9)% |
| Operating profit including associates before special items and remeasurements – core operations(1)(2) | 2,054 | 5,974 | (65.6)% |
| Operating profit including associates before special items and remeasurements(1) | 2,136 | 6,181 | (65.4)% |
| Underlying earnings(3) | 1,096 | 3,483 | (68.5)% |
| EBITDA(8) | 2,985 | 7,038 | (57.6)% |
| Net cash inflows from operating activities | 1,520 | 3,822 | (60.2)% |
| Profit for the financial period attributable to equity shareholders | 2,970 | 4,281 | (30.6)% |
| Earnings per share (US$): | |||
| Basic earnings per share | 2.47 | 3.56 | (30.6)% |
| Underlying earnings per share(3) | 0.91 | 2.90 | (68.6)% |
(1) Operating profit includes attributable share of associates’ operating profit (before attributable share of associates’ interest, tax and minority interests) and is before special items and remeasurements, unless otherwise stated, see notes 3 and 4 to the Condensed financial statements. For the definition of special items and remeasurements see note 6 to the Condensed financial statements.
(2) Operations considered core to the Group are Base Metals, Platinum, Ferrous Metals’ core businesses (Kumba Iron Ore, Scaw Metals, Samancor and Anglo Ferrous Brazil), Coal, Diamonds, Exploration and Corporate Activities. See page 13 in the Financial review of Group results for a reconciliation of operating profit from core operations to total operating profit.
(3) See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.
(4) Net debt excludes hedges but includes the net debt in disposal groups. See note 12 to the condensed financial statements.
(5) After taking account of commercial paper maturing throughout 2009 of $0.4 billion.
(6) Resources excluding reserves.
(7) Includes the Group’s attributable share of associates’ revenue of $1,840 million (six months ended 30 June 2008: $3,384 million). See note 3 to the Condensed financial statements.
(8) EBITDA is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes attributable share of EBITDA of associates. See note 14 to the Condensed financial statements.