Press Release Archive - 2010

Financial results

• Group operating profit⁽²⁾ of $5.0 billion ($4.5 billion from core operations⁽³⁾)
• Underlying earnings⁽⁴⁾ of $2.6 billion and underlying earnings per share of $2.14
• Profit attributable to equity shareholders of $2.4 billion
• Net debt⁽⁶⁾ maintained at $11 billion at 31 December 2009
• Committed undrawn bank facilities and cash of over $12 billion at 31 December 2009

Delivering operational efficiencies

• Asset optimisation and procurement delivered more than $1.6 billion of benefits in 2009
  ($1.4 billion from core operations), exceeding target
  • Asset optimisation and procurement target of $2 billion now to be delivered from core businesses alone by 2011
• Anglo Platinum – significant restructuring achieved, flat cash operating costs target met, 3 high cost shafts on care and maintenance, labour productivity up 21% in 2 years
• Significant cash cost reduction of $712 million (5%) and productivity improvements achieved across the Group – headcount reduced by 23,400⁽⁷⁾

Creating a more effective, focused business

• Major Group reorganisation completed, creating new generation of leadership within a leaner, more effective structure
• Board strengthened and refreshed – new chairman and 3 new non-executive directors to bring further mining, commercial and financial expertise
• Divestment programme under way – running businesses to maximise value; sales of Tarmac’s European aggregates and Polish concrete products businesses agreed with expected proceeds of approximately $400 million; Zinc sale process initiated with significant buyer interest

Clear strategy driving targeted, high quality growth of selected commodities

• $17 billion of approved projects in most attractive commodities to drive organic production growth of more than one third by 2013:
  • Copper to grow by 33%; iron ore by 82%; nickel by 139%
  • Development of four key strategic projects on track: Minas Rio, Los Bronces, Barro Alto and Kolomela (previously Sishen South)
  • New growth projects: Quellaveco (copper) and Grosvenor (metallurgical coal) – first stage approvals expected in 2010

Step change in safety performance

• New safety practices embedded and delivering further improved results:
  • 57% reduction in fatalities since January 2007
  • 52% improvement in lost time injury rates since January 2007, on a like-for-like basis
  • Anglo Platinum achieved 4 consecutive fatality-free months through to January 2010

Dividend

• Resumption of dividend expected in respect of 2010

⁽¹⁾ Includes the Group’s attributable share of associates’ revenue of $3,779 million
(2008: $6,653 million). See note 3 to the Condensed financial statements.

⁽²⁾ 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.

⁽³⁾ Operations considered core to the Group are Platinum, Diamonds, Copper, Nickel, Iron Ore and Manganese (Kumba Iron Ore, Iron Ore Brazil and Samancor), Metallurgical Coal, Thermal Coal, Exploration and Corporate Activities. See page 12 in the Financial review of Group results section for a reconciliation of operating profit from core operations to total operating profit. Due to the portfolio and management structure changes announced in October 2009, operations considered core have changed from those reported at 31 December 2008. The comparative has been updated to reflect this.

⁽⁴⁾ See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.

⁽⁵⁾ 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 13 to the Condensed financial statements.

⁽⁶⁾ Net debt excludes hedges, but includes the net debt in disposals groups. See note 11 to the Condensed financial statements.

⁽⁷⁾ Headcount reduction includes contractors and 100% of De Beers.

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