Interim Results 2010
30 July, 2010
Anglo American announces operating profit of $4.4 billion and reinstates dividend
Financial highlights
- Group operating profit(1) of $4.4 billion ($4.1 billion from core operations(2))
- Underlying earnings(3) of $2.2 billion and underlying earnings per share of $1.84
- Profit attributable to equity shareholders of $2.1 billion
- Net debt(4) at $10.9 billion at 30 June 2010
- Committed undrawn bank facilities and cash of over $12 billion at 30 June 2010
Operational performance and strategic delivery
- Asset optimisation and procurement programmes ahead of expectations, with run rate of $1 billion from core businesses for the six month period
- Asset optimisation: $796 million, including one-off benefits
- Procurement: $205 million
- Platinum operational turnaround to position in lower half of cost curve – cash operating costs controlled; full year production of 2.5 million ounces on track; labour productivity increased 11%
- $2.2 billion of expected proceeds from agreed divestments announced to date
- $1.3 billion sale of zinc business
- $0.5 billion sale of undeveloped Australian coal assets
- $0.4 billion sale of Tarmac’s European businesses
Near term growth a clear differentiator
- Barro Alto 36 ktpa nickel project – to more than double nickel production – on budget and on schedule for first production in Q1 2011
- Los Bronces 200 ktpa copper expansion on budget and on schedule for first production in Q4 2011
- Kolomela 9 Mtpa iron ore project on budget and on schedule for first production in Q2 2012
- Minas Rio 26.5 Mtpa iron ore project – good progress; key regulatory approvals remain outstanding, impacting timing and capital expenditure
- Further growth projects pending approval: Quellaveco (Peru, 225 ktpa copper) and Grosvenor (Australia, 4.3 Mtpa metallurgical coal)
Further safety achievements
- New safety practices embedded and delivering further improved results
- 38% reduction in fatalities vs. H1 2009
- 30% improvement in lost time injury rates vs. H1 2009
Dividend reinstated
- Interim dividend of $0.25 per share
- Progressive dividend policy to maintain or steadily increase dividends in dollar terms
|
HIGHLIGHTS FOR SIX MONTHS ENDED 30 JUNE 2010 US$ million, except per share amounts |
6 months ended 30 June 2010 |
6 months ended 30 June 2009 |
Change |
|---|---|---|---|
| Group revenue including associates(5) | 15,015 | 11,132 | 35% |
| Operating profit including associates before special items and remeasurements – core operations(1)(2) | 4,071 | 1,900 | 114% |
| Operating profit including associates before special items and remeasurements(1) | 4,361 | 2,136 | 104% |
| Underlying earnings(3) | 2,212 | 1,096 | 102% |
| EBITDA(6) | 5,414 | 2,985 | 81% |
| Net cash inflows from operating activities | 2,686 | 1,520 | 77% |
| Profit before tax(7) | 3,903 | 3,626 | 8% |
| Profit for the financial period attributable to equity shareholders(7) | 2,061 | 2,970 | (31)% |
| Earnings per share (US$): | |||
| Basic earnings per share(7) | 1.71 | 2.47 | (31)% |
| Underlying earnings per share(3) | 1.84 | 0.91 | 102% |
(1) Operating profit includes attributable share of associates’ operating profit (before attributable share of associates’ interest, tax and non-controlling 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 Copper, Nickel, Platinum, Iron Ore and Manganese (Kumba Iron Ore, Iron Ore Brazil and Samancor), Metallurgical Coal, Thermal Coal, Diamonds, Exploration and Corporate Activities. See the Financial review of Group results section for a reconciliation of operating profit from core operations to Group operating profit. Due to the portfolio and management structure changes announced in October 2009, operations considered core have changed from those reported at 30 June 2009. The comparatives have been adjusted accordingly.
(3) See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.
(4) Net debt includes related hedges and net debt in disposals groups. In the current period net debt has been updated to include related hedges, being derivative instruments that provide an economic hedge of assets and liabilities included in net debt. The comparative has been adjusted accordingly. See note 12 to the Condensed financial statements.
(5) Includes the Group’s attributable share of associates’ revenue of $2,425 million (six months ended 30 June 2009: $1,840 million). See note 3 to the Condensed financial statements.
(6) EBITDA is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes the attributable share of EBITDA of associates. See note 14 to the Condensed financial statements.
(7) Stated after special items and remeasurements, the six months ended 30 June 2009 includes the profit on the disposal of the Group’s interest in AngloGold Ashanti of $1,139 million.
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