Press Release Archive - 2011

Financial highlights for the six months ended 30 June 2011

• Group operating profit⁽¹⁾ of $6.0 billion ($5.9 billion from core operations⁽²⁾, up 45%)
• Underlying earnings⁽³⁾ of $3.1 billion and underlying EPS of $2.58, up 40%
• Profit attributable to equity shareholders⁽⁴⁾ of $4.0 billion, up 93%
• Net debt⁽⁵⁾ of $6.8 billion at 30 June 2011

Operational performance and strategic delivery

• Kumba sales levels maintained to take advantage of record export iron ore prices, despite Q1 rains
• Metallurgical Coal production recovered strongly from severe flooding to benefit from record pricing, while export Thermal Coal production increased by 5% in South Africa
• Nickel production enhanced by successful delivery of Barro Alto project
• Platinum refined production increased 17% to 1.2 million ounces
• $1.3 billion of benefit from asset optimisation and supply chain, having already exceeded $2 billion target in 2010
• Divestment programme of non-core businesses largely complete
• $3.3 billion of cumulative announced proceeds⁽⁶⁾
• Tarmac and Lafarge UK joint venture progressing through regulatory process

Production growth already being delivered

• Barro Alto 41 ktpa⁽⁷⁾ nickel project – delivered on schedule; ramp-up under way
• Los Bronces 278 ktpa⁽⁸⁾ copper expansion – on schedule for Q4 2011
• Kolomela 9 Mtpa iron ore project – 94% complete and on schedule to produce 4-5 Mt in 2012; hot commissioning to take place during H2 2011
• Minas-Rio 26.5 Mtpa iron ore project – on track for first ore on ship in H2 2013
• $66 billion of unapproved projects across core commodities provides growth optionality for the long term

Safety

• Continued drive towards zero harm to address disappointing safety performance
• Ten lives lost in first six months

Dividend

• Interim dividend increased by 12% to $0.28 per share

⁽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 2 and 3 to the Condensed financial statements. For the definition of special items and remeasurements see note 4 to the Condensed financial statements.

⁽²⁾ Operations considered core to the Group are Iron Ore and Manganese (Kumba Iron Ore, Iron Ore Brazil and Samancor), Metallurgical Coal, Thermal Coal, Copper, Nickel, Platinum, 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.

⁽³⁾ See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.

⁽⁴⁾ Stated after special items and remeasurements.

⁽⁵⁾ Net debt includes related hedges and net debt in disposals groups. See note 12 to the Condensed financial statements.

⁽⁶⁾ Consideration on a debt and cash free basis, as announced.

⁽⁷⁾ Additional capacity over first five years.

⁽⁸⁾ Additional capacity over first three years.

⁽⁹⁾ Includes the Group’s attributable share of associates’ revenue of $3,057 million (six months ended 30 June 2010: $2,425 million). See note 2 to the Condensed financial statements.

⁽¹⁰⁾ Earnings before interest, tax, depreciation and amortisation (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 5 to the Condensed financial statements.

View full PDF of this press release