Annual Results 2011
17 February, 2012
Anglo American announces record EBITDA of $13.3 billion and 23% increase in underlying EPS
Financial results driven by impressive operational performance and higher prices
- Record Group operating profit(1) of $11.1 billion
- Record underlying earnings(2) of $6.1 billion and underlying EPS of $5.06, a 23% increase
- Net debt(3) reduced to $1.4 billion at 31 December 2011
- Final dividend increased by 15% to 46 US cents per share, bringing total dividends for the year to 74 US cents per share, a 14% increase
Delivery of value through operational efficiency and strategic opportunities
- Kumba Iron Ore record export sales volumes of 37.1 Mt
- Met Coal – record open cut metallurgical coal production; 7% increase despite Q1 2011 rainfall
- $5.1 billion acquisition of up to 40% interest in De Beers – unique opportunity to consolidate control of the world’s leading diamond company
- $5.4 billion sale of a minority 24.5% interest in Anglo American Sur copper assets – highlights value and quality of asset base
- Acquisition of 25.17% minorities in Peace River Coal – 100% ownership of high quality one billion tonne metallurgical coal resource
Nine growth projects commissioned on or ahead of schedule(4)
- Newly commissioned and approved projects to deliver 35% volume growth by 2014
- Barro Alto 36 ktpa nickel project – first production in March 2011
- Los Bronces 200 ktpa copper expansion – first production in October 2011
- Kolomela 9 Mtpa iron ore project – first shipment in December 2011
- Collahuasi Phase I expansion (copper), Zibulo (thermal coal), Unki and Mogalakwena North (platinum) projects all completed in 2011
Maintaining momentum into the next phase of growth
- Minas-Rio 26.5 Mtpa iron ore project is progressing well; implementing measures to mitigate various site challenges in a high inflationary Brazilian mining environment, to target H2 2013 first ore on ship
- Six growth projects approved in 2011, including Grosvenor 5 Mtpa metallurgical coal project in Australia approved in December 2011
- Quellaveco 225 ktpa copper project in Peru progressing towards approval
- Exploration discoveries replenishing world class resource base across copper, nickel, PGMs – Sakatti discovery in Finland a significant grassroots exploration success
- Expect to approve $16 billion of projects over next three years
Safety performance
- Tragically, 17 employees lost their lives
- Despite downward trend since 2007, disappointing performance in 2011 at Platinum; particularly with 12 fatal accidents
- Lost time injury frequency rates, excluding Platinum, reduced by 16%
| HIGHLIGHTS US$ million, unless otherwise stated |
Year ended 31 Dec 2011 |
Year ended 31 Dec 2010 |
Change |
|---|---|---|---|
| Group revenue including associates(5) | 36,548 | 32,929 | 11% |
| Operating profit including associates before special items and remeasurements(1) | 11,095 | 9,763 | 14% |
| Underlying earnings(2) | 6,120 | 4,976 | 23% |
| EBITDA(6) | 13,348 | 11,983 | 11% |
| Net cash inflows from operating activities | 9,362 | 7,727 | 21% |
| Profit before tax(7)(8) | 10,782 | 10,928 | (1)% |
| Profit for the financial year attributable to equity shareholders(7)(8) | 6,169 | 6,544 | (6)% |
| Earnings per share (US$): | |||
| Basic earnings per share(7) | 5.10 | 5.43 | (6)% |
| Underlying earnings per share(2) | 5.06 | 4.13 | 23% |
(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) See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.
(3) Net debt includes related hedges and net debt in disposal groups. See note 12 to the Condensed financial statements.
(4) The schedule for delivery of first production from projects refers to the information published in Anglo American’s 2010 Annual Report.
(5) Includes the Group’s attributable share of associates’ revenue of $5,968 million (2010: $4,969 million). See note 2 to the Condensed financial statements.
(6) 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 attributable share of EBITDA of associates. See note 5 to the Condensed financial statements.
(7) Stated after special items and remeasurements See note 4 to the Condensed financial statements.
(8) For the year ended 31 December 2011 special items and remeasurements, including associates, before tax and non-controlling interests, amounted to a gain of $152 million (2010: gain of $1,820 million), and after tax and non-controlling interests, amounted to a gain of $49 million (2010: gain of $1,568 million).
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