Interim Results 2012
27 July, 2012
Anglo American announces EBITDA(1) of $4.9 billion for the half year
Financial results impacted by weaker prices
- Group operating profit(2) of $3.7 billion
- Underlying earnings(3) of $1.7 billion and underlying EPS of $1.38
- Profit attributable to equity shareholders(4) of $1.2 billion
- Net debt(5) of $3.1 billion at 30 June 2012 (pro forma net debt of $10.0 billion)(6)
Strong operational and strategic delivery
- Strong production performance across iron ore, metallurgical coal, thermal coal, copper and nickel through successful project execution and asset optimisation
- Kumba Iron Ore – record production of 21.6 Mt and record export sales of 20.7 Mt, up 13%
- Metallurgical Coal – record production of export metallurgical coal of 8.6 Mt, up 40%
- De Beers acquisition has met all regulatory approvals and the transaction is expected to complete in Q3 2012
- Increased shareholding in Kumba Iron Ore by 4.5% to 69.7% for $948 million
- Agreed to acquire 58.9% interest in Revuboè high quality metallurgical coal resource in Mozambique for $555 million
Projects delivered and ramping up to drive high quality production growth
- Kolomela iron ore – 3.3 Mt produced in H1 2012; on schedule to produce at least 6 Mt in 2012 and full capacity of 9 Mt in 2013
- Los Bronces copper – 92% of design capacity achieved; on track to complete ramp-up by Q4 2012
- Barro Alto nickel – H1 2012 production of 12 kt; targeting full production in early 2013
- Zibulo thermal coal – ramp-up on track to full capacity of 6.6 Mtpa
Projects in execution progressing
- Minas-Rio 26.5 Mtpa iron ore project – licensing and construction progress hindered by legal actions
- Grosvenor 5 Mtpa metallurgical coal project – engineering work 50% complete as of July 2012; earthworks under way
Disciplined capital allocation delivering shareholder value
- Target to maintain a strong investment grade rating
- Committed to return cash to shareholders on a sustainable basis – interim dividend increased by 14% to US 32 cents per share
- Sequencing investment in line with resulting funding capacity to focus on the most value accretive and lowest risk growth options
Safety
- 7 employees lost their lives in work related incidents – safety programmes continuing to drive for zero harm
- 37% improvement in lost time injury frequency rates since 2007
HIGHLIGHTS US$ million, except per share amounts |
6 months ended 30 June 2012 |
6 months ended 30 June 2011 |
Change |
---|---|---|---|
Group revenue including associates(7) | 16,408 | 18,294 | (10)% |
Operating profit including associates before special items and remeasurements (2) |
3,724 | 6,024 | (38)% |
Underlying earnings(3) | 1,691 | 3,120 | (46)% |
EBITDA(1) | 4,942 | 7,112 | (31)% |
Net cash inflows from operating activities | 2,478 | 3,986 | (38)% |
Profit before tax(4) | 2,942 | 6,571 | (55)% |
Profit for the financial period attributable to equity shareholders(4) | 1,207 | 3,988 | (70)% |
Earnings per share (US$): | |||
Basic earnings per share(4) | 0.98 | 3.30 | (70)% |
Underlying earnings per share(3) | 1.38 | 2.58 | (47)% |
Dividend per share | 0.32 | 0.28 | 14% |
(1) 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.
(2) 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.
(3) See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.
(4) Stated after special items and remeasurements. See note 4 to the Condensed financial statements.
(5) Net debt includes related hedges and net debt in disposal groups. See note 12 to the Condensed financial statements.
(6) Pro forma net debt is net debt adjusted for the estimated effect of the acquisition of an additional 40% interest in De Beers ($6.3 billion including De Beers net debt as at 30 June 2012) and the acquisition, announced on 24 July 2012, of a 58.9% interest in the Revuboè metallurgical coal project in Mozambique ($0.6 billion).
(7) Includes the Group’s attributable share of associates’ revenue of $2,730 million (six months ended 30 June 2011: $3,057 million). See note 2 to the Condensed financial statements.
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