Anglo American plc notification: Kumba Iron Ore Limited annual results 2006
15 February, 2007
Anglo American wishes to draw attention to Kumba Iron Ore Limited's announcement of its results for the year ended 31 December 2006.
Anglo American will record underlying earnings in respect of Kumba Iron Ore Limited (KIO)of $302 million for the year ended 31 December 2006. This constitutes $262 million in respect of KIO and $40 million in respect of Kumba's non-iron ore businesses (now Exxaro Resources Limited), partially disposed of in November 2006. The Anglo American underlying earnings take into account certain adjustments:
| $m | |
|---|---|
| KIO | |
| KIO IFRS pro-forma headline
earnings for the 12 months ended 31 December 2006 (US dollar equivalent of published)(1) |
314 |
| Depreciation of assets revalued on acquisition (net of tax) | (6) |
| Adjustment to profit on disposal(2) | 23 |
| Other adjustments | (3) |
| 328 | |
| Minority interest | (66) |
| KIO contribution to Anglo American underlying earnings | 262 |
| Add contribution from Kumba non-iron ore | 40 |
| Kumba contribution to Anglo American underlying earnings | 302 |
(1)The KIO IFRS pro-forma headline earnings for the 12 months ended 31 December 2006 assume a minority interest of 20% in KIO's underlying mining assets.
(2)The BEE cost in respect of KIO's disposal of 3% of the issued share capital of Sishen Iron Ore Company (Pty) Limited (“SIOC”) to the SIOC Community Development Trust, as part of the conditions of the Kumba Resources empowerment transaction, is calculated in accordance with IFRS2 “Share-based payments”. This is excluded from Anglo American's 'Underlying earnings' as it is considered to be part of the Kumba empowerment transaction. This amount, however, is included in KIO's 'Headline earnings' as defined by the Johannesburg Securities Exchange.
Anglo American will report annual results for the year ended 31 December 2006 on 21 February 2007. The above figures are unaudited.
Underlying Earnings
Underlying Earnings is net profit attributable to equity
shareholders, adjusted for the effect of special items and
remeasurements, and any related tax and minority interests. Special
items include those items of financial performance which the Group
believes should be excluded from underlying financial performance,
and principally relate to impairment and significant closure costs,
exceptional legal provisions and profit or loss on disposals.
Remeasurements include adjustments to ensure that the unrealised
gains or losses on non-hedge derivative instruments are recorded in
underlying earnings in the same period as the underlying
transaction against which these instruments provide an economic,
but not formally designated, hedge.