Anglo American announces operating profit of $4.4 billion and reinstates dividendFinancial 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
- 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
- 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)
- 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
- Interim dividend of $0.25 per share
- Progressive dividend policy to maintain or steadily increase dividends in dollar terms
30 JUNE 2010
US$ 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 $1,139 million.
Anglo American plc is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Its portfolio of mining businesses spans precious metals and minerals - in which it is a global leader in both platinum and diamonds; base metals - copper and nickel; and bulk commodities - iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.
Note: Throughout this results announcement, '$' denotes United States dollars and 'cents' refers to United States cents; operating profit includes attributable share of associates' operating profit and is before special items and remeasurements, unless otherwise stated; special items and remeasurements are defined in note 6 to the Condensed financial statements. Underlying earnings unless otherwise stated are calculated as set out in note 9 to the Condensed financial statements. EBITDA is operating profit before special items and remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes attributable share of EBITDA of associates. EBITDA is reconciled to 'Total profit from operations and associates' and to 'Cash flows from operations' in note 14 to the Condensed financial statements. Tonnes are metric tons, 'Mt' denotes million tonnes and 'kt' denotes thousand tonnes unless otherwise stated.
Posted: August 4, 2010
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