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Interim Results 2011

29 Jul 2011

Anglo American announces 45% increase in half year core operating profit to $5.9 billion

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

HIGHLIGHTS

US$ million, except per share amounts

6 months ended
30 June 2011
6 months ended
30 June 2010
Change
Group revenue including associates(9) 18,294 15,015 22%
Operating profit including associates before special items and remeasurements – core operations(1)(2) 5,923 4,071 45%
Operating profit including associates before special items and remeasurements(1) 6,024 4,361 38%
Underlying earnings(3) 3,120 2,212 41%
EBITDA(10) 7,112 5,414 31%
Net cash inflows from operating activities 3,986 2,686 48%
Profit before tax(4) 6,571 3,903 68%
Profit for the financial period attributable to equity shareholders(4) 3,988 2,061 93%
Earnings per share (US$):
  Basic earnings per share(4) 3.30 1.71 93%
  Underlying earnings per share(3) 2.58 1.84 40%
  Dividend per share 0.28 0.25 12%

 

(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

For further information, please contact:

Media

UK

James Wyatt-Tilby
Tel: +44 (0)20 7968 8759

Emily Blyth
Tel: +44 (0)20 7968 8481

South Africa
Pranill Ramchander
Tel: +27 (0)11 638 2592

Investors

UK
Leng Lau
Tel: +44 (0)20 7968 8540

Caroline Metcalfe
Tel: +44 (0)20 7968 2192

Leisha Wemyss
Tel: +44 (0)20 7968 8607


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. Anglo American’s 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.

Webcast of presentation:
A live webcast of the results presentation, starting at 9.00am UK time on 29 July, can be accessed through the Anglo American website at www.angloamerican.com.

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 4 to the Condensed financial statements. Underlying earnings unless otherwise stated are calculated as set out in note 9 to the Condensed financial statements. Earnings before interest, tax, depreciation and amortisation (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 5 to the Condensed financial statements. Tonnes are metric tons, ‘Mt’ denotes million tonnes and ‘kt’ denotes thousand tonnes unless otherwise stated.

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