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Anglo American Preliminary Results 2014

13 Feb 2015

Significant operational improvements amid sharply lower commodity prices

  • Delivered on all major commitments for 2014 – operational performance, project delivery and portfolio restructuring targets
  • Strong operational performance across every business (4% production increase on Cu Eq. basis(1))
  • Group underlying EBIT(2) of $4.9 billion, a 25% decrease due to sharply weaker commodity prices ($2.4 billion(3) underlying EBIT impact), partially offset by weaker producer country currencies ($1.3 billion positive impact to underlying EBIT) and increased production and sales volumes
  • Special items after tax and non-controlling interest include commodity price-driven impairments of $3.9 billion, including $3.5 billion at Minas-Rio
  • Net debt of $12.9 billion as at 31 December 2014 (2013: $10.7 billion), with $15.1 billion of liquidity; $1.7 billion of bonds maturing in 2015 and $1.6 billion maturing in 2016
Financial highlights
US$ million, unless otherwise stated
Year ended
31 December 2014
Year ended
31 December 2013

Change
Underlying EBIT(2) 4,933 6,620 (25)%
Underlying earnings(4) 2,217 2,673 (17)%
Group revenue (incl. associates and joint ventures)(5) 30,988 33,063 (6)%
Underlying EBITDA 7,832 9,520 (18)%
(Loss)/profit before tax(6) (259) 1,700 (115)%
Loss for the financial year attributable to equity
shareholders of the Company(6)
(2,513) (961) (161)%
Underlying earnings per share (US$)(4) 1.73 2.09 (17)%
Dividend per share (US$) $0.85 $0.85 -
Attributable ROCE%(7) 8% 11%  

(1) Copper equivalent production, expressed as copper equivalent tonnes, is a metric used to show changes in underlying production volume. Each commodity’s volumes are expressed as revenue, and then converted into a copper equivalent volume by dividing revenue by copper price (per tonne). The prices used for conversion by Anglo American are those from 30 June 2013. When aggregated, these give the group’s production expressed in units of copper equivalent. Production volumes considered include both equity and purchased volumes (e.g. platinum concentrate from joint operation partners), as well as volumes from mines in pre-commercial production. No domestic thermal coal production is considered. Copper equivalent unit costs divide the gross costs associated with unit costs, by relevant copper equivalent volume. Only own equity volumes (and costs) are considered. Thabazimbi (iron ore) and domestic thermal coal production is excluded, as are operations not in commercial production. Both the copper equivalent production and copper equivalent unit cost metrics have been adjusted for the 532 koz of platinum production lost due to the strikes at Platinum operations.
(2) Underlying EBIT is operating profit presented before special items and remeasurements and includes the Group’s attributable share of associates’ and joint ventures’ underlying EBIT. Underlying EBIT of associates and joint ventures is the Group’s attributable share of associates and joint ventures revenue less operating costs before special items and remeasurements. See notes 4 and 6 to the Condensed financial statements for underlying EBIT. For definition of special items and remeasurements, see note 7 to the Condensed financial statements.
(3) Excludes De Beers volume/price and impact of the strike at Platinum.
(4) See note 10 to the Condensed financial statements for basis of calculation of underlying earnings.
(5) Includes the Group’s attributable share of associates’ and joint ventures’ revenue of $3,915 million (2013: $3,721 million). See note 4 to the Condensed financial statements.
(6) Stated after special items and remeasurements. See note 7 to the Condensed financial statements.
(7) Attributable ROCE is based on underlying performance before the impact of impairments reported since 10 December 2013 and reflects realised prices and foreign exchange during the current period.

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Notes to editors:

Anglo American is a global and diversified mining business that provides the raw materials essential for economic development and modern life. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products – from bulk commodities and base metals to precious metals and diamonds (through De Beers) – to our customers around the world. Our diversified portfolio of products spans the economic development cycle and, as a responsible miner, we are the custodians of precious resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders, but also for the communities and countries in which we operate – creating sustainable value and making a real difference. Our mining operations, growth projects and exploration and marketing activities extend across southern Africa, South America, Australia, North America, Asia and Europe.
www.angloamerican.com

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