Interim Results 2010

Anglo American announces operating profit of $4.4 billion and reinstates dividend

Financial 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

Operational performance and strategic delivery

  • 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

Near term growth a clear differentiator

  • 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)

Further safety achievements

  • 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

Dividend reinstated

  • Interim dividend of $0.25 per share
  • Progressive dividend policy to maintain or steadily increase dividends in dollar terms
Written by :
Administrator