2013 interim financial results
- 2013 underlying earnings of $4.2 billion down 18 per cent reflect lower average market prices and a higher effective tax rate, partly offset by record iron ore shipments and cost savings momentum.
- Net earnings of $1.7 billion include non-cash exchange losses of $1.9 billion and a $0.3 billion write-off of waste stripping costs and damaged equipment at Kennecott Utah Copper following the pit wall slide at Bingham Canyon in April.
- 15 per cent increase in interim dividend to 83.5 cents per share.
Actions underway to achieve the three priorities for 2013:
Improving performance
- Cost reductions gathering momentum. $1.5 billion of total cost improvements achieved, including $977 million of operating cost improvements and $483 million from lower exploration and evaluation spend in the first half of 2013.
- Net headcount reduction of 2,200 since 30 June 2012 across the Group, after taking into account 1,800 new roles in iron ore to support the expansions.
- Operations performing well with record first half iron ore production and stronger copper volumes, with the recovery at Bingham Canyon advancing faster than previously expected.
Strengthening our balance sheet
- Capital expenditure reduced by nine per cent to $7 billion. 2013 capital expenditure is expected to be around $14 billion, 20 per cent lower than the peak capex of 2012.
- Funding and development of the phase 2 Oyu Tolgoi underground expansion delayed until discussions with the Government of Mongolia are concluded on a range of matters and a new timetable has been agreed.
Delivering results
- Oyu Tolgoi copper-gold open pit mine and concentrator in production and consistently operating at more than 80 per cent of design capacity.
- Phase one Pilbara iron ore expansion to 290 Mt/a on budget and on time to deliver first tonnes during September 2013.
- Argyle diamonds underground mine commissioned in April 2013.
- Kestrel coking coal mine in production and ramping up in the second half of 2013.
- $1.9 billion of non-core business divestments announced or completed to date in 2013.
