Financial results reflect improved operational performance, with currency gains offsetting weaker prices
6% increase in Group underlying operating profit to $6.6 billion
Margin improvement: EBITDA margin increased by 2% to 29%; EBIT margin by 1% to 20%
Effective tax rate increased from 29% to 32%
7% decrease in underlying earnings to $2.7 billion; underlying EPS of $2.09
Special items after tax and non-controlling interest include impairments of $1.9 billion, principally in relation to Barro Alto ($0.7bn), Platinum portfolio review ($0.2bn), Michiquillay ($0.3bn) and Foxleigh ($0.2bn)
After total special items and remeasurements, loss attributable to equity shareholders of $961 million (2012: $1.5 billion loss)
Net debt of $10.7 billion as at 31 December 2013 (2012: $8.5bn)
Attributable ROCE of 11%, in line with 2012
Business performance improving to support operating profit growth
Improved operational performance, particularly in the fourth quarter, reflecting a greater focus on mining processes, costs and margins
Impact of lower commodity prices offset by weakening producer currencies
Kumba Iron Ore - safety stoppages and pit constraints at Sishen, partially offset by strong performance at Kolomela
Metallurgical Coal - record production, cost reductions and improved product mix more than offset by 24% fall in price
Copper - record production, led by Los Bronces' fully ramped up Confluencia plant and higher grades and recoveries at Collahuasi, largely offset by lower realised prices
Platinum - higher sales volumes supported by rand depreciation, partially offset by input cost increases and lower prices across most metals
Diamonds - increased production reflecting improved asset performance and customer demand, with higher realised prices
Project update
Minas-Rio 26.5 Mtpa iron ore (Brazil) - 84% completed and FOOS (First Ore On Ship) target of end 2014; capital expenditure on track at $8.8 billion
Grosvenor 5.0 Mtpa metallurgical coal (Australia) - longwall production end of 2016; capital expenditure on track at $1.95 billion
Disciplined capital allocation
$6.3 billion capital expenditure for 2013. Guidance maintained at $7.0 to $7.5 billion for 2014 and expected to reduce in 2015 and 2016
Final dividend maintained at 53 US cents per share, bringing total dividends for 2013 to 85 US cents per share, reflecting the Board's commitment to the rebased dividend
Safety
Regrettably, 14 employees and contractors lost their lives, and two others are missing, in work related incidents
LTIFR (lost-time injury frequency rate) reduced by 16% to 0.49, the lowest level recorded for the Group
We are elevating our focus on achieving zero harm in the workplace, through leadership behaviours at every level, business processes and further strengthening of major risk hazard assessments
