Anglo American announces EBITDA of $4.9 billion for the half year
Financial results impacted by weaker prices
- Group operating profit of $3.7 billion
- Underlying earnings of $1.7 billion and underlying EPS of $1.38
- Profit attributable to equity shareholders of $1.2 billion
- Net debt of $3.1 billion at 30 June 2012 (pro forma net debt of $10.0 billion)
Strong operational and strategic delivery
- Strong production performance across iron ore, metallurgical coal, thermal coal, copper and nickel through successful project execution and asset optimisation
- Kumba Iron Ore - record production of 21.6 Mt and record export sales of 20.7 Mt, up 13%
- Metallurgical Coal - record production of export metallurgical coal of 8.6 Mt, up 40%
- De Beers acquisition has met all regulatory approvals and the transaction is expected to complete in Q3 2012
- Increased shareholding in Kumba Iron Ore by 4.5% to 69.7% for $948 million
- Agreed to acquire 58.9% interest in Revuboè high quality metallurgical coal resource in Mozambique for $555 million
Projects delivered and ramping up to drive high quality production growth
- Kolomela iron ore - 3.3 Mt produced in H1 2012; on schedule to produce at least 6 Mt in 2012 and full capacity of 9 Mt in 2013
- Los Bronces copper - 92% of design capacity achieved; on track to complete ramp-up by Q4 2012
- Barro Alto nickel - H1 2012 production of 12 kt; targeting full production in early 2013
- Zibulo thermal coal - ramp-up on track to full capacity of 6.6 Mtpa
Projects in execution progressing
- Minas-Rio 26.5 Mtpa iron ore project - licensing and construction progress hindered by legal actions
- Grosvenor 5 Mtpa metallurgical coal project - engineering work 50% complete as of July 2012; earthworks under way
- Disciplined capital allocation delivering shareholder value
- Target to maintain a strong investment grade rating
- Committed to return cash to shareholders on a sustainable basis - interim dividend increased by 14% to US 32 cents per share
- Sequencing investment in line with resulting funding capacity to focus on the most value accretive and lowest risk growth options
Safety
- 7 employees lost their lives in work related incidents - safety programmes continuing to drive for zero harm
- 37% improvement in lost time injury frequency rates since 2007
