De Beers Results

RNS Number : 6715Z

Anglo American PLC

23 July 2008

 



News Release

23 July 2008

Anglo American plc notification:  De Beers Société Anonyme interim results 2008

De Beers Société Anonyme ("DBSA") today reported underlying earnings for the six months ended 30 June 2008 of US$350 million.

Anglo American plc ("AA plc") arrives at its underlying earnings in respect of De Beers by accounting for the interests arising from the ordinary shares and the 10% preference shares it holds. AA plc will therefore report underlying earnings of US$166 million for the six months ended 30 June 2008 from its investment in De Beers, as reconciled in the table below:

US$ million	6 months ended 30.6.2008
De Beers underlying earnings (100%)	350
Difference in IAS 19 accounting policy	1
De Beers underlying earnings - AA plc basis (100%)	351
AA plc's 45% ordinary share interest	158
Income from preference shares	8
AA plc underlying earnings	166

In the six months ended 30 June 2008, AA plc received a total of US$52 million in distributions from De Beers, consisting of a US$45 million final dividend on ordinary shares relating to FY 2007, and a US$7 million dividend representing the second payment on preference shares for 2007.

Underlying Earnings 

Underlying Earnings is net profit attributable to equity shareholders, adjusted for the effect of special items and remeasurements, and any related tax and minority interests. Special items are those items of financial performance which are material by nature or amount and should therefore be separately presented. These principally relate to impairment and significant closure costs, exceptional legal provisions and profit or loss on disposals. Remeasurements include (i) adjustments to ensure that the unrealised gains or losses on non-hedge derivative instruments are recorded in underlying earnings in the same period as the underlying transaction against which these instruments provide an economic, but not formally designated, hedge and (ii) foreign currency gains and losses arising on the retranslation of dollar denominated De Beers preference shares held by a rand functional currency subsidiary of the Group.

The above figures are unaudited.

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