Interim Results - Part 2
Anglo American PLC
7 September 2001
PART 2
Notes to financial information
1 Accounting policies
The financial information has been prepared in accordance with generally
accepted accounting principles in the UK. The accounting policies applied in
preparing the financial information are consistent with those adopted and
disclosed in the Group's statutory accounts for the year ended 31 December
2000. The financial information for the year ended 31 December 2000 has been
derived from the Group's statutory accounts for that period as filed with the
Registrar of Companies. The auditors' report on the statutory accounts for
the year ended 31 December 2000 was unqualified and did not contain
statements under section 237(2) of the Companies Act 1985 (regarding adequacy
of accounting records and returns) or under section 237(3) (regarding
provision of necessary information and explanations). The interim financial
information does not constitute statutory accounts as defined under section
240 of the Companies Act 1985.
2. Segmental information
Turnover
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
By business segment
Gold 1,019 1,110 2,211
Platinum 1,272 1,126 2,368
Diamonds 1,010 1,181 2,034
Coal 703 376 967
Base metals 792 640 1,503
Industrial minerals 1,232 1,101 2,394
Ferrous metals 654 769 1,510
Forest products 2,119 1,363 3,388
Industries 1,006 2,646 4,195
Financial services - - -
Exploration - - -
Corporate activities - - -
9,807 10,312 20,570
By geographical segment (by origin)
South Africa 4,117 5,418 9,923
Rest of Africa 949 760 1,729
Europe 2,876 2,031 4,945
North America 562 706 1,120
South America 621 605 1,253
Australia and Asia 682 792 1,600
9,807 10,312 20,570
Operating profit
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
By business segment
Gold 200 207 381
Platinum 754 555 1,336
Diamonds 212 252 491
Coal 183 53 169
Base metals (12) 128 (41)
Industrial minerals 75 82 150
Ferrous metals 34 68 127
Forest products 289 189 458
Industries 64 139 272
Financial services 4 65 128
Exploration (38) (55) (116)
Corporate activities (70) (75) (141)
1,695 1,608 3,214
By geographical segment (by
origin)
South Africa 1,142 1,121 2,420
Rest of Africa 130 158 315
Europe 215 125 210
North America 1 33 -
South America 112 141 227
Australia and Asia 95 30 42
1,695 1,608 3,214
Net operating assets(1)
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
By business segment
Gold 2,461 2,884 2,667
Platinum 1,587 1,488 1,327
Diamonds - 115 101
Coal 1,486 605 1,580
Base metals 2,239 1,877 2,102
Industrial minerals 3,276 3,388 3,196
Ferrous metals 377 449 390
Forest products 2,938 1,204 3,054
Industries 1,269 2,039 1,317
Financial services - - -
Exploration - - -
Corporate activities 424 457 406
16,057 14,506 16,140
By geographical segment
(by origin)
South Africa 6,387 7,663 6,062
Rest of Africa 376 420 433
Europe 5,625 3,965 5,989
North America 801 689 727
South America 1,457 1,260 1,392
Australia and Asia 1,411 509 1,537
16,057 14,506 16,140
(1) Net operating assets consist of tangible and intangible assets
(excluding investments in joint ventures and associates), stocks and debtors
less non-interest bearing current liabilities.
3. Headline profit reconciliation
The table below analyses the contribution of each division to the Group's
headline profit.
Six months ended Profit
30 June 2001 Profit Net Equity for the
before investment minority Financial
US$ million interest income Tax interests Period
Core activities
Gold 226 (31) (41) (74) 80
Platinum 764 24 (242) (269) 277
Diamonds 212 5 (74) - 143
Coal 187 7 (46) - 148
Base metals (11) (33) (13) 38 (19)
Industrial 99 (4) (12) (5) 78
minerals
Ferrous metals 36 (10) (10) - 16
Forest products 296 (42) (70) (36) 148
Exploration (see (38) - - 11 (27)
note 5)
Corporate (56) 6 9 - (41)
activities
Headline profit 1,715 (78) (499) (335) 803
for the
financial period
- Core activities
Non-core
activities
Industries 65 (21) (1) (27) 16
Financial - - - - -
services
De Beers 3 159 (51) (46) 65
investments(1)
Headline profit 68 138 (52) (73) 81
for the
financial period
- Non-core
activities
Headline profit 1,783 60 (551) (408) 884
for the
financial period
(see note 7)
Headline profit 1,843 - (84) 35 1,794
adjustment (see
note 7)
Profit for the 3,626 60 (635) (373) 2,678
financial period
1. Represents De Beers' share of Anglo American plc earnings for the 5 months
to 31 May 2001.
3. Headline profit reconciliation continued
Six months ended Profit
30 June 2000 Profit Net Equity for the
before Investment minority financial
US$ million interest Income Tax interests period
Core activities
Gold 223 (9) (46) (81) 87
Platinum 563 15 (163) (206) 209
Diamonds 255 11 (80) (5) 181
Coal 56 4 (21) - 39
Base metals 129 (34) (15) (1) 79
Industrial 103 (5) (17) (6) 75
minerals
Ferrous metals 68 (19) (2) (4) 43
Forest products 189 (50) (30) (9) 100
Exploration (see (55) - - 6 (49)
note 5)
Corporate (64) 25 23 - (16)
activities
Headline profit 1,467 (62) (351) (306) 748
for the
financial period
- Core activities
Non-core
activities
Industries 143 (9) (18) (68) 48
Financial 65 9 (20) (2) 52
services
De Beers - 210 (56) (51) 103
investments(1)
Headline profit 208 210 (94) (121) 203
for the
financial period
- Non-core
activities
Headline profit 1,675 148 (445) (427) 951
for the
financial period
(see note 7)
Headline profit 259 - - (3) 256
adjustment (see
note 7)
Profit for the 1,934 148 (445) (430) 1,207
financial period
(1) Represents De Beers' share of Anglo American plc earnings for the 6
months to 30 June 2000.
3. Headline profit reconciliation continued
Year ended 31 Profit
December 2000 Profit Net Equity for the
before investment minority financial
US$ million interest income Tax interests year
Core activities
Gold 437 (15) (69) (152) 201
Platinum 1,353 38 (394) (497) 500
Diamonds 497 30 (200) (6) 321
Coal 175 27 (64) - 138
Base metals 193 (45) (25) 9 132
Industrial 194 (5) (16) (14) 159
minerals
Ferrous metals 127 (15) (19) (7) 86
Forest 477 (46) (78) (45) 308
products
Exploration (116) - - 24 (92)
(see note 5)
Corporate (118) (83) 46 - (155)
activities
Headline 3,219 (114) (819) (688) 1,598
profit for the
financial
period -
Core
activities
Non-core
activities
Industries 279 (15) (36) (129) 99
Financial 128 9 (30) (7) 100
services
De Beers - 428 (120) (105) 203
investments(1)
Headline 407 422 (186) (241) 402
profit for the
financial
period -
Non-core
activities
Headline 3,626 308 (1,005) (929) 2,000
profit for the
financial year
(see note 7)
Headline (89) - - 46 (43)
profit
adjustment
(see note 7)
Profit for the 3,537 308 (1,005) (883) 1,957
financial year
(1) Represents De Beers' share of Anglo American plc earnings for the 12
months to 31 December 2000.
4. Exceptional items
Operating exceptional items
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Impairment of gold mining assets in - - (29)
South Africa
Impairment of base metals mining assets - - (237)
- Lisheen, Anaconda and Salobo
Total operating exceptional items - - (266)
Minority interests - - 12
- - (254)
Non-operating exceptional items
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Gain arising from the exchange of the 1,089 - -
32.2% interest in De Beers group for the
45% interest in DB Investments
Gain arising from the exchange of the 637 - -
15.3% in FirstRand Limited for interests
in Gold Fields Limited (11.3%) and
Billiton plc (7.1%)
Partial disposal of interest in South 82 - -
African Breweries plc
Further disposal of interest in 46 - -
FirstRand Limited
Partial disposal of interest in Standard 40 - -
Bank Investment Corporation
Disposal of interest in Billiton plc 36 - -
Anticipated partial disposal of Columbus (123) - -
Stainless
Disposal of Elandsrand and Deelkraal (8) - (36)
gold mines
Disposal of interest in Johnnies - 179 191
Industrial Corporation Limited
Sale of mineral rights combined with
partial disposal of
Northam Platinum Limited - 17 49
Partial disposal of interest in Gold - 37 36
Fields Limited
Disposal of other non-core assets - 42 19
Disposal of LTA Limited - - 90
AECI Limited share buy back - - (50)
Anticipated disposal of Terra Industries - - (167)
Incorporated
Partial disposal of interest in Li and - - 211
Fung Limited
Share of associates' exceptional items 132 51 59
Profit on disposal of fixed assets 1,931 326 402
Cost of fundamental reorganisations - - (79)
Total non-operating exceptional items 1,931 326 323
Taxation (84) - -
Minority interests 28 (8) 22
1,875 318 345
Total exceptional items (net of tax and 1,875 318 91
minority interests)
5. Exploration expenditure
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Business segment:
Gold 12 18 43
Platinum 2 - 9
Base metals 19 35 60
Other 5 2 4
38 55 116
6. Tax on profit on ordinary activities
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
United Kingdom corporation tax - 14 1
South Africa corporation tax 294 206 468
Other overseas taxation 106 40 165
Share of joint ventures' taxation 7 3 25
Share of associates' taxation 140 185 376
Deferred taxation 4 (3) (30)
Tax on exceptional items 84 - -
635 445 1,005
7. Earnings per share
6 months 6 months Year
ended ended ended
30.06.01 30.06.00 31.12.00
Restated Restated
Weighted average number of ordinary 1,536 1,560 1,567
shares in issue (million)
Basic earnings per share (US$):
Profit for the financial period 1.74 0.77 1.25
Headline profit for the financial period 0.58 0.61 1.28
Basic earnings per share is calculated by dividing the profit for the period
attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the period. The average number of shares in
issue excludes the shares held by the employee benefit trust.
A three-for-one bonus share issue was approved at the Extraordinary General
Meeting held on 4 May 2001 and 1,222,983,732 ordinary shares of US$0.50 each
were allotted to shareholders on the register at that date. The earnings per
share statistics for the six months ended 30 June 2000 and year ended 31
December 2000 have been restated as if this allotment had occurred at the
beginning of that year. On 11 June 2001, 163,212,568 ordinary shares
(40,803,142 pre-bonus shares and 122,409,426 bonus shares) arising from the
Group's interest in De Beers were cancelled. The impact on earnings per share
has been included on a prospective basis.
Basic earnings per share are also shown based on headline profit, which the
directors believe to be a useful additional measure of the Group's past
performance. Headline earnings per share is calculated in accordance with the
definition in the Institute of Investment Management and Research ('IIMR')
Statement of Investment Practice No. 1, 'The Definition of IIMR Headline
Earnings'.
7 Earnings per share continued
Earnings (US$ million) Basic earnings per share (US$)
6 months 6 months Year 6 months 6 months Year
ended ended ended ended ended ended
30.06.01 30.06.00 31.12.00 30.06.01 30.06.00 31.12.00
Restated Restated
Profit for 2,678 1,207 1,957 1.74 0.77 1.25
the
financial
period
Operating - - 266 - - 0.17
exceptional
items
Non-operating (1,931) (326) (323) (1.25) (0.21) (0.20)
exceptional
items
Related tax 56 8 (34) 0.04 0.01 (0.02)
and
minority
interests
Profit 803 889 1,866 0.53 0.57 1.20
before
exceptional
items
Amortisation 88 67 146 0.06 0.04 0.09
of goodwill
Related (7) (5) (12) (0.01) - (0.01)
minority
interests
Headline 884 951 2,000 0.58 0.61 1.28
profit for
the
financial
period
8. Reconciliation of group operating profit to net cash flow from operating
activities
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Group operating profit - subsidiaries 1,326 1,016 2,335
Depreciation and amortisation charges 517 422 928
Decrease/(increase) in stocks 21 (36) (230)
Increase in debtors (302) (408) (534)
(Decrease)/increase in creditors (138) 3 278
Other items 82 71 182
Net cash inflow from operating activities 1,506 1,068 2,959
9. Capital expenditure
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Gold 119 92 240
Platinum 126 111 272
Coal 31 6 45
Base metals 196 194 410
Industrial minerals 102 71 186
Ferrous metals 16 18 32
Forest products 150 31 126
Industries 31 66 163
Other 2 15 37
773 604 1,511
10. Reconciliation of net cash flow to movement in net (debt)/funds
6 months 6 months Year
ended ended ended
US$ million 30.06.01 30.06.00 31.12.00
Decrease in cash in the period (35) (66) (209)
Cash outflow/(inflow) from debt 824 (1,592) (1,902)
financing
Cash outflow/(inflow) from management of 977 (395) 358
liquid resources
Change in net debt arising from cash 1,766 (2,053) (1,753)
flows
Loans and current asset investments (42) (378) (2,278)
acquired with subsidiaries
Loans and current asset investments 11 - 241
disposed with subsidiaries
Currency translation differences 88 31 119
Movement in net funds/(debt) 1,823 (2,400) (3,671)
Net (debt)/funds at start of the period (3,590) 81 81
Net debt at the end of the period (1,767) (2,319) (3,590)
11. Movement in net debt
Acquisitions Disposals
excluding excluding
As at cash and cash and Exchange As at
US$ 31.12.00 Cash overdrafts overdrafts adjustments 30.06.01
million flow
Cash at 963 (35) - - (45) 883
bank and
in hand(1)
Debt due (3,597) 210 (41) - 129 (3,299)
after one
year
Debt due (3,300) 614 (1) 11 99 (2,577)
within one
year
(6,897) 824 (42) 11 228 (5,876)
Current 2,344 977 - - (95) 3,226
asset
investments
(3,590) 1,766 (42) 11 88 (1,767)
(1) Net of bank overdrafts.
Independent review report to Anglo American plc
Introduction
We have been instructed by the company to review the financial information
for the six months ended 30 June 2001 set out on pages 13 to 24. We have read
the other information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies with the
financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority, which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.
A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification
of assets, liabilities and transactions. It is substantially less in scope
than an audit performed in accordance with United Kingdom Auditing Standards
and therefore provides a lower level of assurance than an audit. Accordingly,
we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review, we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 June 2001.
Deloitte & Touche
Chartered Accountants
Hill House
1 Little New Street
London EC4A 3TR
6 September 2001
Notice of interim dividend
Notice is hereby given that an interim dividend on the company's ordinary
share capital in respect of the year to 31 December 2001 will be payable as
follows:
Amount (United States currency) 15 US cents per ordinary share (see
notes below)
Currency conversion date Tuesday, 4 September 2001
Ex-dividend on the London and Wednesday, 19 September 2001
Johannesburg Stock Exchanges from the
commencement of trading on
Record date on the United Kingdom and Friday, 21 September 2001
South African registers
Dividend warrants posted Thursday, 18 October 2001
Payment date of dividend Friday, 19 October 2001
Notes:
1. Shareholders on the United Kingdom register of members with an address in
the United Kingdom will be paid in pounds sterling, unless they elect for
payment in US dollars, and those shareholders with an address elsewhere will
be paid in US dollars, unless they elect for payment in pounds sterling,
provided all such elections are received by the United Kingdom Registrar by
Friday, 21 September 2001. The equivalent of the dividend in sterling will
be 10.36 pence per ordinary share based on an exchange rate of US$1=£0.6909.
2. Shareholders on the South African branch register will be paid in South
African rand, at ZAR1.2697 per ordinary share based on an exchange rate of
US$1=ZAR8.4646.
Production statistics
6 months 6 months Year
ended ended ended
30.06.01 30.06.00 31.12.00
AngloGold (gold in troy ounces)
South Africa 2,358,000 2,717,000 5,418,000
North and South America 468,000 443,000 935,000
Australia and Asia 250,000 241,000 524,000
Rest of the world 406,000 150,000 366,000
3,482,000 3,551,000 7,243,000
Anglo Platinum (troy ounces)
Platinum 1,018,900 896,100 1,915,300
Palladium 487,500 447,700 967,000
Rhodium 95,900 76,200 168,700
Nickel (tonnes) 9,200 9,000 19,200
Anglo Coal (tonnes)
South Africa
Eskom 14,500,000 20,200,000 36,100,000
Trade 8,600,000 9,000,000 19,100,000
Australia 11,000,000 - 8,200,000
South America 2,600,000 800,000 1,400,000
36,700,000 30,000,000 64,800,000
Anglo Base metals
Copper (tonnes)
Collahuasi 93,000 96,200 191,900
Mantos Blancos 76,300 77,900 155,300
Hudson Bay 25,700 24,800 53,200
Konkola 90,500 12,100 125,400
Other 25,700 13,500 33,500
311,200 224,500 559,300
Nickel (tonnes)
Codemin 3,100 3,300 6,300
Tati 1,900 1,800 3,700
Other 5,900 2,300 4,700
10,900 7,400 14,700
Zinc (tonnes)
Hudson Bay 33,000 37,800 98,900
Black Mountain 13,200 13,500 27,100
Lisheen 27,300 16,200 32,200
73,500 67,500 158,200
Lead (tonnes)
Black Mountain 24,200 36,700 68,100
Lisheen 5,400 6,100 10,700
29,600 42,800 78,800
Includes entire output of consolidated entities and the Group's share of
joint ventures and associates where applicable.
Production statistics continued
6 months 6 months Year
ended ended ended
30.06.01 30.06.00 31.12.00
Namakwa Sands (tonnes)
Chloride slag 49,600 46,000 112,700
Sulphate slag 12,800 9,000 27,200
Pig iron 45,300 35,200 71,600
Zircon 54,000 55,900 106,800
Rutile 12,500 10,400 23,200
Anglo Industrial minerals
(tonnes)
Aggregates 33,535,000 31,000,000 * 67,815,000
Lime products 478,000 487,000 928,000
Concrete (m3) 3,225,000 2,900,000 * 6,329,000
Potash 461,000 531,000 966,000
Sodium tripolyphosphate 47,000 37,000 86,000
Phosphates 332,900 333,900 775,000
Anglo Ferrous metals (tonnes)
Chrome ore 535,600 748,000 1,476,000
Stainless steel 69,000 88,000 169,000
Vanadium slag 35,000 34,000 70,000
Chrome alloys 154,800 226,000 428,000
Manganese ore (mtu m) 38,800 33,000 67000
Manganese alloys 122,000 148,000 287,000
Steel 554,000 662,000 1,375,000
Niobium 1,700 1,181 2,700
Anglo Forest products (tonnes)
South Africa
Pulp 176,000 194,000 343,000
Graphic papers 208,000 258,000 415,000
Packaging papers 273,000 275,000 523,000
Corrugated board (000 m2) 77,000 82,000 166,000
Lumber (m3) 69,000 171,000 358,000
Wood chips (m3) 1,083,000 596,000 1,103,000
Mining timber 66,000 61,000 125,000
Europe
Pulp 92,600 69,000 110,000
Graphic papers 561,400 321,000 863,000
Packaging papers 548,900 273,000 765,000
Corrugated board (000 m2) 349,600 319,000 625,000
Paper sacks (000 units) 1,173,000 392,000 1,489,000
Brazil
Pulp 72,500 76,000 154,000
* Includes only four months for Tarmac.
Includes entire output of consolidated entities and the Group's share of
joint ventures and associates where applicable.
Exchange rate and commodity prices
US dollar exchange rates
Average spot prices for the period
6 months 6 months Year
ended ended ended
30.06.01 30.06.00 31.12.00
South African rand 7.93 6.59 6.91
Sterling 0.69 0.64 0.66
Euro 1.11 1.04 1.08
Commodity prices
Average market prices for the period
6 months 6 months Year
ended ended ended
30.06.01 30.06.00 31.12.00
Gold - US$/oz 266 285 279
Platinum - US$/oz 599 506 544
Palladium - US$/oz 794 596 675
Rhodium - US$/oz 1,994 1,894 1,847
Copper - US cents/lb 78 80 82
Nickel - US cents/lb 300 427 392
Zinc - US cents/lb 44 51 51
Lead - US cents/lb 22 20 21
European Eucalyptus Pulp price (CIF) - 537 593 664
US$/tonne
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