preliminary results year ended 31 december 2009 · 2019. 5. 14. · preliminary results year ended...

1

Preliminary Results Year Ended 31 December 2009

Cynthia Carroll, Chief ExecutiveRené Médori, Finance Director

19 February 2010

2

• Major Group reorganisation completed

• Strong operational performances across all Business Units

• Significant volume growth under way in line with our clear strategy

Cynthia Carroll

A Transforming Group Fit For Purpose

3

• Group operating profit of $5.0bn; EBITDA $6.9bn; EPS $2.14

• Higher volumes for Copper, Iron Ore, Platinum and Nickel

• Significant restructuring achieved at Anglo Platinum

• Asset optimisation and procurement delivering ahead of schedule

• Headcount reduction of 23,400

• Significant cash cost decrease of $712m (-5%)

Strong Operational Performance in 2009

4

A Step Change In Safety Performance

Fatalities

LTIFR

2008 2009

• 92% of our sites operated without fatalities

• Anglo Platinum achieved four consecutive fatality-free months for the first time

• Copper, Met Coal, Nickel and Exploration were fatality-free during 2009

• Anglo Platinum’s Amandelbult mining operation, operated without a fatality in 2009, for the first time

• At Kumba Iron Ore, Thabazimbi mine achieved two years LTI-free in September

• Iron ore operations in Brazil have seen a 98% drop in LTIs since acquisition

• Thermal Coal’s Isibonelo mine has been LTI-free for over two years

2819

1.040.76

57% improvement

52% improvement

40

2007

1.26

44

1.58

2006

28

5

•


• Major volume growth under way


Major Group reorganisation completed

6

Moving Management Closer To The Business

Old structure New structure

• 4 divisions• Base and Coal in London• Ferrous and Platinum in Johannesburg

• Functions distributed in businesses

• 7 business units• Copper, Nickel & Iron Ore Brazil in South

America• Thermal Coal, Kumba & Platinum in South Africa• Met Coal in Australia

• Functions more consolidated• Reducing corporate headcount by 25%

Copper

Iron oreBrazil

NickelMetCoalKumba, Platinum &

Thermal Coal

HQ &Other Mining & Industrial

HQ, Base& Coal

Platinum& Ferrous

7

Tarmac European Aggregates and Polish Concrete Products

• Aim to maximise value for Anglo American; substantial expressions of interest in all businesses so far

• February 2010

– Successful divestment of Tarmac European Aggregates and Polish Concrete Products

=> Proceeds c. $400m

A Major Divestment Programme Under Way

2010 Ongoing2009

AngloGold Ashanti

Tongaat Hulett

Hulamin

Completed for $2.4bn

Catalão

Copebrás

Scaw Metals

Tarmac

Zinc

Met Coal Canadac. $400m sales agreed

8


•

• Major volume growth underway


Strong operational performances across all Business Units

9

• Significant cost reductions of $712m (5%) across the Group

• 23,400 reduction in headcount

• Major productivity gains across the Group

• Asset optimisation and procurement delivering ahead of schedule

We Have Outperformed All Our Cost Reduction Targets

Real Unit Costs1 Down Across Our Businesses

Met Coal Australia

Nickel Brazil

Copper Chile

Platinum South Africa

Kumba South Africa

-12% -16% -6% -6% -4%

1 After CPI inflation60

70

80

90

100

2008

= 1

00

10

Asset Optimisation ProcurementH

1 20

09

FY 2

009

FY 2

011

(US

$m)

(US

$m)

Operating Profit Improvements Cost Savings (opex & capex)

H1

2009

FY 2

009

FY 2

011

Actual H109

Previous Target

0

200

400

600

800

1,000

FY '11 Target$1,000m

FY '09 Target $700m

H1 '09 Actual $335m

0

200

400

600

800

1,000

FY '11 Target$1,000m

FY '09 Target $330m

H1 '09 Actual$131m

FY '09 Actual$8631m

FY 2

010

Actual FY09

FY '09 Actual$5101m

Actual H109

Previous TargetActual FY09

AO and Procurement: Delivering Ahead of Schedule$2bn To Be Delivered From Core Businesses Only

1 Excludes Tarmac benefit of $86m and non-recurring benefits of $209m 1 Excludes Tarmac benefit of $16m

115

5.2

5.4

5.6

5.8

6

6.2

6.4

6.6

1H08 2H08 1H09 2H09

• Continued progress in safety, 4 month fatality-free record

• Production of 2.4 m oz of platinum achieved

• 20% reduction in headcount year-on-year

• Cash operating costs kept flat despite inflationary pressures;

6% reduction in real terms

• Significant improvement in mining productivity, up 21%

• Clear strategy in place to move cost positions to lower half

• Strengthened balance sheet

Platinum: A Transforming Business Now Delivering Results

21% improvement

Platinum

Productivity: Positive Results Headcount: Significant Reductions

2008 200950,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

M2 per employee

80,000

65,000

c.20% improvement

2009H109

32

H209

45

-13

Operating Profit ($m)

12

Iron Ore and Manganese, and Diamonds

• Operating profit of $64m

• Decisive action in exceptionally challenging

trading environment

• Production cut by 49% in response to demand fall off

• Headcount reduced by 23%

• Operating costs reduced by more than 50%

• Improving trend in diamond sight sales and prices

• New capital structure to allow future financial and operating flexibility

Diamonds

• Operating profit of $1,489m

• Record production at Sishen up 16% to 39.4 Mt

• Sishen export sales increase by 37%

• Sishen mine costs down 4%

• Labour productivity up 8% at Kumba

• Delivering high-return low-cost growth projects

Iron Ore and Manganese


720 769

1,489

2009H109 H209


4

6460

2009H109 H209

13

Copper and Nickel

• Operating profit of $2,010m

• Production up 5%

• Record production at Los Bronces and Collahuasi

• 6% reduction in unit costs (before by-products)

• Production to increase by over a third by 2012

• Resources (excluding reserves) increased by c. 50%

• Operating profit of $2m due to a lower nickel price and adverse local inflationary pressures

• Production up 11% (incl. Platinum nickel production)

• Codemin cash costs reduced by 16%

• Barro Alto to triple Nickel business unit production

in 2012• Further growth potential with Jacaré and

Morro Sem Bone unapproved projects

Copper Nickel


606

2,010

1,404

2009H109 H209


2009H109 H209

-11

132

14

Coal

Metallurgical Coal Thermal Coal• Operating profit of $721m

• 25% headcount reduction across all support service departments

• Mafube at full capacity, on time and on budget

• Cerrejón expansion to 32 Mtpa completed

• Production started at Zibulo (Zondagsfontein), on time and on budget for full production in 2012

• Operating profit of $451m

• Significant cost reduction and efficiency programme completed

• Headcount reduced by 20%; productivity increased by 24%

• Unit costs fall 12%; down 22% vs. H208

• Record saleable production in H2 despite pit closures


321130

451

2009H109 H209


388 333

721

2009H109 H209

15

Target: Reduced operating cost base the across Group

Target: Major corporate reorganisation

Target: Significant headcount reduction

Target: AO & procurement $1bn benefit

Target: Capex to be cut by 50%

Achieved: 5% cost reduction across the Group

Achieved: Geographically focused operating model

Achieved: 23,400 headcount reduction

Achieved: >$1.6bn benefit

Achieved: Capex of $4.6bn

Start of 2009 End of 2009

Summary: A Year of Delivery and Outperformance

16

René Médori, Finance DirectorFinancial Results

17

Financial Overview

2.18 2.22

2.90

0.91

1.46

1.23

H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009

Underlying EPS - $ Key Financials

Results shown before special items & remeasurements and including share of associates.Underlying earnings are stated after minority interests.(1) Core operations exclude Tarmac, Tongaat Hulett & Hulamin, Scaw Metals, Zinc, Copebras, Catalao and Metallurgical Coal Canada.

33.4%33.1% Effective tax rate

11.011.0Net Debt

11.8

5.1

5.2

10.1

9.02008

42%6.9EBITDA

10%4.6Capex

51%2.6Underlying earnings

51%5.0Operating profit

51%4.5Operating Profit – Core

change2009$bn4.36

(1)

4.40 2.14

18

Principal Special Items(1)

$ million

(1,990)Impairments:Including: • Amapá ($1,512m)• De Beers Canada(2) ($267m)

1,490Including: • AngloGold Ashanti $1,102m • Tongaat Hulett & Hulamin $20m

Net profit on disposals:

Year Ended 31 December 2009

(1) After tax and minority interests. Includes associates.

(2) De Beers has recorded an impairment of $595 million (Anglo American’s attributable share is $267 million).

Total net proceeds$2.4bn

Amapá:• Operating asset acquired as part of Minas Rio acquisition • Significant operational challenges across mine and plant• Focus has been on improving operating performance – limited exploration drilling

19

10,085

4,957

82107

523256387

81

180

1,524539

3,913246

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 Price Exchange Inf lation Volume Throughput -AO

Cash CostSavings -

AO

Cash CostSavings -

Procurement

Cash Costs Non cashcosts

Associates Structural &Other

2009

Full Year Operating Profit VariancesTotal Group

($m)

(1) Price variance calculated as increase/decrease in price * current period sales volume.(2) Inflation variance calculated using CPI on prior period cash operating costs that have been impacted directly by inflation.(3) Represents year-on-year movement.

(1) (2)

Cash cost decrease $712m

AO upside $779m

(3) (3) (3)

20-

500

1,000

1,500

2,000

2,500

2008 2009

Pla

tinum

$/o

z

0

2,000

4,000

6,000

8,000

10,000

12,000

Rho

dium

$/o

z

Copper (c/lb)

0

50

100

150

200

250

300

350

400

450

2008 2009

Operating Profit Variances: PriceTotal Group

($m)

Excludes associates.

MTM Copper impact (2008 to 2009)

10,085

1,742

2,171

2008 Price - Traded Price - Bulks

3,913

FY MTM -$585m FY MTM +$521m

2008 2009

c/lb

31/12/07

Prov Pricing $3.02/lb

31/12/08


31/12/09


Price of Platinum Group Metals (2008 to 2009)

Avg 2008 Realised Price $2.62/lb Avg 2009 Realised Price $2.68/lb

Rhodium

Platinum

2008 2009

MTM includes mark to market and final liquidation adjustments.

21

Operating Profit Variances: Volume / ExchangeTotal Group

10,0852463,913

2008 Price Exchange Volume

($m)

Excludes associates.

Volumes 2009 vs. 2008

ZAR/US$ trend

Volume variance of +$643m includes

+$256m of AO Throughput Benefit

Sales +16%

387

+5%

+11%

+0%

Iron Ore(6)

MetCoal(4)

Nickel(3)

Copper(2)

ThermalCoal(5)

Platinum(1)

(1) Refined platinum production(2) Includes copper produced by Anglo Platinum(3) Includes nickel produced by Anglo Platinum

-4%

256

Sales +37%

(4) Export met production from Metallurgical Coal(5) Group export sales for core operations(6) Production and export sales for Sishen

Prodn+16%

Shows production volumes unless otherwise stated.

Prodn +3%

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2008 2009

ZAR

/US

$

2009 Ave: R8.412008 Ave: R8.27

Impact: ($337m)

2008 2009

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2008 2009

ZAR

/US

$

2009 Ave: R8.412008 Ave: R8.27

Impact: ($337m)

2008 2009

22

15,361

14,941

15,653

9

63 201

523

167

188

107

14,000

14,500

15,000

15,500

16,000

2008 Actual Fuel Sulphur /Sulphuric Acid

Other Non-Controllable

Labour OtherControllable

Savings -Procurement

Savings - AO 2009 Actual

Operating Profit Variances: CostsTotal Group

Cash costs decrease $712m or 5%

Non controllable costs $292m decrease or 2% Controllable costs $420m decrease or 3%

Excludes associates.(1) Cash costs adjusted for exchange, volume, inflation, acquisitions & disposals, revenue-recovered costs, commodity price-linked costs and other non-cash costs (see appendix).(2) Represents year-on-year movement.

Decrease/increase in operating costs ($m)

(1)(2)

(2)

23

Capital Expenditure & Cash Flow

Capital expenditure ($m) Net debt ($bn)

1,1261,500

1,165

1,9461,663

1,370

290

338

584

529

506 401

459

2007 2008 2009

Project

SIB

Barro Alto

Minas Rio

Los Bronces

5,146

603

4,117

773

4,607

268

Total

Other Mining and Industrial

(0.7)Tongaat Hulett & Hulamin disposal

0.1Other

0.9Working capital movement

0.7Exchange impact

11.0

(0.2)

0.5

0.2

(1.8)

1.5

4.6

(5.8)

11.0

Closing net debt – 31 December 2009

Net dividends received

Net interest paid

Loan to De Beers

AGA disposal

Cash tax paid

Capital expenditure

Operating cash flows

Opening net debt – 1 January 2009(1)

(1) Excluding working capital movement.

66

174

32

Kolomela (Sishen South)

77

24

0

2

4

6

8

10

12

Dec 2007 Dec 2008 Dec 2009

Debt Evolution & Gearing

(1) Gearing is calculated as net debt divided by net assets excluding net debt, less investments in associates.

(2) EBITDA excluding associates.

5.2

11.0 11.0

Net Debt

($bn)

Undrawn committed facilities and cash

At 31 December 2009, the Group had over $12 billion undrawn committed facilities and cash.

In addition, the Group has a $1.4 billion dedicated, committed financing facility for Minas Rio, subject to certain disbursement conditions and the granting of the remaining Installation Licence.

De Beers

Dec 08 Dec 09External net debt $3.6bn $3.2bnShareholder loans $0.2bn $0.8bnNet debt $3.8bn $4.0bn

Dec 08 Dec 09External net debt $3.6bn $3.2bnShareholder loans $0.2bn $0.8bnNet debt $3.8bn $4.0bn

Gearing (1)

Net Debt / EBITDA (2)

30.8%

1.8x

37.8%

1.2x

20.0%

0.5x

Gearing (1)

Net Debt / EBITDA (2)

30.8%

1.8x

37.8%

1.2x

20.0%

0.5x

25

Group Company Balance Sheets

• ZAR12.5bn rights issue. Anglo American committed to following its pro-rata rights (79.7%) and has underwritten minorities

• Due to full consolidation of Anglo Platinum balance sheet impact of minority take up expected to reduce Anglo American’s net debt by c.$0.3bn

• $1bn rights issue. Anglo American to subscribe for shares in proportion to its shareholding ($450m)

• Will be used to repay existing debt facilities

De Beers and Anglo Platinum

Strengthening the balance sheets of key Group companies

26



• Major volume growth under way

Cynthia Carroll


27

Portfolio Strategy

• Structurally the most attractive commodities• Where the Group owns or is developing the most value accretive assets• Where the Group has a competitive advantage

• Copper• Iron Ore • Metallurgical Coal

Portfolio Choices

• Diamonds• Manganese

• Catalão• Copebrás• Scaw Metals• Tarmac• Zinc• Met Coal Canada

• Focus of resource allocation and management attention• Current source of growth and competitiveness

Implications • Manage for cash• Optimise valuation and

explore exit/monetisation options as market conditions improve

Grow & Maintain Divest

Our clear strategy is to focus on growth in the most attractive commodities

• Nickel• PGMs• Thermal Coal

28

0

20

40

60

80

100

120

140

160

180

200

2013 Outlook2009

+33%

Projects Will Increase Production By Over 33% By 2013

Approved

Projects

Inde

xed

prod

uctio

n gr

owth

(200

9 =

100)

Unapproved

Projects

Key Projects Under

Construction

Minas Rio

Barro Alto

Los Bronces

+90%

Existing

Production

Kolomela(Sishen South)

Iron Ore

Met Coal

PGM

Copper

Nickel

Thermal Coal

+ +

29

Approved Copper Growth of 33% by 2013

Los Bronces

Copper Brownfield Expansion Chile• Project 27% complete with start up on track

for Q4 2011

• Capex $2.3bn - $2.5bn, spend to date $1.0bn

• Positioned in the lower half of the cost curve

• Will become 5th largest copper mine in the world

• Expansion delivers 278ktpa contained Cu over first

3 years, 200ktpa averaged over first 10 years

Plan 27%Achieved Dec 09 27%

% Progress

PlanActual

Major new resources confirmed• San Enrique Monolito

• Los Sulfatos0%

20%

40%

60%

80%

100%

12/07 12/08 12/09 12/10 12/11

30

Approved Nickel production to triple by 2012

Nickel Project Brazil• Project well advanced with start up on track

for Q1 2011

• Capex $1.8bn - $1.9bn, spend to date $1.2bn

• Positioned in the lower half of the cost curve

• Average operating costs $3.30/lb ($3.17/lb first 5 yrs)

• Delivering an average of 41ktpa of nickel for the first 5 yrs; 36ktpa over 26 years

• Further potential from extensive resource base

• Using proven technology, with experience gained of ore body from processing at existing Codemin operations

Barro Alto

Construction work 78% complete

% Progress


0

20

40

60

80

100

Dec06

Dec07

Dec08

Dec09

Dec10

PlanActual

31

Iron Ore Project Brazil

• First production in 2012 with full ramp-up to 26.5 Mtpa in 2013

• Revised attributable capex of $3.8bn announced due to scope changes at the pipeline, port, mine and the stronger Brazilian Real

• First part of the installation licence granted for mine and beneficiation plant in December 2009; the second is expected during the early part of 2010

• 72% of excavation completed along > 500km pipeline route in the state of Rio de Janeiro

• Port construction on schedule, main trestle of jetty over 90% complete

• Resources increased fourfold since 2007 to almost 5 billion tonnes (including 843 Mt of inferred resources)

• Studies for the expansion of the project to 80 Mtpacontinued during 2009

Minas Rio

Approved Iron Ore Projects to Double Production

Pump

Station 2

Pipeline Earthworks

32

Kolomela (Sishen South)

Iron Ore Project South Africa

• Project 45% complete with start up on track for Q2 2012, full production 2013

• Capex $1.02bn; spend to date $367m.

• Delivering 9 Mtpa of iron ore

• Construction commenced September 2008

• Project on time and on budget

• LOM of 20 years with possible extension phase


Kumba Iron Ore Production To Grow by 20%

Kolomela on schedule to start production H1 2012

PlanActual

0%

20%

40%

60%

80%

100%

Jan 08 Dec 09 Dec 10 Dec 11 Dec 12

% Progress

33

2010: Further Growth Options Under Consideration

Quellaveco set for first approval stage in 2010

Grosvenor set for feasibility approval in 2010

Met Coal Project, Queensland, Australia• Capex c. US$975m• Expected to enter feasibility study phase 2010

• Early works construction in 2011

• First production 2013 from single longwall

• Production expected to reach 4.3 Mpta of HCC

• Targeted to operate in lower half of the cost curve

• Potential to expand to dual longwall, doubling capacity

Copper Project, Peru• Capex range estimated $2,500 - $3,000m

• Currently in feasibility with approval scheduled for H2 2010

• EIS and water process licence progressing

• First ore to concentrator Q4 2014

• Average production of 225ktpa over the first 10 years

• Targeted to operate in the lower half of the cost curve

34

Medium and Long Term Outlook Remains Strong

• Medium and long term outlook remains strong

• Demand for key metals to remain robust, driven by developing economies

• China domestic infrastructure to remain a key driver for demand

• OECD countries’ slower growth in the near term

Real GDP growth

-8

-6

-4

-2

0

2

4

6

8

10

12

US Euro area Japan UK China India

2009 2010 2011

% change on a year

-2-1012345678

1970 1980 1990 20002008

2010

Global GDP, % change (PPP weights)

40 year average

Global GDP growth (%) – returning to long term average

35



• Major volume growth in our target commodities


A clear strategy in place to deliver shareholder value

36

Cautionary Statement

Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions.

This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Anglo American. Further, it does not constitute a recommendation by Anglo American or any other party to sell or buy shares in Anglo American or any other securities. All written or oral forward-looking statements attributable to Anglo American or persons acting on their behalf are qualified in their entirety by these cautionary statements.

Forward-Looking Statements

This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Anglo American’s financial position, business and acquisition strategy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this presentation is sourced from publicly available third party sources. As such it presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American.

No Investment Advice

This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002.).

37

Appendix

38

Analysis of Operating Profit

(212)(172)Exploration

2,5541,489Iron Ore and Manganese

1,8922,010Copper

1,082506Other Mining and Industrial

9,0034,451Core

10,0854,957Total Operating Profit

(219)(146)Corporate Activities and Unallocated Costs

1,078721Thermal Coal

1,110451Metallurgical Coal

1232Nickel

50864Diamonds

2,16932Platinum

20082009$m

39

Analysis of Underlying Earnings

(200)(167)Exploration

1,150571Iron Ore and Manganese

256(90)Diamonds

(486)(219)Corporate Activities and Unallocated Costs

734403Other Mining and Industrial

4,5032,166Core

5,2372,569Total Underlying Earnings

754517Thermal Coal

764322Metallurgical Coal

(35)(13)Nickel

1,0441,201Copper

1,25644Platinum

20082009$m

40

Market Prices

355266Palladium - $/oz

315234Copper – cents/lb

8575Zinc – cents/lb

953667Nickel – cents/lb

262268Copper achieved – cents/lb

6,5641,592Rhodium - $/oz

1,5851,211Platinum - $/oz20082009Average Price

Source: London Metals Exchange & Johnson Matthey.

41

Underlying Earnings Sensitivities

103+Metallurgical Coal

55+Zinc 80+Iron ore293+ZAR / USD110+AUD / USD29+CLP / USD

39+Nickel

222+Copper

147+Thermal Coal

17+Palladium

137+Platinum

$m10% change in:

Reflects +/- 10% change on actual results for the year ended 31 December 2009.

42

Regional AnalysisOperating Profit

10,0854,957Operating profit

1,738620Australia & Asia

2,9562,290Americas

(183)(54)Europe

46778Other Africa

5,1072,023South Africa

20082009$m

43

Capital Expenditure

7831,044Iron Ore and Manganese

2627Corporate Activities and Unallocated Costs

1-Exploration

603268Other Mining and Industrial

4,5434,339Core

5,1464,607Total Capital Expenditure

365400Thermal Coal

46796Metallurgical Coal

530554Nickel

8081,068Copper

1,5631,150Platinum

20082009$m

44

AUDOther ZARBRLCLP Total

Operating Profit Variance: ExchangeTotal Group

PlatinumMet CoalNickel Iron OreThermal Coal

Other Mining

and Industrial

CorporateCopper Total

$m

By Business Unit

$m

By Currency

Excluding associates.

41 21 5 4 2 (32)(55)

(232)

(246)

4132 16 2 (337)

(246)

45

Operating Profit Variance: PriceTotal Group

Rhodium Platinum Palladium Ruthenium Other Total PGMs

Copper Nickel Zinc Price - Traded

Excluding associates.

Tarmac Iron Ore Met Coal FertiliserThermal

Coal OtherPrice -Bulks

Traded Metals Bulks

PGMs

(486)

(1) Includes price impact of molybdenum and other by-products.(2) Includes price impact of lead.

(444)(328) (20)

(343)88

(1) (2)

(821)

(763) (123)(89)

(169)

5

(649)

(82)

(32)

(1,828)

(1,742)

46

7%

4%

7%

-3%

3%

1%

4%

-2%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

2006 2007 2008

Controllable costs Non controllable costs

-5%

+5%

+10%

Cash Cost Movements 2006 - 2009

Per

cent

age

incr

ease

in c

ash

cost

s

+11%

Shown on a Total Group basis excluding operations disposed of.

2009

47

Operating Profit Variance: Detailed Cost ReconciliationTotal Group

712523

167

10

107

76

188

68

9

22

17

42

201

0

100

200

300

400

500

600

700

800

900

1,000

Fuel Electricity TC/RC's Freight /Transport

Sulphur /SulphuricAcid Price

Other Non-Controllables

Savings -Procurement

Savings - AO Consumables& Stock

Labour Maintenance OtherControllables

Cash CostDecrease

Decrease/(increase) in cash costs ($m) (1)

Non controllable decrease $292m or 2% Controllable decrease $420m or 3%

Cash costs decrease $712m or 5%

Excluding associates.(1) Cash cost movements excluding impact of exchange, volume, inflation, acquisitions & disposals, revenue-recovered costs & commodity price-linked costs.(2) Represents year-on-year movement.

(2) (2)

48

Operating Cost ReconciliationTotal Group

Excluding associates.(1) Inflation variance calculated using CPI on prior period cash operating costs that have been impacted directly by inflation.(2) Represents year-on-year movement.

17,442

15,653

14,941

539

82701,132

283261

582

630

14,000

15,000

16,000

17,000

18,000

2008 Exchange Volume Inflation Acquisitions &Disposals

RevenueRecovered /Commodity

Price-Linked

Other Non-Cash Cash Costs Cash CostSavings - AO

andProcurement

2009

$m

(2)

(1)

49

Underlying Earnings VarianceTotal Group

5,237

2,569

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 Price Exchange Volume Inflation Cash Costs Non CashCosts

Interest Associates Structural &Other

2009

(2,290)

(68) 187 (345)495 (94) 120 (923)

250

$m

50

Summary of the Group’s bonds and committed bank facilities

2016$1.1bn$1.1bnEUR 750m Bond

2013$1.1bn$1.1bnEUR 750m Bond

2014$1.4bn$1.4bnUSD 1,700m Convertible1

2015$1.5bn$1.5bnEUR 1,000m Bond

2018$0.7bn$0.7bnGBP 400m Bond

2012$0.0bn$2.5bnCore facility

2011$2.3bn$4.5bnAcquisition facility

20174$0.6bn$0.8bnBNDES3

$13.5bn$22.9bnTotal bonds & committed facilities

2010-2020$2.0bn$4.1bnOther committed facilities

$5.2bn$14.6bnTotal committed facilities

2010-2012$0.1bn$0.1bnOther Bonds

$8.3bn$8.3bnTotal Bonds

2010$0.5bn$0.5bnGBP 300m Bond

2014$1.2bn$1.2bnUSD 1,250m Bond

2019$0.7bn$0.7bnUSD 750m Bond

$2.7bn

Facility amount

$0.3bn

Utilisation at 31 Dec 09

2010-2014AA South Africa Bank Facilities2

AA plc bank facilities

MaturityDescription

Committed bank facilities:$1.5 billion (due March 2010)$1.5 billion (due 2012 and beyond)

• Discussions to renew the $3bn facilities are being finalised.

• The shareholders have agreed to subscribe for additional equity of $1bn in proportion to their existing shareholdings.

• This will enable a reduction in overall debt and will strengthen the De Beers Group balance sheet.

1Under IAS32, the Convertible is a compound financial instrument , with debt and equity components. At 31 December 2009, the reported debt and equity elements were $1,369m and $355m respectively 2Adjusted to provide back-up for outstanding South African Commercial Paper of $0.1bn3Dedicated Barro Alto financing 4Amortising profile

Overview of Committed Financing

preliminary results year ended 31 december 2009 · 2019. 5. 14. · preliminary results year ended...

Documents