De Beers Annual Results

Anglo American PLC
03 February 2005


News Release

3 February 2005


De Beers Societe Anonyme ("Dbsa") today reported headline earnings for the year
ended 31 December 2004 of US$652 million.

Anglo American plc ("AA plc") arrives at its headline earnings in respect of De
Beers by accounting for the interests arising from the ordinary shares and the
10% preference shares it holds in DB Investments ("DBI").

AA plc will therefore report headline earnings of US$381 million for the year
ended 31 December 2004 from its investment in DBI, as reconciled in the table
below:

     Reconciliation of headline earnings for the year ended 31 December 2004

                                                   Ordinary        Preference 
US$ million                             Total        shares        shares (3)

     •    DBI headline earnings - 
          IFRS  (100%)                    652             -                 -

     •    GAAP adjustments (1)             65             -                 -

     •    DBI headline earnings - 
          UK GAAP (100%)                  717           622                95

     •    AA plc's 45% ordinary 
          share interest                  280           280                 -

     •    Additional 3.65% ordinary 
          share interest (2)               23            23                 -

     •    AA plc's portion of the 
          preference shares (3)            78             -                78            
     •    AA plc headline earnings        381           303                78
     
(1)  The GAAP adjustments include the reclassification of the US$75 million
     preference dividends which are finance charges to Dbsa under IFRS, but are 
     not treated as finance charges under UK GAAP.  The GAAP adjustments also 
     include -US$31 million relating to the mark-to-market of interest rate 
     hedging contracts referred to in Dbsa's 2003 year end press release.  
     Whereas in Dbsa's earnings, the full amount of US$70 million was charged 
     against earnings in 2003, under UK GAAP US$31 million is charged against 
     earnings in 2004, being the portion that was realised in the period.

(2)  As a result of De Beers' partial interest in Debswana Diamond Company
     (Proprietary) Limited (one of the shareholders in DBI), AA plc accounts for 
     an additional 3.65% of DBI's post-tax earnings attributable to ordinary 
     shares. As previously announced, the Debswana interest in DBI was ceded to 
     the Government of the Republic of Botswana as part of a renewal of 
     De Beers' mining licences in Botswana, signed on 20th December 2004.  
     Accordingly, from this date AA plc no longer accounts for this additional 
     3.65% interest.

(3)  AA plc grosses up its preference share income to the operating profit level
     and accounts for its preference share interest in operating profit, 
     exceptional items, investment income and net interest, tax and minorities, 
     in the same way as it accounts for its ordinary share interest in these 
     balances.  This treatment is in accordance with FRS9, paragraph 33, which 
     indicates that where preference shares are an integral part of the 
     investor's long-term interest, it is appropriate to include the preference 
     share interest with the ordinary share interest in determining the 
     investor's overall share of an associate's results. The headline earnings 
     attributable to AA plc's US$61 million preference share income are arrived 
     at by adjusting for a proportion of exceptional items (-US$2 million) and 
     goodwill amortisation (+US$19 million) in the same way as the ordinary 
     share interest is calculated.

On 30 June 2004, Dbsa redeemed 25% of its preference shares and on that date AA
plc received US$175 million, representing 25% of its US$701 million preference
share interest.

In the year ended 31 December 2004, AA plc received a total of US$250 million in
dividends from DBI, consisting of US$68 million dividends on ordinary shares
relating to FY 2003, a US$112 million interim dividend on ordinary shares for
2004, US$35 million dividends representing the second US$35 million payment on
preference shares for 2003, and interim dividends totalling US$35 million on
preference shares for 2004. A US$90 million final dividend on ordinary shares
relating to FY 2004 and the second US$26 million payment on preference shares
for 2004 are expected to be received in early 2005.

In the year ended 31 December 2003, AA plc received a total of US$238 million in
dividends from DBI, consisting of US$56 million dividends on ordinary shares
relating to FY 2002, a US$112 million interim dividend on ordinary shares for
2003, US$35 million dividends representing the second US$35 million payment on
preference shares for 2002, and a US$35 million interim dividend on preference
shares for 2003.

   Reconciliation of headline earnings for the year ended 31 December 2003 (4)

                                                   Ordinary        Preference 
US$ million                             Total        shares            shares          

     •    DBI headline earnings 
          (100%) - restated (4)           590             -                 -

     •    GAAP adjustments - 
          restated (4)                    126             -                 -

     •    DBI headline earnings - 
          UK GAAP (100%)                  716           599               117

     •    AA plc's 45% ordinary 
          share interest                  269           269                 -

     •    Additional 3.65% ordinary 
          share interest                   22            22                 -

     •    AA plc's portion of the 
          preference shares                95             -                95

     •    AA plc headline earnings        386           291                95
     
(4)  Dbsa's headline earnings for the year ended 31 December 2003 have been
     restated to US$590 million (previously reported as US$676 million).

     The restatement does not affect the UK GAAP figures previously reported by 
     AA plc, consequently the GAAP adjustment has also been restated 
     accordingly.

The above figures are unaudited.


                            De Beers Societe Anonyme
                   (Incorporated under the laws of Luxembourg)

                                                        Thursday 3 February 2005

DIRECTORS' COMMENT

2004 was another good year for the diamond industry. Against the background of
accelerating economic growth in the major diamond consuming countries, diamond
jewellery sales performed well. Preliminary indications are that global retail
sales of diamond jewellery for the year as a whole were about 6% higher than the
previous year in local currency and, because of the continued weakening of the
US dollar, about 8% higher in US dollars. Strong areas of growth were
Asia-Pacific, India and the Gulf region with Japan also recording modest growth
for the second year running. The USA, accounting for over 50% of world diamond
jewellery sales, reports a solid Christmas season overall, despite concerns over
high personal debt levels.

During the year, levels of polished stocks in the cutting centres declined but
cutting centre bank debt continued to climb in line with the increase in the
volume of trade. However, the lending banks seem reasonably comfortable with the
ability of the trade to finance the higher level of debt.

There was strong demand for rough diamonds from the cutting centres throughout
the year and full year sales by the Diamond Trading Company ("DTC"), the
marketing arm of De Beers, were US$5,695 million, 3% higher than in 2003. During
the year, the DTC raised its rough diamond prices on three occasions, the
cumulative effect of which was that sales by the DTC in 2004 were at prices, on
average, 14% higher than in 2003. The DTC had a strong first sight in 2005 at
which it raised its rough diamond prices by a further 3% on the evidence of the
underlying demand growth achieved in 2004 and anticipated in 2005.

Despite De Beers Group diamond production being significantly below target in
the first half of the year, the deficit was more than made up in the second
half. Production for the year as a whole, inclusive of its joint ventures in
Botswana and Namibia, totalled 47 million carats, 3 million carats (7%) more
than in 2003. Debswana produced a record 31.1 million carats, an increase of 2%
over 2003, notwithstanding experiencing a number of operational difficulties and
industrial action. Namdeb's production of 1.86 million carats was 28% higher
than in 2003 and included record marine production of 865,000 carats.

De Beers' South African mines produced a total of 13.7 million carats in 2004,
an increase of 1.8 million carats (15%) on 2003. Mainly because of the new
Combined Treatment Plant, Kimberley mines produced a record 2 million carats, a
production level last achieved 90 years ago, in 1914. Although Rand mining costs
per ton in 2004 were lower than in 2003, the weakness of the US Dollar, the
currency in which diamonds are sold, has put De Beers' older and more marginal
mines under continued pressure with five of its seven mines operating at a loss.
Management continues to focus its efforts on further reducing costs and
driving efficiencies throughout its operations

Headline earnings for the year ended 31 December 2004 were US$652 million, 11%
higher than for 2003, and operating cash flow generated during the year was
US$985 million.  Net interest bearing debt reduced from US$1,762 million at 31
December 2003 to US$1,588 million at 31 December 2004 and net gearing reduced
from 29% to 25%. Diamond stocks at year end were at a similar level to that
reported at the end of 2003.

The Board has recommended to the shareholders that a final ordinary dividend of
US$200 million in respect of the year 2004 be declared at the forthcoming Annual
General Meeting. Together with the interim ordinary dividend of US$250 million
paid in August 2004, total ordinary dividends for the year amount to US$450
million (2003:US$400 million).

2005 is likely to be a more challenging year for the diamond industry.  However,
with the transformation of the industry that has taken place over the last few
years, there is now growing evidence that diamonds are competing favourably with
other luxury products.

De Beers is pleased to have recently reached agreement with the Government of
the Republic of Botswana ("GRB") in relation to the renewal of the Jwaneng
mining licence for a further 25-year period from 1 August 2004 and the extension
of the Orapa, Damtshaa and Letlhakane mining licences for a similar period. De
Beers and the GRB have also agreed that the 15% holding in De Beers' ultimate
holding company, DB Investments sa, previously owned by Debswana, be directly
owned by GRB. The agreement marks the long-term continuation of the unique and
important partnership between the GRB and De Beers.

De Beers has made a number of commitments to the European Commission regarding
its proposed trade agreement with the Russian diamond producer, Alrosa. De Beers
believes that it has now addressed the concerns raised by the Commission and
looks forward to having the commitments formally accepted by the Commission in
the near future.

The reorganisation of De Beers' South African assets, which has involved focus
and planning over the past year, is now in the process of being implemented.
Accordingly, De Beers Consolidated Mines Limited should be in a position to
implement a Black Economic Empowerment transaction during 2005.

                            De Beers Societe Anonyme
                         Consolidated Income Statement
                      for the year ended 31 December 2004

                                   (Abridged)

                                                                                US Dollar millions
                                                                                Year to              Year to
                                                                       31 December 2004     31 December 2003

Diamond sales
      - DTC                                                                       5 695                5 518
      - Other                                                                       512                  397
Trade investment and other income                                                   836                  656
                                                                                  7 043                6 571
Deduct:
Cost of sales                                                                     4 890                4 794
Depreciation and amortisation (Note 1)                                              345                  294
Sorting and marketing                                                               543                  490
Exploration and research                                                            174                  147
Corporate expenses                                                                   80                   52
Net diamond account                                                               1 011                  794
Deduct:
Net finance charges (Note 2)                                                         83                  144
Costs related to reorganisation and restructuring                                    39                   22
Income before taxation                                                              889                  628
Taxation                                                                            386                  239
Income after taxation                                                               503                  389
Attributable to outside shareholders in subsidiaries                                 26                   10
Own earnings                                                                        477                  379
Share of retained income of joint ventures                                           21                  114
Total earnings                                                                      498                  493
Costs of early debt redemption                                                                            95

Net earnings                                                                        498                  398

Headline earnings reconciliation
Net earnings                                                                        498                  398

Adjusted for:

Amortisation of intangible fixed assets                                             175                  170

After tax surplus on realisation of fixed assets less provisions                   (21)                  (3)

Facility fees                                                                                             25

Headline earnings                                                                   652                  590
Cash available from operating activities                                            985                1 520

Dividends in respect of:-
2002 -  Final                                                                                            124
2003 -  Interim                                                                                          250
     -  Final                                                                      150
2004 - Interim                                                                     250


                            De Beers Societe Anonyme
                           Consolidated Balance Sheet
                                31 December 2004

                                   (Abridged)

                                                           US Dollar millions
                                            31 December 2004         31 December 2003                       
                                                       3 801                    3 549

Ordinary shareholders' interests
Outside shareholders' interests                          132                      115
Total shareholders' interests                          3 933                    3 664
Net interest bearing debt (Notes 2 and 3)              1 588                    1 762
Other liabilities                                      1 776                    1 517
                                                       7 297                    6 943

Fixed assets                                           5 391                    5 145
Investments and loans                                     50                       53
Diamond stocks and other assets                        1 856                    1 745
                                                       7 297                    6 943

Exchange rates US$ = Rand
- average                                               6.43                     7.64
- year end                                              5.74                     6.38


Notes and Comments
     
1.   Amortisation amounting to US$144 million in respect of the goodwill 
     attributable to De Beers Consolidated Mines Limited and De Beers Centenary 
     AG has been expensed in the current year (2003 : US$144 million).

2.   On 30 June 2004, the Company took advantage of an early redemption clause 
     attaching to its 10% preference shares in issue and redeemed the maximum 
     permissible amount of US$214 million, or 25% of the total. As a result, the      
     preference shares, with a value of US$642 million (2003:  US$856 million) 
     have been more appropriately reclassified as debt in the balance sheets. 
     The preference dividends, amounting to US$75 million (2003: US$86 million) 
     have accordingly been reclassified as finance charges in the respective
     income statements.
     
3.   Cash has been offset against interest bearing debt.


Contacts:

De Beers London:
Lynette Hori                               [phone]/[phone]

De Beers South Africa
Nicola Wilson                              [phone]/[phone]


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