De Beers FY09 Results Notific

RNS Number : 0023H

Anglo American PLC

11 February 2010

 



News Release

11 February 2010

Anglo American plc notification: De Beers Société Anonyme year end results 2009

Anglo American plc ("Anglo American") draws your attention to the 2009 results of De Beers Société Anonyme ("De Beers") announced today.

De Beers today reported profit before finance charges and taxation for the year ended 31 December 2009 of $318 million.

Anglo American arrives at its profit before finance charges and taxation in respect of De Beers by accounting for the interests arising from the ordinary shares it holds. Anglo American will therefore report an operating profit of $64 million for the year ended 31 December 2009 from its investment in De Beers, as reconciled in the table below:

US$ million	12 months ended 31.12.2009
·   De Beers profit before finance charges and taxation (100%)	318
·   Remeasurement gains on financial instruments (100%) net of asset disposals	(173)
·   Reclassification of joint venture retained income	(9)
·   Difference in IAS 19 accounting policy	7
·   De Beers profit before finance charges and taxation - AA plc basis (100%)	143
·   Contribution to Anglo American's operating profit (45%)	64

De Beers today reported an underlying loss of $220 million, after the adjustment for a difference of accounting policy and after including interest arising from the 10% preference shares Anglo American will be reporting an underlying loss of $90 million.

In the year ended 31 December 2009, Anglo American received a total of $33 million in distributions from De Beers, consisting of $24 million dividends on ordinary shares relating to FY 2008 and a $9 million dividend representing payment on preference shares.  The dividend on ordinary shares was re-invested in De Beers as a capital loan.

Operating Profit and Underlying Earnings / (Loss)

Operating Profit is revenue less operating costs before special items and remeasurements. Underlying Earnings is net profit / (loss) 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, (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 and (iii) foreign exchange impacts arising on certain deferred tax balances.

The above figures are unaudited.

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http://www.rns-pdf.londonstockexchange.com/rns/0023H_-2010-2-11.pdf

 

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