Final Results

Anglo American PLC 14 March 2001 PART 1 News Release 14 March 2001 Anglo American plc reports record 53% increase in headline profit for 2000 - Headline profit increased by 53% to US$2,000 million and profit for the year increased by 26% to US$1,957 million; - Total operating profit, excluding operating exceptional items of US$266 million, up by 62% to US$3,480 million; - Acquisitions announced during the year totalled around US$4 billion; - Expansionary capital expenditure in 2000 totalled US$841 million; - Disposal of non-core assets generated cash proceeds of US$1,278 million;* - Ongoing focus on cost control, annualised cost savings over the last two years exceed US$290 million; - Final dividend of 130 US cents, giving a total dividend for 2000 of 190 US cents per ordinary share, an increase of 27% on last year. Tony Trahar, Chief Executive, said 'the headline profit of US$2 billion for 2000 represents a record result. It reflects the strength of our business with strong contributions from Platinum, Diamonds, Coal, and Forest products as well as the benefits of restructuring and expansion. We continue to focus on cost control and improving efficiencies across the Group. Anglo American has enjoyed a second successful year since listing in London and we have made major progress in delivering on our strategy of growth through acquisitions and investment; disposal of non-core businesses and seeking to remove the cross-holding with De Beers.' HIGHLIGHTS FOR YEAR ENDED 31 DECEMBER 2000 US$ million except per share amounts 2000 1999 Change Group turnover & share of turnover of joint ventures & 20,570 19,245 +7% associates Total operating profit after operating exceptional items 3,214 2,142 +50% Profit for the financial year 1,957 1,552 +26% Headline profit for the financial year ** 2,000 1,308 +53% Earnings per share (US$): Profit for the financial year 5.01 4.03 +24% Headline profit for the financial year 5.12 3.40 +51% Dividend for the year (US cents per share) 190 150 +27% * excludes disposal of 15.3% stake in FirstRand ** see note 6 for basis of calculation of headline profit Review of 2000 2000 has been another year of major change and significant progress for Anglo American, leading to record results. During the year considerable progress has been made in realising the goal of becoming a focused global mining and natural resources group through organic and acquisitive growth and disposal of non-core interests. In February 2001, Anglo American announced proposals for the elimination of the cross-holding with De Beers. - Growth through acquisitions totalled around US$4 billion in 2000: - Tarmac was acquired in March for US$1.1 billion (net of the proceeds received from the subsequent disposal of Tarmac USA), making Anglo American the leading producer of aggregates in the UK and providing expansion opportunities in continental Europe; - Shell Coal and certain additional coal interests in Australia, Venezuela and Colombia were purchased for over US$1 billion; - additional interests were acquired in Frantschach and Neusiedler, Assi Sacks and Ruzomberok for US$780 million; - in March, a substantial investment in the Zambian copperbelt was announced through the acquisition by ZCI of a 65% interest in Konkola Copper Mines. - Expansionary capital expenditure totalled US$841 million. This included significant expenditure in Gold, Platinum, Coal, Industrial minerals, Base metals and Forest products. In addition, further developments were announced: - in May, Anglo Platinum announced a major expansion of its platinum production to meet growing demand by investing US$2.1 billion to increase annual production to 3.5 million ounces by 2006; - AngloGold announced investments of US$400 million in projects in Australia, Mali and Tanzania; - the US$454 million Skorpion zinc project in Namibia was approved by the Board in September; the Lisheen zinc mine in Ireland was officially opened in June and first nickel production from the Loma de Niquel mine in Venezuela took place in December. - Disposals of non-core businesses. Since announcing the intention to widen and accelerate the programme of disposals of non-core businesses, Anglo American realised a total of US$1.3 billion in cash during the year. The major disposals have now been completed and include interests in Industries, Financial services, Gold and other investments. In December, the exchange of a 15.3% stake in FirstRand for holdings in mining investments, valued at around US$730 million was announced. - Increased focus on cost control. Over the last two years, annualised cost savings exceeding US$290 million have been achieved through rationalisation and restructuring of businesses. During 2000 energy costs increased by US$94 million. - De Beers: on 15 February this year Anglo American announced, in conjunction with Central Holdings Limited ('CHL') and Debswana Diamond (Proprietary) Limited ('Debswana'), that a new company, DB Investments ('DBI'), to be owned by Anglo American (45%), CHL (45%) and Debswana (10%), had reached agreement with the board of De Beers for a proposal to be made to acquire the public shareholding in De Beers and to take De Beers private. In terms of the transaction, all De Beers Linked Unitholders including Anglo American will receive by way of a scheme of arrangement a pro rata distribution of 130.4 million Anglo American shares held by De Beers, and in addition public Linked Unitholders will receive further Anglo American shares and cash. The effect is that each public Linked Unitholder will receive 0.43 Anglo American shares and US$14.40 in cash, and will be entitled to the final dividend of US$1 per Linked Unit for the year ended 31 December 2000. The benefits of the transaction to Anglo American are that it will: + simplify Anglo American's structure and increase transparency through the removal of the cross-holding; + result in a net cash inflow, including dividends received, of US$1,072 million immediately and US$701 million on redemption of the preference shares in DBI; + increase Anglo American's interest in De Beers's diamond business to 45%; + increase the free float of Anglo American shares to approximately 90% and retain a full FTSE weighting. The transaction is subject to shareholder and regulatory approvals. Financial Results - key contributors Headline profit of US$2,000 million represents a 53% increase over the 1999 results. Major contributions were made by increased prices from platinum group metals, base and ferrous metals, record diamond sales and strong pulp and paper markets. The impact of acquisitions in the Forest products, Industrial minerals and Coal divisions were partially offset by the effect of disposals in the Industries division. The largest contributor to headline profit was Anglo Platinum (25% of Anglo American's total headline profit) increasing its headline profit to US$500 million, from US$200 million in 1999, following significantly higher platinum and palladium prices during the year. The higher prices more than offset higher on-mine costs and royalty payments. Increased diamond sales, driven by the 'Millennium factor' and continued strength in the US market, led to a record performance by De Beers, contributing US$321 million to headline profit (16% of Anglo American's total headline profit) up from US$162 million in 1999. The impact of acquisitions together with strong pulp and paper markets and improved productivity helped the Forest products division to record a 55% increase in headline profit to US$308 million (15% of Anglo American's total headline profit). Following the acquisition of Assi Sacks in August, Anglo Forest Products is now the world's largest paper sack producer. An improved performance from the Coal division led to a contribution of US$138 million to headline profit (7% of Anglo American's total headline profit). The 75% increase over the period was due to the first contribution (from August) from the acquisition of Shell Coal in Australia, which boosted Anglo American's production of coal by some 73% (net of New Coal disposal), together with improved prices for export coal in the second half of the year. The contribution from AngloGold fell to US$201 million (10% of Anglo American's headline profit) largely because of a disappointing operating performance at certain South African mines. Major expansions and acquisitions in Australia, Mali and Tanzania were announced which significantly furthers AngloGold's strategy of concentrating on lower cost, longer life operations. Base metals reported a 36% rise in headline profit to US$132 million (7% of Anglo American's total headline profit) benefiting from stronger metal prices although price rallies were quickly capped. Industrial minerals contributed US$159 million to headline profit (8% of Anglo American's total headline profit) an increase of 37% over the period. The contribution from Tarmac was disappointing due to poor weather, cost pressures resulting from the higher oil price and difficult trading conditions. It is anticipated that Tarmac's performance will improve in 2001 on the back of expected better UK market conditions and the realisation of synergies following the acquisition. The Ferrous metals division recorded an improved performance on the back of higher steel prices and volumes in the first half, leading to a 28% increase in headline profit to US$86 million (4% of Anglo American's total headline profit). However, by the middle of the year a substantial rise in global output caused ferrous metals prices to decline. Exceptional items Operating exceptional losses amounted to US$266 million. These represented impairments principally in respect of the Lisheen zinc mine, Anaconda nickel operation and Salobo project in Base metals and the Ergo operation in AngloGold. Non-operating exceptional items amounted to a net gain of US$323 million. Net gains on the disposal of non-core assets of US$402 million were offset by costs related to the restructuring of the industrial minerals business following the acquisition of Tarmac. Taxation The effective rate of taxation on profit before goodwill amortisation and exceptional items was 26%. This was an increase over the effective rate of 19% in 1999 and reflects principally the higher profit contributions from Platinum and Diamonds. Dividends The directors recommend a final dividend of 130 US cents per share to be paid on 18 May 2001. Dividends for the year will amount to 190 US cents per share, an increase of 27% on last year's total dividend. Outlook The increasing evidence of an economic slowdown in the United States could have implications for global growth and, therefore, commodity prices. However, the recent moves by the Federal Reserve Bank to stimulate US growth, combined with a satisfactory outlook for Europe, could lead to a resumption of global economic growth in the second half of 2001 and a recovery from the lower prices presently being experienced in some commodity sectors. Should this assessment prove optimistic, the Group's major operating divisions are all well positioned on the cost curve to generate profits and cash flows during any slowdown. In addition the Group's balance sheet is conservatively geared and we will continue to look for opportunities to add shareholder value during the coming year. For further information, please contact: Anglo American - London Investor Relations Media Relations Nick von Schirnding Kate Aindow Tel: +44 (0)20 7698 8540 Tel: +44 (0)20 7698 8619 Anglo American - Johannesburg Investor Relations Media Relations Anne Dunn Marion Dixon Tel: +27 11 638 4730 Tel: +27 11 638 3001 Anglo American plc website: www.angloamerican.co.uk Anglo American plc is a global leader in the mining and natural resource sectors. It has significant and focused interests in gold, platinum, diamonds, coal, base and ferrous metals, industrial minerals and forest products, as well as financial and technical strength. The group is geographically diverse, with operations and developments in Africa, Europe, South and North America and Australia. Anglo American represents a powerful world of resources. Operational review Gold US$ million 2000 1999 Total operating profit 381 452 Headline profit 201 210 Net operating assets 2,667 2,990 Capital expenditure 240 223 Share of headline profit (%) 10 16 Share of group net operating assets (%) 17 24 AngloGold production rose 5% to 7.2 million ounces and cash operating costs were steady at US$213 per ounce. Operating profits, at US$381 million, were 16% lower than 1999 owing to a combination of asset impairments of US$29 million taken in the second half of the year, a lower gold price and operating problems at some South African mines. During the year AngloGold purchased an effective 40% interest in the Morila mine in Mali and a 50% interest in the Geita mine in Tanzania. A major expansion of the Sunrise Dam mine, AngloGold's key operation in Australia, and a new mine, Yatela, in Mali, were also launched during the year. Together, these expansions and acquisitions will contribute some 20 million ounces of production at an average cash cost of US$175 per ounce over the next 15 years. In December, AngloGold announced that it had agreed in principle to sell two South African gold mines - Elandsrand and Deelkraal to Harmony Gold Mining Company for US$132 million in cash. Platinum US$ million 2000 1999 Total operating profit 1,336 480 Headline profit 500 200 Net operating assets 1,327 1,519 Capital expenditure 272 239 Share of headline profit (%) 25 15 Share of group net operating assets (%) 8 12 Anglo Platinum's operating profit of US$1,336 million was US$856 million, or 178%, higher than in 1999. The increase was attributable to higher platinum group metal prices, which were partly offset by a rise in on-mine costs and royalties. The average realised platinum price of US$544 per ounce was US$168 higher than that achieved in 1999. Average prices for palladium and rhodium were also significantly higher than those for 1999 at US$675 per ounce for palladium and US$1,847 per ounce for rhodium compared with US$358 and US$894 per ounce respectively. Refined production was lower than in 1999. This reduction was due to the flooding which followed the heavy rainfall experienced in South Africa in February and March and the industrial action experienced in the second half of the year. In addition, refined production in 1999 benefited from the release of a substantial amount of material from the process pipeline into refined production. The Amandelbult UG2 expansion came into production at the end of June and Lebowa's Middelpunt Hill project was commissioned in September. Together, these two projects will add around a further 107,000 ounces of platinum production per annum at design capacity. The heavy rainfall affected the development of the Bafokeng Rasimone mine but the underground operations remain on schedule to achieve design output of 250,000 ounces in 2002. Work has also begun on the Maandagshoek project, which is due to commence production in 2002. In addition, the Waterval UG2 and Union Section UG2 expansions have been announced. These projects form part of the programme which will increase annual production to 3.5 million ounces of platinum by 2006 at a total cost of around US$2.1 billion. The Kroondal joint venture, which was announced in August 2000, has been cancelled owing to the non-fulfilment of certain suspensive conditions. This development will not affect the expansion programme. Diamonds US$ million 2000 1999 Total operating profit 491 245 Headline profit 321 162 Share of headline profit (%) 16 12 The year 2000 was exceptional for De Beers with The Diamond Trading Company achieving record sales of US$5,670 million. Diamond stocks were reduced during the year by US$924 million to US$3,065 million. This run-down of stock, increases in prices and bringing into account the full profits of Venetia all contributed to higher margins on the diamond account. De Beers concluded the acquisition of 100% of the Saturn Partnership, successfully bid for the shares of Winspear Diamonds Inc. and acquired the remaining 32% of the Snap Lake project from Aber Resources Inc. Coal US$ million 2000 1999 Total operating profit 169 114 South Africa 136 126 Australia 35 - South America (2) (12) Headline profit 138 79 Net operating assets 1,580 708 Capital expenditure 45 26 Share of headline profit (%) 7 6 Share of group net operating assets (%) 10 6 Anglo Coal's operating profit for the year at US$169 million was 48% higher than in 1999. This improvement is partly due to the first contribution from the acquisitions in Australia as well as the strong performance from the export mines in South Africa. The total volume of coal sales for the year was 64.8 million tonnes, 3.0 million tonnes higher than in 1999. Operating profits from the South African operations were higher than in 1999 due to increased prices for export coal in the second half of the year and lower unit costs as a result of the substantial depreciation in the South African currency. Coal sales from the South African operations amounted to 55.2 million tonnes, 6.1 million tonnes lower than the previous year. This decrease was due to the disposal of Gold Fields Coal Limited, comprising Anglo Coal's Arnot underground colliery, the joint venture interest in Matla Colliery and New Clydesdale Colliery, to Eyesizwe Coal (Pty) Ltd, a black empowerment company, effective July 2000. In July 2000, Anglo Coal completed the purchase from Shell Petroleum of its entire shareholding in Shell Coal Holdings Limited which includes its Australian and Venezuelan operations. Anglo Coal also agreed to make offers for the interest of one of Shell's former joint venture parties in the Drayton and Callide coal mines. Completion of the acquisition of these additional interests took place in October 2000. The total consideration for the acquisition of Shell Coal Holdings, together with such joint venture interests, amounted to US$959 million. Further minority interests in certain other joint ventures were purchased later in the year. Attributable coal sales from the Australian operations amounted to 8.2 million tonnes and contributed US$35 million to operating profit. The operating loss from the Colombian operations was US$2 million, an improvement of over 80% on 1999. Attributable coal sales amounted to 1.4 million tonnes, 0.9 million tonnes higher than in the previous year, resulting in substantially lower unit costs. Following the purchase of Rio Tinto's one-third interest in Carbones del Cerrejon, the remaining shareholders, Anglo Coal and Glencore, on-sold the one-third share to Billiton, effective January 2000. In November 2000, the new consortium acquired the Colombian Government's 50% interest in the Cerrejon Zona Norte mining complex. This acquisition is expected to contribute over 3 million tonnes per annum of coal sales for Anglo Coal. Base metals US$ million 2000 1999 Total operating profit (41) 174 Copper 173 136 Zinc (5) 12 Nickel 40 27 Other (12) (1) Impairments (237) - Headline profit 132 97 Net operating assets 2,102 1,606 Capital expenditure 410 257 Share of headline profit (%) 7 7 Share of group net operating assets (%) 13 13 The Base metals division recorded an operating loss of US$41 million in 2000, US$215 million worse than in 1999. The main reason for the fall was impairment provisions of US$237 million principally recorded in respect of the Group's interest in the Lisheen mine in Ireland, the Anaconda nickel operation in Australia and the Salobo project in Brazil. The Lisheen mine has suffered from operating problems throughout 2000 in respect of underground water, the quantity and grade of ore and concentrator recoveries. Anaconda's Murrin-Murrin operation has been affected by commissioning and ramp-up problems in respect of the high pressure acid-leach technology it has adopted. Underlying operating profits, excluding these one-off items, however, were up US$22 million principally as a result of higher metal prices. The copper operations produced 559,000 attributable tonnes of copper and, excluding the impact of impairments, generated operating profits of US$173 million, up US$37 million on last year. The copper price averaged 82 US cents per pound compared with 71 US cents per pound in 1999. In March, the Group, via its 51% subsidiary Zambia Copper Investments, acquired a 65% interest in Konkola Copper Mines formed to acquire the assets of the Konkola and Nchanga divisions, the Nampundwe pyrite mine, and an option over the Nkana smelter, refinery and acid plant from Zambia Consolidated Copper Mines. The Group's interest in Mantos Blancos was increased from 77.4% to 99.97% and the company delisted from the Santiago Stock Exchange. Attributable production at the nickel operations was 14,700 tonnes. Operating profits of US$40 million before impairments were 48% higher than in 1999 as a result of the sharply higher nickel price, which averaged US$3.92 per pound compared with US$2.73 per pound in 1999. An expansion project at the 43% owned Tati mine was approved and construction is proceeding on schedule with commissioning planned for the first quarter of 2002. Construction at the Loma de Niquel mine was delayed, pushing first production out to January 2001. The holding in Anaconda Nickel was increased by 3% to 26%. The zinc and lead operations produced 158,000 attributable tonnes of zinc and 79,000 attributable tonnes of lead. Zinc prices improved to 51 US cents per pound compared with 46 US cents per pound in 1999. This was the result of good demand and continuing falling stocks. Lead prices averaged 21 US cents per pound, marginally lower than in 1999. Despite the higher prices, the zinc and lead operations made an operating loss of US$5 million before impairments because of operating problems at Hudson Bay and Lisheen. This was US$17 million worse than in 1999. In terms of new developments, 2000 was an important year. At Hudson Bay, work continues on the development of the 777 orebody and the associated upgrade of surface facilities at the mine. The Lisheen operation continues to suffer from slower than planned underground development and ramp up of the plant. This has led to a complete review of mining methods with the objective of achieving design capacity production by July 2001. The Skorpion project and a new shaft at Black Mountain were approved and construction activities have started. Namakwa Sands generated an operating profit of US$22 million, US$19 million higher than in 1999. This was principally the result of firmer demand and prices and improved operating efficiencies. Industrial minerals US$ million 2000 1999 Total operating profit 150 118 UK 107 84 Europe 21 9 Brazil 22 25 Headline profit 159 116 Net operating assets 3,196 1,184 Capital expenditure 186 70 Share of headline profit (%) 8 9 Share of group net operating assets (%) 20 9 The Industrial minerals division increased operating profit from US$118 million in 1999 to US$150 million this year, principally as a result of the additional profit arising from the acquisition of Tarmac on 1 March. Non-operating exceptional costs of US$79 million have been incurred in restructuring the operations. The disposal of Tarmac's US assets was completed and proceeds of US$647 million realised. The disposal of some UK quarries and related assets, required in terms of an undertaking to the Secretary of State for Trade and Industry has also been completed and proceeds of US$62 million have been realised. The performance in 2000 was, however, disappointing, mainly as a result of the deterioration which occurred in the UK construction materials market and cost pressures resulting from the higher oil price. The main aggregates, asphalt, ready-mixed concrete and concrete products businesses all experienced subdued demand, which was exacerbated by the autumn fuel crisis and bad weather conditions. In central Europe, results were affected by a further substantial fall in demand in the German construction industry. However, the situation was better in Spain and France where construction activity was more buoyant. The Copebras operating profit of US$22 million was marginally lower than last year with higher volumes of fertiliser and STPP being offset by lower prices and increased administration costs. Cleveland Potash has now recovered from the mine flooding problem which severely affected production in 1999. With half its production being exported, mainly to continental Europe, the weakness of the Euro has adversely affected its financial results. Ferrous metals US$ million 2000 1999 Total operating profit 127 75 Highveld Steel 22 (13) Scaw Metals 30 31 Samancor group 57 45 Other 18 12 Headline profit 86 67 Net operating assets 390 470 Capital expenditure 32 47 Share of headline profit (%) 4 5 Share of group net operating assets (%) 2 4 Operating profits of the division at US$127 million were significantly higher than the US$75 million recorded in 1999. A stronger world market for steel and related products in the first half of 2000 was a major factor in this improvement. Highveld Steel staged a strong recovery in the first half of 2000 on the back of higher carbon steel prices. Prices however collapsed in the second half of the year as export markets for carbon steel, vanadium and manganese alloys all deteriorated and production and scheduling problems were experienced at the steelworks. Columbus Stainless is jointly owned by Highveld, Samancor and the Industrial Development Corporation of South Africa. An improved first half performance, which was based on sharply higher stainless steel prices and higher production, was adversely impacted by weakening prices in the second half. Scaw's operating profits were slightly below last year's levels. Operating performance was mixed, with a good performance from the grinding media operations being offset by a poor performance from cast products. Samancor's manganese and chrome operations benefited from modest increases in prices and higher production. Forest products US$ million 2000 1999 Total operating profit 458 272 Europe 221 124 South Africa 202 136 Brazil 35 12 Headline profit 308 199 Net operating assets 3,054 1,348 Capital expenditure 126 181 Share of headline profit (%) 15 15 Share of group net operating assets (%) 19 11 The Forest products division's operating profit of US$458 million was significantly higher than the 1999 profit of US$272 million. The increase can be attributed to the acquisition of additional interests in Frantschach and Neusiedler, the purchase of Assi Sacks and Ruzomberok, higher prices achieved in strong global pulp and paper markets and ongoing cost reductions and productivity improvements. Mondi Europe achieved record profits due to the impact of the acquisitions completed in the second half of 2000, improved selling prices, increased volumes and cost savings. In the first of an important series of acquisitions, Mondi Europe increased its interest in the Frantschach group to 70% and purchased Frantschach's 51% interest in Neusiedler, resulting in 100% ownership of Neusiedler by Mondi Europe at a total cost of US$234 million. Frantschach purchased Assi Sacks from the Swedish paper group Assi Doman (including two of Assi's sack paper mills, all of Assi's industrial sack converting operations and Assi's barrier coating business) for a consideration of US$490 million. Neusiedler acquired a 50% interest in, and management control of, Ruzomberok, a Slovakia-based uncoated woodfree paper producer. In October, in a further step aimed at focusing the business on its core products, Frantschach sold its interest in the pulp producer Pols. Mondi South Africa achieved a significantly higher operating profit. This was mainly the result of improved prices and volume growth in key market sectors, combined with ongoing cost reductions. In Brazil, Mondi's 12% owned associate Aracruz achieved record production and sales volumes. This contributed, together with the strong pulp price and low operating costs, to a 192% increase in operating profit in the year. Industries US$ million 2000 1999 Total operating profit 272 358 AECI 60 95 Tongaat-Hulett 126 121 LTA 20 40 Other 66 102 Headline profit 99 82 Net operating assets 1,317 2,137 Capital expenditure 163 175 Share of headline profit (%) 5 6 Share of group net operating assets (%) 8 17 The division contributed operating profits in 2000 of US$272 million, down US$86 million from 1999. This reduction reflects the continuing programme of disposals which have been implemented as Anglo American focuses on its core natural resource and mining businesses. AECI's profits were adversely impacted by the disposal of Polifin in June 1999 and the weaker performance of the explosives division as a result of higher ammonia and feedstock prices. Operating profits from Tongaat-Hulett increased because of a higher dollar export price for sugar and higher sugar production. During the first half of 2000 a number of disposals were completed, including interests in Johnnic, McCarthy, Ventron, Altron, Samcor and Ford Credit. In the second half of the year the programme accelerated with the disposal of Dorbyl (US$26 million) and a part of the Group's interest in Li & Fung (US$282 million). The sale of LTA to the Aveng Group in South Africa for US$130 million was completed in October and in December, AECI agreed to buy back 40% of its own shares from Anglo American for US$93 million, leaving the Group with a 20% interest in the reduced capital of AECI. Financial services US$ million 2000 1999 Total operating profit 128 138 Headline profit 100 112 Share of headline profit (%) 5 9 The division contributed operating profits of US$128 million, a decrease of US$10 million over 1999. The principal contributor to the results of the division was FirstRand in which the Group had a 20% interest. In December, Anglo American concluded an agreement to swap a 15% interest in FirstRand for a 7% interest in Billiton Plc and an 11% interest in Gold Fields Limited. The transaction was completed in 2001. Dividend income from the remaining 5% interest in FirstRand, the interests in Billiton and Gold Fields and the relatively minor residual financial services interests will, in the future, be included in corporate activities. Balance sheet Total shareholders' funds were US$15,544 million at 31 December 2000 compared with US$16,174 million at 31 December 1999. The reason for the net decrease was the impact of the fall in the value of the Rand on the historic cost asset base. Net borrowings were US$3,590 million, an increase of US$3,671 million from 31 December 1999. This increase principally reflects the net outflow arising from the acquisition and sale of businesses and investments. Net borrowings comprise US$6,995 million of debt offset by US$3,405 million of cash and short term investments. Gearing at 31 December 2000 was 16.5%. Cash flow Cash inflow from operating activities was US$2,959 million compared with US$1,850 million last year. This inflow was after a US$486 million increase in working capital. Depreciation and amortisation, which increased by US$192 million to US$928 million, are analysed by business below. Analysis of depreciation by business segment US$ million 2000 1999 Gold 186 175 Platinum 60 57 Coal 59 35 Base metals 122 91 Industrial minerals 113 67 Ferrous metals 26 27 Forest products 111 57 Industries 95 119 Other 10 12 782 640 Analysis of goodwill amortisation by business segment US$ million 2000 1999 Gold 27 17 Platinum 17 15 Diamonds 6 7 Coal 6 8 Base metals (3) 1 Industrial minerals 44 13 Ferrous metals - 5 Forest products 19 3 Industries 7 9 Other 23 18 146 96 Purchase of tangible fixed assets amounted to US$1,511 million, an increase of US$260 million. An analysis is set out below. Analysis of capital expenditure by business segment US$ million 2000 1999 Gold 240 223 Platinum 272 239 Coal 45 26 Base metals 410 257 Industrial minerals 186 70 Ferrous metals 32 47 Forest products 126 181 Industries 163 175 Other 37 33 1,511 1,251 Sales of businesses and investments generated US$1,278 million. The principal sales comprised LTA, SA Eagle and a part interest in Li & Fung. This was more than offset by acquisitions in the year of US$3,371 million. The principal acquisitions were Tarmac, the Australian coal assets of Shell, Geita, Morila and the purchase of the packaging interests of Assi Doman and the increase in the Group's interest in Neusiedler and Frantschach. Exchange rates against the US dollar Average 2000 1999 South African rand 6.91 6.09 Pound sterling 0.66 0.62 Euro 1.08 0.94 Australian dollar 1.72 1.55 Year end South African rand 7.58 6.15 Pound sterling 0.67 0.62 Euro 1.06 0.99 Australian dollar 1.80 1.52 Consolidated profit and loss account for the year ended 31 December 2000 Before Exceptional exceptional items items (note 7) US$ million Note 2000 2000 2000 1999 Group and share of turnover of joint 2 20,570 - 20,570 19,245 ventures and associates Less: Joint ventures' turnover 2 (1,590) - (1,590) (1,720) Associates' turnover 2 (4,156) - (4,156) (5,947) Group turnover - subsidiaries 2 14,824 - 14,824 11,578 Continuing operations 11,900 - 11,900 11,578 Acquisitions 2,924 - 2,924 - Operating costs (12,456) (33)(12,489)(10,273) Group operating profit - subsidiaries 2 2,368 (33) 2,335 1,305 Continuing operations 2,156 (33) 2,123 1,305 Acquisitions 212 - 212 - Share of operating profit of joint 2 282 (123) 159 245 ventures Share of operating profit of 2 830 (110) 720 592 associates Total operating profit 2 3,480 (266) 3,214 2,142 Profit on disposal of fixed assets 7 - 402 402 489 Costs of fundamental reorganisations 7 - (79) (79) (79) Profit on ordinary activities before 3 3,480 57 3,537 2,552 interest Investment income 1,057 - 1,057 869 Interest payable (749) - (749) (604) Profit on ordinary activities before 3,788 57 3,845 2,817 taxation Tax on profit on ordinary activities 5 (1,005) - (1,005) (481) Profit on ordinary activities after 2,783 57 2,840 2,336 taxation Equity minority interests (917) 34 (883) (784) Profit for the financial year 3 1,866 91 1,957 1,552 Equity dividends to shareholders - (742) - (742) (585) paid and proposed Retained profit for the financial 1,124 91 1,215 967 year Headline profit for the financial 6 2,000 1,308 year Basic earnings per share (US$): Profit for the financial year 5.01 4.03 Headline profit for the financial 5.12 3.40 year Diluted earnings per share (US$): Profit for the financial year 4.93 3.98 Headline profit for the financial 5.04 3.35 year Dividend per share (US cents) 190 150 Basic number of shares outstanding 391 385 (million) Diluted number of shares outstanding 397 390 (million) Consolidated balance sheet as at 31 December 2000 US$ million 2000 1999 Fixed assets Intangible assets 2,462 1,585 Tangible assets 11,819 9,512 Investments in joint ventures: 1,483 1,564 Share of gross assets 2,891 3,394 Share of gross liabilities (1,408) (1,830) Investments in associates 4,856 5,338 Other financial assets 1,621 1,489 22,241 19,488 Current assets Stocks 1,748 1,431 Debtors 3,222 2,060 Current asset investments 2,344 2,315 Cash at bank and in hand 1,061 1,303 8,375 7,109 Short term borrowings (3,398) (999) Other current liabilities (4,027) (2,611) Net current assets 950 3,499 Total assets less current liabilities 23,191 22,987 Long term liabilities (3,597) (2,538) Provisions for liabilities and charges (1,404) (1,324) Equity minority interests (2,646) (2,951) Net assets 15,544 16,174 Capital and reserves Called up share capital 204 204 Share premium account 1,815 1,815 Merger reserve 2,424 2,424 Other reserves 927 1,047 Profit and loss account 10,174 10,684 Total shareholders' funds (all equity) 15,544 16,174 Consolidated cash flow statement for the year ended 31 December 2000 US$ million Note 2000 1999 Net cash inflow from operating activities 8 2,959 1,850 Expenditure relating to fundamental reorganisations (44) (46) Dividends from joint ventures and associates 258 209 Returns on investments and servicing of finance Interest received and other financial income 348 388 Interest paid (501) (402) Dividends received from fixed asset investments 68 50 Dividends paid to minority shareholders (357) (380) Net cash outflow from returns on investments and servicing (442) (344) of finance Taxation UK corporation tax (25) (10) Overseas tax (304) (263) Taxes paid (329) (273) Capital expenditure and financial investment Payments for fixed assets (1,511) (1,251) Proceeds from the sale of fixed assets 177 84 Payments for other financial assets(1) (104) (45) Proceeds from the sale of other financial assets(1) 535 534 Net cash outflow for capital expenditure and financial (903) (678) investment Acquisitions and disposals Acquisition of subsidiaries(2) (2,705) (889) Disposal of subsidiaries 226 103 Investment in associates (257) (429) Sale of interests in associates 517 592 Investment in proportionally consolidated joint (42) - arrangements Investment in joint ventures (367) - Net cash outflow from acquisitions and disposals (2,628) (623) Equity dividends paid to Anglo American shareholders (657) (276) Cash outflow before use of liquid resources and financing (1,786) (181) Management of liquid resources(3) (358) 912 Financing 8 1,935 (403) (Decrease)/increase in cash in the year (209) 328 (1) Disposal and acquisition of other financial assets included in fixed assets. (2) Net of assets resold of US$709 million in respect of the acquisition of Tarmac plc. (3) Cash flows in respect of current asset investments. Consolidated statement of total recognised gains and losses for the year ended 31 December 2000 US$ million 2000 1999 Profit for the financial year 1,957 1,552 Joint ventures 43 135 Associates 538 565 Currency translation differences on foreign currency net (1,725) (549) investments Net asset value movements in associates (120) - Total recognised gains for the financial year 112 1,003 MORE TO FOLLOW

Companies

Anglo American (AAL)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today