Final Results
Anglo American PLC
28 February 2003
News Release
28 February 2003
Anglo American plc ("Anglo American") achieves 10% increase in
headline earnings per share for 2002 despite tough economic environment
• Record headline earnings per share at $1.25, up 10% from 2001;
• Headline earnings of $1,759 million, 5% above 2001;
• Increased headline earnings in six business sectors with strong
performances from Forest Products, Gold, Diamonds, Industrial Minerals
and Ferrous Metals and a much improved performance from Base Metals;
• Continued focus on growing the business - $3.7 billion in acquisitions
during 2002 across a broad spectrum of commodities, including the $1.3
billion acquisition of Chilean copper producer Disputada and an
increased stake in Anglo Platinum to 67.6%(1) for $847 million;
• Further efficiency initiatives and cost savings across the Group of
$279 million;
• Strong cash generation: EBITDA(2) of $4.8 billion. Annualised EBITDA
interest cover of 20 times;
• Well balanced capital project portfolio totalling $5.8 billion;
• Recommended increased final dividend of 36 US cents, giving a total
dividend for 2002 of 51 US cents per ordinary share, up 4%.
Financial highlights
$ million (unless otherwise stated) 2002 2001 Change
Restated(3)
Turnover 20,497 19,282 6%
Total operating profit before operating exceptional items 3,332 3,298 1%
Headline earnings for the financial year(4) 1,759 1,681 5%
Net operating assets(5) 21,122 14,744 43%
Net cash inflow from operating activities 3,618 3,539 2%
Capital expenditure 2,139 1,787 20%
Headline earnings per share for the financial year ($)(4) 1.25 1.14 10%
Total dividend for the financial year (US cents per ordinary share) 51.0 49.0 4%
Weighted number of ordinary shares in issue (million) 1,411 1,474 (4)%
(1) As at 31 December 2002. As at 25 February 2003, Anglo American's holding
in Anglo Platinum increased to 70.0%.
(2) EBITDA is operating profit before exceptional items plus depreciation and
amortisation of subsidiaries and share of joint ventures and associates.
EBITDA interest cover is annualised to account for acquisitions during the
year.
(3) Restated for the adoption of Financial Reporting Standard 19 ('FRS 19'),
'Deferred Tax'.
(4) See note 7 for reconciliation of headline earnings and profit for the
financial year.
(5) See note 10 for reconciliation of net operating assets to net assets.
Tony Trahar, Chief Executive, said
"Our results for 2002 constitute a strong performance in light of the difficult
economic conditions experienced during the year and reflect the improved
diversity of our assets and the successful integration of recent acquisitions.
We achieved record headline earnings per share, improved operating performances
and efficiencies in the majority of our businesses and generated strong cash
flows. We also expanded our business with a further $3.7 billion of acquisitions
during the year, bringing the total to over $10 billion in the last four years,
and we are making significant investments in organic growth with $5.8 billion in
approved projects across a range of commodities.
By far the most significant development during the year was the debate over the
draft legislation in South Africa regarding black economic empowerment in the
mining sector. A leaked draft of the Mining Charter in July 2002 undermined
investor confidence in South Africa and caused great damage to the Anglo
American share price. Since then, we have been working actively with the
industry and the South African government and have achieved a workable solution
that will result in significant black economic empowerment for value.
The publishing of the empowerment scorecard earlier this month marked a
significant step towards removing the uncertainty that has existed in terms of
attaining the empowerment levels detailed in the Mining Charter. Anglo American,
through our subsidiaries and associates, will aim to meet the targets set out in
the Mining Charter within the specified timeframe and we have already made
significant progress towards attaining the 15% equity or production units
ownership level. To date the Group has undertaken over $1.8 billion of black
empowerment transactions in South Africa and over $800 million of procurement
from black owned businesses. The Money Bill is still to be published which will
introduce a royalty regime in South Africa.
The outlook for our key businesses remains mixed in the face of current global
economic and political uncertainties. Precious metals are presently performing
strongly despite mounting concerns over global economic growth. Current
geopolitical tensions have supported demand for gold while supply concerns have
contributed to price rises in platinum and nickel. The continued strong
performance by the Chinese economy should also benefit copper, platinum group
metals and diamonds. All of this, however needs to be balanced against the
sluggish growth forecasts for the US, Japan and much of the European Union, and
the current uncertainties that prevail in terms of possible military action in
the Middle East.
Our results are highly sensitive to volatility in commodity prices and exchange
rates. The South African rand exchange rate is of particular importance and
maintenance of the current rate throughout 2003 would make it very challenging
to sustain our record 2002 performance. Nevertheless, the balanced mix of our
businesses and our ongoing expansion programme, together with the continuing and
intense focus on costs and efficiencies, will help to underpin our performance."
Review of 2002
Financial results:
Anglo American recorded headline earnings of $1,759 million, a 5% increase on
the prior year. Strong performances from Forest Products, Gold, Diamonds,
Industrial Minerals and Ferrous Metals and a much improved performance from Base
Metals compensated for lower earnings from Platinum and Coal.
Profit for the financial year was $1,563 million, lower than the prior year due
to the significant exceptional gains recorded in 2001 owing to the De Beers
transaction and the exchange of part of the Group's interest in FirstRand
Limited for interests in Billiton plc and Gold Fields Limited.
Platinum recorded a 27% decrease in headline earnings to $351 million (20% of
Anglo American's total headline earnings) primarily due to lower realised
palladium and rhodium prices and a stronger South African rand against the
dollar at the year end resulting in translation losses on dollar assets. Refined
platinum production (excluding Northam) rose 7% to 2.25 million ounces, with the
expansion programme, to increase platinum production to 3.5 million ounces per
annum by the end of 2006, on track.
Gold's contribution to headline earnings increased 27% to $205 million (12% of
Anglo American's total) as a result of higher gold prices, exchange rates and
improved cash costs, which were reduced by 10% to $161 per ounce. AngloGold's
production declined by 15% due to the sale of the Free State assets.
Diamonds recorded a 38% increase on 2001 headline earnings to $324 million (18%
of Anglo American's total) reflecting the first full year contribution from
Anglo American's increased shareholding in De Beers to 45%. Diamond sales
increased by 16% primarily as a result of strong US retail sales, especially
over the Thanksgiving and Christmas periods.
Headline earnings from Coal declined 31% to $266 million (15% of Anglo
American's total) owing to significantly lower export thermal coal prices in all
regions, technical difficulties at Dartbrook and Moranbah North in Australia and
translation losses on dollar assets. Export metallurgical coal prices were
higher and total coal sales volumes increased by 9% to 84.5 million tonnes.
Continued improvement in Base Metals resulted in increased headline earnings to
$69 million (4% of Anglo American's total) following an improved financial
performance from all commodity businesses despite, with the exception of nickel,
lower metals prices. Significant restructuring progress was made in 2002, with
Base Metals focusing on long-life, low-cost operations and disposing of non-core
assets.
Industrial Minerals recorded improved headline earnings of $231 million (13% of
Anglo American's total), a 44% increase over 2001. This strong performance
reflected improved margins in the UK despite mixed market conditions, and
continued focus on cost reduction. Acquisitions and the impact of exchange rate
movements were also positive factors during the year.
Forest Products recorded headline earnings of $376 million, a 38% increase on
2001, and the largest contribution to 2002 headline earnings (21% of Anglo
American's total). This performance reflected the successful integration of
recent European acquisitions, increased volumes from European and South African
operations and the sustained focus on profit improvement, cost reductions and
innovation in difficult markets.
Ferrous Metals and Industries contributed $126 million to headline earnings, an
increase of 47% over 2001 (7% of Anglo American's total) owing to the positive
impact of acquisitions made during the year and a significant upswing in steel
prices.
Growing the business - Acquisitions:
Anglo American's strategy of growing its businesses resulted in a total of $3.7
billion of acquisitions during the year. The Group continues to achieve a
broader geographical balance in its asset portfolio with the split of net
attributable operating assets(1) in 2002 as follows: 31% South Africa; 35%
Europe; 21% Americas; 7% Rest of Africa and 6% Australasia. Acquisitions made in
2002 included the following:(2)
(1) Net attributable operating assets include the Group's share of net
operating assets of subsidiaries, joint ventures and associates.
(2) Amounts previously announced, included overleaf, may differ from net cash
consideration paid of $3.7 billion during 2002 due to final settlement upon
completion. Some amounts represent gross consideration.
• Disputada, a large, low-cost copper producer in Chile, was acquired for a
net consideration of $1.3 billion and secures Base Metals' position as a
leading global,
low- cost producer of copper.
• A consortium consisting of Anglo American, BHP Billiton and Glencore
acquired Intercor's 50% stake in CZN, the largest producer and exporter of
steam coal in Colombia. Anglo Coal Australia announced joint venture plans
with Mitsui Coal, acquiring 51% of the Moura mine for a net cash payment of
$13 million, to allow the development of its export metallurgical and
thermal coal business in Australia.
• Mondi Europe continued to consolidate its leading position in the European
corrugated packaging sector, with the acquisition of approximately half the
assets of La Rochette for $110 million, as well as in the A4 office paper
sector, by the acquisition of a controlling stake in Syktyvkar, a Russian
paper mill, for $252 million.
• Industrial Minerals further increased its European presence, making 11
acquisitions throughout the year in the UK, Spain, Poland and the Czech
Republic for a total of $190 million.
• Strategic shareholdings in Kumba and Avmin have been acquired for a total
commitment of some $600 million. Anglo American acquired a 20.1%
shareholding in Kumba and has a right to acquire a further 10%, subject to
approval from the Competition Tribunal of South Africa, thereby increasing
its shareholding to 30.1%. In addition, Anglo American acquired 25% of
Avmin and has a right, subject to approval from the Competition Tribunal, to
acquire a further 9.9%, increasing its shareholding to 34.9%. These
transactions were approved by the Competition Commission of South Africa but
are still subject to Competition Tribunal approval.
• Moly-Cop was acquired by Scaw Metals for $105 million, allowing expansion
into the grinding media markets away from its traditional South African base
in particular the growing mining markets of Chile and Peru.
• Additional shareholdings in Anglo Platinum (increased to 67.6%) and Gold
Fields (increased to 20.9%) were acquired during the year for $847 million
and $252 million respectively.
Growing the business - Internal growth:
Anglo American has $5.8 billion of approved projects in the pipeline which
include:
• four major gold projects, costing $813 million, to contribute 13 million
ounces over their estimated lives;
• the revised suite of projects, totalling $2.7 billion, to increase
platinum production to 3.5 million ounces per annum by 2006 which is on
schedule;
• expansions and new projects currently underway in Base Metals totalling
$1.1 billion, including Skorpion zinc mine which is due to commence
production in the first half of the year; and
• a total of nine projects to increase both production and converting
capacity in Forest Products totalling $335 million.
Cost savings:
All businesses across the Group continued to focus on efficiency initiatives and
cost control during 2002. The total cost savings achieved amounted to $279
million, of which operating efficiencies realised $154 million, restructuring
and synergies $77 million and procurement $48 million.
Exceptional items:
Operating exceptional charges amounted to $81 million. These include impairments
or write-downs of $97 million in Base Metals and the reversal of a $46 million
impairment of Salobo, recorded in 2000, following its sale in 2002. Write-down
of investments account for the remaining $30 million operating exceptional
charges.
Non-operating exceptional gains amounted to $64 million. These include the
profit on disposal of Tati Nickel amounting to $53 million, an additional cost
of $34 million relating to the withdrawal from Konkola Copper Mines, the share
of DBI's exceptional items and the disposal of non-core investments and other
fixed assets.
Taxation
The effective rate of taxation before exceptional items was 33%. This was a
reduction from the effective rate of 36% in 2001 (as restated for FRS 19) which
is largely due to a change in the mix of earnings contribution by businesses.
Dividends
The directors recommend a final increased dividend of 36 US cents per share to
be paid on 30 April 2003. Total dividends for the year will amount to 51 US
cents per share, a 4% increase on last year's total dividend.
Outlook
The outlook for Anglo American's key businesses remains mixed in the face of
current global economic and political uncertainties. Precious metals are
presently performing strongly despite mounting concerns over global economic
growth. Current geopolitical tensions have supported demand for gold while
supply concerns have contributed to price rises in platinum and nickel. The
continued strong performance by the Chinese economy should also benefit copper,
platinum group metals and diamonds. All of this, however, needs to be balanced
against the sluggish growth forecasts for the US, Japan and much of the European
Union, and the current uncertainties that prevail in terms of possible military
action in the Middle East.
Anglo American's results are highly sensitive to volatility in commodity prices
and exchange rates. The South African rand exchange rate is of particular
importance and maintenance of the current rate throughout 2003 would make it
very challenging to sustain the record 2002 performance. Nevertheless, the
balanced mix of Anglo American's businesses and ongoing expansion programme,
together with the continuing and intense focus on costs and efficiencies, will
help to underpin the Group's performance.
Board changes
The board comprises four executive directors and ten non-executive directors,
seven of whom are independent within the definition contained in the Higgs
review of "The role and effectiveness of non-executive directors" ("Higgs
Review") published in January 2003. The independent directors are Sir Mark
Moody-Stuart, D J Challen, F T M Phaswana, Professor K A L M Van Miert, Dr C E
Fay, G Lindahl and R J Margetts. The other non-executive directors are Sir
David Scholey, Mr R M Godsell and Mr N F Oppenheimer.
Following publication of the Higgs Review, although the board believes that Sir
David's relationship with UBS Warburg, the company's joint broker, in no way
affects his ability to act independently, it was felt that it was preferable
that another board member should fill the role of Senior Independent
Non-Executive director. Accordingly, with effect from the AGM, Mr Margetts will
be appointed as the Senior Independent Non-Executive director.
Also with effect from the AGM, Sir Mark will stand down as Chairman of the
Nomination Committee and Mr Fred Phaswana will be appointed Chairman of this
committee in his place. Sir Mark continues as a member of the committee. At the
same time, also in accordance with the Higgs Review, Mr Margetts will step down
as Chairman of the Audit Committee and Mr Challen will assume the chairmanship
of this committee. In the interests of continuity, Mr Margetts will remain a
member of the Audit Committee.
For further information, please contact:
Anglo American - London
Investor Relations
Nick von Schirnding
Tel: +44 (0)20 7698 8540
Media Relations
Kate Aindow
Tel: +44 (0)20 7698 8619
Anglo American - Johannesburg
Investor Relations
Anne Dunn
Tel: +27 (0)11 638 4730
Media Relations
Marion Dixon
Tel: +27 (0)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 platinum, gold, 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 in Africa, Europe, South and North America and Australia. Anglo
American represents a powerful world of resources.
OPERATIONAL REVIEW
Platinum
$ million 2002 (Restated)2001
Total operating profit 802 1,345
Headline earnings 351 478
Net operating assets 3,580 1,847
Capital expenditure 586 391
Share of Group headline earnings (%) 20 28
Share of Group net operating assets (%) 17 13
Platinum's contribution to headline earnings was $351 million, $127 million
lower than in 2001, mainly owing to lower prices realised for palladium and
rhodium. Rand-based costs were impacted positively by a weaker exchange rate
during 2002, but this was offset by losses on the translation of dollar assets
resulting from the stronger rand at the end of 2002 compared with gains in 2001.
The average realised dollar price for platinum of $544/oz was $18/oz higher than
the 2001 figure, while palladium and rhodium prices achieved were significantly
lower at $329/oz (2001: $582/oz) and $831/oz (2001: $1,610/oz) respectively.
Recent market demand reviews continue to confirm that there is a significant
growth opportunity and Anglo Platinum remains committed to the expansion
programme to produce 3.5 million ounces of refined platinum by the end of 2006.
Refined platinum production across the group increased by 141,900 ounces to 2.25
million ounces (excluding Northam).
The company has made significant progress in including empowerment groupings in
its expansion plans and is well on the way to meeting the requisite ownership
percentages as envisaged by South Africa's Minerals and Petroleum Resources
Development Act. The strong demand and thin liquidity in the platinum market
are expected to remain in 2003, resulting in continuing firm prices.
Gold
$ million 2002 (Restated)2001
Total operating profit 463 443
Headline earnings 205 162
Net operating assets 2,511 2,086
Capital expenditure 246 243
Share of Group headline earnings (%) 12 10
Share of Group net operating assets (%) 12 14
In 2002, AngloGold's contribution to headline earnings was $205 million, 27%
higher than in 2001, despite gold production having declined by some 15% to 5.94
million ounces (2001: 6.98 million ounces), as a result of the sale of
AngloGold's assets in the Free State of South Africa. Total cash costs decreased
from $178/oz ($170/oz excluding Free State) to $161/oz as a result of the rand's
weakening against the dollar and the establishment of a robust suite of
high-margin and low-cost assets.
In July 2002, AngloGold announced the acquisition of additional production of
120,000 ounces per annum, doubling its stake to 92.5% in the Cerro Vanguardia
gold/silver mine in Argentina. AngloGold currently has five capital projects,
two of which are now complete and the other three are on track for completion on
time and within budget. Together, these projects will yield some 15 million
additional ounces of gold production over their lives.
Dollar weakness, international political tension, equity market declines and a
halt to the dismantling of producer hedging have all been positive for gold in
2002. Against this background, a solid platform for the gold market is expected
in the year ahead. However, whilst there has been a decline in physical demand,
scrap sales and recycling have increased sharply in response to higher gold
prices. With further gold price volatility expected in 2003, a resurgence of
physical demand should not be expected immediately.
Diamonds
$ million 2002 2001
Total operating profit 541 373
Headline earnings 324 234
Share of Group headline earnings (%) 18 14
De Beers' contribution to headline earnings amounted to $324 million. Sales of
rough diamonds by the marketing arm of De Beers, The Diamond Trading Company
(DTC), were 15.7% higher reaching $5.15 billion. Diamond stocks were reduced by
nearly $1 billion - the main contributor to the exceptionally strong operating
cash flow figure of $1.6 billion. As a consequence, De Beers was able to reduce
its Senior Debt by $1,065 million to $2,485 million.
Following a promising first half, the second six months saw an eroding of
consumer confidence, particularly in the US, owing to fears of deflation, rising
unemployment, sharply declining stock markets and the threat of war in the
Middle East. Nevertheless, worldwide retail diamond jewellery sales held up
reasonably well and were estimated to have been 3% ahead for the year.
In 2002, De Beers and its principal partners, Debswana and Namdeb, produced 40.2
million carats (2001: 38.5 million carats).
In South Africa, the Combined Treatment Plant in Kimberley will come fully on
stream this year. The permitting process continues at Snap Lake in Canada and
the mine should commence operations in 2007.
De Beers has now received clearance from the European Commission on its Supplier
of Choice strategy and is proceeding with its implementation.
Continuing geopolitical concerns and greater economic uncertainty are likely to
make 2003 a challenging year. The DTC's sales prospects will depend on the
timing and scale of global economic growth, a recovery in consumer confidence
and the level of stocks that the trade pipeline will be comfortable to hold.
Coal
$ million 2002 2001
Total operating profit 427 493
South Africa 244 267
Australia 130 173
South America 50 49
United Kingdom 3 4
Headline earnings 266 387
Net operating assets 1,658 1,373
Capital expenditure 142 93
Share of Group headline earnings (%) 15 23
Share of Group net operating assets (%) 8 9
In 2002, Coal's headline earnings were $266 million, a 31% decrease on 2001.
Export metallurgical coal prices were marginally higher, but export thermal coal
prices were significantly lower resulting in a net negative impact of $56
million. Headline earnings were adversely affected by $45 million due to the
rapid strengthening of the rand at year end, in contrast to a gain of $39
million in 2001 on the back of a weakening rand. Operating profit of $427
million was 13% below 2001.
South African operating profit reduced by $23 million to $244 million. Average
thermal coal export prices were 16% weaker. Higher inflation was offset by an
11% increase in export volumes, a net weaker average rand for the year and $31
million from improved operating efficiencies and cost savings.
In Australia, operating profit fell by 25% to $130 million mainly due to
technical difficulties at the Dartbrook and Moranbah North mines. In 2002, Anglo
Coal Australia acquired 51% of Moura mine and a 23% interest in the Jellinbah
East mine and divested 30% of its interest in the German Creek mine and 49% of
its interest in the Theodore, Dawson and Taroom projects.
South American attributable operating profit was $50 million (2001: $49
million). This performance reflected weaker thermal coal prices, a cutback of
Colombian production in response to market conditions and the impact of the
general strike in Venezuela. This was offset by the Anglo/BHP Billiton/Glencore
consortium's acquisition of the remaining 50% of the Cerrejon Zona Norte
operation.
A moderate export coking coal capacity increase in 2003 is expected to have
limited impact on price levels. Export thermal coal prices will, as previously,
be driven by a mix of demand and supply factors, inter-fuel competition, weather
and sentiment.
Base Metals
$ million 2002 (Restated) 2001
Total operating profit/(loss) before exceptional items 133 (22)
Copper 110 2
Nickel, Niobium, Mineral Sands 94 56
Zinc (51) (57)
Head office expenses and other (20) (23)
Exceptional items (51) (488)
Total operating profit/(loss) after exceptional items 82 (510)
Headline earnings/(loss) 69 (18)
Net operating assets 3,617 1,977
Capital expenditure 346 446
Share of Group headline earnings (%) 4 (1)
Share of Group net operating assets (%) 17 13
Headline earnings for Base Metals were $69 million, compared with a $18 million
loss in 2001. Despite base metals demand remaining weak, with the partial
exception of nickel, all three commodity businesses improved their financial
performance. Exceptional charges were reduced significantly owing to reduced
impairments.
In 2002, Anglo American acquired the Chilean world-class integrated copper
producer, Disputada, from ExxonMobil for a net consideration of $1.3 billion.
Anglo American also completed an orderly exit from Zambia Copper Investments
(ZCI) and Konkola Copper Mines (KCM), and disposed of its interests in the
Salobo copper/gold project, Tati Nickel, BCL and the Kolwezi copper project. In
addition, since the year end Anglo American has entered an agreement with
MatlinPatterson Global Opportunities Partners LP in terms of which, it has
disposed of substantially all of its interests in Anaconda Nickel Limited.
Attributable production of copper amounted to 497,700 tonnes compared with
468,700 tonnes in 2001 (excluding KCM), of which Disputada contributed 39,100
tonnes from the date of acquisition.
Increased production at Codemin and Loma de Niquel entering commercial
production at the beginning of the year resulted in attributable production of
nickel of 25,600 tonnes, despite the sale of Tati.
Attributable zinc production rose from 165,600 tonnes to 211,500 tonnes. Lisheen
operated above design throughput capacity and achieved record production levels.
Hudson Bay saw increased throughput and higher copper and zinc grades.
At Namakwa Sands, throughput rates at all processing plants rose, but the
strengthening of the rand in the second half of the year compared to the first
half of the year meant operating profits were 6% down on 2001.
The outlook for base metals is expected to remain weak until there is tangible
evidence of a recovery in underlying demand and a sustained reduction in refined
metal inventories.
Industrial Minerals
$ million 2002 (Restated)2001
Total operating profit 277 201
Europe 253 179
Brazil 24 22
Headline earnings 231 160
Net operating assets 3,848 3,246
Capital expenditure 363 205
Share of Group headline earnings (%) 13 10
Share of Group net operating assets (%) 18 22
Headline earnings for Industrial Minerals rose to $231 million in 2002. The
Tarmac group was the principal contributor to this increase, achieving an
operating profit of $253 million, an improvement of 33% on the prior year's $189
million. This was principally due to improved margins in the UK, despite mixed
market conditions, and a continued focus on cost reduction, although
acquisitions and the impact of exchange rate movements were also positive
factors during the year.
In addition, an improved profit from Copebras, the Brazilian phosphate producer,
and the sale of the loss-making UK based Cleveland Potash contributed to the
increase.
In the UK, the major aggregates, asphalt, ready-mixed concrete and concrete
products businesses all reported improved results. The benefits of the cost
reduction initiatives introduced in the previous year were also felt together
with new initiatives which were implemented during the year.
In continental Europe, operating profit increased by 48%. The operations in
Spain had another excellent year and Central Europe recorded an improved result
largely due to acquisitions, efficiency improvements and good performances from
the Polish paving and Czech Republic businesses. However, difficult market
conditions continued in Germany.
At the end of 2002, Copebras' new plant commenced production. The Buxton cement
plant in the UK is scheduled to be completed towards the end of the year, within
budget.
The short term outlook for the Tarmac group is largely dependent on the private
sector in the UK holding up relatively well, and government expenditure on
infrastructure not being sacrificed as a result of events in the Middle East or
government financing concerns. The increased focus on cost reduction and
customer service should strengthen the group's position.
Forest Products
$ million 2002 (Restated)2001
Total operating profit 649 520
Europe 434 328
South Africa 215 185
Brazil - 7
Headline earnings 376 272
Net operating assets 3,897 2,732
Capital expenditure 365 283
Share of Group headline earnings (%) 21 16
Share of Group net operating assets (%) 18 19
Forest Products' total headline earnings for 2002 were $376 million, a 38%
increase on 2001. Operating profit increased in both Europe and South Africa,
reflecting the benefit of acquisitions, higher volumes and margin improvement.
Mondi Europe continued its strong performance, achieving a further 32% increase
in operating profit to $434 million for the year. The improved profits arose
from the successful integration of acquisitions, increased volumes and the
sustained focus on profit improvement, cost reductions and innovation, despite
difficult market conditions.
There was further expansion in Europe, with the completion of two acquisitions:
an additional 78% interest in the Russian pulp and paper group Syktyvkar Forest
Enterprises and, jointly with the Spanish group Saica, the business of the
French Corrugated packaging group La Rochette.
Mondi South Africa increased operating profit by 16% to $215 million, a
consequence of increased volumes and improved margins. In the domestic market,
strong demand and the weaker rand/dollar exchange rate supported good volume
growth and real increases in prices for graphic papers, packaging papers and
board and converted products. In export markets, dollar prices were lower during
the year for bleached eucalyptus pulp and for woodchips.
Further progress was also made with disposals of non-core timber businesses -
specifically the sale of two softwood sawmills and a reduction in the
shareholding in Global Forest Products.
Ferrous Metals and Industries
$ million 2002 (Restated)2001
Total operating profit/(loss) 264 191
Highveld Steel 38 6
Scaw Metals 51 31
Samancor Group 48 19
Tongaat-Hulett 96 112
Boart 31 30
Terra (3) (23)
Other 3 16
Headline earnings 126 86
Net operating assets 1,696 1,104
Capital expenditure 85 93
Share of Group headline earnings (%) 7 5
Share of Group net operating assets (%) 8 7
Headline earnings for Ferrous Metals and Industries were $126 million (2001: $86
million), reflecting a solid underlying performance and the positive impact of
the acquisitions made during the first half of 2002. World crude steel
production increased by 6.4% and international steel prices have shown a
significant upswing since February 2002.
Scaw Metals' operating profit was $51 million (2001: $31 million), which
included an $11 million contribution from the Moly-Cop forged grinding media
operations acquired at mid-year. Highveld Steel recorded a significant increase
in operating profit from $6 million to $38 million on the back of domestic sales
of 570,000 tonnes, which surpassed the previous best year of 1997.
In 40% held Samancor, manganese profits were higher than last year owing to
greater ore and alloy sales volumes and lower production costs. Samancor chrome
showed an improved operating performance as the major restructuring programme
resulted in lower production costs. Ferrochrome prices for the year firmed over
those of last year.
During the year good progress was made in the strategic objective of securing a
meaningful interest in the iron ore sector. Interests were acquired in both
Kumba and Avmin.
The Boart Longyear group reported an operating profit $31 million (2001: $30
million). Tongaat-Hulett's operating profit, although increasing in rand terms,
was lower at $96 million (2001: $112 million). Terra recorded an attributable
operating loss of $3 million (2001: $23 million loss), following a resumption of
normal demand levels in US markets.
Exploration
In 2002, total Group expenditure on exploration was $93 million, of which $47
million was spent on Base Metals' grassroots and brownfields exploration, $13
million by Anglo Platinum and $27 million by AngloGold.
During the year, Base Metals' exploration efforts focused on areas most likely
to produce enhanced results. Consequently the number of active countries was
reduced from 18 to 13, and the global staff complement reduced by 20%. Further
rationalisation will continue during 2003.
Exploration in Chile delineated copper resources which may extend the lives of
existing operations. The porphyry-copper programme in Peru, Chile and Argentina
identified a number of promising targets for drilling.
African exploration programmes continued to target zinc and nickel in Namibia,
zinc in South Africa and copper in Zambia. Target generation for zinc and nickel
in Australia and India identified a number of promising targets for follow-up in
2003. In Mexico, encouraging early stage drill results were obtained from a
polymetallic base metal prospect. Iron oxide copper/gold exploration continued
in several countries, with positive initial drill results from Sweden and
Brazil.
In the Philippines, resource definition drilling progressed at the Boyongan
copper/gold project. An initial resource estimate and a decision whether to
proceed to pre-feasibility will be made in 2003.
Anglo Platinum's exploration efforts in South Africa are directly linked to its
commitment to increase production levels to 3.5 million ounces per year of
platinum by the end of 2006. There was good progress on all fronts and targets
for the year were reached. Internationally, Anglo Platinum's partners have taken
several exciting projects forward, including the joint venture with Pacific
North West Capital (principally in the River Valley area near Sudbury, Ontario,
Canada) and the Russian Urals projects in a relationship with Eurasia Mining
plc.
AngloGold's exploration focus continued in countries in which it already has
operations, namely in Argentina, Australia, Brazil, Tanzania, Mali, Namibia,
South Africa and the USA. In addition, exploration was pursued in highly
prospective areas in the state of Alaska, Canada and Peru. Some 63% of
expenditure was spent on increasing near and in-mine resources.
Balance Sheet
Total shareholders' funds were $16,261 million compared with $12,856 million at
31 December 2001. The increase was primarily due to retained earnings and the
appreciation of the South African rand which strengthened by 28% during the year
against the dollar.
Net debt was $5,578 million, an increase of $3,560 million from 2001. This
increase was principally due to debt incurred to fund acquisitions during the
period. Net debt comprised $7,791 million of debt, offset by $2,213 million of
cash and current asset investments.
Net debt to total capital at 31 December was 23.1% compared with 12.2% in 2001.
Cash flow
Net cash inflow from operating activities was $3,618 million compared with
$3,539 million in 2001. Depreciation and amortisation, which increased by $91
million, are analysed below.
Analysis of depreciation by business segment (subsidiaries)
US$ million 2002 2001
Platinum 107 77
Gold 182 157
Coal 104 108
Base Metals 124 130
Industrial Minerals 142 136
Forest Products 228 193
Ferrous Metals 21 25
Industries 42 46
Other 12 9
962 881
Analysis of goodwill amortisation by business segment (subsidiaries)
2002 2001
US$ million Restated(1)
Platinum 16 16
Gold 31 30
Coal 4 4
Base Metals 1 1
Industrial Minerals 46 42
Forest Products 15 13
Ferrous Metals 1 1
Industries 3 1
Other 22 21
139 129
(1) Restated for the adoption of FRS 19 - see note 1.
Purchases of tangible fixed assets amounted to $2,139 million, an increase of
$352 million from 2001. The major components of expansion were in Platinum,
Industrial Minerals and Forest Products.
Analysis of capital expenditure by business segment (subsidiaries)
US$ million 2002 2001
Platinum 586 391
Gold 246 243
Coal 142 93
Base Metals 346 446
Industrial Minerals 363 205
Forest Products 365 283
Ferrous Metals 32 28
Industries 53 65
Other 6 33
2,139 1,787
Acquisition expenditure accounted for an outflow of $3.7 billion. The principal
acquisitions included: Disputada by Base Metals; Mondi Europe's additional
acquisition in Syktyvkar and part of the assets of La Rochette; Anglo Coal's
participation in the purchase of the remaining 50% in Cerrejon Zona Norte and
its 51% participation in the Moura mine in Australia; Ferrous Metals' 9.6%
shareholding in Kumba, a 25% interest in Avmin, and a 100% interest in Moly-Cop;
and Industrial Minerals' acquisition of Mavike and Durox. The Group has also
increased its interests in Anglo Platinum and Gold Fields.
Exchange rates against the US dollar
Average 2002 2001
South African rand 10.48 8.62
Pound sterling 0.67 0.69
Euro 1.06 1.12
Australian dollar 1.84 1.93
Year end
South African rand 8.58 11.96
Pound sterling 0.62 0.69
Euro 0.95 1.12
Australian dollar 1.79 1.96
Commodity prices
Average market prices for the period
Year end 2002 2001
Gold - US$/oz 310 272
Platinum - US$/oz 541 531
Palladium - US$/oz 336 597
Rhodium - US$/oz 838 1,606
Copper - US cents/lb 71 72
Nickel - US cents/lb 307 267
Zinc - US cents/lb 35 41
Lead - US cents/lb 21 22
European eucalyptus pulp price (CIF) - US$/tonne 452 490
Consolidated profit and loss account
for the year ended 31 December 2002
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 5) items (note 5)
Note 2002 2002 2002 2001 2001 2001
US$ million Restated(1) Restated (1)
Group and share of turnover of joint
ventures and associates 2 20,497 - 20,497 19,282 - 19,282
Less: Joint ventures' turnover 2 (1,066) - (1,066) (1,109) - (1,109)
Associates' turnover 2 (4,286) - (4,286) (3,387) - (3,387)
Group turnover - subsidiaries 2 15,145 - 15,145 14,786 - 14,786
Operating costs (12,757) (47) (12,804) (12,140) (498) (12,638)
Group operating profit - subsidiaries 2 2,388 (47) 2,341 2,646 (498) 2,148
Share of operating profit of joint ventures 2 219 (34) 185 193 (15) 178
Share of operating profit of associates 2 725 - 725 459 - 459
Total operating profit 2 3,332 (81) 3,251 3,298 (513) 2,785
Profit on disposal of fixed assets 5 - 98 98 - 2,148 2,148
Loss on termination of operations 5 - (34) (34) - - -
Profit on ordinary activities before 3 3,332 (17) 3,315 3,298 1,635 4,933
interest
Investment income 304 - 304 799 - 799
Interest payable (483) - (483) (669) - (669)
Profit on ordinary activities before 3,153 (17) 3,136 3,428 1,635 5,063
taxation
Tax on profit on ordinary activities 6 (1,042) (3) (1,045) (1,247) (147) (1,394)
Profit on ordinary activities after 2,111 (20) 2,091 2,181 1,488 3,669
taxation
Equity minority interests 3 (528) - (528) (648) 64 (584)
Profit for the financial year 3 1,583 (20) 1,563 1,533 1,552 3,085
Equity dividends to shareholders - paid and
proposed (720) - (720) (690) - (690)
Retained profit for the financial year 863 (20) 843 843 1,552 2,395
Headline earnings for the financial year 7 1,759 1,681
Basic earnings per share (US$)(1) :
Profit for the financial year 7 1.11 2.09
Headline earnings for the financial year 7 1.25 1.14
Diluted earnings per share (US$)(1):
Profit for the financial year 1.10 2.07
Headline earnings for the financial year 1.23 1.13
Dividend per share (US cents): 51.0 49.0
Basic number of shares outstanding(2) 1,411 1,474
(million)
Diluted number of shares outstanding(2) 1,426 1,491
(million)
(1) The comparative figures for 2001 have been restated to reflect the adoption
of Financial Reporting Standard 19 ('FRS 19'), 'Deferred Tax', as disclosed in
note 1.
(2) Basic and diluted number of shares outstanding represent the weighted
average for the year.
All amounts included above relate to continuing operations. The impact of
acquired operations on the results for the year is not material.
Consolidated balance sheet
as at 31 December 2002
2002 2001
US$ million Restated (1)
Fixed assets
Intangible assets 2,310 2,100
Tangible assets 16,531 10,770
Investments in joint ventures: 1,544 1,562
Share of gross assets 2,763 2,977
Share of gross liabilities (1,219) (1,415)
Investments in associates 4,119 2,434
Other investments 1,713 1,527
26,217 18,393
Current assets
Stocks 1,814 1,383
Debtors 3,337 2,835
Current asset investments 1,143 2,003
Cash at bank and in hand 1,070 915
7,364 7,136
Short term borrowings (1,918) (2,301)
Other current liabilities (4,329) (3,936)
Net current assets 1,117 899
Total assets less current liabilities 27,334 19,292
Long term liabilities: (5,873) (2,635)
Convertible debt (1,084) -
Other long term liabilities (4,789) (2,635)
Provisions for liabilities and charges (2,896) (2,194)
Equity minority interests (2,304) (1,607)
Net assets 16,261 12,856
Capital and reserves
Called-up share capital 735 734
Share premium account 1,216 1,203
Merger reserve 636 636
Other reserves 716 716
Profit and loss account 12,958 9,567
Total shareholders' funds (equity) 16,261 12,856
(1) Restated for the adoption of FRS 19 - see note 1.
The financial statements were approved by the board of directors on 27 February
2003.
Consolidated cash flow statement
for the year ended 31 December 2002
US$ million Note 2002 2001
Net cash inflow from operating activities 8 3,618 3,539
Expenditure relating to fundamental reorganisation - (23)
Dividends from joint ventures and associates 258 258
Returns on investments and servicing of finance
Interest received and other financial income 309 419
Interest paid (281) (430)
Dividends received from fixed asset investments 49 74
Dividends paid to minority shareholders (375) (454)
Net cash outflow from returns on investments and servicing of finance (298) (391)
Taxation
UK corporation tax (10) 7
Overseas tax (712) (644)
Taxes paid (722) (637)
Capital expenditure and financial investment
Payments for tangible fixed assets (2,139) (1,787)
Proceeds from the sale of tangible fixed assets 313 263
Exit funding for Konkola Copper Mines (KCM) (182) -
Payments for other investments(1) (351) (96)
Proceeds from the sale of other investments(1) 217 1,174
Net cash outflow for capital expenditure and financial investment (2,142) (446)
Acquisitions and disposals
Acquisition of subsidiaries(2) (2,911) (718)
Disposal of subsidiaries 24 135
Investment in joint ventures (34) (76)
Sale of interests in joint ventures 122 -
Investment in proportionally consolidated joint arrangements (13) (51)
Investment in associates (613) (223)
Sale of interests in associates 24 1,527
Net cash (outflow)/inflow from acquisitions and disposals (3,401) 594
Equity dividends paid to Anglo American shareholders (732) (714)
Cash (outflow)/ inflow before use of liquid resources and financing (3,419) 2,180
Management of liquid resources(3) 1,021 (287)
Financing 8 2,458 (1,667)
Increase in cash in the year 60 226
(1) Disposal and acquisition of other investments included in fixed assets.
(2) Net of cash acquired within subsidiaries of $157m (2001: $20m).
(3) Cash flows in respect of current asset investments.
Consolidated statement of total recognised gains and losses
for the year ended 31 December 2002
Note 2002 2001
US$ million Restated(1)
Profit for the financial year 3 1,563 3,085
Joint ventures 83 68
Associates 384 523
Unrealised gain arising on exchange of business 39 -
Less: Related overseas current tax charge (22) -
Currency translation differences on foreign currency net investments 2,531 (2,986)
Total recognised gains for the financial year 4,111 99
Prior year adjustment (see note 1) (570)
Total recognised gains since the last annual report 3,541
(1) Restated for the adoption of FRS 19 - see note 1.
Notes to financial information
1. Basis of preparation
The financial information has been prepared according to the historical cost
convention, and in accordance with accounting standards applicable in the United
Kingdom.
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 2001, except for the implementation of Financial
Reporting Standard (FRS) 19 'Deferred Tax', as set out below.
With effect from 1 January 2002, the Group adopted FRS 19 'Deferred Tax'. Under
FRS 19 deferred taxation is provided in full on all timing differences that
result in an obligation at the balance sheet date to pay more tax, or a right to
pay less tax, at a future date, subject to the recoverability of deferred tax
assets. Deferred tax assets and liabilities are not discounted.
The change in accounting policy has been accounted for by means of a prior year
adjustment, and the previously published figures at 31 December 2001 have been
restated as follows:
31 December
US$ million
2001
Profit and loss account
Decrease in operating profit (2)
Increase in tax on profit on ordinary activities (145)
Decrease in equity minority interests 56
Decrease in profit for the financial year (91)
Decrease in headline earnings (89)
Balance sheet
Increase in goodwill 32
Decrease in investments in joint ventures (18)
Decrease in investments in associates (4)
Increase in debtors 18
Increase in deferred tax provision (933)
Decrease in equity minority interests 335
Decrease in shareholders' funds (570)
The impact of adoption of FRS 19 was to increase the tax charge by $229 million,
and decrease headline earnings by $166 million, for the year ended 31 December
2002. Shareholders' funds, as previously reported at 1 January 2001, decreased
by $717 million, due to the adoption of FRS 19.
The Group continues to account under the transitional arrangements for FRS 17 '
Retirement Benefits'. When the International Accounting Standards Board has
clarified the approach it will adopt in revising IAS 19 'Employee Benefits' and
the extent to which FRS 17 may change as a result, the board will decide when to
adopt the standard in full.
2. Segmental information
Turnover Operating profit(1) Net operating
Before Exceptional assets(2)
exceptional items
items (note 5)
2002 2001 2002 2002 2002 2001 2002 2001
US$ million Restated Restated
(3) (3)
By business segment
Group subsidiaries
Platinum 1,964 2,180 784 - 784 1,325 3,580 1,847
Gold 1,450 1,768 351 - 351 363 2,511 2,086
Diamonds - - - - - (2) - -
Coal 1,463 1,394 379 - 379 445 1,658 1,373
Base Metals 907 1,077 47 (17) 30 (572) 3,617 1,977
Industrial Minerals 2,811 2,432 264 - 264 185 3,848 3,246
Forest Products 4,529 3,853 624 - 624 481 3,897 2,732
Ferrous Metals 780 702 83 - 83 55 461 220
Industries 1,241 1,380 121 - 121 139 1,235 884
Financial Services - - - - - 2 - -
Exploration - - (93) - (93) (101) - -
Corporate Activities - - (172) (30) (202) (172) 315 379
15,145 14,786 2,388 (47) 2,341 2,148 21,122 14,744
Joint ventures
Gold 312 260 108 - 108 79
Base Metals 413 388 75 (34) 41 52
Industrial Minerals 76 70 9 - 9 12
Forest Products 252 243 25 - 25 34
Ferrous Metals 13 142 2 - 2 1
Industries - 6 - - - -
1,066 1,109 219 (34) 185 178
Associates
Platinum 40 38 18 - 18 20
Gold 7 - 4 - 4 1
Diamonds 2,746 2,055 541 - 541 375
Coal 247 178 48 - 48 48
Base Metals 58 65 11 - 11 10
Industrial Minerals 25 25 4 - 4 4
Forest Products 24 73 - - - 5
Ferrous Metals 457 441 65 - 65 21
Industries 516 512 (7) - (7) (25)
Corporate Activities 166 - 41 - 41 -
4,286 3,387 725 - 725 459
20,497 19,282 3,332 (81) 3,251 2,785
(1) Comparative figures for operating profit for 2001 are stated
after deducting the following exceptional items:
US$ million
Operating profit before exceptional items 3,298
Less: Group subsidiaries
Base Metals (473)
Corporate Activities (25)
Less: Joint ventures - Base Metals (15)
Operating profit after exceptional 2,785
items
Further details of these exceptional items are given in note 5.
(2) Net operating assets consist of tangible and intangible
assets (excluding investments in joint ventures and associates),
stocks and operating debtors less non-interest bearing current liabilities. See
note 10 for the reconciliation of net operating assets to net assets.
(3) Restated for the adoption of FRS 19 - see note 1.
2. Segmental information (continued)
Turnover Operating profit Net operating assets (1)
Before Exceptional
exceptional items
items (note 5)
2002 2001 2002 2002 2002 2001 2002 2001
US$ million Restated(2) Restated(2)
By geographical segment
(by origin)
Group subsidiaries
South Africa 5,863 6,811 1,617 (30) 1,587 2,111 7,712 5,393
Rest of Africa 67 410 21 - 21 (432) 555 225
Europe 6,545 5,284 509 - 509 355 7,001 5,601
North America 634 611 (41) - (41) (31) 934 796
South America 908 643 147 4 151 39 3,196 1,362
Australia and Asia 1,128 1,027 135 (21) 114 106 1,724 1,367
Joint ventures
South Africa 12 143 5 - 5 1
Rest of Africa 330 264 106 - 106 78
Europe 398 361 26 (76) (50) 17
North America 13 - 1 - 1 -
South America 313 341 81 42 123 81
Australia and Asia - - - - - 1
Associates
South Africa 1,068 1,186 198 - 198 157
Rest of Africa 1,582 1,285 312 - 312 233
Europe 733 128 124 - 124 (1)
North America 527 456 21 - 21 (9)
South America 238 239 46 - 46 57
Australia and Asia 138 93 24 - 24 22
20,497 19,282 3,332 (81) 3,251 2,785 21,122 14,744
By geographical segment
(by destination)
Group subsidiaries
South Africa 2,566 2,317
Rest of Africa 302 269
Europe 8,295 7,471
North America 1,144 1,922
South America 436 387
Australia and Asia 2,402 2,420
Joint ventures
South Africa 3 65
Rest of Africa 35 42
Europe 803 744
North America 99 93
South America 19 34
Australia and Asia 107 131
Associates
South Africa 309 184
Rest of Africa 40 1
Europe 947 670
North America 1,901 1,631
South America 23 27
Australia and Asia 1,066 874
20,497 19,282
(1) Net operating assets consist of tangible and intangible assets (excluding
investments in joint ventures and associates), stocks and operating debtors less
non-interest bearing current liabilities. See note 10 for the reconciliation of
net operating assets to net assets.
(2) Restated for the adoption of FRS 19 - see note 1.
3. Profit for the financial year
The table below analyses the contribution of each business segment to the
Group's headline earnings.
2002
US$ million Opera Opera Non-opera Goodwill Profit Inte Divi Other Inter Net Tax Equity Profit
ting ting ting amortisat before rest dend finan est invest minority for
profit except exception ion inter in in cial ex ment inter the
ional al items est come come income pense income ests financ
items ial
year
By business
segment
Platinum 802 - - 17 819 17 - - (5) 12 (265) (215) 351
Gold 463 - - 39 502 39 - 75 (47) 67 (157) (207) 205
Diamonds 541 - - 29 570 16 - - (95) (79) (159) (8) 324
Coal 427 - - 7 434 8 1 (65) (5) (61) (107) - 266
Base Metals 82 51 - 1 134 4 - (2) (43) (41) (22) (2) 69
Industrial 277 - - 46 323 6 - 7 (3) 10 (86) (16) 231
Minerals
Forest 649 - - 15 664 12 9 18 (84) (45) (173) (70) 376
Products
Ferrous 150 - - 5 155 16 3 2 (23) (2) (53) (12) 88
Metals
Industries 114 - - 3 117 32 9 (17) (66) (42) (10) (27) 38
Exploration (93) - - - (93) - - (1) - (1) - 17 (77)
Corporate (161) 30 - 27 (104) 95 28 (8) (112) 3 (10) (1) (112)
Activities
Headline 3,251 81 - 189 3,521 245 50 9 (483) (179) (1,042) (541) 1,759
earnings for
the
financial
year
Headline - (81) 64 (189) (206) - - - - - (3) 13 (196)
earnings
adjustme
nts
Profit for 3,251 - 64 - 3,315 245 50 9 (483) (179) (1,045)(528) 1,563
the
financial
year
2001
Restated(1)
US$ million Opera Operat Goodwill Profit Inte Divi Other Inte Net Tax Equity Profit
ting ing Non-opera amortisat before rest dend finan rest invest minority for
profit except ting ion inter in in cial ex ment interests the
ional exception est come come income pense income finan
items al items cial
year
By business
segment
Platinum 1,345 - - 16 1,361 39 - 2 (4) 37 (482) (438) 478
Gold 443 - - 30 473 24 - (2) (69) (47) (116) (148) 162
Diamonds 373 - - 34 407 35 - 10 (80) (35) (136) (2) 234
Coal 493 - - 8 501 11 1 54 (13) 53 (167) - 387
Base Metals (510) 488 - 1 (21) 28 - 41 (88) (19) (39) 61 (18)
Industrial 201 - - 42 243 7 - - (7) - (69) (14) 160
Minerals
Forest 520 - - 13 533 17 16 6 (117) (78) (123) (60) 272
Products
Ferrous 77 - - 1 78 23 - (3) (29) (9) (21) - 48
Metals
Industries 114 - - 1 115 20 16 2 (63) (25) (12) (40) 38
Financial 2 - - - 2 1 - - - 1 (3) - -
Services
Exploration (101) - - - (101) - - (1) - (1) - 17 (85)
Corporate (172) 25 - 21 (126) 216 45 (6) (161) 94 (28) - (60)
Activities
De Beers - - - - - 21 - 176 (38) 159 (51) (43) 65
investments(2)
Headline 2,785 513 - 167 3,465 442 78 279 (669) 130 (1,247)(667) 1,681
earnings for
the
financial
year
Headline - (513) 2,148 (167) 1,468 - - - - - (147) 83 1,404
earnings
adjustments
Profit for 2,785 - 2,148 - 4,933 442 78 279 (669) 130 (1,394)(584) 3,085
the
financial
year
(1) Restated for the adoption of FRS19 - see note 1.
(2) Represents De Beers' share of Anglo American plc earnings for the
5 months to 31 May 2001.
4. Exploration expenditure
US$ million 2002 2001
By business segment
Platinum 13 13
Gold 27 25
Base Metals 47 59
Other 6 4
93 101
5. Exceptional items
Operating exceptional items
US$ million 2002 2001
Disposal of Salobo Metais SA - reversal of previous impairment 46 -
Write-off in respect of ZCI/KCM copper mine in Zambia - (353)
Write-down of investments (30) -
Other impairments or write-downs of assets and feasibility study costs (97) (160)
Total operating exceptional items (81) (513)
Minority interests - 11
(81) (502)
Non-operating exceptional items
US$ million 2002 2001
Disposal of Tati Nickel Mining Company (Pty) Limited 53 -
Disposal of Salobo Metais SA 5 -
Disposal of Platinum mineral rights 10 -
Gain arising from the exchange of the 32.2% interest in the De Beers Group for
the 45% interest in DB Investments - 1,089
Gain arising from the exchange of the 15.3% interest in FirstRand Limited for
interests in Gold Fields Limited (11.3%) and Billiton Plc (7.1%) - 637
Partial disposal of interests in South African Breweries plc - 95
Further disposal of interests in FirstRand Limited 7 68
Partial disposal of interest in Standard Bank Investment Corporation - 44
Disposal of interest in Billiton Plc - 36
Disposal of Columbus Stainless - (120)
Disposal of Elandsrand and Deelkraal gold mines - (8)
Disposal of interests in Aracruz Celulose SA - 114
Disposal of other non-core assets 4 (32)
Share of associates' exceptional items 19 225
Profit on disposal of fixed assets 98 2,148
KCM exit costs (34) -
Total non-operating exceptional items 64 2,148
Taxation (3) (147)
Minority interests - 53
61 2,054
Total exceptional items (net of tax and minority interest) (20) 1,552
6. Tax on profit on ordinary activities
a) Analysis of charge for the year
US$ million 2002 2001
Restated (1)
United Kingdom corporation tax at 30% (4) 4
South Africa corporation tax at 30% 435 665
Other overseas taxation 187 230
Share of joint ventures' taxation 29 12
Share of associates' taxation 216 211
Current tax on exceptional items 3 97
Total current tax 866 1,219
Deferred taxation - subsidiaries 160 115
Deferred taxation - joint ventures 14 5
Deferred taxation - associates 5 5
Deferred tax on exceptional items - 50
Total deferred tax(2) 179 175
Total tax charge 1,045 1,394
(1) Restated for the adoption of FRS 19 - see note 1.
(2) The deferred tax charge relates to the origination of and reversal of timing
differences.
b) Factors affecting current tax charge for the year
The current tax charge assessed for the year is lower than the standard rate of
corporation tax in the United Kingdom and South Africa (30%). The differences
are explained below:
US$ million 2002 2001
Restated
(1)
Profit on ordinary activities before tax 3,136 5,063
Tax on profit on ordinary activities at 30% (2001: 30%) 941 1,519
Tax effects of:
Expenses not deductible for tax purposes:
Operating exceptional items 24 153
Goodwill amortisation 41 18
Exploration costs 28 30
Other permanent items 10 25
Non-taxable income:
Dividends receivable (15) (23)
Non-operating exceptional capital gains on disposal (29) (509)
Other non-operating exceptional items 10 (32)
Tax allowances for capital expenditure in excess of depreciation (175) (114)
Surplus tax losses 37 85
South African secondary tax on companies 53 74
Other differences (59) (7)
Current tax charge for the year 866 1,219
(1) Restated for the adoption of FRS 19 - see note 1.
c) Factors that may affect future tax charges
Anglo American anticipates that its effective rate will remain above the
statutory rate of 30% as the Group operates in certain countries where tax rates
are higher than the UK rate, including South Africa (effective rate of 37.8%
assuming distribution of profits).
In addition to the amounts provided in deferred tax, unrecognised assets exist
in respect of taxable losses. No asset has been recognised in respect of these
losses as it is not regarded as more likely than not that there will be suitable
taxable profits against which to offset these losses. Any utilisation of these
losses in the future may lead to a reduction in effective tax rates.
No deferred tax has been provided in respect of accumulated reserves of overseas
subsidiaries, associates or joint ventures as no dividends have been declared.
Overseas earnings are not remitted to the UK in such a way as to incur a UK tax
charge.
7. Headline earnings
2002 2001
Basic Basic
earnings earnings
per share per share
Earnings US$ Earnings US$
US$ million (unless otherwise stated) Restated Restated
(1) (1)
Profit for the financial year 1,563 1.11 3,085 2.09
Operating exceptional items 81 0.06 513 0.35
Non-operating exceptional items (64) (0.05) (2,148) (1.45)
Amortisation of goodwill:
Subsidiaries 139 0.10 129 0.09
Joint ventures and associates 50 0.04 38 0.02
Related tax and minority interests:
Exceptional items 3 - 83 0.05
Goodwill amortisation (13) (0.01) (19) (0.01)
Headline earnings for the financial year 1,759 1.25 1,681 1.14
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', which the
directors believe to be a useful additional measure of the Group's performance.
(1) Restated for the adoption of FRS 19 - see note 1.
8. Consolidated cash flow statement analysis
a) Reconciliation of group operating profit to net
cash inflow from operating activities
2002 2001
US$ million Restated(1)
Group operating profit - subsidiaries 2,341 2,148
Depreciation and amortisation charges 1,101 1,010
(Increase)/decrease in stocks (117) 1
Decrease/(increase) in debtors 67 (274)
Increase in creditors 48 135
Provisions and impairments 162 553
Other items 16 (34)
Net cash inflow from operating activities 3,618 3,539
(1) Restated for the adoption of FRS 19 - see note 1.
b) Financing
US$ million 2002 2001
Decrease in short term borrowings (514) (1,332)
Increase/(decrease) in long term borrowings 2,932 (218)
Net movement in minorities' shares and loans (1) 3
Exercise of share options 41 8
Repurchase of shares in subsidiary - (128)
Financing 2,458 (1,667)
c) Reconciliation of net cash flow to movement in net debt
US$ million 2002 2001
Increase in cash in the year 60 226
Cash (inflow)/outflow from debt financing (2,418) 1,550
Cash (inflow)/outflow from management of liquid resources (1,021) 287
Change in net debt resulting from cash flows (3,379) 2,063
Loans and current asset investments acquired with subsidiaries (212) (52)
Loans and current asset investments disposed of with subsidiaries 4 11
Cessation of consolidation of KCM(2) 148 -
Exchange adjustments (121) (450)
Movement in net (debt)/funds (3,560) 1,572
Net debt at start of year (2,018) (3,590)
Net debt at end of year (5,578) (2,018)
(2) KCM ceased to be consolidated by the Group with effect from 5 February 2002.
9. Movement in net debt
Acquisitions Disposals
excluding excluding Cessation of
cash and cash and consolidation Exchange
US$ million 2001 Cash flow overdrafts overdrafts of KCM(1) adjustments 2002
Cash at bank and in hand(2) 857 60 - - 39 84 1,040
Debt due after one year (2,635) (2,932) (109) 4 49 (250) (5,873)
Debt due within one year (2,243) 514 (103) - 60 (116) (1,888)
(4,878) (2,418) (212) 4 109 (366) (7,761)
Current asset investments 2,003 (1,021) - - - 161 1,143
Total (2,018) (3,379) (212) 4 148 (121) (5,578)
(1) KCM ceased to be consolidated by the Group with effect from 5 February 2002.
(2) Net of bank overdrafts.
10. Reconciliation of net operating assets to net assets
2002 2001
US$ million Restated(1)
Net operating assets (see note 2) 21,122 14,744
Fixed asset investments 7,376 5,523
Current asset investments 1,143 2,003
Cash at bank and in hand 1,070 915
Other non-operating assets and liabilities (2,868) (3,414)
Long term liabilities (5,873) (2,635)
Provisions for liabilities and (2,896) (2,194)
charges
Equity minority interests (2,304) (1,607)
Proposed dividend (509) (479)
Net assets 16,261 12,856
(1) Restated for the adoption of FRS 19 - see note 1.
11. Status of financial information
The financial information set out herein does not constitute the Company's
statutory accounts for the year ended 31 December 2002, but is derived from
those accounts which were approved by the board of directors on 27 February
2003. Statutory accounts for the year ended 31 December 2001 have been
delivered to the Registrar of Companies, and those for 2002 will be delivered
following the Company's annual general meeting convened for 25 April 2003. The
auditors have reported on these accounts; their reports were unqualified and did
not contain statements under section 237(2) or (3) of the Companies Act 1985.
Production statistics
2002 2001
Anglo Platinum (troy ounces)(1)(2)
Platinum 2,294,300 2,145,900
Palladium 1,136,500 1,075,900
Rhodium 215,900 204,100
Nickel (tonnes) 19,700 19,500
AngloGold (gold in troy ounces)(2)
South Africa 3,412,000 4,669,700
North and South America 940,000 937,000
Australia and Asia 502,000 508,600
Rest of the world 1,085,000 867,800
5,939,000 6,983,100
Gold Fields (gold in troy ounces)(2)
Gold 464,600 -
Anglo Coal (tonnes)
South Africa:
Eskom 28,649,000 28,250,000
Trade
- Thermal 15,681,000 15,410,000
- Metallurgical 3,889,000 3,772,000
48,219,000 47,432,000
Australia
- Thermal 16,341,000 15,982,000
- Metallurgical 8,679,000 8,300,000
25,020,000 24,282,000
South America
- Thermal 6,937,000 5,829,000
80,176,000 77,543,000
Anglo Base Metals
Copper
Collahuasi
100% basis (Anglo American 44%)
Ore mined tonnes 34,871,700 29,026,000
Ore processed Oxide tonnes 5,357,500 4,658,700
Sulphide tonnes 25,231,000 24,734,400
Ore grade processed Oxide %Cu 1.4% 1.5%
Sulphide %Cu 1.7% 1.8%
Production Copper concentrate dmt 1,019,400 999,700
Copper cathode tonnes 60,600 59,500
Copper in concentrate tonnes 372,900 393,200
Total copper production for tonnes 433,500 452,700
Collahuasi
(1) Includes Anglo Platinum's share of Northam Platinum Limited.
(2) See Anglo American Platinum Corporation Limited, Northam Limited,
AngloGold Limited and Gold Fields Limited published results for further
analysis of production information.
Production statistics (continued)
2002 2001
Disputada(1)
- Los Bronces mine
Ore mined tonnes 19,602,000 -
Las Tortolas concentrator Ore processed (sulphide) tonnes 16,563,000 -
Ore grade processed %Cu 1.1% -
Production Copper concentrate dmt 81,300 -
Copper cathode tonnes 3,600 -
Copper in concentrate tonnes 25,400 -
Total tonnes 29,000 -
- El Soldado mine
Ore mined Open pit tonnes 4,259,500 -
Underground (sulphide) tonnes 2,616,400 -
tonnes 6,875,900 -
Ore processed Oxide tonnes 738,900 -
Sulphide tonnes 6,539,900 -
Ore grade processed Oxide %Cu 1.2% -
Sulphide %Cu 1.1% -
Production Copper concentrate dmt 31,200 -
Copper cathode tonnes 1,000 -
Copper in concentrate tonnes 9,000 -
Total tonnes 10,000 -
Total copper production for Disputada tonnes 39,000 -
Chagres Smelter (for Disputada)
Copper concentrates smelted tonnes 23,300 -
Production Copper blister/anodes tonnes 21,900 -
Acid tonnes 66,400 -
Mantos Blancos
- Mantos Blancos mine
Ore mined Oxide tonnes 10,277,900 6,745,800
Sulphide tonnes 4,004,900 3,957,500
Ore grade processed Oxide %Cu
(Soluble) 0.8% 1.0%
Sulphide %Cu
(Insoluble) 1.2% 1.2%
Production Copper concentrate dmt 137,600 125,900
Copper cathode tonnes 51,000 56,300
Copper in concentrate tonnes 45,200 44,900
Total tonnes 96,200 101,200
- Mantoverde mine
Ore processed Leaching tonnes 12,971,200 12,354,800
Ore grade processed Oxide %Cu
(Soluble) 0.7% 0.7%
Production Copper cathode tonnes 57,300 55,600
Total copper production for Mantos Blancos tonnes 153,500 156,800
(1) Results represent 49 days of operations since date of acquisition of Compania Minera Disputada de Las Condes
Limitada.
Production statistics (continued)
2002 2001
Nickel, Niobium and Mineral Sands
Nickel
Codemin
Ore mined tonnes 513,200 419,400
Ore processed tonnes 500,800 465,100
Ore grade processed % 1.4% 1.4%
Production tonnes 6,000 5,800
Loma de Niquel
Ore mined tonnes 1,301,100 830,500
Ore processed tonnes 1,095,200 755,500
Ore grade processed % 1.7% 1.8%
Production tonnes 15,500 9,700
Niobium
Catalao
Ore mined tonnes 591,600 599,100
Ore processed tonnes 568,400 561,200
Ore grade processed kg Nb/tonne 10.57 10.75
Production tonnes 3,300 3,400
Mineral Sands
Namakwa Sands
Ore mined tonnes 16,434,500 15,124,400
Production - Ilmenite tonnes 315,900 288,000
- Rutile tonnes 26,000 27,100
- Zircon tonnes 112,400 114,100
Smelter production - Slag tapped tonnes 162,700 150,000
- Iron tapped tonnes 103,000 93,000
Zinc and Lead
Black Mountain
Ore mined tonnes 1,588,700 1,568,300
Ore processed tonnes 1,554,000 1,560,200
Ore grade processed - Zinc % 2.6% 2.4%
- Lead % 3.5% 3.7%
- Copper % 0.5% 0.5%
Production - Zinc in concentrates tonnes 27,600 24,300
- Lead in concentrates tonnes 45,300 45,800
- Copper in concentrates tonnes 5,400 5,400
Hudson Bay
Ore mined tonnes 2,989,300 3,587,300
Ore processed tonnes 3,004,500 3,557,900
Ore grade processed - Copper % 1.7% 1.5%
- Zinc % 4.1% 3.3%
Concentrate treated - Copper tonnes 294,100 290,300
- Zinc tonnes 211,100 195,100
Production (domestic) - Copper tonnes 42,900 53,100
- Zinc tonnes 102,100 78,400
Production (total) - Copper tonnes 83,400 79,500
- Zinc tonnes 108,100 88,400
- Gold ozs 59,300 69,200
- Silver ozs 1,234,200 1,213,200
Production statistics (continued)
2002 2001
Lisheen
100% basis (Anglo American 59%)
Ore mined tonnes 1,571,400 1,233,800
Ore processed tonnes 1,541,300 1,145,600
Ore grade processed - Zinc % 11.2% 11.1%
- Lead % 2.1% 2.1%
Production - Zinc in concentrate tonnes 151,500 105,800
- Lead in concentrate tonnes 22,000 16,900
Anglo Industrial Minerals (tonnes)
Aggregates 63,928,400 64,112,000
Lime products 871,000 926,000
Concrete (m3) 6,955,700 6,627,400
Potash - 882,000
Sodium tripolyphosphate 88,200 91,500
Phosphates 734,600 820,500
Anglo Forest Products (tonnes)
South Africa
Pulp 320,160 290,400
Graphic papers 518,200 509,800
Packaging papers 572,900 527,600
Corrugated board (000 m2) 300,050 275,000
Lumber (m3) 126,500 137,000
Wood chips (green metric tonnes) 1,647,700 1,284,300
Mining timber 143,100 131,800
Europe
Pulp 181,800 187,800
Graphic papers 1,475,700 1,142,800
Packaging papers 1,506,800 1,202,000
Corrugated board (000 m2) 1,121,100 780,200
Paper sacks (000 units) 2,963,790 2,620,100
Brazil
Pulp - 110,000
Anglo Ferrous Metals (tonnes)
Chrome ore 1,055,588 1,012,000
Stainless steel - 156,000
Vanadium slag 68,100 73,700
Chrome alloys 310,900 289,000
Manganese ore (mtu m) 62 62
Manganese alloys 306,100 280,000
Steel (Billets) 1,348,000 1,257,000
Iron ore 916,000 -
The figures above include the entire output of consolidated entities and the
Group's share of joint ventures and associates where applicable, except for
Collahuasi and Lisheen in Base Metals which are quoted on a 100% basis.
Reconciliation of subsidiaries' and associates' profits to those included in the
consolidated financial statements
For the year to 31 December 2002
Note only key reported lines are reconciled
2002
AngloGold Limited US$ million
IAS Headline earnings before unrealised non-hedge derivatives (published) 368
Exploration 27
Other 3
Minority interest (193)
UK GAAP contribution to headline earnings 205
2002
Anglo American Platinum Corporation Limited US$ million
IAS net profit (published) 548
Secondary Tax on Companies adjustment 23
Movement on unrealised profit on Forward Exchange Contracts 8
Exploration 14
Exceptional items (10)
Weighted average exchange impact 14
597
Minority interest (214)
Depreciation of mining leases and reserves (29)
Other (3)
UK GAAP contribution to headline earnings 351
2002
DB Investments SA US$ million
Reconciliation of headline earnings Total Equity Non-equity
(pref. shares)(1)
DBI headline earnings - IAS (100%) 570 - -
GAAP adjustments (IAS 39) 23 - -
DBI headline earnings - UK GAAP (100%) 593 486 107
AA plc's 45% equity interest 219 219 -
Additional 3.65% equity interest(2) 18 18 -
AA plc's portion of the preference shares(1) 87 - 87
AA plc headline earnings 324 237 87
(1) AA plc grosses up its preference share income to the operating profit level
and accounts for its (non-equity) share of operating profit, exceptional items,
investment income and net interest, tax and minorities, in the same way as it
accounts for its equity share of 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 non-equity interest with equity in determining the investor's
overall share of an associate's results. The headline earnings attributable to
AA plc's US$70 million preference share income are arrived at by adjusting for a
proportion of exceptional items (-US$7 million) and goodwill amortisation
(+US$24 million) in the same way as the equity share is calculated.
(2) As a result of the De Beers' partial interest in Debswana Diamond Company
(Proprietary) Limited (one of the shareholders in DBI), AA plc accounts for an
additional 3.65% of DBI's post-tax equity earnings.
Key financial data(1)
US$ million (unless stated otherwise) 2002 2001 (1) 2000 1999
Group and share of turnover of joint ventures and associates 20,497 19,282 20,570 19,245
Less: Joint ventures' turnover (1,066) (1,109) (1,590) (1,720)
Associates' turnover (4,286) (3,387) (4,156) (5,947)
Group turnover - subsidiaries 15,145 14,786 14,824 11,578
Group operating profit before exceptional items 3,332 3,298 3,480 2,142
Operating exceptional items(2) (81) (513) (433) -
Total operating profit(2) 3,251 2,785 3,047 2,142
Non-operating exceptional items(2) 64 2,148 490 410
Net interest (expense)/investment income (179) 130 308 265
Profit on ordinary activities before taxation 3,136 5,063 3,845 2,817
Taxation on profit on ordinary activities (1,042) (1,247) (1,005) (499)
Taxation on exceptional items (3) (147) - 18
Equity minority interests (528) (584) (883) (784)
Profit for the financial year 1,563 3,085 1,957 1,552
Headline earnings 1,759 1,681 2,000 1,308
Earnings per share (US$)(3) 1.11 2.09 1.25 1.01
Headline earnings per share (US$)(3) 1.25 1.14 1.28 0.85
Dividend per share (US cents) 51.0 49.0 47.5 37.5
Basic number of shares outstanding (million)(3) 1,411 1,474 1,567 1,540
EBITDA(4) 4,792 4,647 4,689 3,114
EBITDA interest cover(5) 20.0 31.2 - -
Operating margin (before exceptional items) 16.3% 17.1% 16.9% 11.1%
Dividend cover (based on headline earnings) 2.5 2.3 2.7 2.3
Balance Sheet
Fixed assets 18,841 12,870 14,281 11,097
Investments 7,376 5,523 7,960 8,391
Working capital 822 282 943 880
Provisions for liabilities and charges (2,896) (2,194) (1,404) (1,324)
Net (debt)/funds (5,578) (2,018) (3,590) 81
Equity minority interests (2,304) (1,607) (2,646) (2,951)
Shareholders' funds 16,261 12,856 15,544 16,174
Total capital(6) 24,143 16,481 21,780 19,044
Net cash inflow from operating activities 3,618 3,539 2,959 1,850
Dividends received from joint ventures and associates 258 258 258 209
Return on capital employed(7) 17.5% 19.0% 18.3% 12.6%
EBITDA/average total capital 23.6% 25.0% 23.0% 16.8%
Net debt/(funds) to total capital 23.1% 12.2% 16.5% (0.4%)
(1) 2001 restated for the adoption of FRS 19 - see note 1. 2000
and 1999 have not been restated for the adoption of FRS 19.
(2) Operating profit for 2000 has been restated for the reclassification of the
loss of US$167 million arising on the anticipated disposal of Terra Industries
Inc. The disposal did not proceed and the loss has therefore been reclassified
into operating exceptional items as an impairment.
(3) 2000 and 1999 restated to reflect the three-for-one bonus issue in May 2001.
(4) EBITDA is operating profit before exceptional items plus depreciation and
amortisation of subsidiaries and share of joint ventures and associates.
(5) EBITDA interest cover is annualised to account for acquisitions during the
year. The actual EBITDA interest cover for 2002 was 25.5 times. For 2000 and
1999, EBITDA interest cover is not applicable as the Group was a net interest
recipient.
(6) Total capital is the sum of shareholders' funds, net debt and minority
interests.
(7) Return on capital employed is calculated as total operating profit before
impairments for the current year divided by the average of total capital less
other investments and adjusted for impairments for the current and prior years.
Summary by business segment
Headline earnings Operating profit
US$ million 2002 2001 2002 2001
Restated Restated(1)
(1)
Platinum 351 478 802 1,345
Gold 205 162 463 443
Diamonds 324 234 541 373
Coal 266 387 427 493
South Africa 131 228 244 267
Australia 98 123 130 173
South America 35 36 50 49
United Kingdom 2 3 4
Base Metals 69 (18) 82 (510)
Copper 80 25 110 2
Nickel, Niobium, Mineral Sands 54 54 94 56
Zinc (66) (77) (51) (57)
Other 1 (20) (20) (23)
Exceptional items - - (51) (488)
Industrial Minerals 231 160 277 201
Europe 214 147 253 179
Brazil 17 13 24 22
Forest Products 376 272 649 520
Europe 233 130 434 328
South Africa 143 135 215 185
Brazil - 7 - 7
Ferrous Metals 88 48 150 77
Highveld Steel 20 - 40 6
Scaw Metals 41 25 51 31
Samancor Group 19 5 48 19
Other 8 18 11 21
Industries 38 38 114 114
Tongaat-Hulett 24 31 96 112
Boart 26 29 31 30
Terra (18) (31) (3) (23)
Other 6 9 (10) (5)
Financial Services - - - 2
Exploration (77) (85) (93) (101)
Corporate (112) (60) (161) (172)
Gold Fields 27 - 41 -
Other (139) (60) (202) (172)
De Beers investments(2) - 65 - -
1,759 1,681 3,251 2,785
(1) Restated for the adoption of FRS 19 - see note 1.
(2) Represents De Beers' share of Anglo American plc earnings for the 5 months
to 31 May 2001.
ANGLO AMERICAN plc
(Incorporated in England and Wales - Registered number 3564138)
("the Company")
Notice of Recommended Final Dividend
Notice is hereby given that a final dividend on the Company's ordinary share
capital in respect of the year to 31 December 2002 will, subject to approval by
shareholders at the Annual General Meeting to be held on 25 April 2003, be
payable as follows:
Amount (United States currency) 36 cents per ordinary share
Currency conversion date Tuesday, 25 February 2003
Last day to trade on the JSE Securities Exchange,
South Africa ("JSE") to qualify for the dividend Friday, 7 March 2003
Ex-dividend on the JSE from the commencement
of trading on Monday, 10 March 2003
Ex-dividend on the London Stock Exchange from the
commencement of trading on Wednesday, 12 March 2003
Record date (applicable to both the principal
register and South African branch register) Friday, 14 March 2003
Last day for receipt of Dividend Reinvestment Plan
("DRIP") Mandate Forms Monday, 7 April 2003
Dividend warrants posted Tuesday, 29 April 2003
Payment date of dividend Wednesday, 30 April 2003
Notes:
1. Shareholders on the United Kingdom register of members with an address in
the United Kingdom will be paid in pounds sterling and, those with an address in
a country in the European Union which has adopted the euro, will be paid in
euros. Such shareholders may, however, elect to be paid their dividends in US
dollars provided the UK Registrar receives such election by Friday, 14 March
2003. Shareholders with an address elsewhere will be paid in US dollars. The
equivalent of the dividend in sterling will be 22.7052 pence per ordinary share
based on an exchange rate of US$1 = £0.6307. The equivalent of the dividend in
euros will be 33.3504 euro cents per ordinary share based on an exchange rate of
US$1 = €0.9264.
2. Shareholders on the South African branch register will be paid in South
African Rand at R2.91672 per ordinary share based on an exchange rate of US$1 =
R8.10200.
3. Dematerialisation and rematerialisation of registered share
certificates in South Africa will not be effected by CSDPs during the period
Monday, 10 March 2003 to Friday, 14 March 2003 (both days inclusive).
4. DRIP election forms, in respect of elections by shareholders who hold
their shares in dematerialised form in STRATE, are required to be lodged with
CSDPs by Thursday, 3 April 2003.
5. Share certificates/Crest Notifications will be mailed and CSDP
investor accounts credited on Wednesday, 14 May 2003 in respect of shares issued
in terms of the DRIP.
6. Copies of the Terms and Conditions of the DRIP are available from the
Company's Registrar or the Registrar's Agent.
By order of the Board
N Jordan
Company Secretary
27 February 2003
Registered office UK Registrar Registrar's Agent (South Africa)
20 Carlton House Terrace Computershare Investor Computershare Investor Services Limited
London Services PLC 70 Marshall Street
SW1Y 5AN P O Box 82 Johannesburg 2001
United Kingdom The Pavilions (PO Box 61051, Marshalltown 2107)
Bridgwater Road South Africa
Bristol BS99 7NH
United Kingdom
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