Anglo American Annual Report 2012

GOVERNANCE DIRECTORS’ REPORTDIRECTORS’REPORTThe directors have pleasure insubmitting the statutory financialstatements of the Group for theyear ended 31 December 2012.The Board considers that the AnnualReport, taken as a whole, is fair,balanced and understandable and thatit provides all information necessaryfor shareholders to assess theCompany’s strategy and performance.PRINCIPAL ACTIVITIESAnglo American is one of the world’slargest mining companies, isheadquartered in the UK and listedon the London and Johannesburgstock exchanges. Anglo American’sportfolio of mining businesses spansbulk commodities – iron ore andmanganese, metallurgical coal andthermal coal; base metals – copperand nickel; and precious metals andminerals – in which it is a globalleader in both platinum and diamonds.Anglo American is committed tothe highest standards of safety andresponsibility across all its businessesand geographies and to makinga sustainable difference in thedevelopment of the communitiesaround its operations. The Company’smining operations, extensive pipelineof growth projects and explorationactivities span southern Africa, SouthAmerica, Australia, North America,Asia and Europe.More detailed information about theGroup’s businesses, activities andfinancial performance is incorporatedin this report by reference and canbe found in the chairman’s and CEO’sstatements on pages 2–3 and 10–11respectively and the operating andfinancial review on pages 12–89. TheCorporate Governance statement ison pages 90–127 and is incorporatedin this Directors’ report by reference.GOING CONCERNThe financial position of the Group,its cash flows, liquidity position andborrowing facilities are set out in theGroup Financial Performance Reviewon pages 42–47. In addition, detailis given on the Group’s policy onmanaging credit and liquidity risk inthe Principal Risks and Uncertaintiessection on pages 48–53, withdetails of our policy on capital riskmanagement being set out in note 25to the financial statements. TheGroup’s net debt at 31 December 2012was $8.6 billion (2011: $1.4 billion),representing a gearing level of 16.4%(2011: 3.1%). Details of borrowings andfacilities are set out in notes 24 and 25and net debt is set out in note 31.The directors have considered theGroup’s cash flow forecasts for theperiod to the end of March 2014.The Board is satisfied that the Group’sforecasts and projections, takingaccount of reasonably possiblechanges in trading performance, showthat the Group will be able to operatewithin the level of its current facilitiesfor the foreseeable future. For thisreason the Group continues to adoptthe going concern basis in preparingits financial statements.DIVIDENDSAn interim dividend of 32 US centsper ordinary share was paid on13 September 2012. The directorsare recommending that a final dividendof 53 US cents per ordinary share bepaid on 25 April 2013 to ordinaryshareholders on the register on22 March 2013, subject to shareholderapproval at the AGM to be held on19 April 2013. This would bring thetotal dividend in respect of 2012 to85 US cents per ordinary share.In accordance with InternationalFinancial Reporting Standards (IFRS),the final dividend will be accounted forin the financial statements for the yearended 31 December 2013.128 Anglo American plc Annual Report 2012