Anglo American Annual Report 2012

PERFORMANCE HIGHLIGHTS CONTENTSOverviewSAFEGUARDINGVALUEWITH THE FUTURE IN MINDDIVIDENDS PER SHARECents2008Nil2009Nil2010201125282012 32CAPITAL EXPENDITURE$ bn20082009201020112012NET DEBT$ m20082009201020111,37420127,384408,615444.8465.35.0535.85.711,34011,280UNDERLYINGOPERATING PROFIT(2011: $11.1 bn)$6.2 bnUNDERLYING EARNINGS(2011: $6.1 bn)$2.8 bnUNDERLYING EARNINGSPER SHARE(2011: $5.06)$2.26(LOSS)/PROFITATTRIBUTABLE TO EQUITYSHAREHOLDERS(2011: $6.2 bn)$(1.5) bnUnderlying operating profit includesattributable share of associates’ operatingprofit (before attributable share ofassociates’ interest, tax, and non-controllinginterests) and is before special items andremeasurements, unless otherwise stated.See notes 2 and 4 to the financial statementsfor operating profit. For definition of specialitems and remeasurements, see note 5 tothe financial statements. See note 13 to thefinancial statements for the basis ofcalculation of underlying earnings.‘Tonnes’ are metric tons, ‘Mt’ denotesmillion tonnes, ‘kt’ denotes thousand tonnesand ‘koz’ denotes thousand ounces;‘$’ and ‘dollars’ denote US dollars and‘cents’ denotes US cents.Net debt includes related hedges and netcash in disposal groups. See note 31 to thefinancial statements.Overview02 Chairman’s statement04 Marketplace08 Our strategy and business model10 Chief Executive’s statementOperating and financial review12 Key performance indicators (KPIs)14 Strategy in action36 Resources and technology42 Group financial performance48 Risk54 Iron Ore and Manganese60 Metallurgical Coal64 Thermal Coal68 Copper72 Nickel76 Platinum82 Diamonds86 Other Mining and IndustrialGovernance90 Introduction92 The Board94 Executive management96 Role of the Board98 Board in action104 Audit Committee report108 Directors’ remuneration report128 Directors’ report134 Statement of directors’ responsibilitiesFinancial statements136 Responsibility statement137 Independent auditor’s report138 Principal statements142 Notes to the financial statementsOre Reserves and Mineral Resources191 Introduction192 Summary196 Iron Ore199 Manganese200 Coal208 Copper213 Nickel214 Platinum Group Metals217 Diamonds222 Phosphate products223 Niobium224 Reconciliation overview228 Definitions229 GlossaryOther information231 Production statistics235 Quarterly production statistics236 Exchange rates and commodity prices237 Summary by business operation238 Key financial data239 Non-financial data240 Reconciliation of reported earnings242 The business – an overview244 Shareholder informationIBC Other Anglo American publicationsAnglo American plc Annual Report 2012 01