REG - Antofagasta PLC - 2014 PRELIMINARY RESULTS <Origin Href="QuoteRef">ANTO.L</Origin> - Part 3
17/03/2015 07:02
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potable water to
domestic customers and untreated water to industrial customers in Chile's Antofagasta Region. The Exploration and
evaluation segment incurs exploration and evaluation expenses. "Corporate and other items" comprises costs incurred by the
Company, other holding companies of the Group and Antofagasta Minerals S.A., the Group's mining corporate centre and other
entities, that are not allocated to any individual business segment. Consistent with its internal management reporting, the
Group's corporate and other items are included within the mining division.
Management monitors the operating results of business segments separately for the purpose of making decisions about
resources to be allocated and of assessing performance. Segment performance is evaluated based on the operating profit of
each of the segments.
a) Segment revenues and results
For the year ended 31 December 2014
Los Pelambres Centinela Michilla Antucoya Exploration and evaluation Corporate and other items Mining Railway and other transport services Water concession Total
$m $m $m $m $m $m $m $m $m $m
Revenue 2,663.6 1,985.7 335.4 - - - 4,984.7 180.8 124.9 5,290.4
EBITDA 1,518.6 767.2 58.7 - (167.5) (99.2) 2,077.8 68.7 75.1 2,221.6
Depreciation and amortisation (178.3) (301.5) (87.3) - - (2.6) (569.7) (22.5) (13.8) (606.0)
Gain/(Loss) on disposals (2.5) (1.3) (0.4) - - 28.7 24.5 (0.6) 0.2 24.1
Operating profit 1,337.8 464.4 (29.0) - (167.5) (73.1) 1,532.6 45.6 61.5 1,639.7
Share of results from associates and joint ventures (1.3) - - - - (9.3) (10.6) 6.5 - (4.1)
Investment income 7.5 4.2 0.7 - - 3.9 16.3 0.5 1.6 18.4
Interest expense (3.8) (36.6) - - - (2.4) (42.8) (1.8) - (44.6)
Other finance items (2.5) 2.9 (8.3) 3.3 - (31.4) (36.0) (0.4) 0.5 (35.9)
Profit before tax 1,337.7 434.9 (36.6) 3.3 (167.5) (112.3) 1,459.5 50.4 63.6 1,573.5
Tax (441.7) (214.9) 1.3 (9.7) - 25.0 (640.0) (62.9) (19.9) (722.8)
Non-controlling interests (352.3) (56.2) 0.3 3.8 - 12.4 (392.0) 1.1 - (390.9)
Net earnings 543.7 163.8 (35.0) (2.6) (167.5) (74.9) 427.5 (11.4) 43.7 459.8
Additions to non-current assets
Capital expenditure 229.6 535.6 11.1 707.1 - 51.4 1,534.8 21.2 25.0 1,581.0
Segment assets and liabilities
Segment assets 3,680.2 5,152.9 181.9 1,619.8 - 1,557.9 12,192.7 410.0 212.4 12,815.1
Segment liabilities (1,255.2) (2,014.6) (114.6) (994.7) - (138.2) (4,517.3) (212.1) (51.0) (4,780.4)
For the year ended 31 December 2013
Los Pelambres Centinela Michilla Antucoya Exploration and evaluation Corporate and other items Mining Railway and other transport services Water concession Total
$m $m $m $m $m $m $m $m $m $m
Revenue 3,129.4 2,201.8 307.9 - - - 5,639.1 196.6 135.9 5,971.6
EBITDA 1,814.0 1,075.6 16.3 - (274.9) (83.3) 2,547.7 76.8 77.7 2,702.2
Depreciation and amortisation (175.9) (225.2) (58.9) - - (26.2) (486.2) (14.6) (16.9) (517.7)
(Loss)/gain on disposals (2.8) (5.4) (0.5) (0.7) - (0.2) (9.6) 0.8 (3.6) (12.4)
Operating profit/(loss) 1,635.3 845.0 (43.1) (0.7) (274.9) (109.7) 2,051.9 63.0 57.2 2,172.1
Share of results from associates and joint ventures - - - - - (27.4) (27.4) 13.0 - (14.4)
Investment income 2.2 3.0 0.3 - - 5.6 11.1 0.9 0.6 12.6
Interest expense (8.4) (49.8) - - - (3.6) (61.8) (0.2) - (62.0)
Other finance items (7.9) (0.6) (6.5) (4.2) - (5.8) (25.0) - 0.2 (24.8)
Profit/(loss) before tax 1,621.2 797.6 (49.3) (4.9) (274.9) (140.9) 1,948.8 76.7 58.0 2,083.5
Tax (374.8) (194.2) 12.4 4.6 - (216.6) (768.6) (64.2) (10.9) (843.7)
Non-controlling interests (477.7) (155.7) 11.5 1.6 - 39.9 (580.4) 0.2 - (580.2)
Net earnings/(losses) 768.7 447.7 (25.4) 1.3 (274.9) (317.6) 599.8 12.7 47.1 659.6
Additions to non-current assets
Capital expenditure 208.9 480.9 17.2 678.9 - 30.7 1,416.6 28.7 13.4 1,458.7
Segment assets and liabilities
Segment assets 3,748.9 4,658.8 226.6 764.4 - 2,346.3 11,745.0 409.9 234.7 12,389.6
Segment liabilities (1,183.8) (1,623.4) (93.1) (378.5) - (342.3) (3,621.1) (55.3) (49.6) (3,726.0)
b) Entity wide disclosures
Revenue by product
Year ended 31.12.2014 Year ended 31.12.2013
$m $m
Copper
- Los Pelambres 2,348.6 2,821.0
- Centinela concentrates 1,073.8 1,121.7
- Centinela cathodes 631.9 747.4
- Michilla 335.4 307.9
Gold
- Los Pelambres 80.5 77.0
- Centinela 256.3 305.5
Molybdenum
- Los Pelambres 182.8 180.3
Silver
- Los Pelambres 51.7 51.1
- Centinela 23.7 27.2
Total Mining 4,984.7 5,639.1
Railway and transport services 180.8 196.6
Water concession 124.9 135.9
5,290.4 5,971.6
Revenue by location of customer
Year ended 31.12.2014 Year ended 31.12.2013
$m $m
Europe
- United Kingdom 8.2 15.8
- Switzerland 138.5 143.9
- Spain 160.6 208.2
- Germany 146.1 146.4
- Rest of Europe 86.6 232.4
Latin America
- Chile 340.2 375.3
- Rest of Latin America 180.9 186.4
North America
- United States 133.7 320.1
Asia Pacific
- Japan 1,965.4 1,984.5
- China 1,253.1 1,423.9
- Rest of Asia 877.1 934.7
5,290.4 5,971.6
Information about major customers
In the year ended 31 December 2014 the Group´s mining revenues included $970.0 million related to one large customer that
individually accounted for more than 10% of the Group's revenues (year ended 31 December 2013 - one large customer
representing $1,035.8 million).
Non-current assets by location of asset
Year ended 31.12.2014 Year ended 31.12.13
$m $m
- Chile 8,934.8 8036.8
- Bolivia 30.9 37.0
- USA 67.4 94.7
- Other 0.6 1.3
9,033.7 8,169.8
Notes to geographical information
The non-current assets balance disclosed by location of assets excludes financial instruments, available-for-sale
investments and deferred tax assets.
4. Revenues
Copper and molybdenum concentrate sale agreements and copper cathode sale agreements generally provide for provisional
pricing of sales at the time of shipment, with final pricing being based on the monthly average London Metal Exchange
copper price or monthly average molybdenum price for specified future periods. This normally ranges from one to five months
after shipment to the customer. The provisional pricing mechanism within the sale agreements is an embedded derivative
under IFRS. Gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue in the
income statement and to trade debtors in the balance sheet. The Group determines mark-to-market prices using forward prices
at each period end for copper concentrate (including gold by-product sales) and cathode sales, and period-end month average
prices for molybdenum concentrate sales due to the absence of a futures market in the market price references for that
commodity in the majority of the Group's contracts.
In addition to mark to market and final pricing adjustments, revenue also includes realised gains and losses relating to
derivative commodity instruments. Details of these realised gains or losses are shown in the tables below. Further details
of derivative commodity instruments in place at the year ended are given in Note 5.
Copper and molybdenum concentrate sales are stated net of deductions for tolling charges, as shown in the tables below.
For the period ended 31 December 2014 $m $m $m $m $m $m $m Los Pelambres Centinela Centinela Michilla Los Pelambres Centinela Los Pelambres Copper concentrate Copper concentrate Copper cathodes Copper cathodes Gold in concentrate Gold in concentrate Molybdenum concentrate Provisionally invoiced gross sales Effects of pricing adjustments to previous year invoices 2,642.5 1,226.8 640.6 322.0 80.4 267.8 213.7 Reversal of mark-to-market adjustments at the end of the previous year (27.1) (8.8) (1.0) 0.1 -
4.5 1.2 Settlement of sales invoiced in the previous year (27.7) (9.8) 1.2 (0.3) 0.4 (2.0) 0.2 Total effect of adjustments to previous year invoices in the current year (54.8) (18.6) 0.2 (0.2) 0.4 2.5 1.4 Effects of pricing adjustments to current year invoices Settlement of sales invoiced in the current year (29.8) (19.7) (7.7) (4.3) - (11.7) (15.2) Mark-to-market adjustments at the end of the current year (45.5) (19.6) (1.3) (0.4) - (1.8) (2.0) Total effect of adjustments to current year invoices (75.3)
(39.3) (9.0) (4.7) - (13.5) (17.2) Total pricing adjustments (130.1) (57.9) (8.8) (4.9) 0.4 (11.0) (15.8) Realised gains on commodity derivatives - - 0.1 18.3 - - - Revenue before deducting tolling charges 2,512.4 1,168.9 631.9 335.4 80.8 256.8 197.9 Tolling charges (163.8) (95.1) - - (0.3) (0.5) (15.1) Revenue net of tolling charges 2,348.6 1,073.8 631.9 335.4 80.5 256.3 182.8 For the year ended 31 December 2013 $m $m $m $m $m $m $m Los Pelambres Centinela Centinela Michilla Los Pelambres Centinela
Los Pelambres Copper concentrate Copper concentrate Copper cathodes Copper cathodes Gold in concentrate Gold in concentrate Molybdenum concentrate Provisionally invoiced gross sales 3,042.9 1,237.3 750.0 285.9 82.7 331.3 210.0 Effects of pricing adjustments to previous year invoices Reversal of mark-to-Recent news on Antofagasta
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