REG - Antofagasta PLCBarrick Gold Corp - Half Yearly Financial Report <Origin Href="QuoteRef">ANTO.L</Origin> - Part 2
25/08/2015 07:00
- Part 2: For the preceding part double click ID:nRSY9494Wa
operations 62.8 2.4
Total continuing and discontinued operations 71.6 33.6
Earnings per share calculations are based on 985,856,695 ordinary shares. As a result of the factors set out above, profit
in the first half of 2015 attributable to equity shareholders of the Company was $705.8 million compared with $330.8
million in the first half of 2014. Accordingly, earnings per share from continuing and discontinued operations were 71.6
cents in the first half of 2015 compared with 33.6 cents in first half of 2014, an increase of 113.1%.
Dividends
Dividends per share proposed in relation to the period are as follows:
Six months ended 30.06.15 Six months ended30.06.14
US cents US cents
Ordinary
Interim 3.1 11.7
Final - -
Total dividends to ordinary shareholders 3.1 11.7
The Board determines the appropriate dividend each year based on consideration of the Group's cash balance, the level of
free cash flow and earnings generated during the year and significant known or expected funding commitments. It is expected
that the total annual dividend for each year would represent a payout ratio based on net earnings for that year of at least
35%.
The Board has recommended a final dividend for the first half of 2015 of 3.1 cents per ordinary share, which amounts to
$30.6 million and will be paid on 8 October 2015 to shareholders on the Register at the close of business on 18 September
2015.
Capital expenditure
Capital expenditure decreased by $168.0 million from $767.3 million in the first half of 2014 to $599.8 million in the
period. This was mainly due to decreased construction costs at Antucoya which is now in commissioning, partly offset by
increased expenditure in respect of the Encuentro Oxides project.
Derivatives financial instruments
The Group periodically uses derivative financial instruments to reduce exposure to commodity price movements. At 30 June
2015, the Group had commodity swaps for 2,400 tonnes of copper production covering a total period up to 31 January 2016.
The Group also periodically uses interest rate swaps to swap the floating rate interest for fixed rate interest. At 30 June
2015 the Group had entered into contracts at Centinela for a maximum notional amount of $123 million at a weighted average
fixed rate of 3.372 % fully maturing in August 2018. The Group had also entered into contracts in relation to a financing
loan at Ferrocarril Antofagasta Bolivia for a maximum notional amount of $150 million at weighted average fixed rate of
1.634% fully maturing in August 2019.
Cash flows
The key features of the Group cash flow statement are summarised in the following table.
Six months ended 30.06.15 Six months ended 30.06.14
$m $m
Cash flows from continuing and discontinued operations 807.7 1,170.0
Income tax paid (191.2) (389.0)
Net interest paid (10.6) (17.2)
Disposal of subsidiary 947.3 -
Capital contribution and loan to associates (39.4) (84.9)
Capital increase from non-controlling interest - 3.8
Change in ownership interest in subsidiary - (30.9)
Acquisition of available-for-sale investments - (1.5)
Purchases of property, plant and equipment (662.3) (788.5)
Acquisition of mining properties (78.0) -
Proceeds from sale of property, plant and equipment - 0.6
Dividends paid to equity holders of the Company (96.6) (848.8)
Dividends paid to non-controlling interests - (192.2)
Dividends from associate 6.6 20.0
Other items - 2.0
Changes in net cash relating to cash flows 683.5 (1,156.6)
Exchange and other non-cash movements 61.7 (7.5)
Movement in net cash in the period 745.2 (1,166.2)
Net cash at the beginning of the year (1.6) 1,311.2
Net cash at the end of the year 743.6 145.0
Cash flows from continuing and discontinued operations were $807.7 million in the first half of 2015 compared with $1,170.0
million in the first half of 2014. This reflected EBITDA for the period of $561.6 million (first half of 2014 - $1,093.5
million) adjusted for a net working capital decrease of $240.8 million (first half of 2014 - decrease of $41.7 million).
Cash tax payments in the first half of 2015 year were $191.2 million (first half of 2014 - $389.0 million), comprising
corporate tax of $165.6 million (first half of 2014 - $99.0 million), mining tax of $11.7 million (first half of 2014 -
$59.0 million) and withholding tax of $12.9 million (first half of 2014 - $231.1 million). These amounts differ from the
current tax charge in the consolidated income statement of $117.8 million (first half of 2014 - $272.6 million) mainly
because cash tax payments for corporate tax and the mining tax partly comprise the settlement of outstanding balances in
respect of the previous year's tax charge and payments on account for the current year based on the prior year profit
levels.
Disposal of subsidiary of $947.3 million relates to the disposal Aguas de Antofagasta S.A., which carried out of the
group's water operations. Further details are given in Note 8 of the half yearly financial report.
Contributions and loans to associates and joint ventures of $39.4 million mainly relate to the Group's share of the funding
of the development of the Alto Maipo project.
Cash disbursements relating to capital expenditure in the first half of 2015 were $662.3 million compared with $788.5
million in the first half of 2014. This included expenditure of $175.4 million at Antucoya (first half of 2014 - $373.5
million), $233.6 million relating to Centinela (first half of 2014 - $223.8 million) and $101.8 million relating to Los
Pelambres (first half of 2014 - $109.5 million).
Dividends paid to ordinary shareholders of the Company in the first half of 2015 were $96.6 million (first half of 2014 -
$848.8 million), which related to the payment of the final dividend declared in respect of the previous year.
Dividends paid by subsidiaries to non-controlling shareholders were nil (first half of 2014 - $192.2 million).
Financial position
At 30.06.15 At 30.06.14
$m $m
Cash, cash equivalents and liquid investments 3,220.0 2,264.4
Total borrowings (2,476.4) (2,119.4)
Net cash at the end of the period 743.6 145.0
At 30 June 2015 the Group had combined cash, cash equivalents and liquid investments of $3,220.0 million (30 June 2014 -
$2,264.4 million). Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable
share of cash, cash equivalents and liquid investments was $2,785.0 million (30 June 2014 - $1,864.2 million).
New borrowings in the first half of 2015 were $357.3 million (first half of 2014 - $1,167.9 million), including new
short-term borrowings at Los Pelambres of $200.0 million and new long-term borrowings at Antucoya of $85.3 million.
Repayments of borrowings and finance leasing obligations in the first half of 2015 were $188.6 million, relating mainly to
repayments at Los Pelambres of $177.4 million.
Total Group borrowings at 30 June 2015 were $2,479.4 million (at 30 June 2014 - $2,119.4 million). Of this, $1,754.8
million (at 30 June 2014 - $1,460.7 million) is proportionally attributable to the Group after excluding the
non-controlling interest shareholdings in partly-owned operations.
Foreign currency exchange differences
The principal subsidiaries with a functional currency other than the US dollar are Chilean peso denominated, of which the
most significant was Aguas de Antofagasta S.A. ("ADASA"), which was disposed of in June 2015. For the six months ended 30
June 2015 the currency translation loss recognised in net equity was $3.9 million (first six months ended 30 June 2014 -
loss of $8.5 million) and reflect the effect between 1 January 2015 and the date of the disposal of ADASA.
Going concern
The Group's business activities, together with those factors likely to affect its future performance, are set out in the
Review of Operations. Details of the cash flows of the Group during the period, along with its financial position at the
period-end are set out in this Financial Review. The half yearly financial report includes details of the Group's cash,
cash equivalent and liquid investment balances in Note 18, and details of borrowings are set out in Note 15.
In assessing the Group's going concern status the Directors have taken into account the above factors, including the
financial position of the Group and in particular its significant balance of cash, cash equivalents and liquid investments,
the borrowing facilities (including the undrawn committed facilities) in place and their terms, the current copper price
and market expectations in the medium-term, the Group's expected operating cost profile and the its capital expenditure and
financing plans.
After making appropriate enquiries, the Directors consider that it is appropriate to adopt the going concern basis of
accounting in preparing the half yearly financial report.
Principal risks and uncertainties
There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over
the remaining six months of the financial year and could cause actual results to differ materially from expected and
historical results. The Directors do not consider that the principal risks and uncertainties have changed since the
publication of the annual report for the year ended 31 December 2014. A detailed explanation of the risks summarised below
can be found in the Risk Management section of that annual report which is available at www.antofagasta.co.uk. Key headline
risks relate to the following:
· Community relations
· Strategic resources
· Operational risks
· Development projects
· Political, legal and regulatory risks
· Health and safety
· Environmental management
· Growth opportunities
· Commodity prices
· Foreign currency exchange
· Identification of new mineral resources
· Ore reserves and mineral resources estimates
· Talent and labour relations
Cautionary statement about forward-looking statements
This half yearly financial report contains certain forward-looking statements. All statements other than historical facts
are forward-looking statements. Examples of forward-looking statements include those regarding the Group's strategy, plans,
objectives or future operating or financial performance; reserve and resource estimates; commodity demand and trends in
commodity prices; growth opportunities; and any assumptions underlying or relating to any of the foregoing. Words such as
"intend", "aim", "project", "anticipate", "estimate", "plan", "believe", "expect", "may", "should", "will", "continue" and
similar expressions identify forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond
the Group's control. Given these risks, uncertainties and assumptions, actual results could differ materially from any
future results expressed or implied by these forward-looking statements, which speak only as at the date of this report.
Important factors that could cause actual results to differ from those in the forward-looking statements include: global
economic conditions; demand, supply and prices for copper; long-term commodity price assumptions, as they materially affect
the timing and feasibility of future projects and developments; trends in the copper mining industry and conditions of the
international copper markets; the effect of currency exchange rates on commodity prices and operating costs; the
availability and costs associated with mining inputs and labour; operating or technical difficulties in connection with
mining or development activities; employee relations; litigation; and actions and activities of governmental authorities,
including changes in laws, regulations or taxation. Except as required by applicable law, rule or regulation, the Group
does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Past performance cannot be relied on as a guide to future performance.
Condensed Consolidated Income Statement
Six months Six months Year ended
ended ended 31 December
30 June 2015 30 June 2014 2014
(Unaudited) (Restated /Unaudited) (Restated)
Notes $m $m $m
Group revenue 2,3 1,785.9 2,601.8 5,165.5
Total operating costs (1,477.3) (1,749.9) (3,587.3)
Operating profit from subsidiaries 2,3 308.6 851.9 1,578.2
Share of results from associates and joint ventures 3 (0.2) (7.5) (4.1)
Total profit from operations, associates and joint ventures 2,3 308.4 844.4 1,574.1
Investment income 8.8 8.3 16.8
Interest expense (15.7) (27.9) (44.6)
Other finance items (4.2) (4.0) (36.4)
Net finance expense 6 (11.1) (23.6) (64.2)
Profit before tax 297.3 820.8 1,509.9
Income tax expense 7 (117.8) (272.6) (702.9)
Profit for the period from continuing operations 179.5 548.2 807.0
Discontinued operations
Profit for the period from discontinued operations 8 619.5 23.4 43.7
Profit for the period 799.0 571.6 850.7
Attributable to:
Non-controlling interests 93.2 240.8 390.9
Equity holders of the Company (net earnings) 705.8 330.8 459.8
US cents US cents US cents
Basic earnings per share 9
From continuing operations 8.8 31.2 42.2
From discontinued operations 62.8 2.4 4.4
Total continuing and discontinued operations 71.6 33.6 46.6
Condensed Consolidated Statement of Comprehensive Income
Six months Six months Year ended
ended ended 31 December
30 June 2015 30 June 2014 2014
(Unaudited) (Unaudited)
Notes $m $m $m
Profit for the period 799.0 571.6 850.7
Items that may be were reclassified subsequently to profit or loss:
Gains/(losses) in fair value of cash flow hedges deferred in reserves 2.5 6.9 (0.2)
Gains/(losses) in fair value of cash flow hedges of associates deferred in reserves 0.7 (26.2) (42.0)
Losses in fair value of available-for-sale investments 13 (1.3) (2.9) (6.1)
Currency translation adjustment 8 (3.9) (8.5) (26.2)
Deferred tax effects arising on cash flow hedges deferred in reserves (0.3) (1.5) 2.1
Losses/(gains) in fair value of cash flow hedges transferred to the income statement 2.5 (4.7) (8.5)
Losses in fair value of available-for-sale investments transferred to income statement - - 26.3
Deferred tax effects arising on amounts transferred to the income statement (0.5) 0.9 1.8
Total Items that may be were reclassified subsequently to loss (0.3) (36.0) (52.8)
Items that will not be subsequently reclassified to profit or loss:
Actuarial (losses)/gains on defined benefit plans (5.7) 2.0 (17.4)
Tax on items that will not be subsequently reclassified 0.9 (0.4) 4.2
Total Items that will not be subsequently reclassified to loss (4.8) (1.6) (13.2)
Total other comprehensive income (5.1) (34.4) (66.0)
Total comprehensive income for the period 793.9 537.2 784.7
Attributable to:
Non-controlling interests 93.8 233.6 370.1
Equity holders of the Company 700.1 303.6 414.6
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2015
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Actuarial reserves Retained earnings Net equity Non- controlling interests Total
$m $m $m $m $m $m $m $m $m $m
Balance at 1 January 2015 89.8 199.2 (36.2) (10.7) (0.5) (20.2) 5,952.3 6,173.7 1,861.0 8,034.7
Total comprehensive income for the period - - 0.8 (1.3) (3.9) (1.4) 705.9 700.1 93.8 793.9
Dividends - - - - - - (96.6) (96.6) (80.0) (176.6)
Balance at 30 June 2015 89.8 199.2 (35.4) (12.0) (4.4) (21.6) 6,561.6 6,777.2 1,874.8 8,652.0
For the six months ended 30 June 2014
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Actuarial reserves Retained earnings Net equity Non- controlling interests Total
$m $m $m $m $m $m $m $m $m $m
Balance at 1 January 2014 89.8 199.2 (6.8) (30.9) 25.7 (10.4) 6,457.9 6,724.5 1,939.1 8,663.6
Total comprehensive income for the period - - (17.4) (2.9) (8.5) 1.6 330.8 303.6 233.6 537.2
Change in ownership interest in subsidiaries - - - - - - 1.5 1.5 (32.4) (30.9)
Capital increase in non-controlling interest - - - - - - (2.7) (2.7) 2.7 -
Capital contribution from non-controlling interests - - - - - - - - 3.8 3.8
Dividends - - - - - - (848.8) (848.8) (192.2) (1,041.0)
Balance at 30 June 2014 89.8 199.2 (24.2) (33.8) 17.2 (8.8) 5,938.7 6,178.1 1,954.6 8,132.7
For the year ended 31 December 2014
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Actuarial reserves Retained earnings Net equity Non- controlling interests Total
$m $m $m $m $m $m $m $m $m $m
Balance at 1 January 2014 89.8 199.2 (6.8) (30.9) 25.7 (10.4) 6,457.9 6,724.5 1,939.1 8,663.6
Total comprehensive income for the year - - (29.4) 20.2 (26.2) (9.8) 459.8 414.6 370.1 784.7
Change in ownership interest in subsidiaries - - - - - - 1.5 1.5 (32.0) (30.5)
Loss of control in subsidiaries - - - - - - - - (56.7) (56.7)
Capital increase in non-controlling interest - - - - - - (2.7) (2.7) 2.7 -
Capital contribution from non-controlling interests - - - - - - - - 50.0 50.0
Dividends - - - - - - (964.2) (964.2) (412.2) (1,376.4)
Balance at 31 December 2014 89.8 199.2 (36.2) (10.7) (0.5) (20.2) 5,952.3 6,173.7 1,861.0 8,034.7
Dividends
Dividends to ordinary shareholders of the Company Notes
Per share US cents US cents US cents
Dividends per share proposed in relation to the period 10
- ordinary dividend (interim) 3.1 11.7 11.7
- ordinary dividend (final) - - 9.8
3.1 11.7 21.5
Dividends per share paid in the period and deducted from net equity
- ordinary dividend (interim) - 11.7 11.7
- ordinary dividend (final) 9.8 86.1 86.1
9.8 97.8 97.8
In aggregate $m $m $m
Dividends proposed in relation to the period 10 30.6 115.4 212.0
Dividends paid in the period and deducted from net equity 96.6 964.2 964.2
Condensed Consolidated Balance Sheet
At 30.06.15 At 30.06.14(Restated) At 31.12.14(Restated)
Non-current assets Notes $m $m $m
Intangible assets 11 150.1 122.9 118.6
Property, plant and equipment 12 8,535.1 7,924.6 8,213.9
Investment property 2.2 2.7 2.6
Inventories 233.8 247.8 247.8
Investment in associates and in joint ventures 161.4 129.0 198.1
Trade and other receivables 233.9 242.3 239.5
Available-for-sale investments 13 4.5 15.7 15.6
Deferred tax assets 144.6 87.2 104.6
9,465.6 8,772.2 9,140.7
Current assets
Inventories 442.4 460.0 382.5
Trade and other receivables 511.6 915.2 810.3
Current tax assets 129.5 87.7 106.9
Derivative financial instruments 5 0.1 10.8 0.2
Liquid investments 18 1,366.8 1,426.8 1,529.1
Cash and cash equivalents 18 1,853.2 837.6 845.4
4,303.6 3,738.1 3,674.4
Total assets 13,769.2 12,510.3 12,815.1
Current liabilities
Short-term borrowings 15 (465.8) (327.6) (284.5)
Derivative financial instruments 5 (2.9) (3.5) (7.5)
Trade and other payables (806.0) (807.1) (793.8)
Current tax liabilities (254.3) (33.2) (77.6)
(1,529.0) (1,171.4) (1,163.4)
Non-current liabilities
Medium and long-term borrowings 15 (2,010.6) (1,791.8) (2,091.6)
Derivative financial instruments 5 (2.8) (4.9) (3.5)
Trade and other payables (3.2) (3.5) (4.8)
Post-employment benefit obligations (102.6) (84.5) (103.0)
Decommissioning & restoration and other long term provisions (432.3) (508.3) (434.3)
Deferred tax liabilities (1,036.7) (813.2) (979.8)
(3,588.2) (3,206.2) (3,617.0)
Total liabilities (5,117.2) (4,377.6) (4,780.4)
Net assets 8,652.0 8,132.7 8,034.7
Equity
Share capital 16 89.8 89.8 89.8
Share premium 16 199.2 199.2 199.2
Other reserves (73.4) (40.8) (67.6)
Retained earnings 6,561.6 5,929.9 5,952.3
Equity attributable to equity holders of the Company 6,777.2 6,178.1 6,173.7
Non-controlling interests 1,874.8 1,954.6 1,861.0
Total equity 8,652.0 8,132.7 8,034.7
The interim financial information was approved by the Board of Directors on 24 August 2015.
Condensed Consolidated Cash Flow Statement
Six months Six months Year ended 31 December 2014
ended ended
30 June 2015 30 June 2014
Notes $m $m $m
Cash flows from continuing and discontinuing operations 17 807.7 1,170.0 2,507.8
Interest paid (20.2) (25.0) (45.4)
Income tax paid (191.2) (389.0) (641.5)
Net cash from continuing and discontinued activities 596.3 756.0 1,820.9
Investing activities
Capital contributions and loans to associates and joint ventures (39.4) (84.9) (125.2)
Dividends from associate 6.6 20.0 20.0
Acquisition of available-for-sale investments 13 - (1.5) (5.9)
Disposal of subsidiary 8 947.3 - -
Acquisition of mining properties (78.0) - -
Reclassification - - (7.6)
Proceeds from sale of property plant and equipment - 0.6 1.7
Purchases of property, plant and equipment (662.3) (788.5) (1,646.3)
Net decrease in liquid investments 162.3 644.6 542.3
Interest received 9.6 7.8 16.5
Net cash used in investing activities 346.1 (201.9) (1,204.5)
Financing activities
Dividends paid to equity holders of the Company (96.6) (848.8) (964.2)
Dividends paid to preference shareholders of the Company (0.1) (0.1) (0.2)
Dividends paid to non-controlling interests - (192.2) (412.2)
Capital increase from non-controlling interests - 3.8 50.0
Net proceeds from issue of new borrowings 16 357.3 1,167.9 1,583.4
Repayments of borrowings (182.9) (413.8) (570.9)
Repayments of obligations under finance leases 16 (5.7) (6.5) (12.2)
Change in ownership interest in subsidiaries - (30.9) (30.9)
Net cash used in financing activities 72.0 (320.6) (357.2)
Net increase in cash and cash equivalents 1,014.4 233.5 259.2
Cash and cash equivalents at beginning of the period 845.4 613.7 613.7
Net increase/(decrease) in cash and cash equivalents 18 1,014.4 233.5 259.2
Effect of foreign exchange rate changes 18 (6.6) (9.6) (27.5)
Cash and cash equivalents at end of the period 18 1,853.2 837.6 845.4
Notes
1. General information and accounting policies
a) General information
These June 2015 interim condensed consolidated financial statements ("the condensed financial statements") are for the six
months ended 30 June 2015. The condensed financial statements are unaudited.
The information for the year ended 31 December 2014 does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The
auditor's report on these accounts was not qualified, did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) (regarding
adequacy of accounting records and returns) or section 498(3) (regarding provision of necessary information and
explanations) of the Companies Act 2006.
The Group completed the sale of its Water Division, Aguas de Antofagasta S.A. to Empresas Públicas de Medellín, on 2 June,
2015. In these interim consolidated financial statements the results of the Water Division for the current period relating
to the five months to May 2015 are shown in the income statement on the line for "Profit for the period from discontinued
operations". The comparative results for the prior periods have accordingly been restated in order to present the
comparative figures on the "Profit for the period from discontinued operations" line.
A reclassification between property, plant and equipment and current inventories has been made in the prior period
comparative figures related to Ferrocarril Antofagasta Bolivia (FCAB). This has resulted in an increase in current
inventories and a corresponding decrease in property, plant and equipment of $13.0 million as at 30 June 2014 and $13.2
million as at 31 December 2014.
A reclassification between current and long-term inventories has been made in the prior period comparatives figures, to
ensure that the classification of inventory balances is fully in the line with the detailed mine plans. This has resulted
in a $72.0 million increase in the long-term inventory balance as at 30 June 2014 from $175.8 million to $247.8 million and
a corresponding $72.0 million decrease in the current inventory balances as at 30 June 2014 from $519.0 million to $447.0
million.
During 2014 the Group merged Minera Esperanza and Minera El Tesoro into a single entity - Minera Centinela. The production
of copper concentrate which was previously within Minera Esperanza is now referred to as Centinela concentrates, and the
production of copper cathodes which was previously within Minera El Tesoro is referred to as Centinela cathodes. In the
comparatives for the six months ended 30 June 2014 the results and balances for Esperanza and El Tesoro have been combined
into a single segment for Centinela, consistent with the current year presentation.
b) Basis of preparation
The annual financial statements of Antofagasta plc for the year ended 31 December 2014 were prepared in accordance with
International Financial Reporting Standards (IFRS) and with those parts of the companies Act 2006 applicable to companies
reporting under IFRS. For these purposes, IFRS comprise the standards issued by the International Accounting Standards
Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) that
have been endorsed by the European Union ("EU"). The condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with the accounting policies for the year ended 31 December 2014 and the
International Accounting Standard (IAS) 34 Interim Financial Reporting and the requirements of the UK Disclosure and
Transparency Rules (DTR) of the Financial Conduct Authority (FCA) in the United Kingdom as applicable to interim financial
reporting.
The condensed financial statements represent a "condensed set of financial statements" as referred to in the DTR issued by
the FCA. Accordingly, they do not include all of the information required for a full annual financial report and are to be
read in conjunction with the Group's financial statements for the year ended 31 December 2014.
c) Going concern
Having reassessed the principal risks of the Group the Directors considered it appropriate to adopt the going concern basis
of accounting in preparing the half-yearly financial report.
d) Accounting policies
The following International Financial Reporting Standards (IFRS), amendments and interpretations are effective for the
first time in the current period.
Adoption of new accounting standards
Annual improvements 2011 - 2013 Cycle - improvements to four IFRSs
IFRIC 21, Levies.
The application of these standards and interpretations effective for the first time in the current period has had no
significant impact on the amounts reported in these condensed consolidated financial statements.
Accounting standards issued but not yet effective applied
The following accounting standards, interpretations and amendments have been issued by the IASB, but are not yet
effective:
New Standards Effective date (Subject to EU endorsement)
IFRS 9, Financial instruments Annual periods beginning on or after January 1, 2018
IFRS 14, Regulatory Deferral Accounts Annual periods beginning on or after January 1, 2016
IFRS 15, Revenue from Contracts with Customers Annual periods beginning on or after January 1, 2018
Amendments to IFRSs Effective date (Subject to EU endorsement)
IAS 19,Defined Benefit Plans, Employee Contributions (Amendments to IAS 19) Annual periods beginning on or after February 1, 2015
Annual improvements 2010 - 2012 Cycle - improvements to six IFRSs Annual periods beginning on or after February 1, 2015
Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11) Annual periods beginning on or after January 1, 2016
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38) Annual periods beginning on or after 1 January 2016
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) Annual periods beginning on or after 1 January 2016
Equity Method in Separate Financial Statements (Amendments to IAS 27) Annual periods beginning on or after January 1, 2016
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, (Amendments to IFRS 10 and IAS 28) Annual periods beginning on or after January 1, 2016
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10,IFRS 12 and IAS 28) Annual periods beginning on or after January 1, 2016
Disclosure Initiative Annual periods beginning on or after January 1, 2016
(Amendments to IAS 1)
Annual improvements 2012 - 2014 Cycle - improvements to four IFRSs Annual periods beginning on or after July 1, 2016
The Group is continuing to evaluate the impact of adopting these new standards and interpretations.
The Group is continuing to evaluate in detail the potential impact of IFRS 15 Revenue from contracts with customers, but
does not currently expect this to have a material impact.
2. Total profit from operations, associates and joint ventures
Six months
ended
30 June 2015 Six months
ended
30 June 2014 Year ended 31 December 2014 $m $m $m Group revenue 1,785.9 2,601.8 5,165.5 Cost of sales (1,185.9) (1,379.8) (2,887.1) Gross profit 600.0 1,222.0 2,278.4 Administrative and distribution expenses (213.6) (248.9) (463.9) Closure provision (9.0) (4.2) 7.2 Severance charges (7.7) (6.3) (18.1) Exploration and evaluation costs (56.1) (93.4) (167.5) Other operating income 6.3 7.7 21.1 Other operating expenses (11.3) (25.0) (79.0) Operating results from subsidiaries 308.6 851.9 1,578.2 Share of income
from associates and joint ventures (0.2) (7.5) (4.1) Total profit from operations, associates and joint ventures 308.4 844.4 1,574.1
Six months
ended
30 June 2015
Six months
ended
30 June 2014
Year ended 31 December 2014
$m
$m
$m
Group revenue
1,785.9
2,601.8
5,165.5
Cost of sales
(1,185.9)
(1,379.8)
(2,887.1)
Gross profit
600.0
1,222.0
2,278.4
Administrative and distribution expenses
(213.6)
(248.9)
(463.9)
Closure provision
(9.0)
(4.2)
7.2
Severance charges
(7.7)
(6.3)
(18.1)
Exploration and evaluation costs
(56.1)
(93.4)
(167.5)
Other operating income
6.3
7.7
21.1
Other operating expenses
(11.3)
(25.0)
(79.0)
Operating results from subsidiaries
308.6
851.9
1,578.2
Share of income from associates and joint ventures
(0.2)
(7.5)
(4.1)
Total profit from operations, associates and joint ventures
308.4
844.4
1,574.1
3. Segmental analysis
The Group's reportable segments are as follows:
· Los Pelambres
· Centinela
· Michilla
· Antucoya
· Exploration and evaluation
· Railway and other transport services
· Water concession
· Corporate and other items
For management purposes, the Group is organised into three business divisions based on their products - Mining, Railway and
other transport services and the Water concession. The mining division is split further for management reporting purposes
to show results by mine and exploration activity. Los Pelambres, Centinela and Michilla are all operating mines and
Antucoya is a development project. Los Pelambres produces primarily copper concentrate and molybdenum as a by-product,
Centinela produces primarily copper concentrate containing gold as a by-product and copper cathodes. Michilla produces
copper cathodes. The transport division provides rail cargo (based in Chile and Bolivia) and road cargo (based in Chile)
together with a number of ancillary services (based in Chile). The water division produces and distributes 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" also comprise costs incurred by
the Company, 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 six months ended 30 June 2015
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 918.3 688.4 95.1 - -
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