REG - Antofagasta PLC - HALF YEARLY FINANCIAL REPORT <Origin Href="QuoteRef">ANTO.L</Origin> - Part 2
29/10/2014 15:04
- Part 2: For the preceding part double click ID:nRSZ9632Pa
Six months ended 30.06.14 Six months ended 30.06.13
$m $m
Cash flows from operations 1,170.0 1,373.5
Income tax paid (389.0) (577.5)
Net interest paid (17.2) (20.1)
Capital contribution and loan to associates (84.9) (12.0)
Change in ownership interest in subsidiaries (30.9) -
Capital increase from non-controlling interest 3.8 30.4
Acquisition of available-for-sale investments (1.5) (2.0)
Purchases of property, plant and equipment (788.5) (619.0)
Proceeds from sale of property, plant and equipment 0.6 -
Dividends paid to equity holders of the Company (848.8) (887.3)
Dividends paid to non-controlling interests (192.2) (162.1)
Dividends from associate 20.0 -
Other items (0.1) (0.1)
Changes in net cash relating to cash flows (1,158.7) (876.2)
Exchange and other non-cash movements (7.5) (18.9)
Movement in net cash in the period (1,166.2) (895.1)
Net cash at the beginning of the period 1,311.2 2,402.7
Net cash at the end of the period 145.0 1,507.6
Cash flows from operations were $1,170.0 million in the first half of 2014 compared with $1,373.5 million in the first half
of 2013. This reflected EBITDA for the period of $1,128.3 million (first half of 2013 - $ 1,275.5 million) adjusted for a
net working capital decrease of $41.7 million (first half of 2013 - decrease of $98.0 million).
Cash tax payments in the first half of 2014 year were $389.0 million (first half of 2013 - $577.5 million), comprising
corporation tax of $99.0 million (first half of 2013 - $318.4 million), mining tax of $59.0 million (first half of 2013 -
$81.0 million) and withholding tax of $231.1 million (first half of 2013 - $178.1 million). These amounts differ from the
current tax charge in the consolidated income statement of $441.7 million (first six months 2013 - $418.1 million) mainly
because cash tax payments for corporation 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.
Contributions and loans to associates and joint ventures of $84.9 million mainly relate to the Group's share of the funding
of the development of the Alto Maipo project, in which the Group acquired a 40% interest in the second half of 2013.
Cash disbursements relating to capital expenditure in the first half of 2014 were $788.5 million compared with $619.0
million in the first half of 2013. This included expenditure of $373.5 million at Antucoya (first half of 2013 - $277.7
million), $223.8 million relating to Centinela Concentrates (first half of 2013 - $142.9 million), $109.5 million relating
to Los Pelambres (first half of 2013 - $82.4 million) and $43.7 million relating to Centinela Cathodes (first half of 2013
- $71.2 million).
Dividends (including special dividends) paid to ordinary shareholders of the Company in the first half of 2014 were $848.8
million (first half of 2013 - $887.3 million), which related to the final dividend declared in respect of the previous
year.
Dividends paid by subsidiaries to non-controlling shareholders were $192.2 million (first half of 2013 - $162.1 million),
consisting mainly of distributions by Los Pelambres and Centinela Cathodes.
Financial position
At 30.06.14 At 30.06.13 At 31.12.13
$m $m $m
Cash, cash equivalents and liquid investments 2,264.4 3,077.0 2,685.1
Total borrowings (2,119.4) (1,569.4) (1,373.9)
Net cash at the end of the period 145.0 1,507.6 1,311.2
At 30 June 2014 the Group had combined cash, cash equivalents and liquid investments of $2,264.4 million (31 December 2013
- $2,685.1 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 $1,864.2 million (31 December 2013 - $2,420.8 million).
New borrowings in the first half of 2014 were $1,167.9 million (first half of 2013 - $68.1 million), mainly due to new
long-term borrowings at Centinela Concentrates of $548.4 million and Antucoya of $455.3 million, and new short-term
borrowings at Los Pelambres of $160.0 million. Repayments of borrowings and finance leasing obligations in the first half
of 2014 were $420.4 million, relating mainly to prepayments on senior debt at Centinela Concentrates of $266.4 million and
to regular repayments on existing loans at Los Pelambres of $67.7 million (first half 2013 - $142.2 million), the repayment
of subordinated debt at Centinela Concentrates of $31.2 million and repayment of Centinela Cathodes senior debt of $41.8
million.
Total Group borrowings at 30 June 2014 were $2,119.4 million (31 December 2013 - $1,373.9million). Of this, $1,460.7
million (31 December 2013 - $948.5million) 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 is Aguas de Antofagasta S.A.
In the first half of 2014 the currency translation loss recognised in net equity was $8.5 million (first half of 2013 -
loss of $11.8 million).
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 16, and details of borrowings are set out in Note 13.
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 the Company and the Group have adequate resources to
continue in operational existence for the foreseeable future and that it is appropriate to adopt the going concern basis 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 2013. 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 ended31 December 2013
ended ended
30 June 2014(Unaudited) 30 June 2013(Unaudited)
Notes US$'m US$'m US$'m
Group revenue 2,3 2,661.4 2,777.4 5,971.6
Total operating costs (1,780.4) (1,747.7) (3,799.5)
Operating profit from subsidiaries 2,3 881.0 1,029.7 2,172.1
Share of results from associates and joint ventures 2 (7.5) (4.1) (14.4)
Total profit from operations, associates and joint ventures 2 873.5 1,025.6 2,157.7
Investment income 8.5 6.1 12.6
Interest expense (27.9) (33.7) (62.0)
Other finance items (3.4) (17.0) (24.8)
Net finance expense 6 (22.8) (44.6) (74.2)
Profit before tax 850.7 981.0 2,083.5
Income tax expense 7 (279.1) (320.2) (843.7)
Profit for the financial period 571.6 660.8 1,239.8
Attributable to:
Non-controlling interests 240.8 265.8 580.2
Equity holders of the Company (net earnings) 330.8 395.0 659.6
US cents US cents US cents
Basic earnings per share 8 33.6 40.1 66.9
Dividends to ordinary shareholders of the Company
Per share US cents US cents US cents
Dividends per share proposed in relation to the period 9
- ordinary dividend (interim) 11.7 8.9 8.9
- ordinary dividend (final) - - 86.1
- special dividend (final) - - -
11.7 8.9 95.0
Dividends per share paid in the period and deducted from net equity
- ordinary dividend (interim) 11.7 - 8.9
- ordinary dividend (final) 86.1 12.5 12.5
- special dividend (final) - 77.5 77.5
97.8 90.0 98.9
In aggregate US$'m US$'m US$'m
Dividends proposed in relation to the period 9 115.3 87.7 936.5
Dividends paid in the period and deducted from net equity 964.2 887.3 975.0
Revenue and operating profit are derived from continuing operations.
Condensed Consolidated Statement of Comprehensive Income
Six months Six months Year ended 31 December 2013
ended ended
30 June 2014(Unaudited) 30 June 2013(Unaudited)
Notes US$'m US$'m US$'m
Profit for the financial period 571.6 660.8 1,239.8
Items that may be reclassified subsequently to profit or loss:
Gains in fair value of cash flow hedges deferred in reserves 6.9 41.6 18.2
(Losses)/gains in fair value of cash flow hedges deferred in reserves of associates (26.2) (0.1) 1.9
Losses in fair value of available for sale investments 12 (2.9) (20.0) (28.2)
Currency translation adjustment (8.5) (11.8) (20.8)
Deferred tax effects arising on cash flow hedges deferred in reserves (1.5) (9.5) (5.7)
Items that will not be subsequently reclassified to profit or loss
Actuarial gains/(losses) on defined benefit plans 2.0 (1.5) (10.4)
Tax on items recognised directly in equity that will not be reclassified (0.4) 0.3 1.8
Total (losses) recognised in equity (30.6) (1.0) (43.2)
(Losses) in fair value of cash flow hedges transferred to the income statement (4.7) (11.3) (25.6)
Deferred tax effects arising on cash flow hedges transferred to the income statement 0.9 2.3 5.1
Total transferred to the income statement (3.8) (9.0) (20.5)
Total comprehensive income for the period 537.2 650.8 1,176.1
Attributable to:
Non-controlling interests 233.6 270.6 573.9
Equity holders of the Company 303.6 380.2 602.2
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2014
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Retained earnings Net equity Non- controlling interests Total
US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m
Balance at 1 January 2014 89.8 199.2 (6.8) (30.9) 25.7 6,447.5 6,724.5 1,939.1 8,663.6
Total comprehensive income for the period - - (17.4) (2.9) (8.5) 332.4 303.6 233.6 537.2
Change in ownership interest in subsidiaries - - - - - 1.5 1.5 (32.4) (30.9)
Capital increase of non-controlling interest - - - - - (2.7) (2.7) 2.7 -
Capital contribution from non-controlling interests - - - - - - - 3.8 3.8
Dividends - - - - - (848.8) (848.8) (192.2) (1041.0)
Balance at 30 June 2014 89.8 199.2 (24.2) (33.8) 17.2 5,929.9 6,178.1 1,954.6 8,132.7
For the six months ended 30 June 2013
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Retained earnings Net equity Non- controlling interests Total
US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m
Balance at 1 January 2013 89.8 199.2 (3.6) (2.7) 46.5 6,781.4 7,110.6 1,694.2 8,804.8
Total comprehensive income for the period - - 18.2 (20.0) (11.8) 393.8 380.2 270.6 650.8
Capital increase on behalf of non-controlling interests - - - - - (6.7) (6.7) 6.7 -
Capital contribution from non-controlling interests - - - - - - - 30.4 30.4
Dividends - - - - - (887.3) (887.3) (162.1) (1,049.4)
Balance at 30 June 2013 89.8 199.2 14.6 (22.7) 34.7 6,281.2 6,596.8 1,839.8 8,436.6
For the year ended 31 December 2013
Share capital Share premium Hedging reserves Fair value reserves Translation reserves Retained earnings Net equity Non- controlling interests Total
US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m
Balance at 1 January 2013 89.8 199.2 (3.6) (2.7) 46.5 6,781.4 7,110.6 1,694.2 8,804.8
Total comprehensive income for the year - - (3.2) (28.2) (20.8) 654.4 602.2 573.9 1,176.1
Capital increase of non-controlling interests - - - - - (13.3) (13.3) 13.3 -
Capital contribution from non-controlling interests - - - - - - - 109.8 109.8
Dividends - - - - - (975.0) (975.0) (452.1) (1,427.1)
Balance at 31 December 2013 89.8 199.2 (6.8) (30.9) 25.7 6,447.5 6,724.5 1,939.1 8,663.6
Condensed Consolidated Balance Sheet
At 30.06.14 At 30.06.13 At 31.12.13
Non-current assets Notes US$'m US$'m US$'m
Intangible assets 10 122.9 142.0 133.0
Property, plant and equipment 11 7,937.6 6,781.0 7,424.8
Investment property 2.7 3.2 3.3
Inventories 175.8 165.8 178.3
Investment in associates and in joint ventures 129.0 114.3 175.2
Trade and other receivables 242.3 110.7 180.8
Derivative financial instruments 5 - 16.7 -
Available for sale investments 12 15.7 24.7 16.6
Deferred tax assets 87.2 96.2 76.9
8,713.2 7,454.6 8.188.9
Current assets
Inventories 519.0 617.2 476.5
Trade and other receivables 915.2 712.3 904.6
Current tax assets 87.7 71.7 121.6
Derivative financial instruments 5 10.8 38.4 12.9
Liquid investments 16 1,426.8 1,752.7 2,071.4
Cash and cash equivalents 16 837.6 1,324.3 613.7
3,797.1 4,516.6 4,200.7
Total assets 12,510.3 11,971.2 12,389.6
Current liabilities
Short-term borrowings 13 (327.6) (513.7) (341.0)
Derivative financial instruments 5 (3.5) (3.3) (3.4)
Trade and other payables (807.1) (728.5) (776.6)
Current tax liabilities (33.2) (15.0) (9.6)
(1,171.4) (1,260.5) (1,130.6)
Non-current liabilities
Medium and long-term borrowings 13 (1,791.8) (1,055.7) (1,032.9)
Derivative financial instruments 5 (4.9) (5.6) (6.4)
Trade and other payables (3.5) (5.6) (4.7)
Post-employment benefit obligations (84.5) (83.1) (91.2)
Decommissioning & restoration and other long term provisions (508.3) (388.4) (494.3)
Deferred tax liabilities (813.2) (735.7) (965.9)
(3,206.2) (2,274.1) (2,595.4)
Total liabilities (4,377.6) (3,534.6) (3,726.0)
Net assets 8,132.7 8,436.6 8,663.6
Equity
Share capital 14 89.8 89.8 89.8
Share premium 14 199.2 199.2 199.2
Hedging, translation and fair value reserves (40.8) 26.6 (12.0)
Retained earnings 5,929.9 6,281.2 6,447.5
Equity attributable to equity holders of the Company 6,178.1 6,596.8 6,724.5
Non-controlling interests 1,954.6 1,839.8 1,939.1
Total equity 8,132.7 8,436.6 8,663.6
The interim financial information was approved by the Board of Directors on 25 August 2014.
Condensed Consolidated Cash Flow Statement
Six months Six months Year ended 31 December 2013
ended ended
30 June 2014 30 June 2013
Notes US$'m US$'m US$'m
Cash flows from operations 15 1,170.0 1,373.5 2,659.2
Interest paid (25.0) (27.6) (57.2)
Dividends from associate 20.0 - -
Income tax paid (389.0) (577.5) (896.5)
Net cash from operating activities 776.0 768.4 1,705.5
Investing activities
Capital contributions and loans to associates and joint ventures (84.9) (12.0) (128.2)
Acquisition of available for sale investments 12 (1.5) (2.0) (2.1)
Change in ownership interest in subsidiaries 20.c (30.9) - -
Proceeds from sale of property plant and equipment 0.6 - 10.6
Purchases of property, plant and equipment (788.5) (619.0) (1,344.8)
Net decrease in liquid investments 644.6 727.9 409.2
Interest received 7.8 7.5 14.0
Net cash (used in)/provided by investing activities (252.8) 102.4 (1,041.3)
Financing activities
Dividends paid to equity holders of the Company (848.8) (887.3) (975.0)
Dividends paid to preference shareholders of the Company (0.1) (0.1) (0.2)
Dividends paid to non-controlling interests (192.2) (162.1) (452.1)
Capital increase from non-controlling interests 3.8 30.4 109.9
Net proceeds from issue of new borrowings 16 1,167.9 66.3 194.1
Repayments of borrowings (413.8) (389.1) (706.6)
Repayments of obligations under finance leases 16 (6.5) (6.7) (15.6)
Net cash used in financing activities (289.7) (1,348.6) (1,845.5)
Net increase/(decrease) in cash and cash equivalents 233.5 (477.8) (1,181.3)
Cash and cash equivalents at beginning of the period 613.7 1,811.3 1,811.3
Net increase/(decrease) in cash and cash equivalents 16 233.5 (477.8) (1,181.3)
Effect of foreign exchange rate changes 16 (9.6) (9.2) (16.3)
Cash and cash equivalents at end of the period 16 837.6 1,324.3 613.7
Notes
1. General information and accounting policies
a) General information
These June 2014 interim condensed consolidated financial statements ("the condensed financial statements") are for the six
months ended 30 June 2014. The condensed financial statements are unaudited.
The information for the year ended 31 December 2013 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 is in the process of merging Minera Esperanza and Minera El Tesoro into a single entity - Mineral Centinela. In
these condensed financial statements Minera Esperanza is now referred to as Centinela concentrates, and El Tesoro is
referred to as Centinela cathodes.
b) Basis of preparation
The annual financial statements of Antofagasta plc for the year ended 31 December 2013 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 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 2013.
c) Going concern
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, a period of no less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements. Detail of the
factors which have been taken into account in assessing the Group's going concern status are set out in the Going Concern
section of the Financial Review above.
d) Accounting policies
The following International Financial Reporting Standards (IFRS), amendments and interpretations are effective for the
first time in the current period.
Amendment to standards
IAS 32, Financial instruments: Presentation - Clarified requirements for offsetting of financial assets and financial
liabilities
Investment entities - Amendments to IFRS 10, Consolidated Financial Statements; IFRS 12, Disclosure interests in other
entities and IAS 27, Separate Financial Statements.
IAS 36, Impairment of assets- Recoverable amount disclosure for non-financial assets
IAS 39, Financial Instruments: Recognition and measurement - Novation of derivatives and continuation of hedge accounting.
Interpretations:
IFRIC 21, Levies
The application of these standards and interpretations effectives for the first time in the current period has had no
significant impact on the amounts reported in these interim financial statements.
The following accounting standards, interpretations and amendments have been issued by the IASB, but are not yet
effective:
New Standards Effective date
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, 2017
Amendments to IFRSs Effective date
Annual improvements to six IFRSs 2010 - 2012 cycle Annual periods beginning on or after July 1, 2014
Annual improvements to four IFRSs 2011 - 2013 cycle Annual periods beginning on or after July 1, 2014
IFRS 11, Join Arrangements, Accounting for Acquisitions of Interests in Joint Operations Annual periods beginning on or after January 1, 2016
IAS 19,Defined Benefit Plans, Employee Contributions (Amendments to IAS 19) Annual periods beginning on or after July 1, 2014
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38) Applicable to annual periods beginning on or after 1 January 2016
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) Applicable to annual periods beginning on or after 1 January 2016
The Group is continuing to evaluate the impact of adopting these new standards and interpretations.
2. Total profit from operations, associates and joint ventures
Six months
ended
30 June 2014 Six months
ended
30 June 2013 Year ended 31 December 2013 US$'m US$'m US$'m Group revenue 2,661.4 2,777.4 5,971.6 Cost of sales (1,403.5) (1,297.9) (2,859.5) Gross profit 1,257.9 1,479.5 3,112.1 Administrative and distribution expenses (255.4) (288.0) (563.0) Closure provision (4.2) (1.7) (71.0) Severance charges (6.4) (7.5) (16.0) Exploration and evaluation costs (93.4) (149.6) (274.9) Other operating income 8.1 10.2 18.7 Other operating expenses (25.6) (13.2) (33.8) Operating results from subsidiaries 881.0 1,029.7
2,172.1 Share of income from associates and joint ventures (7.5) (4.1) (14.4) Total profit from operations, associates and joint ventures 873.5 1,025.6 2,157.7
Six months
ended
30 June 2014
Six months
ended
30 June 2013
Year ended 31 December 2013
US$'m
US$'m
US$'m
Group revenue
2,661.4
2,777.4
5,971.6
Cost of sales
(1,403.5)
(1,297.9)
(2,859.5)
Gross profit
1,257.9
1,479.5
3,112.1
Administrative and distribution expenses
(255.4)
(288.0)
(563.0)
Closure provision
(4.2)
(1.7)
(71.0)
Severance charges
(6.4)
(7.5)
(16.0)
Exploration and evaluation costs
(93.4)
(149.6)
(274.9)
Other operating income
8.1
10.2
18.7
Other operating expenses
(25.6)
(13.2)
(33.8)
Operating results from subsidiaries
881.0
1,029.7
2,172.1
Share of income from associates and joint ventures
(7.5)
(4.1)
(14.4)
Total profit from operations, associates and joint ventures
873.5
1,025.6
2,157.7
3. Segmental analysis
The Group's reportable segments are as follows:
· Los Pelambres
· Centinela Concentrates (previously Esperanza)
· Centinela Cathodes (previously El Tesoro)
· 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 Concentrates, Centinela Cathodes 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 Concentrates produces primarily copper concentrate containing gold as a by-product.
Centinela Cathodes and Michilla both produce 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, other holding companies of the Group and Antofagasta Minerals
S.A., the Group's mining corporate centre, 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 2014
Los Pelambres Centinela concentrates Centinela cathodes Michilla Antucoya Exploration and evaluation Corporate and other items Mining Railway and other transport services Water concession Total
US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m
Revenue 1,356.6 675.3 313.5 164.0 - - - 2,509.4 90.3 61.7 2,661.4
EBITDA 743.8 269.4 132.7 42.4 - (93.4) (41.2) 1,053.7 36.3 38.3 1,128.3
Depreciation and amortisation (83.2) (70.7) (46.0) (32.2) - - (1.4) (233.5) (7.8) (6.2) (247.5)
Gain/(Loss) on disposals 0.4 - - (0.5) - - - (0.1) 0.1 0.2 0.2
Operating profit 661.0 198.7 86.7 9.7 - (93.4) (42.6) 820.1 28.6 32.3 881.0
Share of results from associates and joint ventures (1.7) - - - - - (10.5) (12.2) 4.7 - (7.5)
Investment income 3.3 1.3 0.7 0.3 - - 2.5 8.1 0.2 0.2 8.5
Interest expense (2.5) (23.1) (0.6) - - - (1.5) (27.7) (0.2) - (27.9)
Other finance items (3.1) 2.6 0.1 (5.2) 2.2 - 0.1 (3.3) (0.3) 0.2 (3.4)
Profit before tax 656.9 179.5 86.9 4.8 2.2 (93.4) (52.0) 785.0 33.0 32.7 850.7
Tax (165.7) (38.4) (20.1) (0.6) 1.1 - 5.7 (218.0) (54.6) (6.5) (279.1)
Non-controlling interests (195.5) (39.0) (18.9) (0.1) (0.4) - 12.3 (241.6) 0.8 - (240.8)
Net earnings 295.7 102.1 47.9 4.1 2.9 (93.4) (34.0) 325.4 (20.8) 26.2 330.8
Additions to non-current assets
Capital expenditure 111.2 207.5 41.9 5.1 374.4 - 11.0 751.1 8.3 7.9 767.3
Segment assets and liabilities
Segment assets 4,045.7 3,733.9 1,262.2 214.8 1,220.3 - 1,352.9 11,829.8 446.3 234.2 12,510.3
Segment liabilities (1,310.2) (1,644.2) (250.7) (97.4) (833.2) - (98.0) (4,233.7) (102.3) (41.6) (4,377.6)
For the six months ended 30 June 2013
Los Pelambres Centinela concentrates Centinela cathodes Michilla Antucoya Exploration and evaluation Corporate and other items Mining Railway and other transport services Water concession Total
US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m US$'m
- More to follow, for following part double click ID:nRSZ9632PcRecent news on Antofagasta
See all newsREG - Antofagasta PLC - Changes to Board Committees
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