Anglo American wishes to draw attention to Kumba Iron Ore Limited’s announcement of its results for the six months ended 30 June 2016. Kumba Iron Ore Limited reported headline earnings of R3,009 million.
Anglo American will report underlying earnings in respect of Kumba Iron Ore Limited of $143 million for the six months ended 30 June 2016, which takes into account certain adjustments.
| $ million |
6 months ended 30.06.16 |
6 months
ended 30.06.15 |
Year ended 31.12.15 |
|
|
|
|
| Headline earnings |
198 |
213 |
304 |
| Kumba Envision Trust(1) |
11 |
11 |
19 |
| One-off tax charges(1) |
11 |
68 |
82 |
| Restructuring costs(1) |
13 |
- |
2 |
| Other adjustments |
(6) |
(1) |
(1) |
|
227 |
291 |
406 |
|
|
|
|
| Non-controlling interests |
(69) |
(88) |
(126) |
| Exploration |
1 |
4 |
7 |
| Elimination of intercompany interest |
(2) |
3 |
(1) |
| Depreciation of assets fair valued on acquisition |
- |
(4) |
(8) |
| Corporate cost allocation |
(14) |
(14) |
(40) |
|
|
|
|
| Contribution to Anglo American underlying earnings |
143 |
192 |
238 |
(1)These items are included in Headline earnings but are special items so are excluded from Anglo American underlying earnings.
Anglo American will report results for the six months ended 30 June 2016 on 28 July 2016. The above figures are unaudited.
Underlying earnings
Underlying earnings is profit attributable to equity shareholders before special items and remeasurements, and is therefore presented after net finance costs, income tax and non-controlling interests. Special items are those items of financial performance that the Group believes should be separately disclosed to assist in the understanding of the underlying financial performance achieved by the Group.
Special items that relate to the operating performance of the Group are classified as operating special items and principally include impairment charges and restructuring costs. Non-operating special items include costs in relation to closure of operations, profits and losses on disposal of investments and businesses as well as certain adjustments relating to business combinations. Remeasurements include adjustments to ensure that the unrealised gains or losses on financial assets and liabilities are recorded in underlying earnings in the same year as the underlying transaction for which the instruments provide the economic hedge.