27 July 2012

Anglo American announces EBITDA(1) of $4.9 billion for the half year

Financial results impacted by weaker prices

• Group operating profit⁽²⁾ of $3.7 billion
• Underlying earnings⁽³⁾ of $1.7 billion and underlying EPS of $1.38
• Profit attributable to equity shareholders⁽⁴⁾ of $1.2 billion
• Net debt⁽⁵⁾ of $3.1 billion at 30 June 2012 (pro forma net debt of $10.0 billion)⁽⁶⁾

Strong operational and strategic delivery

• Strong production performance across iron ore, metallurgical coal, thermal coal, copper and nickel through successful project execution and asset optimisation
• Kumba Iron Ore – record production of 21.6 Mt and record export sales of 20.7 Mt, up 13%
• Metallurgical Coal – record production of export metallurgical coal of 8.6 Mt, up 40%
• De Beers acquisition has met all regulatory approvals and the transaction is expected to complete in Q3 2012
• Increased shareholding in Kumba Iron Ore by 4.5% to 69.7% for $948 million
• Agreed to acquire 58.9% interest in Revuboè high quality metallurgical coal resource in Mozambique for $555 million

Projects delivered and ramping up to drive high quality production growth

• Kolomela iron ore – 3.3 Mt produced in H1 2012; on schedule to produce at least 6 Mt in 2012 and full capacity of 9 Mt in 2013
• Los Bronces copper – 92% of design capacity achieved; on track to complete ramp-up by Q4 2012
• Barro Alto nickel – H1 2012 production of 12 kt; targeting full production in early 2013
• Zibulo thermal coal – ramp-up on track to full capacity of 6.6 Mtpa

Projects in execution progressing

• Minas-Rio 26.5 Mtpa iron ore project – licensing and construction progress hindered by legal actions
• Grosvenor 5 Mtpa metallurgical coal project – engineering work 50% complete as of July 2012; earthworks under way

Disciplined capital allocation delivering shareholder value

• Target to maintain a strong investment grade rating
• Committed to return cash to shareholders on a sustainable basis – interim dividend increased by 14% to US 32 cents per share
• Sequencing investment in line with resulting funding capacity to focus on the most value accretive and lowest risk growth options

Safety

• 7 employees lost their lives in work related incidents – safety programmes continuing to drive for zero harm
• 37% improvement in lost time injury frequency rates since 2007

⁽¹⁾ Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes the attributable share of EBITDA of associates. See note 5 to the Condensed financial statements.

⁽²⁾ Operating profit includes attributable share of associates’ operating profit (before attributable share of associates’ interest, tax and non-controlling interests) and is before special items and remeasurements, unless otherwise stated. See notes 2 and 3 to the Condensed financial statements. For the definition of special items and remeasurements see note 4 to the Condensed financial statements.

⁽³⁾ See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.

⁽⁴⁾ Stated after special items and remeasurements. See note 4 to the Condensed financial statements.

⁽⁵⁾ Net debt includes related hedges and net debt in disposal groups. See note 12 to the Condensed financial statements.

⁽⁶⁾ Pro forma net debt is net debt adjusted for the estimated effect of the acquisition of an additional 40% interest in De Beers ($6.3 billion including De Beers net debt as at 30 June 2012) and the acquisition, announced on 24 July 2012, of a 58.9% interest in the Revuboè metallurgical coal project in Mozambique ($0.6 billion).

⁽⁷⁾ Includes the Group’s attributable share of associates’ revenue of $2,730 million (six months ended 30 June 2011: $3,057 million). See note 2 to the Condensed financial statements.

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Media

UK
James Wyatt-Tilby
Tel: +44 (0)20 7968 8759

Emily Blyth
Tel: +44 (0)20 7968 8481

South Africa
Pranill Ramchander
Tel: +27 (0)11 638 2592

Investors

UK
Leng Lau
Tel: +44 (0)20 7968 8540

Caroline Crampton
Tel: +44 (0)20 7968 2192

South Africa
Nicholas Gordon
Tel: +27 (0)11 638 3262

Anglo American is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American’s portfolio of mining businesses spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations, extensive pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe. www.angloamerican.com

Webcast of presentation:
A live webcast of the results presentation, starting at 9.00am UK time on 27 July, can be accessed through the Anglo American website at www.angloamerican.com.

Note: Throughout this results announcement, ‘$’ denotes United States dollars and ‘cents’ refers to United States cents; operating profit includes attributable share of associates’ operating profit and is before special items and remeasurements, unless otherwise stated; special items and remeasurements are defined in note 4 to the Condensed financial statements. Underlying earnings, unless otherwise stated, is calculated as set out in note 9 to the Condensed financial statements. Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items and remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes attributable share of EBITDA of associates. EBITDA is reconciled to ‘Total profit from operations and associates’ and to ‘Cash flows from operations’ in note 5 to the Condensed financial statements. Tonnes are metric tons, ‘Mt’ denotes million tonnes and ‘kt’ denotes thousand tonnes, unless otherwise stated.

Forward-looking statements
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American’s financial position, business and acquisition strategy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third party sources. As such, it presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American.