bold spirit - ArcelorMittal South Africa

22
ArcelorMittal South Africa
Annual Report 2010
Finance report continued
Cash flow
Cash flows are detailed below:
2010
Rm
Year ended
31 December
2009
Rm
Cash profit from operations 3 766 1 828
Working capital (1 100) 2 878
Cash generated from operations 2 666 4 706
Interest income 69 199
Finance costs (85) (122)
Investment income and dividend from equity-accounted investments 128 91
Realised foreign exchange movement (58) (529)
Income tax (653) (934)
Dividends (602) (1 627)
Capital expenditure (1 714) (914)
Investment in associate (120) (524)
Repurchase of shares (3 918)
Repayment of borrowings and finance lease obligations (374) (157)
Decrease in cash (743) (3 729)
The cash outflow of R743 million is
largely as a result of the investment
in working capital requirements of
R1 100 million. This was mainly the
result of an increase of R1 544 million
in inventories as prices of input
materials increased, while volumes
remained on 2009 levels.
Capital expenditure nearly doubled
due to the cut-backs during 2009.
The R120 million investment in
associate was mainly for participation
in the rights issue of Coal of Africa.
Dividend
An interim dividend of 150 cents
per share was declared and paid
during 2010. Following the headline
loss of R427 million made for the
second half, no final dividend was
declared.
Share performance
Over a five-year period the share
price has increased by an average of
6% per annum compared with the
20% per annum rise of the All Share
Index over the same period.
Up until the end of 2008 our share price
had performed better that the All Share
Index but has underperformed since
dispute with SIOC.