Annual Report 2007 - Antofagasta plc

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Notes to the Financial Statements continued40 Antofagasta plc – Balance Sheet of the Parent Company and Related NotesParent Company Balance SheetAt 31 December 20072007 2006Notes US$m US$mFixed assetsInvestment in subsidiaries 40D 665.4 665.2Current assetsDebtors – amounts falling due within one year 0.5 0.4– amounts owed by subsidiaries 40D 565.0 455.0Current asset investments (term deposits) 6.6 5.0Cash at bank and in hand 1.1 0.6573.2 461.0Creditors – amounts falling due within one yearOther creditors (0.9) (0.7)Amounts owed to subsidiaries (299.5) (299.5)(300.4) (300.2)Net current assets 272.8 160.8Total assets less current liabilities 938.2 826.0Creditors – amounts falling due after more than one yearPreference shares 40E (4.0) (3.9)Total assets less total liabilities 934.2 822.1Capital and reservesCalled up share capital– Ordinary shares – equity 40F 89.8 89.8Reserves– Share premium account 40F 199.2 199.2– Profit and loss account 40F 645.2 533.1Shareholders’ funds (including non-equity interests) 40F 934.2 822.1Approved by the Board and signed on its behalf on 10 March 2008.J-P LuksicChairmanCH BaileyDirectorFINANCIAL STATEMENTS134Antofagasta plc Annual Report and Financial Statements 2007
40A Basis of Preparation of the Balance Sheet and Related Notes of the Parent CompanyThe Antofagasta plc parent company balance sheet and related notes have been prepared in accordance withUnited Kingdom generally accepted accounting principles (“UK GAAP”) and in accordance with UK companylaw. The financial information has been prepared on a historical cost basis. The financial statements have beenprepared on a going concern basis. The functional currency of the Company and the presentational currencyadopted is US dollars.A summary of the principal accounting policies is set out below. There were no changes in accounting policiesin 2007.The preparation of financial statements in conformity with UK GAAP requires the use of estimates andassumptions that affect the reported amounts of assets and liabilities at the date of the financial statementsand the reported amounts of revenues and expenses during the period. Although these estimates are based onmanagement’s best knowledge of the amount, event or actions, following implementation of these standards,actual results may differ from those estimates.As permitted by section 230 of the Companies Act 1985, the profit and loss account of the parent companyis not presented as part of these financial statements. The profit after tax for the year of the parent companyamounted to US$597.1 million (2006 – US$485.9 million).40B Principal Accounting Policies of the Parent Companya) Currency translationThe Company’s functional currency is the US dollar. Transactions denominated in other currencies, includingthe issue of shares, are translated at the rate of exchange ruling on the date of the transaction. Monetary assetsand liabilities, including amounts due from or to subsidiaries, are translated at the rate of exchange ruling at theend of the financial year. Exchange differences are charged or credited to the profit and loss account in the yearin which they arise.b) Revenue recognitionInterest is accounted for on an accruals basis. Dividends proposed by subsidiaries are recognised as income bythe Company when they represent a present obligation of the subsidiaries, i.e. in the period in which they areformally approved for payment.c) Dividends payableDividends proposed are recognised when they represent a present obligation, i.e. in the period in which they areformally approved for payment. Accordingly, an interim dividend is recognised when paid and a final dividend isrecognised when approved by shareholders.d) Investments in subsidiariesInvestments in subsidiaries represent equity holdings in subsidiaries and long-term amounts owed by subsidiaries.Such investments are valued at cost less any impairment provisions. Investments are reviewed for impairmentif events or changes in circumstances indicate that the carrying amount may not be recoverable. When a reviewfor impairment is conducted, the recoverable amount is assessed by reference to the net present value ofexpected future cash flows of the relevant income generating unit or disposal value if higher.As explained in Note 40D, amounts owed by subsidiaries due in foreign currencies are translated at year endrates of exchange with any exchange differences taken to the profit and loss account.e) Current asset investments and cash at bank and in handCurrent asset investments comprise highly liquid investments that are readily convertible into known amountsof cash and which are subject to insignificant risks of changes in value, typically maturing within twelve months.FINANCIAL STATEMENTSCash at bank and in hand comprise cash in hand and deposits repayable on demand.Antofagasta plc Annual Report and Financial Statements 2007 135
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ANTOFAGASTAAnnual Report and Financ
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Highlights• Net earnings up 2.1%
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Highlights continued471.8 498.4 467
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CHAIRMAN’S REVIEWChairman’s Rev
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A R G E N T I N ACHAIRMAN’S REVIE
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Financial ReviewFINANCIAL REVIEWBas
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Financial Review continuedFINANCIAL
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Corporate Social ResponsibilityCSR
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TransportationThe Antofagasta Railw
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Other international and national st
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Organisations of which Group compan
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Compensation, recruitment and reten
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CSR REPORTEl Tesoro promotes a cult
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• health and safety issues are mo
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Native vegetation at the Choapa Val
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existing naturally in the Andean re
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saponaria), Espino (Acacia caven),
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• The “Together We Can Grow Mor
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Awards and RecognitionDuring the ye
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special dividend. The total cost of
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EnvironmentThe Group seeks to ensur
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Antofagasta Railway Company plc (ra
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Information and professional develo
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Company, for safeguarding the asset
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Statement of Compliance withthe Det
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Non-Executive Directors’ feesThe
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Audited InformationDirectors’ rem
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Basis of audit opinionWe conducted
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Consolidated Balance SheetAt 31 Dec
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Consolidated Statement of Changes i
Page 85 and 86: 2 Principal Accounting Policiesa) A
Page 87 and 88: 2 Principal Accounting Policies con
Page 95 and 96: 4 Revenue and Total Profit from Ope
Page 97 and 98: 5 Segment Information continueda) P
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Page 101 and 102: 6 Profit for the YearProfit for the
Page 103 and 104: 8 Net Finance IncomeNet finance inc
Page 105 and 106: 11 DividendsAmounts recognised as d
Page 107 and 108: 13 Property, Plant and EquipmentLan
Page 109 and 110: 16 Investment in Associate2007 2006
Page 111 and 112: 19 Inventories2007 2006US$m US$mRaw
Page 113 and 114: 22 Borrowings continued(ii)Other lo
Page 115 and 116: 22 Borrowings continuedd) Maturity
Page 117 and 118: 24 Financial Instruments and Financ
Page 127 and 128: 26 Deferred Tax continuedAt 31 Dece
Page 129 and 130: 29 Minority InterestsThe minority i
Page 131 and 132: 33 Notes to the Consolidated Cash F
Page 133 and 134: 37 Related Party Transactions conti
Page 135: 38 Contingent Assets and Contingent
Page 139 and 140: 40D Subsidiaries continueda) Invest
Page 141 and 142: 40G Independent Auditors’ Report
Page 143 and 144: Dividends to Ordinary ShareholdersD
Page 145 and 146: Mining Production and Sales, Transp
Page 147 and 148: A ‘Measured Mineral Resource’ i
Page 149 and 150: Notes to Ore Reserve and Mineral Re
Page 151 and 152: GDPGross Domestic Product.Governmen
Page 153 and 154: TC/RCTreatment and refining charges
Page 155 and 156: Directors and AdvisorsDirectorsJ-P
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