Annual Report 2007 - Antofagasta plc

More documents

Recommendations

Info

Glossary and DefinitionsGLOSSARY & DEFINITIONSBusiness, Financial and AccountingADASAAguas de Antofagasta S.A., a wholly-owned subsidiary of theGroup incorporated in Chile and operating the water concessionin Chile’s II Region acquired from ESSAN.ADRAmerican Depositary Receipt.AIFRAll Injury Frequency Rate.AMSAAntofagasta Minerals S.A., a wholly-owned subsidiary of theGroup incorporated in Chile which acts as the corporate centrefor the mining division.ATIAntofagasta Terminal Internacional S.A., a 30%-ownedassociate of the Group incorporated in Chile and operating theport in the city of Antofagasta.Annual ReportThe Annual Report and Financial Statements 2007 ofAntofagasta plc.Australian DollarsAustralian currency.Banco de ChileBanco de Chile S.A., a subsidiary of Quiñenco.Barrick GoldBarrick Gold Corporation, the joint venture partner of theGroup in Tethyan.BoardThe Directors of Antofagasta plc who collectively haveresponsibility for the conduct of the Group’s business.CapexCapital expenditure(s).Cash CostsA measure of the cost of operational production expressedin terms of cents per pound of payable copper produced.Cash costs are stated net of by-product credits and includetolling charges for concentrates for Los Pelambres. Cashcosts exclude depreciation, financial income and expenses,hedging gains and losses, exchange gains and losses andcorporation tax.CCUCompañía de Cervecerías Unidas S.A., an associate ofQuiñenco.CECOMCompany Ethics Committee.CECORCorporate Ethics Committee.CGUCash Generating Unit.Chilean PesoChilean currency.Combined Code or 2006 Combined CodeThe revised Combined Code on Corporate Governancepublished by the Financial Reporting Council in June 2006 andapplicable to listed companies for reporting years beginning onor after 1 November 2006.Companies Act 1985Principal legislation for United Kingdom company law.148CompanyAntofagasta plc.CONAMAComisión Nacional del Medio Ambiente de Chile (ChileanNational Environmental Commission).DIADeclaración de Impacto Ambiental, or Environmental ImpactDeclaration.DirectorsThe Directors of the Company.EBITEarnings Before Interest and Tax.EBITDAEarnings Before Interest, Tax, Depreciation and Amortisation.EIAEstudios de Impacto Ambiental, or Environmental ImpactAssessment.El TesoroMinera El Tesoro, a wholly-owned subsidiary of the Groupincorporated in Chile.EMSEnvironmental Management System.EPSEarnings per share.EquatorialEquatorial Mining Limited, a wholly-owned subsidiary of theGroup incorporated in Australia.EsperanzaMinera Esperanza, a wholly-owned subsidiary of the GroupCompany incorporated in Chile.ESSANEmpresa de Servicios Sanitarios S.A., the Chilean state-ownedcompany which formerly operated the regulated andnon-regulated water distribution business in Chile’s II Region).EUEuropean Union.FCAEmpresa Ferroviaria Andina S.A., a 50%-owned subsidiary ofthe Group incorporated in Bolivia.FCABFerrocarril de Antofagasta a Bolivia, the Chilean name for theAntofagasta Railway Company plc, a wholly-owned subsidiaryof the Group incorporated in the United Kingdom and operatinga rail network in Chile’s II Region.FSAFinancial Services Authority.FTSE 100 IndexA market-capitalisation weighted index representing theperformance of the 100 largest UK-domiciled blue chip companies,representing approximately 82% of the UK’s market capitalisation.FTSE All-Share IndexA market-capitalisation weighted index representing theperformance of all eligible companies listed on the LondonStock Exchange’s main market, representing approximately98% of the UK’s market capitalisation.GAAPGenerally Accepted Accounting Practice or Generally AcceptedAccounting Principles.Antofagasta plc Annual Report and Financial Statements 2007
GDPGross Domestic Product.GovernmentThe Government of the Republic of Chile.GuanacoSouth American animal, similar to the llama.GroupAntofagasta plc and its subsidiaries companies.Hedge AccountingAccounting treatment for derivatives financial instrumentpermitted under IAS 39 “Financial Instruments: Recognition andMeasurement”, which recognises the offsetting effects onprofit or loss of changes in the fair values of a hedginginstrument and the hedged item.IASInternational Accounting Standards.IASBInternational Accounting Standards Board.IFRICInternational Financial Reporting Interpretations Committee.IFRSInternational Financial Reporting Standards.IRRInternal Rate of Return.ISO 9.001An international quality management system standard publishedby the International Organisation for Standardisation.ISO 14.001An international environmental management system standardpublished by the International Organisation for Standardisation.IVAImpuesto al Valor Agregado, or Chilean Value Added Tax(Chilean VAT).Key Management PersonnelPersons with authority and responsibility for planning, directingand controlling the activities of the Group.KPIKey performance indicator.LIBORLondon Inter Bank Offer Rate.LMELondon Metal Exchange.Los PelambresMinera Los Pelambres, a 60%-owned subsidiary of the Groupincorporated in Chile.LSELondon Stock Exchange.LTIFRLost Time Injury Frequency Rate.MadecoMadeco S.A., a subsidiary of Quiñenco.MichillaMinera Michilla S.A., a 74.2%-owned subsidiary of the Groupincorporated in Chile.OHSAS 18.001Occupational Health and Safety Assessment Series (standardsfor occupational health and safety management systems).Provisional PricingA sales term in several copper and molybdenum concentratesale agreements and cathodes sale agreements which providesfor provisional pricing of sales at the time of shipment, withfinal pricing being based on the monthly average LME copperprice or monthly average molybdenum price for specific futureperiods, normally ranging from 30 to 180 days after deliveryto the customer. For the purposes of IAS 39, the provisionalsale is considered to contain an embedded derivative (i.e. theforward contract for which the provisional sale is subsequentlyadjusted) which is separated from the host contract (i.e. thesale of metals contained in the concentrate or cathode at theprovisional invoice price less tolling charges deducted).QuiñencoQuiñenco S.A., a Chilean financial and industrial conglomerateunder the control of the Luksic family and listed on the SantiagoStock Exchange.Realised PricesEffective sale price achieved comparing revenues (grossed upfor tolling charges for concentrate) with sales volumes.ROCEReturn on Capital Employed.SENCEServicio Nacional de Capacitación y Empleo de Chile (ChileanNational Training and Employment Service).Severity RateNumber of lost days during the year in relation to the numberof hours worked.SterlingUnited Kingdom currency.SVSSuperintendencia de Valores y Seguros de Chile, the Chileansecurities regulator.TethyanTethyan Copper Company Limited, a 50%-owned joint ventureentity of the Group incorporated in Australia.TSRTotal Shareholder Return, being the movement in theCompany’s share price plus reinvested dividends.Turnbull GuidanceThe revised guidance on internal control for directors onCombined Code issued by the Turnbull Review Group inOctober 2005.UFUnidad de Fomento, an inflation-adjusted unit of accountused in Chile.UKUnited Kingdom.UKLAUnited Kingdom Listing Authority.USUnited States.US DollarsUnited States currency.Antofagasta plc Annual Report and Financial Statements 2007 149GLOSSARY & DEFINITIONS
Page 1:
ANTOFAGASTAAnnual Report and Financ
Page 4 and 5:
Highlights• Net earnings up 2.1%
Page 6 and 7:
Highlights continued471.8 498.4 467
Page 8 and 9:
CHAIRMAN’S REVIEWChairman’s Rev
Page 10 and 11:
Page 12 and 13:
A R G E N T I N ACHAIRMAN’S REVIE
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Financial ReviewFINANCIAL REVIEWBas
Page 26 and 27:
Financial Review continuedFINANCIAL
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Corporate Social ResponsibilityCSR
Page 41 and 42:
TransportationThe Antofagasta Railw
Page 43 and 44:
Other international and national st
Page 45 and 46:
Organisations of which Group compan
Page 47 and 48:
Compensation, recruitment and reten
Page 49 and 50:
CSR REPORTEl Tesoro promotes a cult
Page 51 and 52:
• health and safety issues are mo
Page 53 and 54:
Native vegetation at the Choapa Val
Page 55 and 56:
existing naturally in the Andean re
Page 57 and 58:
saponaria), Espino (Acacia caven),
Page 59 and 60:
• The “Together We Can Grow Mor
Page 61 and 62:
Awards and RecognitionDuring the ye
Page 63 and 64:
special dividend. The total cost of
Page 65 and 66:
EnvironmentThe Group seeks to ensur
Page 67 and 68:
Antofagasta Railway Company plc (ra
Page 69 and 70:
Information and professional develo
Page 71 and 72:
Company, for safeguarding the asset
Page 73 and 74:
Statement of Compliance withthe Det
Page 75 and 76:
Non-Executive Directors’ feesThe
Page 77 and 78:
Audited InformationDirectors’ rem
Page 79 and 80:
Basis of audit opinionWe conducted
Page 81 and 82:
Consolidated Balance SheetAt 31 Dec
Page 83 and 84:
Consolidated Statement of Changes i
Page 85 and 86:
2 Principal Accounting Policiesa) A
Page 87 and 88:
2 Principal Accounting Policies con
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
4 Revenue and Total Profit from Ope
Page 97 and 98:
5 Segment Information continueda) P
Page 99 and 100: 5 Segment Information continueda) P
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 and 136: 38 Contingent Assets and Contingent
Page 137 and 138: 40A Basis of Preparation of the Bal
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: Notes to Ore Reserve and Mineral Re
Page 153 and 154: TC/RCTreatment and refining charges
Page 155 and 156: Directors and AdvisorsDirectorsJ-P
show all

Annual Report 2007 - Antofagasta plc

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?