Annual Report 2007 - Antofagasta plc

More documents

Recommendations

Info

Notes to the Financial Statements continued5 Segment Information continueda) Primary reporting format – by business segment(i)Turnover, EBITDA and operating profit/(loss) from subsidiaries and joint ventures analysed bybusiness segmentOperatingprofit/(loss)from subsidiariesand jointTurnover EBITDA ventures2007 2006 2007 2006 2007 2006US$m US$m US$m US$m US$m US$mLos Pelambres 2,651.9 2,701.3 2,178.0 2,297.0 2,098.6 2,223.7El Tesoro 673.9 664.8 430.9 456.0 380.3 409.9Michilla 316.8 334.9 169.2 158.4 154.0 145.5Exploration – – (38.1) (21.5) (38.1) (21.5)Corporate and other items – – (5.6) (16.9) (6.8) (17.6)Mining 3,642.6 3,701.0 2,734.4 2,873.0 2,588.0 2,740.0Railway and other transport services 117.0 105.3 48.9 42.9 35.0 32.6Water concession 67.1 63.7 40.7 41.4 30.4 31.5Group turnover (segment revenue), EBITDAand operating profit from subsidiaries andjoint ventures (segment result) 3,826.7 3,870.0 2,824.0 2,957.3 2,653.4 2,804.1Segment result is reconciled to profit for the financial year as follows:2007 2006US$m US$mSegment result 2,653.4 2,804.1Share of income from associate 1.4 1.1Total profit from operations and associates 2,654.8 2,805.2Net finance income 95.4 53.8Profit before tax 2,750.2 2,859.0Income tax expense (638.4) (664.9)Profit for the financial year (including amounts attributable to minority interests) 2,111.8 2,194.1FINANCIAL STATEMENTSNotes to turnover by business segment (segment revenue)i) Turnover by business segment equates to segment revenue as defined by IAS 14. Turnover from Railwayand other transport services and Water concession are stated after eliminating inter-segmental sales tothe mining division of US$10.5 million (2006 – US$9.6 million) and US$0.4 million (2006 – nil) respectively.Inter-segmental sales provided by Railway and other transport services and Water concession are chargedat amounts equal to competitive market prices for external sales of similar services.ii) Turnover includes the effect of both final pricing and mark-to-market adjustments to provisionally pricedsales of copper and molybdenum concentrates and copper cathodes. Further details of such adjustmentsare given in Note 24(d).iii) In the current year turnover includes realised net losses on commodity derivatives of US$14.0 million,comprising a gain of US$0.2 million at El Tesoro and a loss of US$14.2 million at Michilla. The classificationof these amounts within turnover is due to the application of the hedge accounting provisions of IAS 3994Antofagasta plc Annual Report and Financial Statements 2007
5 Segment Information continueda) Primary reporting format – by business segment continued“Financial Instruments: Recognition and Measurement” with effect from 1 January 2007. Prior to thispoint, gains and losses on commodity derivatives (including both gain and losses realised in the year andyear-end mark-to-market adjustments), were included in other operating income or expense. Further detailsof such gains or losses are given in Note 24(e).iv)Los Pelambres produces and sells copper and molybdenum concentrates. It is also credited for the goldand silver content in the copper concentrate it sells. Turnover by type of metal is analysed in the tablebelow to show separately the amounts prior to deduction of tolling charges, the tolling charges incurredand the net amounts included in turnover. El Tesoro and Michilla do not generate by-products from theircopper cathode operations.v) On a Group basis, total copper revenues amounted to US$2,915.9 million (2006 – US$3,144.7 million)comprising copper concentrate sales at Los Pelambres of US$1,925.2 million (2006 – US$2,145.0 million)and copper cathode sales at El Tesoro and Michilla of US$990.7 million (2006 – US$999.7 million).Notes to EBITDA and operating profit/(loss) from subsidiaries and joint ventures (segment result)vi) Operating profit for the separate businesses equates to segment result as defined by IAS 14. This excludesthe share of income from associate of US$1.4 million (2006 – US$1.1 million).vii) EBITDA is calculated by adding back depreciation, amortisation and disposals of property, plant andequipment and impairment charges to operating profit from subsidiaries and joint ventures.viii) As explained in Note 5(a)(i)(iii) above, in the current year EBITDA and operating profit include realised gainson commodity derivatives at El Tesoro of US$0.2 million and realised losses at Michilla of US$14.2 million(recorded within turnover). In 2006 EBITDA and operating profit included losses on commodity derivatives(including both losses realised in the year and year-end mark-to-market adjustments) at El Tesoro ofUS$44.8 million and Michilla of US$39.7 million. Further details are given in Note 24(e).ix)Exploration cost relating to Tethyan Copper Company Limited (“Tethyan”) (see Note 17(b)) have beenincluded within the Exploration category. All other income and expenditure relating to Tethyan has beenincluded within corporate and other items.x) As explained in Note 4(i) and Note 19, in the current period EBITDA and operating profit at El Tesoroinclude an inventory write-off of US$18.8 million.xi)As explained in Note 4(ii), EBITDA and operating profit in the Corporate and other items category includesgains of US$21.8 million relating various items.Turnover at Los Pelambres by mineral:Before deductingNet oftolling charges Tolling charges tolling charges2007 2006 2007 2006 2007 2006US$m US$m US$m US$m US$m US$mCopper 2,094.6 2,399.0 (169.4) (254.0) 1,925.2 2,145.0Molybdenum 699.8 536.4 (23.4) (22.6) 676.4 513.8Gold and silver 51.0 43.1 (0.7) (0.6) 50.3 42.5Los Pelambres 2,845.4 2,978.5 (193.5) (277.2) 2,651.9 2,701.3FINANCIAL STATEMENTSAntofagasta plc Annual Report and Financial Statements 2007 95
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 95: 4 Revenue and Total Profit from Ope
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 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
show all

Annual Report 2007 - Antofagasta plc

Create successful ePaper yourself

Delete template?

Save as template?