Annual Report 2003 - Antofagasta plc

2 Segmental Information (continued)g) Net assets by operation 2003 2002US$m US$mLos Pelambres 1,240.1 1,297.3El Tesoro 337.1 354.6Michilla 75.1 84.1Corporate and other items 2.1 7.2Mining 1,654.4 1,743.2Railway and other transport services 107.8 92.5Water concession (acquisition) 195.5 –Operating net assets 1,957.7 1,835.7Fixed asset investments 0.4 187.4Net debt (661.8) (712.9)Unallocated liabilities – Group dividend (47.3) (35.5)Net assets 1,249.0 1,274.7Net assets are stated before deducting minority interests, and are based principally in Latin America.3 Operating Profit 2003 2002US$m US$mTurnover 1,076.2 863.1Cost of sales (588.4) (558.2)Gross profit 487.8 304.9Administrative expenses (88.6) (82.2)Provisions for decommissioning and site rehabilitation costs (Note 19) (1.1) (1.2)Severance charges (Note 19) (2.7) (1.9)Exploration costs (3.5) (2.8)Other net operating expenses (4.6) (2.9)Operating profit 387.3 213.9Depreciation charges in 2003 amounted to US$136.8 million (2002 – US$128.7million). Of this amount, US$133.4 million(2002 – US$125.7 million) is included in cost of sales and US$3.4 million (2002 – US$ 3.0 million) is included inadministrative expenses.The figures for 2003 include the following amounts relating to the acquisition of the water concession for the periodfrom 29 December to 31 December 2003:2003US$mTurnover 0.4Cost of sales (0.2)Gross profit and operating profit 0.2Administrative expenses, provisions, severance charges, depreciation and amortisation and other operating expensesrelating to the acquisition were less than US$0.1 million.ANTOFAGASTA PLC Annual Report and Financial Statements 200361