Annual Report 2000 in PDF - Antofagasta plc

Financial ReviewIncome from Other Fixed Asset Investments2000 1999US$mUS$mQuiñenco 31.3 5.3Other fixed asset investments 0.2 0.131.5 5.4The Group holds a 33.6% interest in Quiñenco, a diversified industrial and financial group listed in Santiagoand New York with interests in the Southern Cone of Latin America and Brazil. Income from Quiñenco isaccounted for on a dividends-received basis and in May 2000 the Group received US$31.3 million(1999 – US$5.3 million). This represented a distribution of 30% of Quiñenco’s previous year’s profits after taxand minorities, which included a substantial profit on the sale of its banking and cable television interests.No comparable disposals took place during 2000, and the Group does not expect to receive a dividend in2001. Further details about the investment in Quiñenco are given in Note 14 to the financial statements.Net Interest (Payable)/Receivable2000 1999US$mUS$mInterest receivable (including share of associates in 1999) 21.0 15.1Interest payable (80.5) (0.2)Release of discount relating to provisions 1.2 (0.2)(58.3) 14.7The Group’s borrowings during 1999 related mainly to the Los Pelambres and El Tesoro projects. Financecosts relating to these borrowings were capitalised during that year when both projects remained underdevelopment, resulting in the low interest charge in the profit and loss account. Interest payable capitalisedin 1999 amounted to US$39.5 million and interest receivable capitalised amounted to US$4.2 million.ANTOFAGASTA PLC Annual Report 2000During 2000, interest income and expenses at Los Pelambres were no longer capitalised following start-upof commercial operations, resulting in the higher amounts in the profit and loss account. Interest receivableincluded US$8.0 million and interest payable included US$80.1 million relating to Los Pelambres. Interestcosts at El Tesoro continued to be capitalised as that project remained under development. Interestreceivable capitalised during 2000 amounted to US$4.6 million and interest payable capitalised amountedto US$15.3 million.20