3rd May 2013 09:05
NEWS RELEASE
Baar, 3 May 2013
Pro forma Glencore Xstrata
To illustrate the impact of the merger of Glencore and Xstrata the following pages set out the pro forma Glencore Xstrata statement of net assets, income statement and cashflow statement for 2012 and related segmental disclosures.
For further information please contact:
Investors Media
Paul Smith Charles Watenphul
t: +41 (0)41 709 24 87 t: +41 (0)41 709 24 62
m: +41 (0)79 947 13 48 m:+41 (0)79 904 33 20
e: [email protected] m: [email protected]
Investors Investors Finsbury (Media)
Martin Fewings Elisa Morniroli Guy Lamming
t: +41 (0)41 709 28 80 t: +41 (0)41 709 28 18 Dorothy Burwell
m: +41 (0)79 737 56 42 m: +41 (0)79 833 05 08 t: +44 (0)20 7251 3801
e: [email protected] e: [email protected]
website: www.glencorexstrataplc.com
1 |Summary pro forma financial information
1.1. summary pro forma information
Revenue | Adjusted EBITDA | Adjusted EBIT | |||||||||
US $ million | Glencore | Xstrata | Total | Glencore | Xstrata | Total | Glencore | Xstrata | Total | ||
Marketing activities | |||||||||||
Metals and Minerals | 48 254 | - | 48 254 | 1 379 | - | 1 379 | 1 363 | - | 1 363 | ||
Energy Products | 133 296 | - | 133 296 | 494 | - | 494 | 435 | - | 435 | ||
Agricultural Products | 17 751 | - | 17 751 | 394 | - | 394 | 371 | - | 371 | ||
Corporate and other | - 39 | - | - 39 | - 39 | - | - 39 | |||||
199 301 | - | 199 301 | 2 228 | - | 2 228 | 2 130 | - | 2 130 | |||
Less Intragroup sales 1 | - 9 588 | - | - | ||||||||
Total marketing activities | 189 713 | 2 228 | 2 130 | ||||||||
Industrial activities | |||||||||||
Copper | 3 473 | 13 363 | 16 836 | 539 | 3 389 | 3 928 | 223 | 2 454 | 2 677 | ||
Zinc | 3 809 | 3 672 | 7 481 | 1 057 | 1 070 | 2 127 | 583 | 595 | 1 178 | ||
Nickel | 668 | 2 689 | 3 357 | 25 | 746 | 771 | - 89 | 150 | 61 | ||
Aluminium/Alumina | 426 | - | 426 | 8 | - | 8 | - 4 | - | - 4 | ||
Ferroalloys | 44 | 1 503 | 1 547 | - 6 | 155 | 149 | - 7 | - 5 | - 12 | ||
Iron Ore | - | - | - | - | - 11 | - 11 | - | - 11 | - 11 | ||
Share of income from associates | 2 | - 3 | - 1 | 2 | - 3 | - 1 | |||||
Metals and Minerals | 8 420 | 21 227 | 29 647 | 1 625 | 5 346 | 6 971 | 708 | 3 180 | 3 888 | ||
Coal | 2 339 | 10 085 | 12 424 | 466 | 2 986 | 3 452 | 158 | 1 831 | 1 989 | ||
Oil | 1 302 | - | 1 302 | 488 | - | 488 | 407 | - | 407 | ||
Share of income from associates | 29 | 4 | 33 | 29 | 4 | 33 | |||||
Energy Products | 3 641 | 10 085 | 13 726 | 983 | 2 990 | 3 973 | 594 | 1 835 | 2 429 | ||
Agricultural Products | 3 074 | - | 3 074 | 44 | - | 44 | - 25 | - | - 25 | ||
Share of income from associates | 15 | - | 15 | 15 | - | 15 | |||||
Agricultural Products | 3 074 | - | 3 074 | 59 | - | 59 | - 10 | - | - 10 | ||
Corporate and other | - | 306 | 306 | 1 048 | - 213 | 835 | 1 048 | - 224 | 824 | ||
15 135 | 31 618 | 46 753 | 3 715 | 8 123 | 11 838 | 2 340 | 4 791 | 7 131 | |||
Less Xstrata equity result in standalone Glencore |
- |
- 1 174 |
- 1 174 | ||||||||
Total industrial activities | 46 753 | 10 664 | 5 957 | ||||||||
Total | 236 466 | 12 892 | 8 087 | ||||||||
1 $ 8 163 million relates to Metals and Minerals and $ 1 425 million to Energy Products. | |||||||||||
2011 | Revenue | Adjusted EBITDA | Adjusted EBIT | ||||||||
US $ million | Glencore | Xstrata | Total | Glencore | Xstrata | Total | Glencore | Xstrata | Total | ||
Marketing activities | |||||||||||
Metals and Minerals | 43 317 | - | 43 317 | 1 247 | - | 1 247 | 1 242 | - | 1 242 | ||
Energy Products | 114 756 | - | 114 756 | 724 | - | 724 | 697 | - | 697 | ||
Agricultural Products | 13 744 | - | 13 744 | - 8 | - | - 8 | - 8 | - | - 8 | ||
Corporate and other | - 9 | - | - 9 | - 20 | - | - 20 | |||||
171 817 | - | 171 817 | 1 954 | - | 1 954 | 1 911 | - | 1 911 | |||
Less Intragroup sales 1 | - 10 914 | - | - | ||||||||
Total marketing activities | 160 903 | 1 954 | 1 911 | ||||||||
Industrial activities | |||||||||||
Copper | 4 176 | 15 037 | 19 213 | 774 | 4 915 | 5 689 | 538 | 3 924 | 4 462 | ||
Zinc | 3 291 | 3 756 | 7 047 | 1 159 | 1 223 | 2 382 | 752 | 814 | 1 566 | ||
Nickel | 680 | 3 192 | 3 872 | 83 | 1 234 | 1 317 | - 29 | 611 | 582 | ||
Aluminium/Alumina | 520 | - | 520 | 60 | - | 60 | 50 | - | 50 | ||
Ferroalloys | - | 1 689 | 1 689 | - | 294 | 294 | - | 153 | 153 | ||
Iron Ore | - | - | - | - | - 11 | - 11 | - | - 11 | - 11 | ||
Other share of income from associates | 46 | 25 | 71 | 46 | 25 | 71 | |||||
Metals and Minerals | 8 667 | 23 674 | 32 341 | 2 122 | 7 680 | 9 802 | 1 357 | 5 516 | 6 873 | ||
Coal | 1 667 | 9 981 | 11 648 | 493 | 3 853 | 4 346 | 330 | 2 810 | 3 140 | ||
Oil | 642 | - | 642 | 23 | - | 23 | - 10 | - | - 10 | ||
Share of income from associates | 55 | 4 | 59 | 55 | 4 | 59 | |||||
Energy Products | 2 309 | 9 981 | 12 290 | 571 | 3 857 | 4 428 | 375 | 2 814 | 3 189 | ||
Agricultural Products | 3 359 | - | 3 359 | 5 | - | 5 | - 57 | - | - 57 | ||
Share of income from associates | 18 | - | 18 | 18 | - | 18 | |||||
Agricultural Products | 3 359 | - | 3 359 | 23 | - | 23 | - 39 | - | - 39 | ||
Corporate and other | - | 222 | 222 | 1 794 | 140 | 1 934 | 1 794 | 130 | 1 924 | ||
14 335 | 33 877 | 48 212 | 4 510 | 11 677 | 16 187 | 3 487 | 8 460 | 11 947 | |||
Less Xstrata equity result in standalone Glencore |
- |
|
- 1 893 |
- 1 893 | |||||||
Total industrial activities | 48 212 | 14 294 | 10 054 | ||||||||
Total | 209 115 | 16 248 | 11 965 | ||||||||
1 $ 9 238 million relates to Metals and Minerals and $ 1 676 million to Energy Products | |||||||||||
1.2. segment Information
2012 US $ million | Metals and minerals | Energy products | Agricultural products | Corporate and other | Total |
Revenue from third parties | 69 738 | 145 597 | 20 825 | 306 | 236 466 |
Marketing activities | |||||
Adjusted EBIT | 1 363 | 435 | 371 | - 39 | 2 130 |
Depreciation and amortisation | 16 | 59 | 23 | - | 98 |
Adjusted EBITDA | 1 379 | 494 | 394 | - 39 | 2 228 |
Industrial activities | |||||
Adjusted EBIT | 3 888 | 2 429 | - 10 | - 350 | 5 957 |
Depreciation and amortisation | 3 083 | 1 544 | 69 | 11 | 4 707 |
Adjusted EBITDA | 6 971 | 3 973 | 59 | - 339 | 10 664 |
Total Adjusted EBITDA | 8 350 | 4 467 | 453 | - 378 | 12 892 |
Depreciation and amortisation | - 3 099 | - 1 603 | - 92 | - 11 | - 4 805 |
Total Adjusted EBIT | 5 251 | 2 864 | 361 | - 389 | 8 087 |
Impact of presenting Xstrata JVs on an equity accounting basis | - 617 | ||||
Adjusted EBIT - statutory measure | 7 470 | ||||
Interest expense - net | - 1 179 | ||||
Net other items | - 4 | ||||
Income tax expense | - 260 | ||||
Non-controlling interests | - 489 | ||||
Income attributable to equity holders pre significant items | 5 538 | ||||
Significant items | Glencore | Xstrata | |||
Other expense - net | - 1 152 | - 1 293 | - 2 445 | ||
Net (loss)/gain on disposal of investments | - 128 | - | - 128 | ||
Mark to market valuation of certain natural gas forward contracts | - 123 | - | - 123 | ||
Unrealised intergroup profit elimination | - 84 | - | - 84 | ||
Share of Associates' exceptional items | - | - 945 | - 945 | ||
Finance | - | - 12 | - 12 | ||
Tax | 300 | 14 | 314 | ||
Non-controlling interests share of significant items | 64 | 85 | 149 | ||
Significant items | - 1 123 | - 2 151 | - 3 274 | ||
Income attributable to equity holders on the basis of the pro forma income statement | 2 264 | ||||
2011 US $ million | Metals and minerals | Energy products | Agricultural products | Corporate and other | Total |
Revenue from third parties | 66 420 | 125 370 | 17 103 | 222 | 209 115 |
Marketing activities | |||||
Adjusted EBIT | 1 242 | 697 | - 8 | - 20 | 1 911 |
Depreciation and amortisation | 5 | 27 | - | 11 | 43 |
Adjusted EBITDA | 1 247 | 724 | - 8 | - 9 | 1 954 |
Industrial activities | |||||
Adjusted EBIT | 6 873 | 3 189 | - 39 | 31 | 10 054 |
Depreciation and amortisation | 2 929 | 1 239 | 62 | 10 | 4 240 |
Adjusted EBITDA | 9 802 | 4 428 | 23 | 41 | 14 294 |
Total Adjusted EBITDA | 11 049 | 5 152 | 15 | 32 | 16 248 |
Depreciation and amortisation | - 2 934 | - 1 266 | - 62 | - 21 | - 4 283 |
Total Adjusted EBIT | 8 115 | 3 886 | - 47 | 11 | 11 965 |
Impact of presenting Xstrata JVs on an equity accounting basis | - 545 | ||||
Adjusted EBIT - statutory measure | 11 420 | ||||
1.3. key Financial position highlights
2012 1,2 US $ million | Glencore | Xstrata | Adjustments | Total |
Total RMI | 17 290 | 1 356 3 | - | 18 646 |
Total Inventories | 20 682 | 6 031 | - | 26 713 |
Reported Debt | 35 526 | 17 067 | - | 52 593 |
Less: Cash, cash equivalents and marketable securities | - 2 820 | - 1 983 | 86 | - 4 717 |
Net Funding | 32 706 | 15 084 | 86 | 47 876 |
Less: RMI | - 17 290 | - 1 356 3 | - | - 18 646 |
Net Debt | 15 416 | 13 728 | 86 | 29 230 |
Net Debt adjusted for the Viterra acquisition | 11 457 | 13 728 | 86 | 25 271 |
Net Interest Expense | - 970 | - 225 | - | - 1 195 |
FFO | 4 115 | 6 567 | - 414 | 10 268 |
Less: Dividends | - 1 066 | - 1 285 | 414 | - 1 937 |
RCF | 3 049 | 5 282 | - | 8 331 |
Change in Working Capital | 727 | - 1 572 | - | - 845 |
Less: Capex | - 3 117 | - 10 537 | - | - 13 654 |
FCF | 659 | - 6 827 | - | - 6 168 |
Total Debt/Adjusted EBITDA | 5.98 | 2.10 | 4.08 | |
Net Debt/Adjusted EBITDA | 2.59 | 1.69 | 2.27 | |
Net Debt adjusted for the Viterra acquisition / Adjusted EBITDA | 1.93 | 1.69 | 1.96 | |
Interest Cover | 6.13 | 36.10 | 10.82 | |
FFO/Net Debt | 26.7% | 47.8% | 35.1% | |
FFO/Net Debt adjusted for the Viterra acquisition | 35.9% | 47.8% | 40.6% | |
RCF/Net Debt | 19.8% | 38.5% | 28.5% | |
RCF/Net Debt adjusted for the Viterra acquisition | 26.6% | 38.5% | 33.0% | |
1 The definitions of the terms in the table above are consistent with those applied and defined in the Glencore International plc 2012 annual report. 2 The key financial position highlights have been presented including Xstrata's joint ventures - Cerrejón, Antamina and Collahuasi, on a proportional consolidation basis, to provide a greater understanding of the underlying results of the Group. 3 Xstrata RMI has been estimated as equal to the finished goods inventory. | ||||
Glencore net debt as at 31 December 2012 increased to $ 15,416 million from $12,938 million as at 31 December 2011. $ 359 million of net debt was assumed in the Viterra acquisition and $ 3.6 billion of net debt was incurred to finance Glencore's effective share of the equity purchase consideration. Adjusting for the increase in net debt attributable to the Viterra acquisition (completed mid-December 2012), net debt would be $ 11,457 million, a decrease of $ 1,481 million compared to 2011. The -ratio of Net debt (adjusted for the Viterra acquisition) to Adjusted EBITDA improved from 2.00 times in 2011 to 1.93 times as at 31 December 2012, while the ratio of FFO to Net debt (adjusted for the Viterra acquisition) improved from 27.2% in 2011 to 35.9% in 2012. A healthy positive free cash flow generation/FFO is expected from the Viterra asset base going forward, which is expected to offer support to debt coverage ratios and deleveraging initiatives into the future.
2 | Metals and minerals
US $ million | Marketing activities | Industrial activities | 2012 | Marketing activities | Industrial activities | 2011 |
Revenue | 40 091 | 29 647 | 69 738 | 34 079 | 32 341 | 66 420 |
Adjusted EBITDA | 1 379 | 6 971 | 8 350 | 1 247 | 9 802 | 11 049 |
Adjusted EBIT | 1 363 | 3 888 | 5 251 | 1 242 | 6 873 | 8 115 |
Adjusted EBITDA margin | 3.4% | 23.5% | 12.0% | 3.7% | 30.3% | 16.6% |
Market conditions
Selected average commodity prices
2012 | 2011 | Change | ||
S&P GSCI Industrial Metals Index | 382 | 440 | - 13% | |
LME (cash) zinc price ($/t) | 1 948 | 2 193 | - 11% | |
LME (cash) copper price ($/t) | 7 958 | 8 813 | - 10% | |
LME (cash) lead price ($/t) | 2 062 | 2 397 | - 14% | |
Gold price ($/toz) | 1 669 | 1 573 | 6% | |
Metal Bulletin alumina price ($/t) | 319 | 374 | - 15% | |
LME (cash) aluminium price ($/t) | 2 022 | 2 398 | - 16% | |
LME (cash) nickel price ($/t) | 17 530 | 22 843 | - 23% | |
Metal Bulletin cobalt price 99.3% ($/lb) | 13 | 16 | - 19% | |
Iron ore (Platts 62% CFR North China) price ($/DMT) | 130 | 169 | - 23% | |
Metal Bulletin ferrochrome 6-8% C basis 60% Cr, max 1.5% Si (¢/lb) | 109 | 122 | - 11% | |
Platinum price ($/toz) | 1 552 | 1 720 | - 10% |
Currency table
Average 2012 | Spot 31 Dec 2012 | Average 2011 | Spot 31 Dec 2011 | Change inaverage prices | |
AUD : USD | 1.04 | 1.04 | 1.03 | 1.02 | 1% |
USD : CAD | 1.00 | 0.99 | 0.99 | 1.02 | 1% |
USD : COP | 1797 | 1767 | 1 848 | 1 939 | - 3% |
EUR : USD | 1.29 | 1.32 | 1.39 | 1.30 | - 7% |
GBP : USD | 1.59 | 1.63 | 1.60 | 1.55 | - 1% |
GBP : CHF | 1.49 | 1.49 | 1.42 | 1.46 | 5% |
USD : CHF | 0.94 | 0.92 | 0.89 | 0.94 | 6% |
USD : KZT | 149 | 150 | 147 | 148 | 1% |
USD : ZAR | 8.21 | 8.47 | 7.26 | 8.09 | 13% |
MARKETING
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | 40091 | 34 079 | 18% |
Adjusted EBITDA | 1379 | 1 247 | 11% |
Adjusted EBIT | 1363 | 1 242 | 10% |
Selected marketing volumes sold
Units | 2012 | 2011 | Change | |
Zinc metal and concentrates 1 | million MT | 2.8 | 2.7 | 4% |
Copper metal and concentrates 1 | million MT | 2.3 | 1.9 | 21% |
Lead metal and concentrates 1 | million MT | 0.7 | 0.7 | - |
Gold | thousand toz | 746 | 756 | - 1% |
Silver | thousand toz | 22 544 | 11 128 | 103% |
Alumina/aluminium | million MT | 11.5 | 11.4 | 1% |
Ferroalloys (incl. agency) | million MT | 3.0 | 2.7 | 11% |
Nickel | thousand MT | 232.3 | 191.4 | 21% |
Cobalt | thousand MT | 16.1 | 22.9 | - 30% |
Iron ore | million MT | 19.8 | 10.3 | 92% |
1 Estimated metal unit contained. | ||||
INDUSTRIAL ACTIVITIES
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | |||
Copper assets | |||
African copper (Katanga, Mutanda, Mopani, Sable) | 2 082 | 1 700 | 22% |
Collahuasi (Chile) | 1 064 | 1 734 | - 39% |
Antamina (Peru) | 1 484 | 1 121 | 32% |
Other South America (Alumbrera, Lomas Bayas, Altonorte, Tintaya, Antapaccay, Punitaqui) | 5 288 | 5 520 | - 4% |
Australia and Asia (Ernest Henry, Mount Isa, Cobar, Pasar) | 3 183 | 5 109 | - 38% |
North America (CCR, Horne, Kidd) | 3 735 | 4 029 | - 7% |
Copper | 16 836 | 19 213 | - 12% |
Zinc assets | |||
Kazzinc (Kazakhstan) | 2 839 | 2 262 | 26% |
Australia (Mount Isa, McArthur River) | 582 | 550 | 6% |
Europe (Portovesme, San Juan de Nieva, Nordenham, Northfleet) | 2 421 | 2 521 | - 4% |
North America (Brunswick, CEZ Refinery, Perseverance) | 855 | 922 | - 7% |
Antamina (Peru) | 69 | 77 | - 10% |
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Rosh Pinah) | 715 | 715 | 0% |
Zinc | 7 481 | 7 047 | 6% |
Nickel assets | |||
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk) | 2 252 | 2 692 | - 16% |
Falcondo | 259 | 274 | - 5% |
Australia (XNA, Murrin Murrin) | 846 | 906 | - 7% |
Nickel | 3 357 | 3 872 | - 13% |
Aluminium/Alumina | 426 | 520 | - 18% |
Ferroalloys/PGM | 1 547 | 1 689 | - 8% |
Metals and minerals revenue - segmental measure | 29 647 | 32 341 | - 8% |
JVs adjustment | - 2 050 | - 1 995 | n.m. |
Metals and minerals revenue - statutory measure | 27 597 | 30 346 | - 9% |
Adjusted EBITDA | |||
Copper assets | |||
African copper | 388 | 527 | - 26% |
Collahuasi | 435 | 995 | - 56% |
Antamina | 901 | 742 | 21% |
Other South America | 1 330 | 1 489 | - 11% |
Australia and Asia | 690 | 1 421 | - 51% |
North America | 184 | 486 | - 62% |
Share of income from associates (Mutanda) | - | 29 | n.m. |
Copper | 3 928 | 5 689 | - 31% |
Adjusted EBITDA margin | 23% | 30% | |
US $ million | 2012 | 2011 | Change |
Zinc assets | |||
Kazzinc | 890 | 862 | 3% |
Australia | 415 | 288 | 44% |
Europe | 225 | 288 | - 22% |
North America | 358 | 556 | - 36% |
Antamina | 65 | 77 | - 16% |
Other Zinc | 174 | 311 | - 44% |
Zinc | 2 127 | 2 382 | - 11% |
Adjusted EBITDA margin | 28% | 34% | |
Nickel assets | |||
Integrated Nickel Operations | 880 | 1 117 | - 21% |
Falcondo | 5 | 48 | - 90% |
Australia | - 114 | 152 | - 175% |
Nickel | 771 | 1 317 | - 41% |
Adjusted EBITDA margin | 23% | 34% | |
Aluminium/Alumina | 8 | 60 | - 87% |
Ferroalloys/PGM | 149 | 294 | - 49% |
Iron ore | - 11 | - 11 | 0% |
Other share of income from associates and dividends (including Lonmin) | - 1 | 71 | n.m. |
Metals and minerals Adjusted EBITDA - segmental measure | 6 971 | 9 802 | - 29% |
Adjusted EBITDA margin | 24% | 30% | |
JVs adjustment | - 842 | - 679 | n.m. |
Metals and minerals Adjusted EBITDA - statutory measure | 6 129 | 9 123 | - 33% |
Adjusted EBIT | |||
Copper assets | |||
African copper | 129 | 341 | - 62% |
Collahuasi | 261 | 814 | - 68% |
Antamina | 768 | 650 | 18% |
Other South America | 1 054 | 1 199 | - 12% |
Australia and Asia | 358 | 991 | - 64% |
North America | 107 | 438 | - 76% |
Share of income from associates (Mutanda) | - | 29 | n.m. |
Copper | 2 677 | 4 462 | - 40% |
Zinc assets | |||
Kazzinc | 537 | 561 | - 4% |
Australia | 179 | 105 | 70% |
Europe | 166 | 242 | - 31% |
North America | 188 | 413 | - 54% |
Antamina | 44 | 42 | 5% |
Other Zinc | 64 | 203 | - 68% |
Zinc | 1 178 | 1 566 | - 25% |
Nickel assets | |||
Integrated Nickel Operations | 460 | 783 | - 41% |
Falcondo | - 10 | 32 | - 131% |
Australia | - 389 | - 233 | 67% |
Nickel | 61 | 582 | - 90% |
US $ million | 2012 | 2011 | Change |
Aluminium/Alumina | - 4 | 50 | - 108% |
Ferroalloys | - 12 | 153 | - 108% |
Iron ore | - 11 | - 11 | 0% |
Other share of income from associates and dividends (including Lonmin) | - 1 | 71 | n.m. |
Metals and minerals Adjusted EBIT - segmental measure | 3 888 | 6 873 | - 43% |
JVs adjustments | - 525 | - 395 | n.m. |
Metals and minerals Adjusted EBIT - statutory measure | 3 363 | 6 478 | - 48% |
Sustaining capex | |||
Copper assets | |||
African copper | 250 | 221 | |
Collahuasi 1 | 163 | 165 | |
Antamina 1 | 61 | 26 | |
Other South America 2 | 232 | 165 | |
Australia and Asia | 381 | 271 | |
North America | 86 | 90 | |
Copper | 1 173 | 938 | |
Zinc assets | |||
Kazzinc | 254 | 280 | |
Australia | 505 | 431 | |
Europe | 46 | 46 | |
North America | 15 | 35 | |
Other Zinc | 133 | 91 | |
Zinc | 953 | 883 | |
Nickel assets | |||
Integrated Nickel Operations | 246 | 248 | |
Falcondo | 6 | 3 | |
Australia | 80 | 112 | |
Nickel | 332 | 363 | |
Aluminium/Alumina | 25 | 20 | |
Ferroalloys | 124 | 137 | |
Total sustaining capex | 2 607 | 2 341 | |
Expansion capex | |||
Copper assets | |||
African copper | 611 | 273 | |
Collahuasi 1 | 128 | 219 | |
Antamina 1 | 172 | 194 | |
Other South America 2 | 1 944 | 1 637 | |
Australia and Asia | 460 | 404 | |
North America | 18 | 18 | |
Copper | 3 333 | 2 745 | |
US $ million | 2012 | 2011 | |
Zinc assets | |||
Kazzinc | 87 | 159 | |
Australia | 686 | 305 | |
Europe | 82 | 55 | |
North America | 122 | 48 | |
Other Zinc | 102 | 5 | |
Zinc | 1 079 | 572 | |
Nickel assets | |||
Integrated Nickel Operations | 279 | 89 | |
Falcondo | 3 | 12 | |
Australia | 71 | 86 | |
Koniambo | 1 199 | 1 164 | |
Other nickel projects | 13 | - | |
Nickel | 1 565 | 1 351 | |
Ferroalloys | 290 | 250 | |
Iron ore | 148 | 171 | |
Total expansion capex | 6 415 | 5 089 | |
Total capex | |||
Copper assets | |||
African copper | 861 | 494 | |
Collahuasi 1 | 291 | 384 | |
Antamina 1 | 233 | 220 | |
Other South America 2 | 2 176 | 1 802 | |
Australia and Asia | 841 | 675 | |
North America | 104 | 108 | |
Copper | 4 506 | 3 683 | |
Zinc assets | |||
Kazzinc | 341 | 439 | |
Australia | 1 191 | 736 | |
Europe | 128 | 101 | |
North America | 137 | 83 | |
Other Zinc | 235 | 96 | |
Zinc | 2 032 | 1 455 | |
Nickel assets | |||
Integrated Nickel Operations | 525 | 337 | |
Falcondo | 9 | 15 | |
Australia | 151 | 198 | |
Koniambo | 1 199 | 1 155 | |
Other nickel projects | 13 | 9 | |
Nickel | 1 897 | 1 714 | |
Aluminium/Alumina | 25 | 20 | |
Ferroalloys | 414 | 387 | |
Iron ore | 148 | 171 | |
Total capex | 9 022 | 7 430 | |
1 Represents the Group's share of capex in these JVs 2 Includes Las Bambas |
Pro forma production data
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Total Zinc contained | MT | 1 589.9 | 894.8 | 2 484.7 | 1 609.1 | 885.1 | 2 494.2 | - 1% |
Total Copper contained | MT | 1 202.5 | 786.2 | 1 988.7 | 1 325.9 | 943.7 | 2 269.6 | - 9% |
Total Lead contained | MT | 320.6 | 288.0 | 608.6 | 308.4 | 272.8 | 581.2 | 4% |
Total Tin contained | MT | 1.1 | - | 1.1 | 2.2 | - | 2.2 | - 50% |
Total Gold (incl. Gold equivalents) 2 | toz | 1 559 | 753 | 2 312 | 1 700 | 610 | 2 310 | - 8% |
Total Alumina | MT | - | 1 379 | 1 379 | - | 1 460 | 1 460 | n.m. |
Total Ferro manganese | MT | - | 17.3 | 17.3 | - | - | - | n.m. |
Total Silicon manganese | MT | - | 15.9 | 15.9 | - | - | - | n.m. |
Total Nickel contained | MT | 109.3 | 100.9 | 210.2 | 106.1 | 96.8 | 202.9 | 3% |
Total Cobalt | MT | 14.3 | 4.2 | 18.5 | 14.2 | 3.8 | 18.0 | 1% |
Total Ferrochrome | MT | 938 | - | 938 | 1 021 | - | 1 021 | - 8% |
Total Platinum | toz | 80 | - | 80 | 92 | - | 92 | - 13% |
Total Palladium | toz | 45 | - | 45 | 47 | - | 47 | - 4% |
Total Rhodium | toz | 14 | - | 14 | 15 | - | 15 | - 7% |
COPPER ASSETS
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
African copper (Katanga, Mutanda, Mopani, Sable) | ||||||||
Katanga | ||||||||
Copper metal 3 | MT | 93.0 | - | 93.0 | 91.2 | - | 91.2 | 2% |
Cobalt | MT | 2.1 | - | 2.1 | 2.4 | - | 2.4 | - 13% |
Mutanda | ||||||||
Copper metal 3 | MT | 87.0 | - | 87.0 | 63.7 | - | 63.7 | 37% |
Cobalt4 | MT | 8.5 | - | 8.5 | 7.9 | - | 7.9 | 8% |
Mopani | ||||||||
Copper metal | MT | 99.0 | 88.1 | 187.1 | 101.4 | 103.0 | 204.4 | - 2% |
Cobalt | MT | 0.1 | 0.2 | 0.3 | 0.6 | 0.3 | 0.9 | - 83% |
Other | ||||||||
Copper metal | MT | - | 8.8 | 8.8 | - | 2.0 | 2.0 | n.m. |
Cobalt 4 | MT | - | 0.7 | 0.7 | - | 0.2 | 0.2 | n.m. |
Total Copper metal 3 | MT | 279.0 | 96.9 | 375.9 | 256.3 | 105.0 | 361.3 | 9% |
Total Cobalt4 | MT | 10.7 | 0.9 | 11.6 | 10.9 | 0.5 | 11.4 | - 2% |
Collahuasi (Chile) 5 | ||||||||
Copper metal | MT | 16.2 | - | 16.2 | 15.8 | - | 15.8 | 3% |
Copper in concentrates | MT | 107.9 | - | 107.9 | 183.6 | - | 183.6 | - 41% |
Silver in concentrates | toz | 1 334 | - | 1 334 | 1 786 | - | 1 786 | - 25% |
Antamina (Peru) 6 | ||||||||
Copper in concentrates | MT | 150.8 | - | 150.8 | 112.6 | - | 112.6 | 34% |
Silver in concentrates | toz | 4 203 | - | 4 203 | 3 646 | - | 3 646 | 15% |
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Other South America (Alumbrera, Lomas Bayas, Altonorte, Tintaya, Antapaccay, Punitaqui) | ||||||||
Alumbrera (Argentina) | ||||||||
Copper in concentrates | MT | 135.7 | - | 135.7 | 116.7 | - | 116.7 | 16% |
Gold in concentrates and in doré | toz | 364 | - | 364 | 356 | - | 356 | 2% |
Silver in concentrates and in doré | toz | 1 487 | - | 1 487 | 1 015 | - | 1 015 | 47% |
Lomas Bayas (Chile) | ||||||||
Copper metal | MT | 73.3 | - | 73.3 | 73.6 | - | 73.6 | - |
Altonorte (Chile) | ||||||||
Copper anode 7 | MT | - | 270.2 | 270.2 | - | 311.0 | 311.0 | n.m. |
Tintaya/Antapaccay (Peru) | ||||||||
Copper metal | MT | 8.8 | - | 8.8 | 21.0 | - | 21.0 | - 58% |
Copper in concentrates | MT | 43.0 | - | 43.0 | 74.3 | - | 74.3 | - 42% |
Gold in concentrates | toz | 17 | - | 17 | 33 | - | 33 | - 48% |
Silver in concentrates | toz | 501 | - | 501 | 870 | - | 870 | - 42% |
Other | ||||||||
Copper metal | MT | 11.9 | - | 11.9 | 9.7 | - | 9.7 | 23% |
Silver in concentrates | toz | 179 | - | 179 | 210 | - | 210 | - 15% |
Total Copper metal | MT | 82.1 | - | 82.1 | 94.6 | - | 94.6 | - 13% |
Total Copper anode 7 | MT | - | 157.2 | 157.2 | - | 244.2 | 244.2 | n.m. |
Total Copper in concentrates | MT | 190.6 | - | 190.6 | 200.7 | - | 200.7 | - 5% |
Total Gold in concentrates and in doré | toz | 381 | - | 381 | 389 | - | 389 | - 2% |
Total Silver in concentrates and in doré | toz | 2 167 | - | 2 167 | 2 095 | - | 2 095 | 3% |
Australia and Asia (Ernest Henry, Mount Isa, Cobar, Pasar) | ||||||||
Ernest Henry | ||||||||
Copper in concentrates | MT | 34.1 | - | 34.1 | 100.3 | - | 100.3 | - 66% |
Gold in concentrates | toz | 40 | - | 40 | 129 | - | 129 | - 69% |
Silver in concentrates | toz | 194 | - | 194 | 449 | - | 449 | - 57% |
Mount Isa | ||||||||
Copper metal | MT | 136.3 | 130.5 | 266.8 | 148.8 | 127.8 | 276.6 | - 8% |
Copper in concentrates | MT | 6.4 | - | 6.4 | - | - | - | n.m. |
Silver in concentrates | toz | 724 | - | 724 | 726 | - | 726 | - |
Other | ||||||||
Copper metal | MT | - | 89.6 | 89.6 | - | 162.2 | 162.2 | n.m. |
Copper in concentrates | MT | 34.5 | - | 34.5 | 44.7 | - | 44.7 | - 23% |
Silver in concentrates | toz | 360 | - | 360 | 409 | - | 409 | - 12% |
Total Copper metal | MT | 136.3 | 220.1 | 356.4 | 148.8 | 290.0 | 438.8 | - 8% |
Total Copper in concentrates | MT | 75.0 | - | 75.0 | 145.0 | - | 145.0 | - 48% |
Total Gold in concentrates | toz | 40 | - | 40 | 129 | - | 129 | - 69% |
Total Silver in concentrates | toz | 1 278 | - | 1 278 | 1 584 | - | 1 584 | - 19% |
North America (CCR, Horne, Kidd) | ||||||||
CCR/Horne | ||||||||
Copper metal | MT | - | 265.5 | 265.5 | - | 264.0 | 264.0 | n.m. |
Kidd | ||||||||
Copper in concentrates | MT | 34.4 | - | 34.4 | 42.3 | - | 42.3 | - 19% |
Zinc in concentrates | MT | 78.1 | - | 78.1 | 71.5 | - | 71.5 | 9% |
Silver in concentrates | toz | 2 877 | - | 2 877 | 2 602 | - | 2 602 | 11% |
Total Copper metal | MT | - | 265.5 | 265.5 | - | 264.0 | 264.0 | n.m. |
Total Copper in concentrates | MT | 34.4 | - | 34.4 | 42.3 | - | 42.3 | - 19% |
Total Zinc in concentrates | MT | 78.1 | - | 78.1 | 71.5 | - | 71.5 | 9% |
Total Silver in concentrates | toz | 2 877 | - | 2 877 | 2 602 | - | 2 602 | 11% |
ZINC ASSETS
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Kazzinc (Kazakhstan) | ||||||||
Zinc metal | MT | 227.3 | 74.0 | 301.3 | 246.0 | 54.8 | 300.8 | - 8% |
Lead metal | MT | 26.8 | 55.7 | 82.5 | 35.6 | 66.2 | 101.8 | - 25% |
Copper metal | MT | 49.6 | 3.0 | 52.6 | 51.2 | 1.8 | 53.0 | - 3% |
Gold | toz | 474 | 87 | 561 | 390 | 39 | 429 | 22% |
Silver | toz | 4 777 | 15 031 | 19 808 | 4 299 | 5 571 | 9 870 | 11% |
Australia (Mount Isa, McArthur River) | ||||||||
Mount Isa | ||||||||
Zinc in concentrates | MT | 390.4 | - | 390.4 | 357.0 | - | 357.0 | 9% |
Lead in concentrates | MT | 153.1 | - | 153.1 | 130.7 | - | 130.7 | 17% |
Silver in lead bullion | toz | 5 927 | 951 | 6 878 | 5 516 | 1 029 | 6 545 | 7% |
McArthur River | ||||||||
Zinc in concentrates | MT | 202.1 | - | 202.1 | 194.1 | - | 194.1 | 4% |
Lead in concentrates | MT | 40.4 | - | 40.4 | 38.3 | - | 38.3 | 5% |
Silver in concentrates | toz | 1 820 | - | 1 820 | 1 594 | - | 1 594 | 14% |
Total Zinc in concentrates | MT | 592.5 | - | 592.5 | 551.1 | - | 551.1 | 8% |
Total Lead in concentrates | MT | 193.5 | - | 193.5 | 169.0 | - | 169.0 | 14% |
Total Silver in lead bullion | toz | 5 927 | 951 | 6 878 | 5 516 | 1 029 | 6 545 | 7% |
Total Silver in concentrates | toz | 1 820 | - | 1 820 | 1 594 | - | 1 594 | 14% |
Europe (Portovesme, San Juan de Nieva, Nordenham, Northfleet) | ||||||||
Total Zinc metal | MT | 22.2 | 736.8 | 759.0 | 30.6 | 744.9 | 775.5 | - 27% |
Total Zinc in oxide | MT | 35.9 | - | 35.9 | 21.2 | - | 21.2 | 69% |
Total Lead metal | MT | - | 156.9 | 156.9 | - | 130.1 | 130.1 | n.m. |
Total Silver | toz | - | 7 249 | 7 249 | - | 5 381 | 5 381 | n.m. |
North America (Brunswick, CEZ Refinery, Perseverance) | ||||||||
Brunswick mine | ||||||||
Zinc in concentrates | MT | 185.7 | 4.7 | 190.4 | 209.0 | - | 209.0 | - 11% |
Lead in concentrates | MT | 50.9 | 0.9 | 51.8 | 56.8 | - | 56.8 | - 10% |
Copper in concentrates | MT | 7.8 | 0.3 | 8.1 | 8.8 | - | 8.8 | - 11% |
Silver in concentrates | toz | 2 689 | 62 | 2 751 | 2 980 | - | 2 980 | - 10% |
Brunswick Smelting | ||||||||
Lead metal | MT | - | 74.5 | 74.5 | - | 76.5 | 76.5 | n.m. |
Silver | toz | - | 12 359 | 12 359 | - | 13 434 | 13 434 | n.m. |
CEZ Refinery 8 | ||||||||
Zinc metal | MT | - | 72.6 | 72.6 | - | 72.4 | 72.4 | n.m. |
Perseverance mine | ||||||||
Zinc in concentrates | MT | 125.2 | - | 125.2 | 135.0 | - | 135.0 | - 7% |
Copper in concentrates | MT | 10.9 | - | 10.9 | 9.8 | - | 9.8 | 11% |
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Total Zinc metal | MT | - | 72.6 | 72.6 | - | 72.4 | 72.4 | n.m. |
Total Zinc in concentrates | MT | 310.9 | 4.7 | 315.6 | 344.0 | - | 344.0 | - 10% |
Total Lead metal | MT | - | 74.5 | 74.5 | - | 76.5 | 76.5 | n.m. |
Total Lead in concentrates | MT | 50.9 | 0.9 | 51.8 | 56.8 | - | 56.8 | - 10% |
Total Copper in concentrates | MT | 18.7 | 0.3 | 19.0 | 18.6 | - | 18.6 | 1% |
Total Silver | toz | 2 689 | 12 421 | 15 110 | 2 980 | 13 434 | 16 414 | - 10% |
Antamina (Peru) 6 | ||||||||
Zinc in concentrates | MT | 73.9 | - | 73.9 | 79.4 | - | 79.4 | - 7% |
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Rosh Pinah) | ||||||||
Zinc metal | MT | 30.8 | 6.7 | 37.5 | 30.5 | 13.0 | 43.5 | 1% |
Zinc in concentrates | MT | 218.3 | - | 218.3 | 234.8 | - | 234.8 | - 7% |
Lead metal | MT | 11.8 | - | 11.8 | 11.9 | - | 11.9 | - 1% |
Lead in concentrates | MT | 37.6 | - | 37.6 | 35.1 | - | 35.1 | 7% |
Copper in concentrates | MT | 1.7 | - | 1.7 | 0.8 | - | 0.8 | 113% |
Silver metal | toz | 783 | - | 783 | 754 | - | 754 | 4% |
Silver in concentrates | toz | 7 681 | - | 7 681 | 8 394 | - | 8 394 | - 8% |
Tin in concentrates | MT | 1.1 | - | 1.1 | 2.2 | - | 2.2 | - 50% |
NICKEL ASSETS
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk) | ||||||||
Sudbury - Mine/mill | ||||||||
Nickel in concentrates | MT | 20.4 | 6.2 | 26.6 | 19.8 | 2.9 | 22.7 | 3% |
Copper in concentrates | MT | 52.5 | 5.3 | 57.8 | 47.5 | 2.4 | 49.9 | 11% |
Cobalt in concentrates | MT | 0.3 | 0.2 | 0.5 | 0.3 | 0.1 | 0.4 | - |
Raglan | ||||||||
Nickel in concentrates | MT | 28.6 | - | 28.6 | 27.3 | - | 27.3 | 5% |
Copper in concentrates | MT | 7.1 | - | 7.1 | 7.2 | - | 7.2 | - 1% |
Cobalt in concentrates | MT | 0.6 | - | 0.6 | 0.6 | - | 0.6 | - |
Nikkelverk | ||||||||
Nickel metal | MT | - | 91.7 | 91.7 | - | 92.4 | 92.4 | n.m. |
Copper metal | MT | - | 37.9 | 37.9 | - | 36.3 | 36.3 | n.m. |
Cobalt metal | MT | - | 3.0 | 3.0 | - | 3.1 | 3.1 | n.m. |
Total Nickel metal | MT | - | 91.7 | 91.7 | - | 92.4 | 92.4 | n.m. |
Total Nickel in concentrates | MT | 49.0 | 6.2 | 55.2 | 47.1 | 2.9 | 50.0 | 4% |
Total Copper metal | MT | - | 37.9 | 37.9 | - | 36.3 | 36.3 | n.m. |
Total Copper in concentrates | MT | 59.6 | 5.3 | 64.9 | 54.7 | 2.4 | 57.1 | 9% |
Total Cobalt metal | MT | - | 3.0 | 3.0 | - | 3.1 | 3.1 | n.m. |
Total Cobalt in concentrates | MT | 0.9 | 0.2 | 1.1 | 0.9 | 0.1 | 1.0 | - |
Falcondo | ||||||||
Nickel in ferronickel | MT | 15.2 | - | 15.2 | 13.5 | - | 13.5 | 13% |
Australia (XNA, Murrin Murrin) | ||||||||
Total Nickel metal | MT | 33.4 | 3.0 | 36.4 | 28.5 | 1.5 | 30.0 | 17% |
Total Nickel in concentrates | MT | 11.7 | - | 11.7 | 17.0 | - | 17.0 | - 31% |
Total Copper in concentrates | MT | 0.6 | - | 0.6 | 0.9 | - | 0.9 | - 33% |
Total Cobalt metal | MT | 2.4 | 0.1 | 2.5 | 2.0 | 0.1 | 2.1 | 20% |
Total Cobalt in concentrates | MT | 0.3 | - | 0.3 | 0.4 | - | 0.4 | - 25% |
Aluminium/Alumina assets
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Sherwin | ||||||||
Alumina | MT | - | 1 379 | 1 379 | - | 1 460 | 1 460 | n.m. |
Ferroalloys assets
thousand ¹ | Using feed from own sources | Using feed from third partysources | 2012 Total | Using feed from own sources | Using feed from third partysources | 2011 Total | Own feed change | |
Ferro manganese | MT | - | 17.3 | 17.3 | - | - | - | n.m. |
Silicon manganese | MT | - | 15.9 | 15.9 | - | - | - | n.m. |
Ferrochrome 9 | MT | 938 | - | 938 | 1 021 | - | 1 021 | - 8% |
Platinum 10 | toz | 80 | - | 80 | 92 | - | 92 | - 13% |
Palladium 10 | toz | 45 | - | 45 | 47 | - | 47 | - 4% |
Rhodium 10 | toz | 14 | - | 14 | 15 | - | 15 | - 7% |
1 Controlled industrial assets and JVs only. Production is on a 100% basis, except as stated. 2 Gold/Silver conversion ratios of 1/53.54 and 1/44.53 for 2012 and 2011 respectively based on average prices. 3 Copper metal includes copper contained in copper concentrates and blister copper. 4 Cobalt contained in concentrates and hydroxides. 5 The Group's pro-rata share of Collahuasi production (44%) 6 The Group's pro-rata share of Antamina production (33.75%) 7 113,000 tonnes (2011: 66,800 tonnes) of copper anode produced at Altonorte is refined to produce copper cathode at either Mount Isa or CCR and hence is excluded from the totals 8 The Group's pro-rata share of CEZ production (25%) 9Reflects the Group's 79.5% share of the Xstrata-Merafe Chrome Venture 10Consolidated 100% of Eland and 50% of Mototolo | ||||||||
3 | Energy Products
US $ million | Marketing activities | Industrial activities | 2012 | Marketing activities | Industrial activities | 2011 |
Revenue | 131 871 | 13 726 | 145 597 | 113 080 | 12 290 | 125 370 |
Adjusted EBITDA | 494 | 3 973 | 4 467 | 724 | 4 428 | 5 152 |
Adjusted EBIT | 435 | 2 429 | 2 864 | 697 | 3 189 | 3 886 |
Adjusted EBITDA margin | 0.4% | 28.9% | 3.1% | 0.6% | 36.0% | 4.1% |
Market conditions
Selected average commodity prices
2012 | 2011 | Change | ||
S&P GSCI Energy Index | 330 | 333 | - 1% | |
Coal API2 ($/t) | 93 | 122 | - 24% | |
Coal API4 ($/t) | 93 | 116 | - 20% | |
Australian coking coal average realised export price ($/t) | 198 | 265 | - 25% | |
Australian thermal coal average realised export price ($/t) | 102 | 110 | - 7% | |
Australian thermal coal average realised domestic price ($/t) | 41 | 43 | - 5% | |
Australian semi-soft coal average realised export price ($/t) | 159 | 202 | - 21% | |
South African thermal coal average realised export price ($/t) | 96 | 101 | - 5% | |
South African thermal coal average realised domestic price ($/t) | 29 | 32 | - 9% | |
Cerrejon (Colombia) thermal coal average realised export price ($/t) | 89 | 101 | - 12% | |
Prodeco (Colombia) thermal coal average realised export price ($/t) | 85 | 95 | - 11% | |
Oil price - Brent ($/bbl) | 112 | 111 | 1% | |
Marketing
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | 131 871 | 113 080 | 17% |
Adjusted EBITDA | 494 | 724 | - 32% |
Adjusted EBIT | 435 | 697 | - 38% |
Selected marketing volumes sold
million | 2012 | 2011 | Change |
Thermal coal (MT) | 78.3 | 91.0 | - 14% |
Metallurgical coal (MT) | 4.1 | 4.1 | - |
Coke (MT) | 0.2 | 0.3 | - 33% |
Crude oil (bbls) | 421.4 | 271.4 | 55% |
Oil products (bbls) | 742.2 | 577.8 | 28% |
Industrial activities
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | |||
Coking Australia | 1 675 | 1 924 | - 13% |
Thermal Australia | 5 915 | 5 668 | 4% |
Thermal South Africa | 2 648 | 1 632 | 62% |
Prodeco | 1 216 | 1 344 | - 10% |
Cerrejon | 970 | 1 080 | - 10% |
Total coal | 12 424 | 11 648 | 7% |
Oil | 1 302 | 642 | 103% |
Energy products revenue - segmental measure | 13 726 | 12 290 | 12% |
JVs adjustment | - 971 | - 1 080 | n.m. |
Energy products revenue - statutory measure | 12 755 | 11 210 | 14% |
Adjusted EBITDA | |||
Coking Australia | 414 | 1 019 | - 59% |
Thermal Australia | 1 664 | 1 928 | - 14% |
Thermal South Africa | 808 | 455 | 78% |
Prodeco | 150 | 418 | - 64% |
Cerrejon | 416 | 526 | - 21% |
Total coal | 3 452 | 4 346 | - 21% |
Adjusted EBITDA margin | 28% | 37% | |
Oil | 488 | 23 | n.m. |
Adjusted EBITDA margin | 37% | 4% | |
Share of income from associates and joint ventures | 33 | 59 | - 44% |
Energy products Adjusted EBITDA - segmental measure | 3 973 | 4 428 | - 10% |
Adjusted EBITDA margin | 29% | 36% | |
JVs adjustment | - 188 | - 247 | n.m. |
Energy products Adjusted EBITDA - statutory measure | 3 785 | 4 181 | - 9% |
Adjusted EBIT | |||
Coking Australia | 280 | 889 | -69% |
Thermal Australia | 907 | 1 332 | -32% |
Thermal South Africa | 486 | 209 | 133% |
Prodeco | - 4 | 281 | n.m. |
Cerrejon | 320 | 429 | - 25% |
Total coal | 1 989 | 3 140 | - 37% |
Oil | 407 | - 10 | n.m. |
Share of income from associates and joint ventures | 33 | 59 | - 44% |
Energy products Adjusted EBIT - segmental measure | 2 429 | 3 189 | - 24% |
JVs adjustment | - 92 | - 150 | n.m. |
Energy products Adjusted EBIT - statutory measure | 2 337 | 3 039 | - 23% |
US $ million | 2012 | 2011 | |
Sustaining capex | |||
Australia (Thermal and coking) | 833 | 641 | |
Thermal South Africa | 213 | 104 | |
Prodeco | 13 | 50 | |
Cerrejon 1 | 79 | 85 | |
Total coal | 1 138 | 880 | |
Expansion capex | |||
Australia (Thermal and coking) | 1 694 | 984 | |
Thermal South Africa | 393 | 177 | |
Prodeco | 282 | 460 | |
Cerrejon 1 | 135 | 28 | |
Various projects | 29 | 4 | |
Total coal | 2 533 | 1 653 | |
Oil | 311 | 706 | |
Total | 2 844 | 2 359 | |
Total capex | |||
Australia (Thermal and coking) | 2 527 | 1 625 | |
Thermal South Africa | 606 | 281 | |
Prodeco | 295 | 510 | |
Cerrejon 1 | 214 | 113 | |
Various projects | 29 | 4 | |
Total coal | 3 671 | 2 533 | |
Oil | 311 | 706 | |
Total | 3 982 | 3 239 | |
1 Represents the Group's share of capex in this JV |
Pro forma production data
Coal assets
Million MT 1, 2 |
Own | Buy-in Coal | 2012 Total |
Own | Buy-in Coal | 2011 Total | Own production change |
Australian coking coal | 6.9 | - | 6.9 | 7.6 | - | 7.6 | - 9% |
Australian thermal coal (Export) | 43.8 | - | 43.8 | 37.1 | - | 37.1 | 18% |
Australian thermal coal (Domestic) | 5.1 | - | 5.1 | 7.4 | - | 7.4 | - 31% |
Australian semi-soft coal | 4.3 | - | 4.3 | 5.3 | - | 5.3 | - 19% |
South African thermal coal 3
(Export) | 21.1 | - | 21.1 | 9.6 | - | 9.6 | 120% |
South African thermal coal 3
(Domestic) | 24.7 | 1.6 | 26.3 | 12.4 | 0.8 | 13.2 | 99% |
Prodeco (Colombia) thermal coal | 14.8 | 0.1 | 14.9 | 14.6 | 0.2 | 14.8 | 1% |
Cerrejon (Colombia) thermal coal 4
| 11.6 | - | 11.6 | 10.8 | - | 10.8 | 7% |
Total coal | 132.2 | 1.8 | 134.0 | 104.8 | 1.0 | 105.8 | 26% |
1Controlled industrial assets and JVs only. Production is on a 100% basis except for JVs, where the Group's attributable share of production is included. 2As of 31 December 2012, 48 million tonnes had been sold forward at an average price of $ 93 per tonne. 3South African thermal coal production in 2011 has been reported exclusive of Mpumalanga tonnes. The Mpumulanga assets were sold effective 31 December 2011 and they produced one million tonnes for the 12 month period. 4The Group's pro-rata share of Cerrejón production (33.3%). | |||||||
OiL assets
thousand bbls | 2012 Total | 2011 Total | Change |
Oil 1 | |||
Block I | 22 570 | 2 785 | 710% |
Total | 22 570 | 2 785 | 710% |
1On a 100% basis. The Group's ownership interest in the Aseng field is 23.75%. | |||
4 | Agricultural products
US $ million | Marketing activities | Industrial activities | 2012 | Marketing activities | Industrial activities | 2011 |
Revenue | 17 751 | 3 074 | 20 825 | 13 744 | 3 359 | 17 103 |
Adjusted EBITDA | 394 | 59 | 453 | - 8 | 23 | 15 |
Adjusted EBIT | 371 | - 10 | 361 | - 8 | - 39 | - 47 |
Adjusted EBITDA margin | 2.2% | 1.9% | 2.2% | - 0.1% | 0.7% | 0.1% |
Market conditions
Selected average commodity prices
2012 | 2011 | Change | ||||
S&P GSCI Agriculture Index | 459 | 490 | - 6% | |||
CBOT wheat price (US¢/bu) | 751 | 709 | 6% | |||
CBOT corn no.2 price (US¢/bu) | 695 | 680 | 2% | |||
CBOT soya beans (US¢/bu) | 1 466 | 1 317 | 11% | |||
ICE cotton price (US¢/lb) | 80 | 137 | - 42% | |||
NYMEX sugar # 11 price (US¢/lb) | 22 | 27 | - 19% |
MARKETING
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | 17 751 | 13 744 | 29% |
Adjusted EBITDA | 394 | - 8 | n.m. |
Adjusted EBIT | 371 | - 8 | n.m. |
Selected marketing volumes sold
million MT | 2012 | 2011 | Change |
Grains | 30.9 | 25.3 | 22% |
Oil/oilseeds | 13.6 | 10.8 | 26% |
Cotton | 0.5 | 0.5 | - |
Sugar | 0.9 | 0.7 | 29% |
Industrial activities
Financial information
US $ million | 2012 | 2011 | Change |
Revenue | 3 074 | 3 359 | - 8% |
Adjusted EBITDA | 59 | 23 | 157% |
Adjusted EBIT | - 10 | - 39 | n.m. |
Adjusted EBITDA margin | 1.9% | 0.7% | |
Sustaining capex | 93 | 127 | |
Expansionary capex | 167 | 94 | |
Total capex | 260 | 221 |
Production data
thousand MT | 2012 Total | 2011 Total | Change |
Farming | 674 | 827 | - 19% |
Oilseed crushing | 2 779 | 2 008 | 38% |
Oilseed crushing long term toll agreement | 876 | 948 | - 8% |
Biodiesel | 534 | 569 | - 6% |
Rice milling | 248 | 304 | - 18% |
Wheat milling | 1 061 | 1 001 | 6% |
Sugarcane processing | 1 256 | 906 | 39% |
Total | 7 428 | 6 563 | 13% |
5 |Pro forma net asset statement, income statement and cash flow statement
Unaudited Pro Forma Financial Information of the Group
The unaudited pro forma condensed combined financial information (the "pro forma financial information") comprises (i) a statement of net assets of the Group as at 31 December 2012 (ii) an income statement of the Group for the year ended 31 December 2012 and (iii) a cashflow statement of the Group for the year ended 31 December 2012 in each case prepared on the basis of the notes set out below. The unaudited pro forma statement of net assets has been prepared to illustrate the effect of the Merger on the balance sheet of Glencore as if the Merger had taken place on 31 December 2012 and the unaudited pro forma income statement and cashflow statement have been prepared to illustrate the effects of the Merger on the profit from continuing operations of Glencore for the year ended 31 December 2012 as if the Merger had taken place on 1 January 2012.
The pro forma financial information has been prepared in a manner consistent with the accounting policies adopted by Glencore in preparing the audited financial statements for the year ended 31 December 2012.
The pro forma financial information has been prepared for illustrative purposes only and, because of its nature, addresses a hypothetical situation and therefore does not reflect the Group's actual financial position or results.
5.1. Unaudited Pro Forma Statement of Net Assets as at 31 December 2012
US $ million | Adjustments | ||||||
Glencore (as reported) | Xstrata (as reported) | Accounting policy alignment adjustments | Alignment of balance sheet captions adjustments | Intra-Group adjustments | Acquisition accounting adjustments | Pro forma net assets of the Group as at 31 December 2012 | |
Note | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Asset | |||||||
Non-current assets | |||||||
Intangible assets | 2 664 | 7 414 | - 1 968 | - | - | 169 | 8 279 |
Property, plant and equipment | 23 238 | 59 937 | - 10 104 | 26 | - | - | 73 097 |
Biological assets | - | 24 | - | - 24 | - | - | - |
Inventories | - | 2 | - | - 2 | - | - | - |
Accounts receivable | - | 400 | - 21 | - 379 | - | - | - |
Investments in associates and jointly controlled entities | 18 767 | 1 018 | 10 431 | - | - 16 215 | - | 14 001 |
Other investments | 1 589 | 336 | - 3 | - | - | - | 1 922 |
Derivative financial assets | - | 771 | - | - 771 | - | - | - |
Advances and loans and other financial assets | 3 758 | 717 | - | 1 198 | - | - | 5 673 |
Prepayments | - | 48 | - | - 48 | - | - | - |
Deferred tax assets | 1 462 | 16 | - 10 | - | - | - | 1 468 |
51 478 | 70 683 | - 1 675 | - | - 16 215 | 169 | 104 440 | |
US $ million | Adjustments | ||||||
Glencore (as reported) | Xstrata (as reported) | Accounting policy alignment adjustments | Alignment of balance sheet captions adjustments | Intra-Group adjustments | Acquisition accounting adjustments | Pro forma net assets of the Group as at 31 December 2012 | |
Current assets | |||||||
Inventories | 20 682 | 6 031 | - 309 | - | - | - | 26 404 |
Accounts receivable | 24 882 | 3 865 | - 513 | - | - 804 | - | 27 430 |
Other financial assets | 2 650 | 38 | - | - | - | - | 2 688 |
Prepaid expenses and other assets | 235 | 314 | - 6 | - | - | - | 543 |
Marketable securities | 38 | - | - | - | - | - | 38 |
Income taxes receivable | - | 163 | - | - | - | - | 163 |
Cash and cash equivalents | 2 782 | 1 983 | - 168 | - | - | - 86 | 4 511 |
51 269 | 12 394 | - 996 | - | - 804 | - 86 | 61 777 | |
Assets held for sale | 2 790 | 36 | - | - | - | - | 2 826 |
54 059 | 12 430 | - 996 | - | - 804 | - 86 | 64 603 | |
Total assets | 105 537 | 83 113 | - 2 671 | - | - 17 019 | 83 | 169 043 |
Liabilites | |||||||
Non-current liabilities | |||||||
Accounts payable | - | 45 | - | - 45 | - | - | - |
Borrowings | 19 028 | 16 344 | - 41 | - | - | - | 35 331 |
Deferred income | 601 | - | - | 8 | - | - | 609 |
Derivative financial liabilities | - | 351 | - | - 351 | - | - | - |
Other financial liabilities | - | 867 | - 8 | 396 | - | - | 1 255 |
Provisions | 1 504 | 4 698 | - 103 | 704 | - | - | 6 803 |
Pension deficit | - | 704 | - | - 704 | - | - | - |
Deferred tax liabilities | 2 955 | 6 114 | - 2 087 | - | - | - | 6 982 |
Other liabilities | - | 8 | - | - 8 | - | - | - |
24 088 | 29 131 | - 2 239 | - | - | - | 50 980 | |
Current liabilities | |||||||
Accounts payable | 23 501 | 5 285 | - 344 | - | - 804 | - | 27 638 |
Borrowings | 16 498 | 723 | - 79 | - | - | - | 17 142 |
Viterra asset acquirer loans | 2 580 | - | - | - | - | - | 2 580 |
Deferred income | 116 | - | - | 64 | - | - | 180 |
Other financial liabilities | - | 10 | - | - | - | - | 10 |
Provisions | 62 | 700 | - 9 | - | - | - | 753 |
Income taxes payable | 257 | 398 | - | - | - | - | 655 |
Other liabilities | 3 388 | 64 | - | - 64 | - | - | 3 388 |
46 402 | 7 180 | - 432 | - | - 804 | - | 52 346 | |
Liabilities held for sale | 747 | 11 | - | - | - | - | 758 |
Total liabilities | 71 237 | 36 322 | - 2 671 | - | - 804 | - | 104 084 |
Total net assets | 34 300 | 46 791 | - | - | - 16 215 | 83 | 64 959 |
5.2. Unaudited pro forma income statement for the year ended 31 December 2012
US $ million | Adjustments | |||||
Glencore (as reported) | Xstrata (as reported) | Accounting policy alignment adjustments | Intra-Group adjustments | Acquisition accounting adjustments | Pro forma Group | |
Note | 1 | 2 | 3 | 5 | 6 | 7 |
Revenue | 214 436 | 31 618 | - 3 021 | - 9 588 | - | 233 445 |
Cost of goods sold | - 210 435 | - 22 975 | 1 624 | 9 588 | - | - 222 198 |
Selling and administrative expenses | - 997 | - 4 489 | - | - | - | - 5 486 |
Share of income from associates and jointly controlled entities | 367 | - 944 | 780 | - 299 | - | - 96 |
Gain/(loss) on sale of investments | - 128 | - | - | - | - | - 128 |
Other expense - net | - 1 214 | - 978 | - | - | 379 | - 1 813 |
Dividend income | 17 | - | - | - | - | 17 |
Interest income | 401 | 184 | - 1 | - 1 | - | 583 |
Interest expense | - 1 371 | - 409 | 5 | 1 | - | - 1 774 |
Income before income taxes | 1 076 | 2 007 | - 613 | - 299 | 379 | 2 550 |
Income tax credit/(expense) | 76 | - 635 | 613 | - | - | 54 |
Income for the year | 1 152 | 1 372 | - | - 299 | 379 | 2 604 |
Attributable to: | ||||||
Non-controlling interests | 148 | 192 | - | - | - | 340 |
Equity holders | 1 004 | 1 180 | - | - 299 | 379 | 2 264 |
1 152 | 1 372 | - | - 299 | 379 | 2 604 | |
5.3. Unaudited pro forma cashflow statement for the year ended 31 December 2012
US $ million | Adjustments | ||||||
| Glencore (as reported) | Xstrata (as reported) | Accounting policy alignment adjustments | Intra-Group adjustments | Acquisition accounting adjustments | Pro forma Group | |
Note | 1 | 2 | 3 | 5 | 6 | 7 | |
Operating activities | |||||||
Income before income taxes | 1 076 | 2 007 | - 613 | - 299 | 379 | 2 550 | |
Adjustments for: | |||||||
Depreciation and amortisation | 1 473 | 3 332 | - 413 | - | - | 4 392 | |
Share of income from associates and jointlycontrolled entities | - 367 | 944 | - 780 | 299 | - | 96 | |
Loss on sale of investments and other assets | 128 | 148 | - | - | - | 276 | |
Impairments | 1 650 | 1 010 | - | - | - | 2 660 | |
Other non cash items - net | - 148 | 520 | 176 | - | - 379 | 169 | |
Interest expense - net | 970 | 225 | - | - | - | 1 195 | |
Cash generated by operating activities before working capital changes | 4 782 | 8 186 | - 1 630 | - | - | 11 338 | |
Working capital changes | |||||||
Decrease/(increase) in accounts receivable | 720 | - 444 | - | - | - | 276 | |
(Increase)/decrease in inventories | - 1 611 | - 782 | 48 | - | - | - 2 345 | |
Increase/(decrease) in accounts payable | 1 618 | - 346 | 40 | - | - | 1 312 | |
Total working capital changes | 727 | - 1 572 | 88 | - | - | - 757 | |
Income tax paid | - 344 | - 1 345 | 613 | - | - | - 1 076 | |
Interest received | 206 | 103 | - 1 | - | - | 308 | |
Interest paid | - 990 | - 377 | 6 | - | - | - 1 361 | |
Net cash generated/(used) by operating activities | 4 381 | 4 995 | - 924 | - | - | 8 452 | |
Investing activities | |||||||
Purchase of property, plant and equipment and asset acquisitions | - 2 970 | - 10 537 | 738 | - | - | - 12 769 | |
Payments for exploration and evaluation | - 147 | - | - | - | - | - 147 | |
Proceeds from sale of property, plant andequipment and other assets | 112 | 48 | - | - | - | 160 | |
Acquisition of subsidiaries, net of cash acquired | - 6 463 | - | - | - | - | - 6 463 | |
Disposal of subsidiaries | 281 | 426 | - | - | - | 707 | |
Acquisition of additional interest in associates | - | - 202 | - | - | - | - 202 | |
Purchase of investments and available for sale financial assets | - 633 | - 13 | - | - | - | - 646 | |
Proceeds from sale of investments | 23 | - | - | - | - | 23 | |
Purchase of intangible assets | - | - 43 | - | - | - | - 43 | |
Payments of non current advances and loans | - 203 | - | - | - | - | - 203 | |
Dividends received from associates | 461 | - | 135 | - 414 | - | 182 | |
Net cash (used) by investing activities | - 9 539 | - 10 321 | 873 | - 414 | - | - 19 401 | |
Financing activities | |||||||
Net proceeds from disposal/(purchase) of own shares | - | 141 | - | - | - | 141 | |
Viterra asset acquirer loans | 2 580 | - | - | - | - | 2 580 | |
Repayment of bonds, loans and borrowings | - 594 | - 3 995 | 86 | - | - | - 4 503 | |
Proceeds from bonds, loans and borrowings | 3 254 | 10 536 | - | - | - | 13 790 | |
US $ million | Adjustments | ||||||
| Glencore (as reported) | Xstrata (as reported) | Accounting policy alignment adjustments | Intra-Group adjustments | Acquisition accounting adjustments | Pro forma Group | |
Margin receipts in respect of financing related hedging activities | 176 | - | - | - | - | 176 | |
Net proceeds from/(repayment of) current borrowings | 3 463 | - 28 | - | - | - | 3 435 | |
Acquisition of additional interest in subsidiaries | - 669 | - | - | - | - | - 669 | |
Disposal of interest in subsidiaries | 45 | - | - | - | - | 45 | |
Payment of profit participation certificates | - 554 | - | - | - | - | - 554 | |
Dividend paid to non controlling interests | - | - 75 | - | - | - | - 75 | |
Dividend paid to equity holders of the parent | - 1 066 | - 1 210 | - | 414 | - | - 1 862 | |
Net cash generated by financing activities | 6 635 | 5 369 | 86 | 414 | - | 12 504 | |
Increase/(decrease) in cash and cash equivalents | 1 477 | 43 | 35 | - | - | 1 555 | |
Net foreign exchange difference | - | - 8 | - | - | - | - 8 | |
Cash and cash equivalents, beginning of year | 1 305 | 1 943 | - 203 | - | - 86 | 2 959 | |
Cash and cash equivalents, end of year | 2 782 | 1 978 | - 168 | - | - 86 | 4 506 | |
5.4. Notes to the pro forma financial information
(1) The financial information of Glencore as at 31 December 2012 and for the year ended 31 December 2012 has been extracted without adjustment from the 2012 audited consolidated financial statements of Glencore, which are incorporated by reference into this document.
(2) The financial information of Xstrata as at 31 December 2012 and for the year ended 31 December 2012 has been extracted without adjustment from the 2012 audited consolidated financial statements of Xstrata, which are incorporated by reference into this document.
(3) The adjustment reflects the difference in accounting policy of the two groups applied to joint venture entities. Glencore -accounts for its joint venture entities using the equity method of accounting where the share of the joint venture en--tities' income and expenses is aggregated in a single line item in the income statement and where the share of the jointventure entities' assets and liabilities are presented on a net basis in one line in the statement of net assets. Xstrata ap--plies the proportionate consolidation method, where the share of the joint venture entities' income, expenses, assets and -liabilities are presented on a line by line basis in the income statement, the statement of net assets and the cashflow statement. Both methods were allowed under IAS 31 - Interests in Joint Ventures. There is no impact on consolidated profit for the yearor consolidated total equity for the period presented from the change in presentation of Xstrata's interests in joint venture entities from the proportionate consolidation method to the equity method of accounting. This adjustment relates primarily to three of Xstrata's joint ventures - Cerrejón, Antamina and Collahuasi Joint Ventures, which are proportionately consolidated under Xstrata's accounting policies. The Cerrejón and Antamina Joint Ventures would be accounted for as associates under Glencore's accounting policies using the equity method. Collahuasi would be accounted for as an equity accounted joint -venture under Glencore's accounting policies. However, to provide a greater understanding of the underlying results of the Group the segmental analysis is presented including Xstrata's joint ventures - Cerrejón, Antamina and Collahuasi, on a proportional consolidation basis.
The most significant impact on the Group relating to adoption of the Consolidation Standards (effective 1 January 2013) is the determination of joint arrangements ("JAs"), the identification of the type of JA as either a joint venture ("JV") or a joint operation ("JO") and the subsequent applicable accounting treatment. Compared to its predecessor standards, IFRS 11 requires a more prescriptive principle-based approach to be undertaken in determining the type of JA in which the entity engages. The Group will finalise the impact of the new standards on its reporting of affected operations (including Collahuasi, Antamina and Cerrejón) following completion of the Merger.
(4) Reallocation of certain statements of net assets items in order to present Xstrata's statement of net assets on a consistent basis to Glencore:
(a) Non-current assets:
(i) Biological assets (U.S.$ 24 million) and Inventories (U.S.$ 2 million) have been included within Property, plant and equipment (U.S.$ 26 million).
(ii) Accounts receivable (U.S.$ 379 million), Derivative financial assets (U.S.$ 771 million) and Prepayments (U.S.$ 48 million) have been included within Advances and loans and other financial assets (U.S.$ 1,198 million).
(b) Non-current liabilities:
(i) Accounts payable (U.S.$ 45 million) and Derivative financial liabilities (U.S.$ 351 million) have been included within Other financial liabilities (U.S.$ 396 million).
(ii) Pensions deficit (U.S.$ 704 million) has been included within Provisions.
(iii) Other liabilities (U.S.$ 8 million) have been included in Deferred Income.
(c) Current liabilities: Other liabilities (U.S.$ 64 million) have been included within Deferred Income.
(5) These adjustments reflect the impact of eliminating intra-group accounts receivable, accounts payable and the carrying value of Glencore's investment in Xstrata as at 31 December 2012, and eliminating intra-group sales, costs of sales and dividends, Glencore's share of Xstrata's earnings in the year ended 31 December 2012 and financing charges.
(6) (a) The unaudited pro forma statement of net assets has been prepared on the basis that the Merger has been treated as an acquisition of Xstrata by Glencore in accordance with IFRS 3-Business Combinations. The pro forma statement of net assets does not reflect the fair value adjustments to the acquired assets and liabilities assumed, as the fair value measurement of these items only commenced subsequent to the Merger becoming effective and will be finalised in due course. For purposes of the pro forma, the excess purchase consideration over the book value of the net assets acquired has been attributed to goodwill and no pro forma impairment charge has been applied to the goodwill balance in the period presented. The fair value adjustments, when finalised post acquisition, may be material. The preliminary goodwill arising has been calculated as follows:
US $ million | |
Total consideration transferred (i) | 29 478 |
Add fair value of previously held interest in Xstrata (ii) | 15 143 |
Less book value of net assets acquired | - 46 791 |
Add non controlling interest in book value of net assets acquired | 2 339 |
Goodwill (before measurement of the assets acquired and liabilities assumed at their fair value on Closing) | 169 |
(i) The calculation of consideration is based on the closing price of Glencore's ordinary shares of 314.3 pence on 1 May 2013and a USD/GBP exchange rate of 1.5555, both being references to the last close of markets prior to the Merger. There were 1,951,215,574 Xstrata shares in issue not already owned by Glencore or held by Xstrata at completion and each Xstrata share was exchanged for 3.05 Glencore Shares. The calculation of consideration also included the fair value of Xstrata's share options which were exchanged for New Glencore Options.
(ii) The fair value of Glencore's previously held interest in Xstrata is based on the Closing Price of Xstrata's ordinary shares of 963.5 pence on 30 April 2013 and a USD/GBP exchange rate of 1.5555, both being references to the last close of markets prior to the Merger and reflects that Glencore held 1,010,403,999 shares of Xstrata immediately prior to the Merger.
(iii) Had the Merger occurred based upon the preliminary fair value adjustments described above, the impact on Glencore's income before income taxes would have been a decrease of U.S.$ 1,072 million (being the difference between the fair value of Glencore's previously held interest in Xstrata (U.S.$ 15,143 million) and its book value (U.S.$ 16,215 million)). This adjustment has not been included in the pro forma income statement because the purpose of the pro forma income statement is to illustrate the effects of the Merger on the profit from continuing operations of Glencore.
(b) The adjustments reflect the impact of eliminating transaction costs directly associated with the Merger incurred by Glencore (U.S.$ 58 million) and Xstrata (U.S.$ 321 million) during the year ended 31 December 2012.
(c) For purposes of the unaudited pro forma statement of net assets and cash flow statement, transaction costs expected to be incurred by Glencore as a result of the Merger of approximately U.S.$ 86 million have been deducted from cash and cash equivalents.
(7) No adjustments have been made to the unaudited pro forma statement of net assets, income statement or cashflow statement to reflect transactions or activities such as post 31 December 2012 trading results, any expected synergies or costs savings or any other transaction of Glencore or Xstrata since 31 December 2012.
Forward looking statements
This document contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore Xstrata's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results.Important factors that could cause these uncertainties include, but are not limited to, those discussed under "Principal risks and uncertainties" in section 1.7 of Glencore's Annual Report 2012.
Neither Glencore Xstrata nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. Forward looking statements speak only as of the date of this document.
Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited), Glencore Xstrata is not under any obligation and Glencore Xstrata and its affiliates expressly disclaim any intention or obligation to updateor revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, underany circumstances, create any implication that there has been no change in the business or affairs of Glencore Xstrata since the date of this document or that the information contained herein is correct as at any time subsequent to its date.
No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpretedto mean that earnings per Glencore Xstrata share for the current or future financial years would necessarily match or exceed the historicalpublished earnings per Glencore Xstrata share.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this document does not constitute a recommendation regarding any securities.
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