Financial overview

Anglo Coal’s operating profit decreased by 29% to $614 million. This was mainly brought about by a disappointing performance from Australian operations, where port and rail infrastructure constraints across the industry, lower sales prices and an 11% appreciation of the local currency against the dollar resulted in significantly lower earnings.

During the period under review, Anglo Coal Australia has recorded an impairment of $153 million against certain Australian assets to reflect the latest commercial and operational conditions relating to those assets.

$ million (unless otherwise stated) 2007 2006
Operating profit 614 862
South Africa 414 380
Australia 9 279
South America 227 227
Projects and corporate (36) (24)
EBITDA 882 1,082
Net operating assets 3,984 2,870
Capital expenditure 1,052 782
Share of Group operating profit 6% 10%
Share of Group net operating assets 15% 13%

In 2007, Yang Quarry was reclassified from Industrial Minerals to Coal to align with internal management reporting. As such, the comparative data has been reclassified.