Rio Tinto First Half Earnings Up 24% to US$841 Million.Business Editors LONDON--(BUSINESS WIRE)--Aug. 2, 2001 Rio Tinto Rio Tinto may refer to:
See: New York Stock Exchange : RTP (1) (Rapid Transport Protocol) The protocol used in IBM's High Performance Routing (HPR) system. (2) (Realtime Transport Protocol) An IP protocol that supports real time transmission of voice and video. ). - Record half year in deteriorating economic conditions - Significant increase in volumes following last year's acquisitions - Good progress in the integration of recent acquisitions - Six major projects under way "Rio See RapidIO and MP3. Tinto's first half earnings were at a record level, which is satisfactory against the background of a weak economic environment", said Rio Tinto chairman Sir Robert Wilson Robert Wilson may refer to:
"The slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the US has been accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by relatively soft markets in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Japan. In consequence we have seen moderate
weakness across most of our businesses, including non-ferrous metals and
industrial minerals. The exceptions amongst our products have been iron
ore, where demand has hitherto stayed quite firm, and coal, which has
been buoyant BuoyantThe term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. . The geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. bright spot has been China, where industrial production continued to grow strongly. "A further decline in the Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents against the US dollar has substantially helped ease the burden of weak prices. "Whilst we obviously cannot claim to be recession-proof, these results once again demonstrate the quality of Rio Tinto's diversified diversified (di·verˑ·s portfolio", said Sir Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . ---------------------------------------------------------------------- Half year to 30 June 2001 2000 Change --------------------------------------------------------------------- Group turnover $5,284m $4,573m +16% ---------------------------------------------------------------------- Profit before tax $1,342m $1,131m +19% ---------------------------------------------------------------------- Net earnings $841m $677m +24% ---------------------------------------------------------------------- Earnings per share - cents 61.2 49.4 +24% ---------------------------------------------------------------------- All $ are US$, unless otherwise stated. FIRST HALF 2001 REVIEW Mr Leigh Leigh (lē), town (1991 pop. 42,627), Wigan metropolitan district, NW England, in the Greater Manchester metropolitan area. Industries include cotton and rayon mills, metalworks, and machinery and electrical goods plants. Clifford Clif·ford , Clark McAdams 1906-1998. American lawyer and politician who, as chief counsel (1946-1950) to President Harry S. Truman, influenced U.S. foreign policy. During the Vietnam War he served as U.S. secretary of defense (1968-1969). , Rio Tinto's chief executive said: "The Iron Ore product group benefited from price increases of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. four per cent, mostly effective from 1 April 2001. At Hamersley Hamersley may refer to:
"We also reached a satisfactory agreement with our Robe River joint venture partners to share rail infrastructure with Hamersley Iron. We are convinced con·vince tr.v. con·vinced, con·vinc·ing, con·vinc·es 1. To bring by the use of argument or evidence to firm belief or a course of action. See Synonyms at persuade. 2. that this will benefit all the joint venture parties and set the framework for further opportunities for co-operation between them. "The Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. and Indonesian coal operations benefited from increases in seaborne sea·borne adj. 1. Conveyed by sea; transported by ship. 2. Carried on or over the sea. seaborne Adjective 1. carried on or by the sea 2. coal prices in the order of 20 per cent. At Kennecott Energy, spot prices for US domestic coal followed the general increase in gas and energy prices in the US market, although the impact of price increases on earnings was modest in the half. "Production at Kennecott Utah Copper Kennecott Utah Copper Corporation (KUCC) is a mining, smelting, and refining company. Its corporate headquarters are located in Magna, Utah, USA. Kennecott operates the largest open-pit copper mine in the world in Bingham Canyon, Salt Lake County, Utah. and at Freeport Freeport, city, Bahamas Freeport, city (1990 pop. 25,115), Grand Bahama Island, Bahamas. A popular resort area, it developed out of a 1955 agreement between the Bahamian colonial government and a private development company to create a free port and was higher reflecting better ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly . However, at Palabora, a three-week strike and heavy rains significantly impacted pit production. "We have made a good start in integrating the larger acquisitions made in the last twelve months into our existing operations and realising the underlying value which we recognised was there. "We completed the acquisition of Peabody's Australian assets and agreed several other small acquisitions in the first half, including an extra 8.3 per cent stake in the Queensland Queensland, state (1991 pop. 2,477,152), 667,000 sq mi (1,727,200 sq km), NE Australia. Brisbane is the capital; other important cities are Gold Coast, Toowoomba, Townsville, Rockhampton, Cairns, and Ipswich. Alumina alumina (əl  `mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. refinery
and an increased stake in the Warkworth Warkworth is the name of several communities in the world:
v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of our stake in Norzink and North's forestry forestry, the management of forest lands for wood, water, wildlife, forage, and recreation. Because the major economic importance of the forest lies in wood and wood products, forestry has been chiefly concerned with timber management, especially reforestation, business in Tasmania Tasmania (tăzmā`nēə), island state (1991 pop. 359,286), 26,383 sq mi (68,332 sq km), SE Commonwealth of Australia. It is separated from Australia by the Bass Strait and lies 150 mi (240 km) south of the state of Victoria. . "In developing Hail Hail, city, Saudi Arabia Hail (hä`ēl, hīl), city (1993 pop. 176,757), N central Saudi Arabia. The city grew because of its location on a pilgrimage route from Iraq to Mecca. Creek, a world class coking coal resource, we will capitalise Verb 1. capitalise - supply with capital, as of a business by using a combination of capital used by investors and debt capital provided by lenders capitalize on conditions in the international coal market. Progress is being made on the construction of the Diavik diamond mine The Diavik Diamond Mine is a diamond mine in the North Slave Region of the Northwest Territories, Canada, about km ( mi) north of Yellowknife.[2] It has become an important part of the regional economy, employing 700, grossing C$100 million in sales, and in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the Phase IV development of the Escondida copper mine in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. and progression progression, in mathematics, sequence of quantities, called terms, in which the relationship between consecutive terms is the same. An arithmetic progression is a sequence in which each term is derived from the preceding one by adding a given number, d, to underground mining at the Palabora copper mine in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . "Rio Tinto continued to work with Nucor Nucor Corporation (NYSE: NUE) is one of the largest steel producers in the United States, and the largest of the "mini-mill" operators (those using electric arc furnaces to melt scrap steel, as opposed to companies using traditional blast furnace technology). and others on feasibility studies The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. to develop a commercial HIsmelt(R) direct smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. technology plant in Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. ," said Mr Clifford. OUTLOOK Commenting on the outlook, Sir Robert said: "We see little to encourage optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. about metals demand in the US during the rest of this year and, probably, the first half of 2002. Neither Europe nor Japan look like the engine for recovery and so 2001 could be the first year since the early 1990s when we will see global consumption of key non-ferrous metals decline, albeit by not very much. "Low levels of investment by the industry in new capacity as we entered the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , combined with low stocks and supply-side sup·ply-side adj. Of, relating to, or being an economic theory that increased availability of money for investment, achieved through reduction of taxes especially in the higher tax brackets, will increase productivity, economic activity, and income difficulties, especially in aluminium, have all served to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the
adverse consequences. Nonetheless the markets, and therefore presumably pre·sum·a·ble adj. That can be presumed or taken for granted; reasonable as a supposition: presumable causes of the disaster. the prices, for most metals and minerals seem likely to remain subdued sub·due tr.v. sub·dued, sub·du·ing, sub·dues 1. To conquer and subjugate; vanquish. See Synonyms at defeat. 2. To quiet or bring under control by physical force or persuasion; make tractable. 3. over the next twelve months. High energy prices will continue to put pressure on the industry's costs although we shall also benefit from the strength of the coal market. "Having just achieved record half-year earnings, it is difficult to feel pessimistic pes·si·mism n. 1. A tendency to stress the negative or unfavorable or to take the gloomiest possible view: "We have seen too much defeatism, too much pessimism, too much of a negative approach" about the future, especially since there are benefits still to flow through over the next few years from the acquisitions made last year and projects under construction. But the economic outlook is still deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: and we have to expect a testing time ahead. We can, however, face that prospect with confidence, even if not equanimity e·qua·nim·i·ty n. The quality of being calm and even-tempered; composure. [Latin aequanimit ", said Sir Robert. DIVIDENDS Under Rio Tinto's long standing progressive dividend policy, the aim is to increase the US dollar value of dividends over time, without cutting them in economic downturns. The policy remains unchanged. The directors have decided, however, that in future the rate of the total annual dividend will be reviewed only at the year end, in the light of the full year's results and the outlook for the following year. The interim dividend for 2002 and subsequent years will be set at one half of the total dividends for the previous year. The final dividend for each year, under the progressive dividend policy, will be at least equal to the interim dividend. An interim dividend for the current year of 20 US cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. has been declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. , an increase of 1 US cent on the 2000 interim. No view on total dividends for the year will be taken until the year end. 2001 FIRST HALF FINANCIAL RESULTS NET EARNINGS Net earnings increased by $164 million to $841 million, which was 24 per cent above the $677 million reported for the first half of 2000. As last year, adjusted earnings are the same as net earnings. Increased volumes contributed $97 million to earnings. This includes the additional operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before resulting from the North acquisition last year, the additional 27.6 per cent of Comalco, the additional 40 per cent of Argyle and the Lemington Lemington is a housing area and electoral ward of Newcastle upon Tyne in North East England. This ward has a glassworks brick tower dating from the 18th century. An early example of the Industrial revolution. External links
Overall, acquisitions contributed $35 million to first half earnings, net of their impacts on interest charges. Movements in exchange rates increased earnings by $103 million. In large part, this reflects the strengthening of margins in the Australian operations resulting from a 15 per cent reduction in the exchange rate against the US dollar. Lower selling prices reduced earnings by $33 million, with a 30 per cent decline in nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. prices, a significant reduction in alumina prices, and more moderate percentage reductions in copper and gold. However, prices for seaborne coal were significantly better than in the same period last year, and iron ore prices increased by four per cent. In real terms, cash costs were reduced by $29 million, with increased efficiency levels, particularly at Utah Copper, Freeport and Hamersley. This excludes $13 million of cost increases resulting from higher fuel and energy prices. The earnings result includes a $54 million gain on disposal of the Group's 50 per cent interest in the Norzink smelter. In the same period last year, there was a similar gain from the sale of Carbones del Cerrejon. The sale of North Forest Products had no impact on earnings. Interest charges increased by $51 million after tax, with the effects of increased debt following the acquisitions last year being moderated by lower interest rates. The Group's tax rate at 32.0 per cent compares with 31.5 per cent in the same period last year. There were proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. increased profits from operations in higher tax jurisdictions and an increase in disallowable dis·al·low tr.v. dis·al·lowed, dis·al·low·ing, dis·al·lows 1. To refuse to allow: "[The government] amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. charges resulting from acquisitions. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the tax charge will continue to benefit from the lower tax rate in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , where earnings are now taxed at 30 per cent compared with 34 per cent in 2000. CASH FLOW Cash flow from operating activities together with dividends from joint ventures and associates totalled $1,707 million, an increase of $147 million over the corresponding period last year. This was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased dividends from joint ventures. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was in line with the first half of 2000 with increases in inventories in several operations offsetting the benefit of increased operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . Expenditure of $604 million on property, plant and equipment was $305 million higher than the same period last year, and includes investment in the newly acquired iron ore operations and in the Diavik Diavik may refer to:
Acquisitions net of disposals involved a net cash outlay of $361 million compared with $902 million in the same period last year. The principal acquisition was the purchase of Peabody's Australian coal operations for $455 million. Disposals included North's forestry operations and the Group's interest in the Norzink smelter. As a result of further acquisitions and investment in current operations, the net cash outflow before management of liquid resources and financing was $568 million. BALANCE SHEET During the six months, shareholders' funds increased by $151 million with earnings of $841 million being offset by dividends of $275 million and a reduction of $426 million on currency translation, largely reflecting a nine per cent decline in the Australian dollar. Net debt increased by $700 million to $5.7 billion as a result of capital expenditure and acquisitions during the period. The ratio of net debt to total capital increased from 38.1 per cent at 31 December December: see month. 2000, to 40.5 per cent at 30 June June: see month. 2001. The balance sheet remains in a strong condition, with interest charges covered ten times. 2001 INTERIM DIVIDEND Interim dividends equivalent to 20 US cents per share (2000: 19 US cents) have been declared by Rio Tinto Limited and Rio Tinto plc. Dividends are determined in US currency. Rio Tinto Limited dividends are declared and paid in Australian dollars and Rio Tinto plc dividends are declared and paid in pounds sterling, converted at exchange rates applicable on Tuesday Tuesday: see week. , 31 July July: see month. 2001. Rio Tinto plc shareholders will be paid an interim dividend of 14.03 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, per ordinary share (2000: 12.66 pence). Rio Tinto Limited shareholders will be paid an interim dividend of 39.42 Australian cents per ordinary share (2000: 32.68 Australian cents) which will be fully franked at the tax rate of 30 per cent. The directors consider that there are sufficient franking credits A franking credit is a nominal unit of tax paid by companies paying tax in countries that have a dividend imputation system. Franking credits are passed on to shareholders along with dividends. available for paying fully franked dividends for at least the next year. The respective dividends will be paid on 14 September September: see month. 2001 to shareholders registered at close of business on 17 August 2001. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for Rio Tinto Limited shares will be 13 August 2001, and 15 August for Rio Tinto plc shares. Dividends to Rio Tinto ADR ADR - Astra Digital Radio holders will be paid on 17 September 2001. As usual, Rio Tinto will operate its Dividend Reinvestment Plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. , details of which can be obtained from the Company Secretaries' offices. REVIEW OF RIO TINTO OPERATIONS (Production shown is the product group share of output unless otherwise stated. Comparatives are with the comparable period of 2000 unless otherwise stated.) IRON ORE GROUP 2001 first half earnings $229 million, up 62 per cent Iron ore production at 42.6 million tonnes, up 49 per cent Rio Tinto's Iron Ore group accounted for 16 per cent of Group turnover and contributed 27 per cent of net earnings in the first half of 2001. Hamersley Iron, Australia, achieved record iron ore production of 33.1 million tonnes for the first half of 2001. Total shipments of 31.8 million tonnes were slightly lower, reflecting reduced shipments to Japan and Europe partly offset by higher sales to China. The approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. four per cent price rise settled earlier in the year with the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and Steel Mills and the weaker Australian dollar contributed to Hamersley's 47 per cent increased earnings performance of $207 million. Earnings from Robe River Iron Associates in Australia were $19 million for the first half, also benefiting from the approximate four per cent price rise. Total production of 13.8 million tonnes was lower due to unplanned maintenance and difficulties associated with processing a higher proportion of wet material. Production levels are expected to improve with a number of operational initiatives adopted at the mine and port, including the commissioning of an additional process plant. Lower earnings for the Iron Ore Company of Canada Iron Ore Company of Canada (often abbreviated to IOC) is a Canadian-based producer of iron ore. The company was founded in 1949 from a partnership of Canadian and American M.A. Hanna Company. (IOC IOC abbr. International Olympic Committee IOC n abbr (= International Olympic Committee) → COI m IOC n abbr (= ) resulted from lower shipments due to the downturn in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. steel industry. Price increases of approximately two per cent for pellets and 4.5 per cent for concentrates were achieved, based on market conditions in the previous year. INDUSTRIAL MINERALS GROUP 2001 first half earnings $134 million, consistent with 2000 Borate borate /bo·rate/ (bor´at) a salt of boric acid. bo·rate n. A salt or ester of boric acid. borate any salt of boric acid. production at 287,000 tonnes, up 3 per cent Titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. dioxide dioxide /di·ox·ide/ (-ok´sid) an oxide with two oxygen atoms. di·ox·ide n. A compound containing two oxygen atoms per molecule. feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing production at 727,000 tonnes, up 10 per cent Rio Tinto's Industrial Minerals businesses accounted for 16 per cent of Group turnover and contributed 16 per cent of net earnings in the first half of 2001. Rio Tinto Borax's earnings of $52 million were similar. North American sales weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak en·er n. with the downturn in the US economy. Softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of demand in Europe was exacerbated by product substitution Substitution Arsinoë put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32] Barabbas robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. and the decline of the euro. Borax borax or sodium tetraborate decahydrate (sō`dēəm tĕ'trəbôr`āt dĕk'əhī`drāt), chemical compound, Na2B4O7·10H2O; sp. gr. 1. continued to benefit from cost and productivity improvements. Earnings from Rio Tinto Iron & Titanium were marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. down at $64 million. Overall, titanium dioxide feedstock markets experienced soft customer demand, as trading conditions deteriorated steadily throughout the first half for the group's customer base. These trends were exacerbated by oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies in some high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. feedstock sectors. Iron and steel co-products encountered very difficult market conditions, in particular for product lines supplying the automotive sector. These factors were partially offset by stronger zircon zircon Silicate mineral, zirconium silicate, ZrSiO4, the principal source of zirconium. Zircon is widespread as an accessory mineral in acid igneous rocks; it also occurs in metamorphic rocks and, fairly often, in detrital deposits. markets and a weaker rand against the US dollar. Production facilities generally ran well; increased production at QIT QIT Quantum Information Theory QIT Quality Improvement Team QIT Queensland Institute of Technology (formerly Queensland University of Technology) QIT Quebec Iron & Titanium (Canada mining company) was due to the need to rebuild inventories following a major furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. repair, whereas production at RBM RBM Roll Back Malaria (global partnership to reduce malaria) RBM Results Based Management RBM Reserve Bank of Malawi RBM Risk Based Maintenance RBM Reliability Based Maintenance RBM Reticular Basement Membrane RBM Radiation Belt Monitor was reduced in line with market demand. The Luzenac Group's earnings were similar. Volumes in Europe were unchanged. Sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. were lower, with the polymers and coatings segments particularly affected by the state of the economy. Earnings at Dampier Dampier may refer to:
COPPER GROUP 2001 first half earnings $163 million, up 55 per cent Mined copper production at 475,000 tonnes, up 16 per cent Refined copper production at 185,000 tonnes, down 1 per cent Mined gold production at 1,238,000 ounces, up 73 per cent Rio Tinto's Copper group accounted for 23 per cent of Group turnover, of which 14 per cent was from copper and the remainder mostly from gold co-product. The Copper group contributed 19 per cent of net earnings in the first half of 2001. The copper price averaged 78 cents/lb, three per cent lower. The average gold price was $266/oz compared with $285/oz. In the US, Kennecott Utah Copper's production of metals in concentrate, except molybdenum molybdenum (məlĭb`dənəm) [Gr.,=leadlike], metallic chemical element; symbol Mo; at. no. 42; at. wt. 95.94; m.p. about 2,617°C;; b.p. about 4,612°C;; sp. gr. 10.22 at 20°C;; valence +2, +3, +4, +5, or +6. , was higher, primarily due to an increase in ore grade. Refined copper and gold production was marginally lower mainly due to a major maintenance shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down in the first quarter. Earnings of $31 million for the first half reflected increased copper, gold and molybdenum sales volumes and efficiency improvements although they were offset by lower prices. During June, Kennecott's North concentrator was suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. in response to difficult market conditions and the need to improve performance. The suspension is part of an on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" effort to reduce costs and improve efficiencies. The suspension will result in an 18 per cent reduction in annual ore production. However, copper production will remain at similar levels until 2002 due to anticipated higher copper grades for the balance of this year and next year. At the Grasberg copper and gold mine in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , total payable metal increased due to higher ore grade and improved milling rates and recoveries. Total gold production was up substantially due to the significant increase in grade. Rio Tinto's overall share of production increased by 21 per cent for copper to 102,000 tonnes and 121 per cent for gold to 678,000 ounces. Ore grade at Escondida in Chile declined in line with long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. projections, although the rate of decline was partly offset due to mining of higher grade material adjacent to the top of the sulphide sulphide: see sulfide. orebody. Mined copper output was eight per cent lower, while oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. plant production was slightly higher. Heavy rains and a 23 day strike at the Palabora copper mine in South Africa, which ended on 14 June, affected pit production and concentrator activities. Total copper in concentrate production was 49 per cent lower compared with the first half of 2000. Total refined copper production was 38 per cent higher as a result of higher availability following the smelter maintenance shutdown during the first half of last year. In Australia, production at the Northparkes copper-gold mine benefited from higher copper and gold grades but operating costs operating costs npl → gastos mpl operacionales were adversely affected by major maintenance shutdowns. At Peak Gold, production was reduced due to lower grade. Copper and gold production at Alumbrera, Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , benefited from higher copper and gold grades. Higher sales volumes led to improved earnings for the period. At Neves There are places that have the name Neves (pronunciation: NEH-vehsh): In the Azores:
There are two parishes and a river that have the name Corvo (Portuguese for crow): In Portugal:
Hot metal production at Anglesey Anglesey or Anglesea (both: ăng`gəlsē), island and county (1985 est. pop. 68,800), 278 sq mi (719 sq km), NW Wales. Beaumaris is the chief town. It is a region of low, rolling hills. Aluminium's smelter in the UK was similar as cell utilisation and amperages were maintained close to last year's rates. At Zinkgruvan Zinkgruvan is a small village located in Askersund Municipality in mid Sweden close to Sweden's second biggest lake, Vättern. Zinkgruvan is famous for its mining industry, hence the name Zinkgruvan, that directly translated to English means Zinc mine. in Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. , production was affected by lower grades of both zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. and lead. ALUMINIUM GROUP 2001 first half earnings $172 million, up 10 per cent Bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. production at 6.0 million tonnes, up 25 per cent Alumina production at 807,000 tonnes, up 22 per cent Aluminium production at 341,000 tonnes, up 27 per cent Comalco, Rio Tinto's wholly-owned Australian integrated aluminium group, accounted for 14 per cent of Group turnover and contributed 20 per cent of net earnings in the first half of 2001. Rio Tinto achieved full ownership of Comalco following acquisition of the minorities in mid 2000. The average aluminium price at 70 cents per pound was one cent lower. Alumina prices were also weaker. Comalco's performance enhancement process continued to generate savings across all sites. Total Weipa bauxite production of 5.7 million tonnes was slightly lower due to high rainfall and a shiploader shutdown at the port for scheduled maintenance. Bauxite shipments of 5.5 million tonnes were in line with the same period last year. Production at the Queensland Alumina refinery in Australia was lower than anticipated due to operating problems and unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" maintenance. At the Eurallumina refinery in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , production was also adversely affected by a temporary plant shutdown. The high price of caustic soda caustic soda: see sodium hydroxide. caustic soda Sodium hydroxide (NaOH), an inorganic compound. The alkalies called caustic soda and caustic potash (potassium hydroxide) are very important industrial chemicals, with uses in the manufacture of had an adverse effect on costs at Comalco's refineries. Total aluminium production from Comalco's three smelters was similar to last year, although production was adversely impacted by an increase in the rate of cell reconstructions. Continuing softness in Japan put pressure on metal shipments but overall volumes of 338,600 tonnes were maintained by placing additional metal in the US and Europe. ENERGY GROUP 2001 first half earnings $167 million, up 43 per cent Coal production at 74 million tonnes, up 19 per cent Uranium oxide Uranium oxide is an oxide of the element uranium. The metal uranium forms several oxides:
Rio Tinto's Energy group accounted for 21 per cent of Group turnover and contributed 20 per cent of net earnings in the first half of 2001. In the US, Kennecott Energy lifted production in the second half of 2000 due to improved demand. Strong demand continued in the first half of 2001, and Kennecott Energy's share of production of 53 million tonnes was 11 per cent higher despite rail outages and disruptions due to flooding Refers to various denial-of-service techniques that saturate a critical resource, leading either to system failure or to the exclusion of legitimate access. See e-mail bombing, Fraggle attack, smurf attack and SYN-flood attack. . In the first half, spot prices for US domestic coal followed the general increase in gas and energy prices in the US market. However, since June 2001 prices have declined somewhat. Kennecott Energy varies its production, and commits to contracts, in response to changes in market conditions. Kennecott Energy has responded to the improved market conditions and is now fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully for 2001, and 86 per cent committed for 2002. Approximately 50 per cent of 2002 production volume is committed at prices prevailing before 2001, 13 per cent is dedicated to long term contracts and six per cent is priced quarterly at prevailing market prices. Production from the Group's Australian coal operations was 48 per cent higher at 16.9 million tonnes, largely due to the Lemington and Peabody Peabody (pē`bədē, –bädē), city (1990 pop. 47,039), Essex co., NE Mass., a suburb of Boston, on the Danvers River; settled c.1633, inc. as South Danvers 1855, name changed 1868. acquisitions. In New South Wales, Coal & Allied's increased earnings of $38 million benefited from improved sales volumes, the weaker Australian dollar and an increase in seaborne traded coal prices. The Lemington mine integration was completed and work progressed to realise value from the acquisition of the Peabody mines. Earnings at Pacific Coal in Queensland of $60 million benefited from the significant increase in seaborne traded coal prices. At Kestrel kestrel Any of several birds of prey (genus Falco) known for hovering while hunting. Kestrels prey on large insects, birds, and small mammals. The male is more colourful than the female. Kestrels are mainly Old World birds, but one species, the American kestrel (F. , longwall performance issues affected production and constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. shipments. Kestrel produced 1.5 million tonnes of coking and thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. coal with sales of 1.6 million tonnes. Blair Athol Blair Athol may refer to several places:
High rainfall constrained coal production at Kaltim Prima in Indonesia. Blockades over land compensation claims and industrial action against a contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. further affected production. By the end of the second quarter, however, the mine was operating at record levels. Uranium oxide production at Rossing in Namibia Namibia (nämĭb`ēə), officially Republic of Namibia, republic (2005 est. pop. 2,031,000), c.318,000 sq mi (823,620 sq km), SW Africa. was affected by operating problems in the processing plant. The cost reduction programme initiated last year in response to tough market conditions continued. Trading activity in the spot uranium oxide market was thin. In Australia, Energy Resources of Australia Energy Resources of Australia Ltd (ASX: ERA) is a public company based in Australia. It is a subsidiary of the Rio Tinto Group which owns 68.4% of the company. The chairman is David Klingner and chief executive officer is Harry Kenyon-Slaney. achieved production in line with the same period last year. However, sales were down in response to customer deferrals of some deliveries and weak market demand. DIAMONDS & GOLD GROUP 2001 first half earnings $80 million, down 25 per cent Mined gold production at 602,000 ounces, up 17 per cent Rio Tinto's Diamonds & Gold group accounted for eight per cent of turnover and contributed ten per cent of net earnings. The average gold price was $266/oz compared with $285/oz. Earnings from Argyle Diamonds, in Australia, of $30 million were significantly lower despite the additional approximately 40 per cent interest following the Ashton Ash·ton , Sir Frederick 1904-1988. British choreographer whose ballets include The Dream (1964) and A Month in the Country (1976). Noun 1. Ashton - British choreographer (1906-1988) Sir Frederick Ashton Mining acquisition in 2000. The absence of sales from inventories, which were depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d in the first half of last year, was the main reason for the reduction in earnings. Prices of diamonds compared favourably Adv. 1. favourably - showing approval; "he reviewed the play favorably" favorably favourably U.S. favorably adverb 1. although they came under considerable pressure towards the end of the period. Market demand was down, especially in the US, where retailers continued to reduce stocks. Production volumes were adversely affected by difficulties in accessing ore in the central and southern areas of the pit resulting in increased recovery of lower grade ore from the northern bowl area. The grade is expected to improve in the second half as mining in areas of higher grade begins. In the US, Kennecott Minerals' performance was affected by lower gold, silver and zinc prices. Cortez Cortez alluded to in a poem by Keats, mistaken for Balboa, as discoverer of Pacific Ocean. [Br. Poetry: “On First Looking into Chapman’s Homer”] See : Error experienced lower sales volumes and higher costs due to reduced mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. . At Greens Creek, silver production benefited from higher grade and improved throughput and recovery. In Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , lower prices reduced earnings at the Fortaleza Fortaleza (f rtəlĕ`zə), city (1996 pop. 1,967,365), capital of Ceará state, NE Brazil, a port on the Atlantic Ocean. nickel
mine and smelter. At Morro Mor´ron. 1. A round hill or point of land; hence, Production at the Kelian gold mine in Indonesia was higher mainly due to the higher grade. At Lihir Gold, Papua New Guinea Papua New Guinea (păp` ə, –y , production was up due to the
continued high gold grade and the impact of autoclave autoclaveVessel, usually of steel, able to withstand high temperatures and pressures. The chemical industry uses various types of autoclaves in manufacturing dyes and in other chemical reactions requiring high pressures. maintenance on production in the first half of 2000. The sale of the Norzink zinc smelter in Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. was completed early in the second quarter following receipt of all necessary approvals. Rio Tinto recorded an after tax gain of $54 million for its 50 per cent share. OTHER The North Forest Products business was sold during the period for $171 million. ACQUISITIONS Early in 2001, Coal & Allied completed the acquisition of Peabody's Australian coal assets in the Hunter Valley Hunter Valley, region of New South Wales, SE Australia. The Hunter River and its tributaries occupy this valley S of the Mt. Royal Range. The land in the upper valley is used for livestock grazing, dairying and agriculture. region of Australia for $455 million plus $100 million of assumed debt. Coal & Allied further increased its interest in the Warkworth Mining Joint Venture from 43.75 per cent to 55.57 per cent for $27 million. Rio Tinto acquired, on-market, an additional 1.83 per cent interest in Coal & Allied Industries for $15 million, increasing its interest from 70.88 per cent to 72.71 per cent. In addition, Rio Tinto acquired a 20.3 per cent interest in the Labrador Labrador: see Labrador-Ungava; Newfoundland and Labrador, Canada. Labrador Large peninsula, northeastern Canada. Divided between the provinces of Quebec and Newfoundland and Labrador, it occupies an area of about 625,000 sq mi (1,620,000 sq km). Iron Ore Royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. Income Fund for $56 million. Comalco reached agreement to acquire an additional 8.3 per cent interest in Queensland Alumina for $189 million. Following completion of the transaction in the third quarter of 2001, Comalco's interest in Queensland Alumina will increase from 30.3 per cent to 38.6 per cent, representing an additional 300,000 tonnes of alumina per annum Per annum Yearly. . In July 2001, Dampier Salt agreed to acquire the salt operations of Cargill Cargill, Incorporated is a privately held, multinational corporation, and is based in the state of Minnesota in the United States. It was founded in 1865, and has grown into the world's second largest privately held corporation (in terms of revenue). Australia, located at Port Hedland, Western Australia Port Hedland is the highest tonnage port in Australia [2] and largest town [1] in the Pilbara region of Western Australia, with a population of approximately 14,000 (this includes its satellite suburb South Hedland, 18 km away). , for $95 million, plus contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the performance-based payments payable over a number of years, not to exceed $15 million in aggregate. The purchase will consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. Dampier's position as the world's leading salt exporter, increasing its annual capacity from five million tonnes to eight million tonnes. In July, Rio Tinto also reached agreement to purchase the Three Springs talc mine and processing plant in Western Australia from Western Mining Corporation for $28 million. The acquisition will allow Luzenac to broaden its product portfolio and provide locally sourced high quality talc to the Asia Pacific region. Following the issue of a compulsory Wikipedia does not currently have an encyclopedia article for . You may like to search Wiktionary for "" instead. To begin an article here, feel free to [ edit this page], but please do not create a mere dictionary definition. acquisition notice on 13 May 2001 and the receipt of objections, as required by the Australian Corporations law, Rio Tinto applied to the Supreme Court of Victoria for approval of the acquisition of the 1,983,752 Western Australian Diamond Trust units (3.05 per cent) that it does not already own. A hearing has been scheduled for 17 August 2001. NEW PROJECT DEVELOPMENT Towards the end of the first half, Hamersley Iron and the Robe River joint venture partners reached agreement to share rail infrastructure in the Pilbara The Pilbara is a region in the north of Western Australia. It is one of nine regions of the Regional Development Commissions Act 1993, and is also a region under the Interim Biogeographic Regionalisation for Australia (IBRA). region of Western Australia. The agreement resulted in an immediate capital cost saving of $110 million to the West Angelas project and made provision for port sharing, subject to agreement on user terms. The establishment of the Pilbara Rail Company, a 50:50 joint venture between Rio Tinto Iron Ore and Robe River, will occur after the necessary Government approvals have been obtained and will end the legal action launched by the Japanese joint venture participants last year. Work progressed on the construction of mine site and port facilities for the West Angelas project in Australia. At the end of the first half, engineering work at the mine and port was 95 per cent complete with construction 40 per cent complete. Following resolution of the West Angelas rail issue, orders have been placed for rolling stock rolling stock Any of various readily movable transportation equipment such as automobiles, locomotives, railroad cars, and trucks. Rolling stock generally makes good collateral for loans because the equipment is standardized and easily transportable among , contracts for rail works have been awarded and ground preparation work for the new twin cell car dumper has begun. Robe is expecting to make its first shipment of iron ore early in the second half of 2002. Work continued on IOC's $240 million Sept-Iles pellet pel·let n. 1. A small pill; a pilule. 2. A small rod-shaped or ovoid mass, as of compressed steroid hormones, intended for subcutaneous implantation in body tissues to provide timed release over an extended period of time. plant expansion that is due to be commissioned in mid 2002. Delivery of major equipment began and good progress was made on the structural elements Structural elements are used in structural analysis to simplify the structure which is to be analysed. Structural elements can be linear, surfaces or volumes. Linear elements:
Work with Nucor and others continued on detailed cost and other studies for a commercial sized HIsmelt(R) plant in Western Australia. At Diavik, in the Northwest Territories Northwest Territories, territory (2001 pop. 37,360), 532,643 sq mi (1,379,028 sq km), NW Canada. The Northwest Territories lie W of Nunavut, N of lat. 60°N, and E of Yukon. , Canada, all critical materials for the 2001 construction programme were hauled over the winter ice road. Generally, construction is progressing well and within budget. The project remains on schedule to begin diamond production in the first half of 2003. Development of the Palabora underground mine continued with construction just over 70 per cent complete. At Escondida, construction of the Phase IV expansion continued. Following approval for the $210 million Hail Creek coking coal development in Queensland, mobilisation n. 1. Mobilization. Noun 1. mobilisation - act of marshaling and organizing and making ready for use or action; "mobilization of the country's economic resources" mobilization of the project team began. The mine, which will produce 5.5 million tonnes of high quality hard coking coal per year, is expected to start up in 2003. A detailed review of the Comalco Alumina Project is in progress. The focus is directed at further refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar the capital cost estimate and evaluating risks. When this work is completed, Rio Tinto will determine whether or not to proceed. Rio Tinto continued work on e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. initiatives including the electronic procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. marketplace, Quadrem Quadrem is a commercial corporation originating from the Mining Industry. It is one of the eMarketplace launched in the early year 2000 to support the purchasing process of industries with similar interests. , and GlobalCoal, which commenced operations in May. Rio Tinto Shipping became a shareholder in LevelSeas, a company that provides voyage VOYAGE, marine law. The passage of a ship upon the seas, from one port to another, or to several ports. 2. Every voyage must have a terminus a quo and a terminus ad quem. management services and a chartering system for bulk ocean transportation. EXPLORATION Total pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta exploration expenditure charged to the profit and loss account for the first half of 2001 was $54 million compared with $58 million. Prioritisation of the world wide exploration programme continued. The programme focused strongly on copper, diamonds and iron ore with a growing commitment to industrial minerals. Encouraging results were returned from early stage copper and gold projects in Turkey and Iran. Drilling and metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. test work continued at the Simandou Simandou is the site of a large iron ore deposit in southeastern Guinea, in the province of Nzérékoré. Proposals are under way in 2007 to build a heavy duty standard gauge railway and deepwater water to permit the export of large tonnages of iron ore. Simandou is near Diéké. iron ore deposit in Guinea Guinea, archaic term for Africa's west coast Guinea (gĭn`ē), an archaic term for the west coast of Africa. In its widest sense it has been applied to the region from Angola to Senegal. , the Kazan Kazan (kəzän`, –zăn`, Rus. kəzä`nyə), city (1989 est. pop. 1,094,000), capital of Tatarstan, E European Russia, on the Volga. It is a major historic, cultural, industrial, and commercial center. trona tro·na n. A natural vitreous gray or white mineral, Na2CO3·NaHCO3·2H2O, used as a source of sodium compounds. discovery in Turkey and the Wonarah phosphate phosphate, salt or ester of phosphoric acid, H3PO4. Because phosphoric acid is tribasic (having three replaceable hydrogen atoms), it forms monophosphate, diphosphate, and triphosphate salts in which one, two, or three of the hydrogens of the project in the Northern Territory of Australia. Exploration in the vicinity of existing mines continued to deliver good results with programmes underway at Freeport, Bingham Canyon Bingham Canyon or Bingham, uninc. village, N central Utah, near Tooele, in a canyon of the Oquirrh Mts. SW of Salt Lake City. At first (1848) a farm of the Mormons Thomas and Sanford Bingham, it became in the 1860s a roaring mining town, dealing , Merlin Merlin, in Arthurian legend, magician, seer, and teacher at the court of King Vortigern and later at the court of King Arthur. He was a bard and culture hero in early Celtic folklore. In Arthurian legend he is famous as a magician and as the counselor of King Arthur. , Peak and Rawhide Rawhide series depicting cowboys as cattle-punchers along the Santa Fe trail. [TV: Terrace, II, 235] See : Wild West . An important brownfields opportunity was also secured through an option agreement to earn a 55 per cent interest in BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. Billiton's deep high-grade porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. copper prospect at the Superior mine in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Divestment divestment to strip one's investment from an entity. of prospects that did not meet Rio Tinto's development criteria criteria (krītēr´ē  ),n. continued with the sale of the Yakabindie nickel deposit in Western Australia, the Lake Cowal Lake Cowal is the largest inland lake in New South Wales, Australia. The lake is ephemeral, being fed by the small Bland Creek and by the occasional flooding of the Lachlan River. Despite this, it retains a considerable amount of water in about 70% of years. gold deposit in New South Wales and the Wafi gold-copper deposit in Papua New Guinea.
PROFIT AND LOSS ACCOUNT
First First First First
half half half half
2001 2000 2001 2000
A$m A$m(pound)m(pound)m
--------- ------- ------- ------
10,135 7,513 3,669 2,915 Gross turnover (including share of
joint ventures and associates)
(1,649) (1,140) (597) (442) Share of joint ventures' turnover
(671) (439) (243) (170) Share of associates' turnover
--------- ------- ------- ------
7,815 5,934 2,829 2,303 Consolidated turnover
(5,773) (4,328) (2,090) (1,679) Net operating costs
--------- ------- ------- ------
2,042 1,606 739 624 Group operating profit
610 347 221 134 Share of operating profit of joint
ventures
251 168 91 65 Share of operating profit of
-------- ------ ------- ----- associates
2,903 2,121 1,051 823
104 - 38 - Profit on disposal of interest in
joint venture
------- ------- ------ -----
3,007 2,121 1,089 823 Profit on ordinary activities
before interest
(370) (215) (134) (83) Net interest payable
(61) (48) (22) (18) Amortisation of discount related
-------- ------- ------ ----- to provisions
2,576 1,858 933 722 Profit on ordinary activities
before taxation
(823) (585) (298) (227) Taxation
--------- ------- ------- ------
1,753 1,273 635 495 Profit on ordinary activities
after taxation
(138) (161) (50) (62) Attributable to outside
--------- ------- -------- ------ shareholders (equity)
1,615 1,112 585 433 Profit for the financial period
(net earnings)
(527) (429) (191) (166) Dividends to shareholders
--------- ------- ------- ------
--------- ------- ------- ------
1,088 683 394 267 Retained profit for the period
-------- ------- ------- ------
117.5c 81.1c 42.5p 31.6p Earnings per ordinary share
117.5c 81.1c 42.5p 31.6p Adjusted earnings per ordinary
share(c)
Dividends per share
14.03p 12.66p -Rio Tinto plc
39.42c 32.68c -Rio Tinto Limited
Financial ratios
- Profit before interest/gross
turnover
- Interest cover (times)
- Tax rate
- Adjusted earnings/average
shareholders' funds(d)
- Net debt to total capital
First First
half half Year
2001 2000 2000
US$m US$m US$m
------ --------- ---------
Gross turnover (including share of 5,284 4,573 9,972
joint ventures and associates)
Share of joint ventures' turnover (860) (694) (1,489)
Share of associates' turnover (350) (267) (608)
------ ------ ------
Consolidated turnover 4,074 3,612 7,875
Net operating costs (3,010) (2,634) (5,687)
------- ------ ------
Group operating profit 1,064 978 2,188
Share of operating profit of joint ventures 318 211 513
Share of operating profit of associates 131 102 211
------ ------ ------
1,513 1,291 2,912
Profit on disposal of interest in joint venture 54 - -
Profit on ordinary activities before
interest 1,567 1,291 2,912
Net interest payable (193) (131) (340)
Amortisation of discount related to provisions (32) (29) (63)
Profit on ordinary activities before taxation 1,342 1,131 2,509
Taxation (429) (356) (819)
------ ------ ------
Profit on ordinary activities after taxation 913 775 1,690
Attributable to outside shareholders (equity) (72) (98) (183)
Profit for the financial period (net earnings) 841 677 1,507
Dividends to shareholders (275) (261) (790)
Retained profit for the period 566 416 717
------- ------ ------
Earnings per ordinary share 61.2c 49.4c 109.8c
Adjusted earnings per ordinary share(c) 61.2c 49.4c 109.8c
Dividends per share
-Rio Tinto plc 20.0c 19.0c 57.5c
-Rio Tinto Limited 20.0c 19.0c 57.5c
Financial ratios
- Profit before interest/gross turnover 29.7% 28.2% 29.2%
- Interest cover (times) 10 15 11
- Tax rate 32.0% 31.5% 32.6%
- Adjusted earnings/average shareholders'
funds(d) 22.7% 18.8% 20.9%
- Net debt to total capital 40.5% 28.4% 38.1%
(a) Diluted earnings per share figures for the half year are US0.1
cents (First half 2000: US0.05 cents) lower than the earnings per
share figures above.
(b) For the purpose of calculating earnings and adjusted earnings per
share, the weighted average number of Rio Tinto plc and Rio Tinto
Limited shares outstanding during the period was 1,374.9 million,
being the average number of Rio Tinto plc shares outstanding
(1,064 million) plus the average number of Rio Tinto Limited
shares outstanding not held by Rio Tinto plc (310.9 million).
(c) Adjusted earnings and adjusted earnings per share exclude
exceptional items of such magnitude that their exclusion is
necessary in order that adjusted earnings reflect the underlying
performance of the Group.
(d) The half year figures for this ratio have been annualised.
(e) The results for all periods relate wholly to continuing
operations.
CASH FLOW STATEMENT
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
-------- ------- ------- ------
2,534 2,166 917 841 Cash flow from operating
activities (see below)
742 396 269 154 Dividends from joint ventures and
-------- ------- -------- ----- associates
3,276 2,562 1,186 995
88 69 32 27 Interest received
(374) (210) (135) (82) Interest paid
(90) (168) (33) (65) Dividends paid to outside
------- ------- ------ ------- shareholders
(376) (309) (136) (120) Returns on investment and
servicing of finance
0 0
(827) (386) (299) (150) Taxation
(1,158) (491) (419) (191) Purchase of property, plant and
equipment
Funding of Group share of joint
ventures' and
(113) (18) (41) (7) associates' capital expenditure
15 30 6 11 Funding to joint ventures and
associates repaid
(125) (92) (45) (36) Exploration and evaluation
expenditure
23 18 8 7 Sale of property, plant and
equipment
(111) - (40) - Purchases less sales of other
investments
------- ------- ------- ------
(1,469) (553) (531) (216) Capital expenditure and financial
investment
(692) (1,482) (251) (575) Acquisitions less disposals
(999) (843) (362) (327) Equity dividends paid - Rio Tinto
shareholders
Cash outflow before management
of liquid
(1,087) (1,011) (393) (393) resources and financing
(175) 320 (63) 124 Net cash flow from management of
liquid resources
21 - 8 - Ordinary shares issued for cash
- (53) - (20) Shares repurchased
1,061 636 384 247 Loans received less repaid
--------- ------- ------- ------
907 903 329 351 Management of liquid resources and
financing
--------- ------- ------- ------
(180) (108) (64) (42) Decrease in cash
--------- ------- ------- ------
Cash flow from operating
activities
2,042 1,606 739 624 Group operating profit from
continuing activities
967 641 350 249 Depreciation and amortisation
104 95 38 37 Exploration and evaluation charged
against profit
54 49 19 19 Provisions
(107) (81) (39) (31) Utilisation of provisions
(232) 30 (84) 11 Change in inventories
(56) (16) (20) (6) Change in accounts receivable and
prepayments
(142) (38) (51) (15) Change in accounts payable and
accruals
(96) (120) (35) (47) Other items
--------- ------- ------- ------
2,534 2,166 917 841 Cash flow from operating
activities
First First
half half Year
2001 2000 2000
US$m US$m US$m
------ ------- -------
Cash flow from operating activities
(see below) 1,320 1,319 2,973
Dividends from joint ventures and associates 387 241 467
------- ------ ------
1,707 1,560 3,440
Interest received 46 42 72
Interest paid (195) (128) (302)
Dividends paid to outside shareholders (47) (102) (153)
------- ------ ------
Returns on investment and servicing of
finance (196) (188) (383)
0 0 0
Taxation (431) (235) (462)
Purchase of property, plant and equipment (604) (299) (818)
Funding of Group share of joint ventures' and
associates' capital expenditure (59) (11) (22)
Funding to joint ventures and associates repaid 8 18 40
Exploration and evaluation expenditure (65) (56) (149)
Sale of property, plant and equipment 12 11 43
Purchases less sales of other investments (58) - -
------- ------ ------
Capital expenditure and financial investment (766) (337) (906)
Acquisitions less disposals (361) (902) (3,191)
Equity dividends paid - Rio Tinto shareholders (521) (513) (789)
Cash outflow before management of liquid resources
and financing (568) (615) (2,291)
Net cash flow from management of liquid
resources (91) 195 100
Ordinary shares issued for cash 11 - 3
Shares repurchased - (32) (33)
Loans received less repaid 553 387 2,177
------- ------ ------
Management of liquid resources and financing 473 550 2,247
------- ------ ------
Decrease in cash (95) (65) (44)
------- ------ ------
Cash flow from operating activities
Group operating profit from continuing
activities 1,064 978 2,188
Depreciation and amortisation 504 390 849
Exploration and evaluation charged against
profit 54 58 136
Provisions 28 30 92
Utilisation of provisions (56) (49) (119)
Change in inventories (121) 18 31
Change in accounts receivable and prepayments (29) (10) (242)
Change in accounts payable and accruals (74) (23) 164
Other items (50) (73) (126)
------- ------ ------
Cash flow from operating activities 1,320 1,319 2,973
Net debt at 30 June 2001 of US$5,712 million compares with
US$5,050 million at 31 December 2000. The increase of US$662 million
comprises the cash outflow before management of liquid resources and
financing of US$568 million and other items totalling US$94 million,
including debt of acquired companies.
BALANCE SHEET
First First First First
half half half half
2001 2000 2001 2000
A$m (pound)m (pound)m (pound)m
--------- ------- ------- ------
Intangible fixed assets
1,387 338 501 134 Goodwill
Tangible fixed assets
24,120 16,087 8,717 6,378 Property, plant and equipment
276 220 100 87 Exploration and evaluation
properties
Investments
5,443 3,847 1,967 1,525 Share of gross assets of joint
ventures
(1,988) (1,694) (718) (672) Share of gross liabilities of
joint ventures
--------- ------- ------- ------
3,455 2,153 1,249 853
1,167 1,178 422 467 Investments in associates/other
investments
--------- ------- ------- ------
4,622 3,331 1,671 1,320 Total investments
--------- ------- ------- ------
30,405 19,976 10,989 7,919 Total fixed assets
--------- ------- ------- ------
Current assets
2,798 2,016 1,011 799 Inventories
Accounts receivable and
prepayments
2,987 1,936 1,080 768 Falling due within one year
1,181 901 427 357 Falling due after more than one
year
-------- ------- ------- ------
4,168 2,837 1,507 1,125
26 18 9 7 Investments
1,368 830 494 329 Cash at bank and in hand
-------- ------- ------- ------
8,360 5,701 3,021 2,260
------- ------- ------- -------
Creditors due within one year
(8,964) (3,509) (3,240) (1,391) Short term borrowings
(3,424) (2,482) (1,238) (984) Accounts payable and accruals
--------- ------- ------- ------
(12,388) (5,991) (4,478) (2,375)
--------- ------- ------- ------
(4,028) (290) (1,457) (115) Net current liabilities
--------- ------- ------- ------
26,377 19,686 9,532 7,804 Total assets less current
liabilities
Creditors due after one year
(3,670) (2,387) (1,326) (946) Medium and long term borrowings
(6,176) (4,543) (2,232) (1,801) Provisions for liabilities and
charges
(1,781) (578) (644) (229) Outside shareholders' interests
(equity)
--------- ------- ------- ------
14,750 12,178 5,330 4,828
--------- ------- ------- ------
Capital and reserves
Share capital
303 267 110 106 - Rio Tinto plc
1,429 1,363 516 540 - Rio Tinto Limited
(excluding Rio Tinto plc
interest)
3,147 2,754 1,137 1,092 Share premium account
555 197 201 78 Other reserves
9,316 7,597 3,366 3,012 Profit and loss account
--------- ------- ------- ------
14,750 12,178 5,330 4,828 Equity shareholders' funds
--------- ------- ------- ------
First First
half half Year
2001 2000 2000
US$m US$m US$m
Intangible fixed assets
Goodwill 705 203 1001
Tangible fixed assets
Property, plant and equipment 12,256 9,656 12,159
Exploration and evaluation properties 140 132 168
0 0
Investments 0 0
Share of gross assets of joint ventures 2,766 2,309 2,327
Share of gross liabilities of joint
ventures (1,010) (1,017) (1,053)
------- ------ ------
1,756 1,292 1,274
Investments in associates/other
investments 593 707 518
------- ------ ------
Total investments 2,349 1,999 1,792
------- ------ ------
Total fixed assets 15,450 11,990 15,120
------- ------ ------
Current assets
Inventories 1,422 1,210 1,434
Accounts receivable and prepayments 0 0
Falling due within one year 1,518 1,162 1,556
Falling due after more than one year 600 541 586
------- ------ ------
2,118 1,703 2,142
Investments 13 11 15
Cash at bank and in hand 695 498 732
------- ------ ------
4,248 3,422 4,323
------- ------ ------
Creditors due within one year
Short term borrowings (4,555) (2,106) (4,261)
Accounts payable and accruals (1,740) (1,490) (2,196)
------- ------ ------
(6,295) (3,596) (6,457)
------- ------ ------
Net current liabilities (2,047) (174) (2,134)
------- ------ ------
Total assets less current liabilities 13,403 11,816 12,986
Creditors due after one year
Medium and long term borrowings (1,865) (1,433) (1,536)
Provisions for liabilities and charges (3,138) (2,727) (3,242)
Outside shareholders' interests
(equity) (905) (347) (864)
------- ------ ------
7,495 7,309 7,344
Capital and reserves
Share capital
- Rio Tinto plc 154 160 154
- Rio Tinto Limited (excluding Rio Tinto plc
interest) 726 818 794
Share premium account 1,599 1,653 1,587
Other reserves 282 118 298
Profit and loss account 4,734 4,560 4,511
------- ------ ------
Equity shareholders' funds 7,495 7,309 7,344
At 30 June 2001, Rio Tinto plc had 1,064.4 million ordinary shares
in issue and Rio Tinto Limited had 310.9 million shares in issue,
excluding those held by Rio Tinto plc.
In July 2001, US$500 million of short term borrowings were
refinanced out of the proceeds of a 5 year Global bond issue. As at 30
June 2001, the Group had US$3.8 billion of commercial paper back up
facilities, US$3.6 billion of which matured within one year. Since
that date, the facilities have increased to US$4.5 billion, and
include US$1.6 billion with a term of three years.
As a result of further analysis of acquisitions completed in 2000,
an amount of US$344 million has been recategorised from goodwill to
tangible fixed assets during the period.
RECONCILIATION WITH AUSTRALIAN GAAP
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
-------- ------- ------- ------
1,615 1,112 585 433 Net earnings under UK GAAP
Increase/(decrease) net of tax
in respect of :
(152) (122) (55) (47) Goodwill amortisation
- 10 - 4 Taxation
(8) - (3) - Higher cost of sales resulting
from acquisition accounting
4 8 1 3 Other
------ ------- ------- ------
1,459 1,008 528 393 Net earnings under Australian
GAAP
106.1c 73.5c 38.4p 28.7p Earnings per ordinary share
under Australian GAAP
14,750 12,178 5,330 4,828 Shareholders' funds under UK
GAAP
Increase/(decrease) net of tax
in respect of :
2,590 2,459 936 975 Goodwill
(94) (75) (34) (30) Taxation
(35) 3 (13) 1 Other
--------- ------- ------- ------
17,211 14,565 6,219 5,774 Shareholders' funds under
Australian GAAP
First First
half half Year
2001 2000 2000
US$m US$m US$m
------- ------- -------
Net earnings under UK GAAP 841 677 1,507
Increase/(decrease) net of tax in respect of:
Goodwill amortisation (79) (74) (145)
Taxation - 6 2
Higher cost of sales resulting from
acquisition accounting (4) - (25)
Other 2 5 9
------- ------ ------
Net earnings under Australian GAAP 760 614 1,348
------- ------ ------
Earnings per ordinary share under Australian
GAAP 55.3c 44.8c 98.2c
------- ------ ------
Shareholders' funds under UK GAAP 7,495 7,309 7,344
Increase/(decrease) net of tax in respect of:
Goodwill 1,316 1,476 1,400
Taxation (48) (45) (49)
Other (18) 2 (19)
------- ------ ------
Shareholders' funds under Australian GAAP 8,745 8,742 8,676
Diluted earnings per share under Australian GAAP are US0.09 cents
(First half 2000: US0.05 cents) less than the above earnings per share
figures.
The Group's financial statements have been prepared in accordance
with generally accepted accounting principles in the United Kingdom
(UK GAAP), which differ in certain respects from generally accepted
accounting principles in Australia (Australian GAAP). These
differences relate principally to the following items, and the effect
of each of the adjustments to net earnings and shareholders' funds
which would be required under Australian GAAP is set out above.
Goodwill
For 1997 and prior years, UK GAAP permitted the write off of
purchased goodwill on acquisitions directly against reserves. Under
Australian GAAP, goodwill is capitalised and amortised by charges
against income over the period during which it is expected to be of
benefit, subject to a maximum of 20 years. Goodwill previously written
off directly to reserves in the UK GAAP accounts has been reinstated
and amortised for the purpose of the reconciliation statements. For
acquisitions in 1998 and subsequent years, goodwill is capitalised
under UK GAAP, in accordance with FRS 10. Adjustments are required for
Australian GAAP purposes where such capitalised goodwill is amortised
over periods exceeding 20 years in the UK GAAP accounts.
Taxation
Under UK GAAP, provision is made for deferred tax under the
liability method to the extent that, in the opinion of the directors,
it is probable that a tax liability will become payable within the
foreseeable future. Under Australian GAAP, deferred tax is provided
for in full.
Higher cost of sales resulting from acquisition accounting
Under UK GAAP, the inventories of acquired companies are valued at
the lower of replacement cost and net realisable value. Under
Australian GAAP, such inventories are recognised at the time of
acquisition on the basis of expected net sales proceeds. Earnings for
the period are lower under Australian GAAP as a result of the higher
cost of sales relating to inventories that were held at the date of
acquisition.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
---- ---- ------- -------
1,615 1,112 585 433 Profit for the period
(527) (429) (191) (166) Dividends
------ ------ ------- ------
1,088 683 394 267
422 607 15 100 Adjustment on currency translation
21 84 8 33 Share capital issued less
repurchased
- 54 - 21 Goodwill relating to disposals
written back
------- ------- ------- ------
1,531 1,428 417 421
13,219 10,750 4,913 4,407 Opening shareholders' funds
------- ------- ------- ------
14,750 12,178 5,330 4,828 Closing shareholders' funds
PRIMA FACIE TAX RECONCILIATION
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
----- ---- --------- ---------
2,576 1,858 933 722 Profit on ordinary activities
before taxation
(823) (585) (298) (227) Actual taxation charge for the
period
773 557 280 216 Prima facie tax at UK rate of 30%
- 48 - 18 Higher rate of taxation on
Australian earnings
------ ------- ------- ------
(50) 20 (18) 7 (Adverse)/favourable variation
------ ------- ------- ------
The above variation is explained
as follows:
(77) (30) (28) (11) Other tax rates applicable
outside the UK and Australia
6 7 2 3 Research, development and other
investment allowances
33 20 12 7 Resource depletion and other
depreciation allowances
(12) 23 (4) 8 Other
------- ------- ------- ------
(50) 20 (18) 7 Total (adverse)/favourable
variation in taxation charge
------- ------- ------- ------
EXPLORATION AND EVALUATION PROPERTIES
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
------- ------- ------- ------
At cost less amounts written off
1,413 1,197 525 491 At 1 January
62 68 8 11 Adjustment on currency translation
- - - - Subsidiaries acquired
125 92 45 36 Expenditure in period
(35) (28) (13) (11) Charged against profit for the
period
(79) - (28) - Disposals, transfers and other
movements
-------- ------- ------- ------
1,486 1,329 537 527 At end of period
------- ------- ------- ------
Provision
(1,111) (988) (413) (405) At 1 January
(47) (54) (5) (9) Adjustment on currency translation
(69) (67) (25) (26) Charged against profit for the
period
17 - 6 - Disposals, transfers and other
movements
------- ------- ------- ------
(1,210) (1,109) (437) (440) At end of period
------ ------- ------- ------
276 220 100 87 Net balance sheet amount
First First
half half Year
2001 2000 2000
US$m US$m US$m
----- ------- -------
Profit for the period 841 677 1,507
Dividends (275) (261) (790)
------- ------ ------
566 416 717
Adjustment on currency translation (426) (287) (561)
Share capital issued less repurchased 11 51 59
Goodwill relating to disposals written back - 33 33
------- ------ ------
151 213 248
Opening shareholders' funds 7,344 7,096 7,096
------- ------ ------
Closing shareholders' funds 7,495 7,309 7,344
------- ------ ------
PRIMA FACIE TAX RECONCILIATION
First First
half half Year
2001 2000 2000
US$m US$m US$m
------ -------- ------
Profit on ordinary activities before taxation 1,342 1,131 2,509
Actual taxation charge for the period (429) (356) (819)
Prima facie tax at UK rate of 30% 403 339 753
Higher rate of taxation on Australian earnings - 29 59
------- ------ ------
(Adverse)/favourable variation (26) 12 (7)
------- ------ ------
The above variation is explained as follows:
Other tax rates applicable outside the
UK and Australia (40) (18) (71)
Research, development and other investment
allowances 3 4 8
Resource depletion and other depreciation
allowances 17 12 53
Other (6) 14 3
Total (adverse)/favourable variation in
taxation charge (26) 12 (7)
------- ------ ------
EXPLORATION AND EVALUATION PROPERTIES
First First
half half Year
2001 2000 2000
US$m US$m US$m
----- ------ ------
At cost less amounts written off
At 1 January 785 790 790
Adjustment on currency translation (36) (31) (72)
Subsidiaries acquired - - 47
Expenditure in period 65 56 149
Charged against profit for the period (18) (17) (50)
Disposals, transfers and other movements (41) - (79)
------- ------ ------
At end of period 755 798 785
------- ------ ------
Provision
At 1 January (617) (652) (652)
Adjustment on currency translation 29 27 42
Charged against profit for the period (36) (41) (86)
Disposals, transfers and other movements 9 - 79
------- ------ ------
At end of period (615) (666) (617)
------- ------ ------
Net balance sheet amount 140 132 168
------- ------ ------
RIO TINTO FINANCIAL INFORMATION BY BUSINESS UNIT
US$ millions Rio Tinto Net earnings Gross turnover
interest First half First half
% 2001 2000 2001 2000
------- --------------- ---------------
Iron Ore
Hamersley
(inc. HIsmelt(R)) 100 207 141 538 508
Robe River 53 19 103
Iron Ore Company of Canada 56.1 3 196
---------------- ---------------
229 141 837 508
---------------- ---------------
Industrial Minerals 134 134 822 863
---------------- ---------------
Copper
Kennecott Utah Copper 100 31 16 352 361
Escondida 30 31 45 167 192
Freeport 16.6 8 (5) 159 131
Freeport joint venture 40 52 20 165 104
Palabora 48.6 10 7 141 109
Peak/Northparkes 7 6 43 21
Other copper 14 4 79 30
Other metals 10 12 135 133
--------------- ---------------
163 105 1,241 1,081
--------------- ---------------
Aluminium - Comalco (f) 172 156 764 819
--------------- ---------------
Energy
Kennecott Energy 100 43 33 421 388
Pacific Coal 100 60 41 188 163
Kaltim Prima Coal 50 15 5 85 67
Coal & Allied 73 38 30 340 165
Rossing 69 7 8 46 64
ERA 68.4 5 41
Other energy (1) - - -
--------------- --------------
167 117 1,121 847
--------------- --------------
Diamonds & Gold
Argyle 30 45 165 149
Diavik 60 - - - -
Kennecott Minerals 100 19 28 96 99
Kelian 90 (3) (9) 56 37
Rio Tinto Zimbabwe 56 1 - 21 18
Brazil 25 33 61 84
Other diamonds & gold 8 9 44 64
--------------- --------------
80 106 443 451
--------------- --------------
Other items 32 7 56 4
Exploration and evaluation (41) (45)
Net interest (95) (44)
Less Joint ventures
and associates (d)
-------------- --------------
Total 841 677 5,284 4,573
-------------- --------------
Less net debt
Net assets
US$ millions Rio Tinto Operating Capital
interest assets(c) expenditure
% 30 June 30 June First half
2001 2000 2001 2000
-------- ---------------- ---------------
Iron Ore
Hamersley
(inc. HIsmelt(R)) 100 795 941 40 28
Robe River 53 942 79
Iron Ore Company of Canada 56.1 755 90
--------------- ------------
2,492 941 209 28
---------------- ------------
Industrial Minerals 1,920 1,893 69 104
Copper
Kennecott Utah Copper 100 2,387 2,419 49 42
Escondida 30 428 419 81 27
Freeport 16.6 103 88 12 7
Freeport joint venture 40 365 384 39 18
Palabora 48.6 232 217 44 29
Peak/Northparkes 113 26 15 4
Other copper 141 75 6 4
Other metals 139 4 6 -
---------------- -----------
3,908 3,632 252 131
---------------- -------------
Aluminium - Comalco (f) 1,689 1,926 31 25
---------------- ------------
Energy
Kennecott Energy 100 552 402 23 4
Pacific Coal 100 282 362 13 4
Kaltim Prima Coal 50 48 18 2 2
Coal & Allied 73 789 177 7 3
Rossing 69 31 29 - 3
ERA 68.4 171 (1)
Other energy (2) (2) - -
---------------- ------------
1,871 986 44 16
---------------- ------------
Diamonds & Gold
Argyle 435 65 13 7
Diavik 60 226 87 91 31
Kennecott Minerals 100 195 197 9 15
Kelian 90 86 119 2 -
Rio Tinto Zimbabwe 56 11 9 1 -
Brazil 122 135 10 7
Other diamonds & gold 100 129 11 12
--------------- --------------
1,175 741 137 72
--------------- --------------
Other items 152 220 2 -
Exploration and evaluation
Net interest
Less Joint ventures
and associates (d) (93) (77)
----------------- --------------
Total 13,207 10,339 651 299
----------------- --------------
Less net debt (5,712) (3,030)
-----------------
Net assets 7,495 7,309
-----------------
(a) Net earnings represent after tax earnings attributable to the
Rio Tinto Group. Earnings of subsidiaries are stated before interest
charges but after amortisation of the discount related to provisions.
Earnings attributable to joint ventures and associates include
interest charges.
(b) Gross turnover includes 100 per cent of subsidiaries' turnover
and the Group's share of the turnover of joint ventures and
associates.
(c) Operating assets of subsidiaries comprise net assets before
deducting net debt. For joint ventures and associates Rio Tinto's net
investment 19 is shown. Previously operating assets of subsidiaries
were stated before deduction of taxation liabilities and provisions.
The definition of operating assets has now been amended better to
reflect the Group's net investment. The 2000 comparative figures for
operating assets have been restated. For joint ventures and associates
shown above, Rio Tinto's share of operating assets, defined as for
subsidiaries, are as follows: Escondida US$752 million (2000: US$732
million), Freeport joint venture US$481 million (2000: US$414
million), Freeport associate US$455 million (2000: US$451 million),
Somincor US$109 million (2000: US$134 million), Kaltim Prima US$141
million (2000: US$162 million).
(d) Capital expenditure comprises purchases less disposals of
property, plant and equipment. The details provided include 100 per
cent of subsidiaries' capital expenditure and Rio Tinto's share of the
capital expenditure of joint ventures and associates. Amounts relating
to joint ventures and associates not specifically funded by Rio Tinto
are deducted before arriving at total capital expenditure.
(e)Business units have been classified above according to the
Group's management structure. Generally, this structure has regard to
the primary product of each business unit but there are exceptions.
For example, the Copper group includes the gold revenues of Kennecott
Utah Copper and Freeport (Rio Tinto share) and the businesses of Rio
Tinto Aluminium and Zinkgruvan. This summary differs, therefore, from
the Product Analysis in which the contributions of individual business
units are attributed to several products as appropriate.
(f) Rio Tinto's weighted average interest in Comalco for the first
half of 2001 was 100 per cent (First half 2000: 78 per cent).
PRODUCT ANALYSIS
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
------ ------ ------- ------
Gross turnover
Copper 1,394 1,106 505 429 13.8 14.7
Gold (all sources) 890 590 322 229 8.8 7.9
Iron ore 1,619 851 586 330 16.0 11.3
Coal 1,983 1,286 718 499 19.6 17.1
Aluminium 1,684 1,562 610 606 16.6 20.8
Industrial minerals
(including diamonds) 1,960 1,720 710 667 19.3 22.9
Other products 605 398 218 155 5.9 5.3
------ ------ ------ ------ ------ ------
Total 10,135 7,513 3,669 2,915 100.0 100.0
------ ------ ------ ------ ------ ------
Net earnings
Copper, gold
and by-products 338 184 122 71 18.5 14.8
Iron ore 441 233 160 91 24.2 18.7
Coal 299 179 108 69 16.4 14.4
Aluminium 349 276 126 108 19.2 22.1
Industrial minerals
(including diamonds) 324 302 117 118 17.8 24.2
Other products 73 72 27 28 3.9 5.8
------ ------ ------ ------ ------ ------
1,824 1,246 660 485 100.0 100.0
Exploration
and evaluation (79) (74) (28) (29)
Other items (b) (130) (60) (47) (23)
------ ------ ------ ------
Total 1,615 1,112 585 433
------ ------ ------ ------
First First
half half Year
2001 2000 2000
US$m US$m US$m
----- ----- ------
Gross turnover
Copper 727 673 1,528
Gold (all sources) 464 359 781
Iron ore 844 518 1,385
Coal 1,034 783 1,648
Aluminium 878 951 1,817
Industrial minerals
(including diamonds) 1,022 1,047 2,204
Other products 315 242 609
----- ----- -----
Total 5,284 4,573 9,972
----- ----- -----
Net earnings
Copper, gold
and by-products 176 112 334
Iron ore 230 142 367
Coal 156 109 242
Aluminium 182 168 359
Industrial minerals
(including diamonds) 169 184 403
Other products 37 44 59
----- ----- -----
950 759 1,764
Exploration
and evaluation (41) (45) (108)
Other items (b) (68) (37) (149)
----- ----- -----
Total 841 677 1,507
----- ----- -----
GEOGRAPHICAL ANALYSIS (by country of origin)
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
----- ----- ------ --------
Gross turnover
North America 2,973 2,253 1,076 874 29.3 30.0
Australia
and New Zealand 4,298 3,064 1,556 1,189 42.4 40.8
South America 558 476 202 185 5.5 6.3
Africa 783 636 283 247 7.7 8.5
Indonesia 892 557 323 216 8.8 7.4
Europe and
other countries 631 527 229 204 6.3 7.0
------ ------ ----- ----- ----- -----
Total 10,135 7,513 3,669 2,915 100.0 100.0
------ ------ ----- ----- ----- -----
Net earnings
North America 307 225 111 87 17.1 19.0
Australia and
New Zealand 1,001 642 363 249 55.8 54.2
South America 105 199 38 77 5.9 16.8
Africa 104 66 38 25 5.8 5.5
Indonesia 140 15 51 6 7.8 1.2
Europe and
other countries 140 37 50 17 7.6 3.3
----- ------ ------ -----
1,797 1,184 651 461 100.0 100.0
----- ------ ------ -----
Net interest (b) (182) (72) (66) (28)
----- ------ ------ -------
1,615 1,112 585 433
Total ----- ------ ------ -------
First First
half half Year
2001 2000 2000
US$m US$m US$m
----- ------ ------
Gross turnover
North America 1,550 1,371 3,100
Australia
and New Zealand 2,241 1,865 3,900
South America 291 290 594
Africa 408 387 905
Indonesia 465 339 820
Europe and
other countries 329 321 653
----- ----- -----
Total 5,284 4,573 9,972
----- ----- -----
Net earnings
North America 160 137 397
Australia and
New Zealand 522 391 818
South America 55 121 174
Africa 54 40 115
Indonesia 73 9 73
Europe and
other countries 72 23 68
----- ----- -----
936 721 1,645
Net interest (b) (95) (44) (138)
----- ----- -----
Total 841 677 1,507
----- ----- -----
(a) The above analyses include the Rio Tinto share of the results of
joint ventures and associates including interest.
(b) The amortisation of discount related to provisions is included in
the applicable product category and geographical area. All other
financing costs of subsidiaries are included in 'Other items'
within the product analysis and in 'Net interest' within the
geographical analysis.
RECONCILIATION WITH US GAAP
First First First First
half half half half
2001 2000 2001 2000
A$m A$m (pound)m (pound)m
------ ------ ------ -------
Net earnings
under UK GAAP 1,615 1,112 585 433
Increase/(decrease)
net of tax
in respect of :
Goodwill amortisation (111) (89) (40) (34)
Pensions (38) (3) (14) (1)
Other (42) 5 (15) 2
------ ------ ----- ------
Income pre exchange
differences taken
to US GAAP earnings 1,424 1,025 516 400
Exchange differences
taken to earnings
under US GAAP (320) - (116) -
------ ------ ------ -------
Net income
under US GAAP 1,104 1,025 400 400
------ ------ ------ -------
Basic earnings per
ordinary share
under US GAAP
Pre exchange
differences
taken to earnings
under US GAAP 103.6c 74.8c 37.5p 29.2p
------ ------ ------ -------
Net income
under US GAAP 80.3c 74.8c 29.1p 29.2p
------ ------ ------ -------
Shareholders' funds
under UK GAAP 14,750 12,178 5,330 4,828
Increase/(decrease)
net of tax
in respect of:
Goodwill 3,637 3,322 1,314 1,317
Taxation (94) (75) (34) (30)
Proposed dividends 541 435 196 172
Asset write-downs 183 160 66 63
Reversal of
additional provisions
under FRS 12 449 402 162 159
Start-up costs (130) (108) (47) (43)
Mark to market of
derivative contracts (380) - (137) -
Other (327) (45) (118) (18)
---- ----- ------ ------
Shareholders'
funds under US GAAP 18,629 16,269 6,732 6,448
------ ------ ----- -----
First First
half half Year
2001 2000 2000
US$m US$m US$m
----- ----- ------
Net earnings
under UK GAAP 841 677 1,507
Increase/(decrease)
net of tax
in respect of :
Goodwill amortisation (58) (54) (104)
Pensions (20) (2) (50)
Other (22) 3 (43)
---- ---- ----
Income pre exchange
differences taken
to US GAAP earnings 741 624 1,310
Exchange differences
taken to earnings
under US (167) - (123)
----- ----- -----
Net income
under US GAAP 574 624 1,187
----- ----- -----
Basic earnings per
ordinary share
under US GAAP
Pre exchange
differences
taken to earnings
under US GAAP 53.9c 45.5c 95.4c
----- ----- -----
Net income
under US GAAP 41.7c 45.5c 86.5c
----- ----- -----
Shareholders' funds
under UK GAAP 7,495 7,309 7,344
Increase/(decrease)
net of tax
in respect of:
Goodwill 1,848 1,994 1,927
Taxation (48) (45) (49)
Proposed dividends 275 261 529
Asset write-downs 93 96 95
Reversal of
additional provisions
under FRS 12 228 241 235
Start-up costs (66) (65) (64)
Mark to market of
derivative contracts (193) - (67)
Other (166) (27) (125)
----- ----- -----
Shareholders'
funds under US GAAP 9,466 9,764 9,825
----- ----- -----
Diluted earnings per share under US GAAP are US0.07 cents (First half
2000: US0.05 cents) less than the above earnings per share figures.
The Group's financial statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United Kingdom (UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles ). The differences from generally accepted accounting principles in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) relate principally to the following items, and the effect of each of the adjustments to net earnings and shareholders' funds that would be required under US GAAP is set out above. Goodwill - For 1997 and prior years, UK GAAP permitted the write off of purchased goodwill on acquisition directly against reserves. Under US GAAP, goodwill is capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and amortised by charges against income over the period during which it is expected to be of benefit, subject to a maximum of 40 years. Goodwill previously written off directly to reserves in the UK GAAP accounts has been reinstated and amortised for the purpose of the reconciliation statements. For acquisitions in 1998 and subsequent years, goodwill is capitalized under UK GAAP, in accordance with FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 10. Exchange differences under US GAAP: (a) Derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. - The Group is party to derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts in respect of some of its future transactions in order to hedge its exposure to fluctuations between the US dollar and other currencies. Under UK GAAP, these contracts are accounted for as hedges: gains and losses are deferred and subsequently recognized when the hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. transaction occurs. Prior to 1 January 2001, some of these transactions did not qualify for hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). under FAS 52, principally because they were not yet contractual commitments. Provision for unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. of US$67 million on derivatives relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc such transactions was therefore recognized in shareholders' funds under US GAAP at 31 December 2000. Under FAS 133, which applies to Rio Tinto from 1 January 2001, all derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. are included in the balance sheet as assets or liabilities measured at fair value. Certain of the Group's derivative contracts do not qualify for hedge accounting under FAS 133, principally because the hedge is not located in the entity with the exposure. Unrealized losses of US$29 million on such derivatives have therefore been taken to US GAAP earnings. The Financial Accounting and Standards Board and the Derivatives Implementation Group have issued a number of interpretations of FAS 133 this year and are expected to issue further interpretations in the second half. These conclusions may require changes in Rio Tinto's interpretation of the standard. (b) Debt - The Group finances its operations primarily in US dollars and a significant proportion of the Group's US dollar debt is located in its Australian operations. Under UK GAAP, this debt is dealt with in the context of the currency status of the Group as a whole and exchange differences reported by the Australian operations are adjusted through reserves. US GAAP permits such exchange gains and losses to be taken to reserves only to the extent that the US dollar debt hedges US dollar assets in the Australian Group. Exchange losses of US$138 million on US dollar debt that does not qualify for hedge accounting under US GAAP have therefore been recorded in US GAAP earnings. Provisions - Additional provisions were r |
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