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BHP Group Limited — Earnings Release 2007
Aug 21, 2007
14787_rns_2007-08-21_b255f64f-29ee-4ce3-9d52-758b12360348.pdf
Earnings Release
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Preliminary Results – 30 June 2007 22 August 2007 Chip Goodyear Chief Executive Officer Marius Kloppers Chief Executive Non-Ferrous/ Chief Executive Officer Designate
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Disclaimer
This document has been prepared by BHP Billiton and comprises the slides for a presentation concerning BHP Billiton’s preliminary statement of its annual report and accounts for the financial year ending 30 June 2007.
The views expressed in this document contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this document speaks as at 30 June 2007 and has been prepared on the basis of a number of assumptions which may prove to be incorrect. The information and opinions expressed in this document are subject to change without notice and BHP Billiton does not assume any responsibility or obligation to update publicly or review any forward looking information contained herein, regardless of whether that information is affected by the results of new information, future events or otherwise. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in BHP Billiton, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. No statement in this document is intended to be a profit forecast.
BHP Billiton results are reported under International Financial Reporting Standards (IFRS).
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Preliminary Results – 30 June 2007
Chip Goodyear
Chief Executive Officer
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Highlights – Year ended June 2007
-
HSEC – 12 month rolling Total Recordable Injury Frequency Rate of 7.4, down 16.9%
-
Outstanding operating and financial results
-
Annual production records for 8 major commodities and 17 operations
-
Underlying EBITDA up 27% to US$23.0 billion
-
Underlying EBIT up 31% to US$20.1 billion
-
Attributable profit of US$13.7 billion and earnings per share of 234 US cents, up 35% and 39%, respectively
-
Underlying EBIT margin and ROCE increased to 48% and 38% respectively
-
Growth Projects proceeding well with significant volume growth expected in FY2008
-
Genghis Khan and Global Alumina transactions closed
-
Outlook remains positive
-
US$6.3 billion of US$13.0 billion buy-back completed; US$6.7 billion remaining
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Outstanding results driven by strategy direction and execution US$Bn 11.0 • 55% Volume Growth 10.0 • Portfolio Management 9.0 • Cost & Efficiency Gains 8.0 • 7.0 Commodity Prices 6.0 5.0 4.0 3.0 2.0 1.0
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H2
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Diversity = Strength and stability
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%
70
60
Iron Ore
50
Met Coal
Manganese
40 Energy Coal
Petroleum
SSM
30
Base Metals
Aluminium
20 D&SP
BHP Billiton
10
0
(1)
EBIT Margin
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GDP growth compared
• Demand to remain strong, driven by China • Supply side constraints persist • Inventories remain low • US becoming less relevant to resource demand • Prices likely to remain high albeit volatile
GDP US$Bn 3500
3000
2500
2000
1500
1000
500
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0
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Preliminary Results – 30 June 2007
Alex Vanselow Chief Financial Officer
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Financial Highlights
| Year ended June (US$M) | 2007 | 2006 | % Change |
|---|---|---|---|
| Revenue (with JV share of revenue) | 47,473 | 39,099 | +21 |
| Underlying EBITDA | 22,950 | 18,053 | +27 |
| Underlying EBIT | 20,067 | 15,277 | +31 |
| EBIT – Profit from operations | 18,401 | 14,671 | +25 |
| Attributable profit (excluding exceptionals) | 13,675 | 10,154 | +35 |
| Attributable profit | 13,416 | 10,450 | +28 |
| Net operating cash flow | 15,595 | 10,476 | +49 |
| EPS (US cents) | 233.9 | 168.2 | +39 |
| Dividends per share (US cents) | 47.0 | 36.0 | +31 |
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Outstanding assets result in
Record margins and return on capital
Outstanding Superior Excellent High Margin
Assets Resource Commodity Petroleum
Position Mix Business
60%
48%
50%
(1) 44%
Return on Capital EBIT Margin
40%
38%
40%
35%
30%
29%
30%
24%
20% 21%
20%
13%
11%
10%
0%
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
Unique Business Investment Portfolio
Marketing Excellence in Management
Structure Infrastructure
(1) FY2005, FY2006 and FY2007 are shown on the basis of Underlying EBIT.
Preliminary Results Prior periods are calculated under UKGAAP. All periods exclude revenue
Slide 10 22 August 2007 and EBIT from third party trading activities.
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Petroleum 3,014 2,968 +1.5
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Petroleum 3,014 2,968
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-
Record EBIT contribution
-
Production flat with FY 2006 despite no new projects
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Improved operational uptime and successful infill drilling
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Atlantis, Genghis Khan, Stybarrow, Neptune and Zamzama Phase 2 first production scheduled in H2 CY 2007
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Proved reserves additions replaced 103% of
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Neptune
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Aluminium 1,856 1,191 +55.8
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-
Record EBIT contribution
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Record production and sales
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Worsley Development Capital Project fully ramped up
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Acquisition of 33.3% interest in Guinea Alumina Project. Sanction targeted in Q1 CY 2008
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Worsley
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Base Metals 6,905 5,400 +27.9
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-
Record EBIT contribution
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Record annual copper production
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Spence commissioned and continued successful ramp up of Escondida Sulphide Leach Project
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Cannington full production resumed in early 2007
-
Olympic Dam pre-feasibility study progressing well
-
Favourable TC/RC settlements
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Spence
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Diamonds & Specialty Products 261 345 -24.3
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Solid operational performance from RBM
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Higher value Ekati underground production to increase future EBIT
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The Koala Underground project on schedule and budget
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Corridor Sands project expected to move into feasibility during CY 2008
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Ekati
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• Concept study for a Potash mine progressing
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Stainless Steel Materials 3,697 901 +310.3
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-
Record EBIT contribution
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Record annual nickel production
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Ravensthorpe and Yabulu expansion commissioning progressing well
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Increased exploration activity in Western Australia, Colombia, and Guatemala
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• Cliffs project approved
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Yabulu
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Iron Ore 2,738 2,537 +7.9
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-
Record EBIT contribution
-
Record iron ore production and sales
-
WAIO Rapid Growth Project 3 (to 129 Mtpa) commissioning commenced
-
FY 2008 WAIO production estimated at 120 Mtpa
-
WAIO Rapid Growth Project 4 to 155 Mtpa approved
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Manganese 253 132 +91.7
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-
Record manganese ore production
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Increased annual manganese alloy production
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Strong market conditions during the year
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• Groote Eylandt expansion in feasibility
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TEMCO
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Metallurgical Coal 1,249 1,834 -31.9
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-
Record annual production
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Record throughput at Hay Point Coal terminal
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Hay Point Coal terminal expansion to 44 Mtpa commissioning commenced
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Third party infrastructure constraints to continue in the near term
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BMA Phase 2 completed and first production achieved at Poitrel
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Hay Point
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Underlying EBIT by Customer Sector Group
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Year ended June (US$M) 2007 2006 % Change % Change Energy Coal 484 327 +48.0
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-
Higher export prices driven by strong demand
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Record annual production at Hunter Valley Coal
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3 new projects in feasibility
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Divestment of Koornfontein, Optimum and closure of Douglas will impact FY 2008 earnings
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Middelburg
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Higher capture of price benefit to EBIT
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US$M
22,000
20,067
2,697
20,000
85%
2,327
18,000
3,425
72% 2,463
15,277
16,000
14,000
12,000
10,000
8,000
6,000
H1 H2 Column 4
4,000
2,000
0
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Lowest rate of cost increase in 3 years – 3.6% [(1)]
InvestmentInvestment RecoupedRecouped OneOne OtherOther BusinessBusiness
-
+ in Revenuein Revenue + OffsOffs + ExcellenceExcellence = $714M$714M
$372M$372M $267M$267M $149M$149M $129M$129M $203M$203M
US$M
400
350
242 People
300
250
134 Raw Materials
200
150
58 Shipping 77 Cannington
100 130 Maintenance & Freight Rehab 129
50 75 Fuel & 72 Escondida
Energy Negotiation
0
-50
-100
-150
(203)
-200
-250
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Financial strength and discipline
28
•
Record net operating
24 cash flow of US$15.6Bn
20 •
Strong balance sheet
•
16 Dividend rebased
•
12 Share buy-backs
continue
8
•
24% CAGR on dividends
4
0
11th consecutive dividend increase since July 2001
Preliminary Results
Slide 22 22 August 2007
Dividend US cents per share
Nov 01 May 02 Oct 02 May 03 Oct 03 May 04 Aug 04 Feb 05 Aug 05 Feb 06 Aug 06 Feb 07 Aug 07
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Preliminary Results – 30 June 2007
Marius Kloppers
Chief Executive Non-Ferrous/ Chief Executive Officer Designate
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Growth delivered since July 2001
BROWNFIELD Acquisition - $7.2Bn
WMC Resources
Cerrejon
Zona Norte Prod & Cap
Expansion
San Juan UG
TintayaOxide Bream Gas Mt ArthurMt Arthur WAIORGP Dendrobium Paranam RGP 2RGP 2WAIOWAIO Phase 2BMA
Pipeline NorthNorth BMA
Phase 1
WAIO
EscondidaEscondida
EscondidaEscondida Mozal 2Mozal 2 Hillside 3Hillside 3 PandaPanda SulphideSulphide
UGUG
Phase IVPhase IV NWSNWS Esc’didaEsc’dida
Area CArea C Train 4Train 4 NorteNorte WorsleyWorsley
CY2002 2003 2004 2005 2006
Mad DogMad Dog
AntaminaAntamina OhanetOhanet RODROD SpenceSpence
Zamzama GOMGOM AngosturaAngostura
Typhoon
MinervaMinerva
Size of bubble indicates $US $US
final capital expenditure 200M200M CSG
Petroleum Diamonds Manganese
Aluminium SSM Met Coal
Preliminary Results
Slide 24 22 August 2007 GREENFIELD Base Metals Iron Ore Energy Coal
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Growth since FY 2001 – Equivalent units rebased
Projects impacting FY 2008
200 • Atlantis, Genghis Khan, Neptune, Zamzama Ph II, Stybarrow
- Yabulu, Ravensthorpe
• Spence, Escondida Suphide Leach, Pinto Valley
150
- RGP3, Samarco
• Koala UG
100
50
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Deep inventory of growth projects
As at 22 August 2007
BROWNFIELD $US $US
Size of bubble indicates proposed capital expenditure;
Pinto Atlantis bold outer border signifies sanctioned project. 200M200M
Valley KoalaKoala North KlipspruitKlipspruit
UGUG
NWS T5NWS T5 Douglas –Douglas – NWS NthNWS Nth
MiddelburgMiddelburg Rankin BRankin B
SamarcoSamarco Worsley E&GWorsley E&G
NWSNWS KipperKipper
WA Iron OreWA Iron OreRGP 3RGP 3 AngelAngel WA Iron OreWA Iron Ore Newcastle Third Port PerseverancePerseverance
GEMCO RGP 4RGP 4 DeepsDeeps
AlumarAlumar Mt ArthurMt Arthur
ZamzamaPhase 2 YabuluYabulu Coal UGCoal UG Navajo SouthNavajo SouthMine ExtMine Ext MaruwaiMaruwaiStage 2Stage 2
CY2008 2009 2010 2011
Maruwai
Stage 1
NeptuneNeptune BakhuisBakhuis
GenghisGenghis GuineaGuinea
KhanKhan AluminaAlumina
StybarrowStybarrow RavensthorpeRavensthorpe PyreneesPyrenees
ShenziShenzi
Atlantis SouthAtlantis South CSG
Cliffs Nickel
Petroleum Diamonds Manganese
Project Aluminium SSM Met Coal
Base Metals Iron Ore Energy Coal
Preliminary Results Slide 26 22 August 2007 GREENFIELD
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Deep inventory of projects and options
As at 22 August 2007
Proposed capital expenditure
WA Iron OreWA Iron Ore SarajiSaraji NWSNWS <$500M<$500M $501M-$2Bn$501M-$2Bn $2Bn+$2Bn+
Quantum 1Quantum 1 WFGWFG Shenzi
Nth
AngolaAngola
CanadianCanadian & DRC& DRC CMSA HeapCMSA Heap Maruwai
PotashPotash ResolutionResolution LeachingLeaching
ThebeThebe Angostura CaroonaCaroona Stage 2 NavajoSth Klipspruit WA Iron OreWA Iron OreRGP 4RGP 4 AngelAngelNWSNWS YabuluYabulu ValleyPinto
BlackwaterUG NimbaNimba AlloyAlloyExpExp Gas RBMRBM GEMCO EkatiEkati KipperKipper WorsleyWorsleyE&GE&G NWSNWST5T5 ZamzamaPhase 2
Exp
Macedon Boffa/SantouBoffa/Santou HallmarkHallmark DauniaDaunia GEMCO Douglas- ShenziShenzi SamarcoSamarco Neptune
Turrum ExpansionsExpansionsGoonyellaGoonyella RefineryRefinery Peak DownsPeak Downs CerrejonOpt Exp Bakhuis MiddelburgMaruwai AlumarAlumar Stybarrow KoalaKoalaUGUG
ExpExp CorridorCorridor NWS NthRankin BNWS NthRankin B Stage 1 PyreneesPyrenees Atlantis
WA Iron OreWA Iron OreRGP 5RGP 5 SA Mn Browse LNGBrowse LNG CMSA 3rdCMSA 3rd Sands ISands I Mt Arthur Third PortNewcastle North CliffsCliffs AtlantisAtlantisSouthSouth
Ore Exp LineLine
Coal UG
KennedyKennedy WA Iron OreWA Iron OreQuantum 2Quantum 2 CorridorCorridor Samarco 4Samarco 4 Perseverance AluminaAluminaGuineaGuinea RavensthorpeRavensthorpe WA Iron OreWA Iron OreRGP 3RGP 3 GenghisKhan
Olympic DamOlympic Dam Sands IISands II Deeps
Escondida
ExpansionExpansion
3rd Concentrator
GabonGabon ScarboroughScarborough Red Hill Feasibility 2010 Execution 2007
UG
CW AfricaCW Africa WardsWards 2013
ExplorationExploration WellWell
Future Options CSG
Petroleum D&SP Manganese
Aluminium SSM Met Coal
Preliminary Results
Base Metals Iron Ore Energy Coal
Slide 27 22 August 2007
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A premier energy portfolio
-
World class energy assets
-
Global marketing capability
-
Flexible options
-
Well positioned to meet growth
Fuel inputs used in the production of electricity 2004 = 100
200 Gas 190 180 Coal 170 160 Electricity 150 140 Renewables 130 120 Nuclear 110 100 Oil
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Oil & Gas
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- Significant growth in next 3 years
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- Top quartile returns
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- Outstanding exploration success
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Coal
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- Number two seaborne coal exporter
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- Multi sourcing production
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- Expansion options in US, Australia, South Africa and Colombia
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Uranium
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- World’s largest uranium resource
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- Significant expansion potential
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- Significant increase in Olympic Dam
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Future focus
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Core strategy is unchanged:
–
Growth
People
Options
–
Run current assets at
full potential Project Pipeline
–
Accelerate development Financial Strength
and Discipline
projects
– The BHP Billiton Way
Create future options (Value Added Processes)
World Class Assets
‘Licence to Operate’
People
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Preliminary Results – 30 June 2007
Chip Goodyear
Chief Executive Officer
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Summary
- Outstanding operating and financial results
• FY 2008 to see significant volume growth across Petroleum, Base Metals, Iron Ore and Stainless Steel Materials
- Outlook remains positive
– Long term fundamentals intact
– Supply side constraints continue to challenge
-
Prices likely to stay high and volatile
-
Longer term portfolio optionality is strong across energy and minerals
-
Increasing returns to shareholders through rebased dividend and continued buy-backs
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Appendix
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Underlying EBIT by Customer Sector Group
| Year ended June (US$M) | 2007 | % Change 2006 % Change |
% Change 2006 % Change |
|
|---|---|---|---|---|
| Petroleum | 3,014 | 2,968 | +2 | |
| Aluminium | 1,856 | 1,191 | +56 | |
| Base Metals | 6,905 | 5,400 | +28 | |
| Diamonds & Specialty Products | 261 | 345 | -24 | |
| Stainless Steel Materials | 3,697 | 901 | +310 | |
| Iron Ore | 2,738 | 2,537 | +8 | |
| Manganese | 253 | 132 | +92 | |
| Metallurgical Coal | 1,249 | 1,834 | -32 | |
| Energy Coal | 484 | 327 | +48 | |
| Group & Unallocated Items(1) | (390) | (358) | ||
| BHP Billiton (Total) | 20,067 | 15,277 | +31 |
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Net finance costs, taxation and attributable profit
Year ended June (US$M) 2007 2006
Underlying EBIT 20,067 15,277
JV net finance costs (122) (95)
JV tax expense (1,201) (950)
Exceptional items (343) 439
EBIT - Profit from operations 18,401 14,671
Net finance costs (390) (505)
Profit before tax 18,011 14,166
Tax expense (including royalty related tax) (4,515) (3,632)
Minorities (80) (84)
Attributable profit 13,416 10,450
Preliminary Results
Slide 35 22 August 2007
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Underlying EBIT analysis Year ended June 07 vs June 06
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US$M
23,000
586
22,000 6,122
21,000 (714)
(145) 36 20,067
(416)
20,000 (271)
(259)
(149)
19,000
18,000
17,000
16,000
15,277
15,000
14,000
13,000
12,000
11,000
10,000
(1) (2)
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Impact of major commodity price Year ended June 2007 vs June 2006
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Total price variance US$7,101 million [(1)]
US$M Nickel
3,852
3900
3600
3300
3000
2700
2400
2100
Copper
1800
1,559
1500
1200 Other
Aluminium Base Iron
900 703 Metals Ore
555 549
600 Thermal
Other
Coal Alumina Petroleum
300 147 101 91 84
0
-300
-600
Met Coal
(540)
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Impact of major volume changes
Year ended June 07 vs June 06
Total volume [(1)] variance US$218 million
US$M Met
Coal
180
160 Copper
150 141
Manganese
120
63
Alumina
90 58 Iron Ore
27
Thermal
60
Aluminium Coal
22 Nickel Oil & Gas
30 18 15
13
0
-30
Other
(25)
-60
D&SP
(54)
-90
Cannington
Rehab
-120
(81)
-150 Escondida
Negotiation
(139)
Preliminary Results (1) Volume variances calculated using previous
Slide 38 22 August 2007 year margin and excluding new operations.
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Declining rate of cost increase [(1)]
9% 8.4%
Total
8% Excl Non-Cash
6.7%
7%
5.9% 5.8%
6% 5.6% 5.5%
4.9%
5% 4.5% 4.3%
3.9% 4.0%
4%
3.0%
3%
2%
1%
0%
(2) (2)
H1 2005 H2 2005 H1 2006 H2 2006 H1 2007 H2 2007
(1) Cost increases are shown relative to the preceeding half year.
Preliminary Results (2) H1 2005 and H2 2005 are shown on the basis of UKGAAP.
Slide 39 22 August 2007 Other periods are calculated under IFRS.
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Outstanding assets EBIT margin[(1)] by Customer Sector Group
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70%
2005 2006 2007
60%
50%
40%
30%
20%
10%
0%
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Energy Coal
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Cash flow
| Year ended June (US$M) | Year ended June (US$M) | 2007 | 2006 | ||||
|---|---|---|---|---|---|---|---|
| Operating cash flow and JV | dividends(1) | 20,211 | 14,665 | ||||
| Net interest paid | (380) | (378) | |||||
| Tax paid(2) | (4,236) | (3,811) | |||||
| Net operating cash flow | 15,595 | 10,476 | |||||
| Capital expenditure(3) | (6,383) | (5,239) | |||||
| Exploration expenditure | (793) | (766) | |||||
| Purchases of investments | (856) | (596) | |||||
| Proceeds from sale of fixed assets & investments | 408 |
1,089 | |||||
| Net cash flow before dividends and funding | 7,971 | 4,964 | |||||
| Dividends paid | (2,339) | (2,126) | |||||
| Net cash flow before fun | di | ng & buy | -ba | cks | 5,632 | 2,838 |
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Strong Cash Flow - delivering value to shareholders
Organic Growth [(1)]
Net Operating Cash Flow US$M
9000
US$M 8000
7000
16000
6000
5000
14000
4000
H1 H2
3000
12000
2000
1000
10000
0
(3) (3) (3)
FY02 FY03 FY04 FY05 FY06 FY07
8000
Return to Shareholders [(][2)]
US$M
6000
9000
8000
4000
7000
6000
2000 5000
4000
0 3000
(3) (3) (3)
FY02 FY03 FY04 FY05 FY06 FY07 2000
1000
(1) Capital and Exploration Expenditures (exclude acquisitions)
(2) Dividends paid and Share buy-backs 0 (3) (3) (3)
FY02 FY03 FY04 FY05 FY06 FY07
(3) FY2005, FY2006 and FY2007 data have been calculated on the basis of
the IFRS. Prior periods have been calculated on the basis of UKGAAP.
Preliminary Results
Slide 42 22 August 2007
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Portfolio management – US$6.0Bn of disposals
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US$M
6,000
Proceeds from sale of assets US$M
5,000 FY 2007 444
FY 2006 934
4,000
FY 2005 1,035
3,000
FY 2004 277
2,000 FY 2003 [(1)] 2,472
FY 2002 845
1,000
Total proceeds 6,007
0
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Sale Proceeds
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(1) Includes BHP Steel demerger and BHP Steel loans (net of cash disposed and costs)
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China
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•
Sales into China increasing but diversification remains
•
Currently 20% of total company revenues
US$M
5,293
5,500
5,000 ROW
Europe
4,500
Australia 3,999
4,000
3,611
3,500
Japan
3,000 China 2,946
Other Asia
Nth 2,407
2,500 America
2,000
1,588
1,357
1,500
1,075
1,000 785
371 431
500
0
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Capital & exploration expenditure[(1)]
| Growth US$ Billion |
Growth US$ Billion |
1.9 2002 |
2.0 2003 |
2.0 2003 |
1.8 2004 |
1.8 2004 |
2.6 2005 |
4.2 2006 |
4.2 2006 |
5.2 2007 |
5.2 2007 |
7.0 2008 (F) |
7.0 2008 (F) |
7.0 2008 (F) |
(1) Includes expenditure for jointly controlled |
(1) Includes expenditure for jointly controlled |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sustaining & Other | 0.9 | 0.7 | 0.8 | 1.2 | 1.4 | 1.4 | 1.5 | entities | |||||||||||
| Exploration | (2) | 0.4 | 0.3 | 0.5 | 0.5 | 0.8 | 0.8 | 1.2 | (2) 2008 Forecast includes US$500M |
||||||||||
| Total | 3.2 | 3.0 | 3.1 | 4.3 | 6.4 | 7.4 | 9.7 | for Petroleum | |||||||||||
| 9.0 10.0 |
|||||||||||||||||||
| 8.0 | Exploration | ||||||||||||||||||
| 7.0 | |||||||||||||||||||
| 4.0 5.0 6.0 US$Bn |
Sustaining Capex Growth |
||||||||||||||||||
| 0.0 1.0 2.0 3.0 |
Expenditure |
Sanctioned development projects (US$14.3Bn)
| Minerals Projects | Commodity | Share of Approved Capex US$M |
Initial Production Target Date |
Production Capacity (100%) |
Progress |
|---|---|---|---|---|---|
| Alumar Refinery Expansion (Brazil) – 36% |
Alumina | 725 | Q2 CY09 | 2 million tpa | On schedule and budget |
| Pinto Valley (USA) – 100% | Copper | 140 | Q4 CY07 | 70,000 tpa copper concentrate |
On schedule and budget |
| Western Australia Iron Ore RGP 3 (Australia) – 85% |
Iron Ore | 1,300 | Q4 CY07 | 20 million tpa | On schedule and budget |
| Western Australia Iron Ore RGP 4 (Australia) – 86.2% |
Iron Ore | 1,850 | H1 CY10 | Increase system capacity to 155 million tpa |
On schedule and budget |
| Samarco Third Pellet Plant (Brazil) – 50% |
Iron Ore | 590 | H1 CY08 | 7.6 million tpa | On schedule and budget |
| Koala Underground (Canada) – 80% |
Diamonds | 200 | End CY07 | 3,300 tonnes per day ore processed |
On schedule and budget |
| Ravensthorpe (Australia) – 100% | Nickel | 2,200 | Q1 CY08 | Up to 50,000 tpa contained nickel in concentrate |
On schedule and budget |
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Sanctioned development projects (US$14.3Bn) cont.
Share of
Initial
Approved Production Capacity
Petroleum Projects Commodity Production Progress
Capex (100%)
Target Date
US$M
200,000 barrels and 180 On schedule and
Atlantis South (USA) – 44% Oil/Gas 1,630 H2 CY07 million cubic feet gas per revised budget
day approved
On schedule and
Genghis Khan (USA) – 44% Oil/Gas 365 H2 CY07 55,000 barrels per day
budget
Zamzama Phase 2 (Pakistan) – 150 million cubic feet gas On schedule and
Gas 46 Q3 CY07
38.5% per day budget
50,000 barrels and 50 On schedule and
Neptune (USA) – 35% Oil/Gas 405 End CY07 million cubic feet gas per revised budget
day approved
On schedule and
Stybarrow (Australia) – 50% Oil/Gas 380 Q1 CY08 80,000 barrels per day
revised budget
North West Shelf Train 5 LNG processing capacity On schedule and
LNG 300 Late CY08
(Australia) – 16.67% 4.2 million tpa revised budget
Preliminary Results
Slide 47 22 August 2007
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Sanctioned development projects (US$14.3Bn) cont.
Share of
Initial
Petroleum Projects Approved Production Capacity
Commodity Production Progress
(cont’d) Capex (100%)
Target Date
US$M
North West Shelf Angel 800 million cubic feet gas On schedule and
Oil/Gas 200 End CY08
(Australia) – 16.67% per day budget
100,000 barrels and 50
On schedule and
Shenzi (USA) – 44% Oil/Gas 1,940 Mid CY09 million cubic feet of gas
budget
per day
On revised
Atlantis North (USA) – 44% Oil/Gas 100 H2 CY09 Tie-back to Atlantis South schedule and on
budget
On schedule and
Pyrenees (Australia) – 71.43% Oil/Gas 1,200 H1 CY10 96,000 barrels per day
budget
Preliminary Results
Slide 48 22 August 2007
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Development projects in feasibility
Estimated Share
Minerals Projects Forecast Initial Project Capacity
Commodity of Capex
(US$5.4Bn) US$M Production (100%)
Worsley Efficiency and Growth
Alumina 1,000 End CY10 1.1 million tpa
(Australia) – 86%
Guinea Alumina Project (Guinea) –
Alumina 1,000 H2 CY11 3.2 million tpa
33.3%
Bakhuis (Suriname) – 45% Bauxite 320 H2 CY09 6.9 million tpa bauxite
Maruwai Stage 1 (Indonesia) –
Met Coal 50 End CY08 1 million tpa clean coal
100%
Maruwai Stage 2 (Indonesia) –
Met Coal 405 H1 CY11 5 million tpa clean coal
100%
GEMCO (Australia) – 60 % Mn Ore 90 H2 CY08 1 million tpa
Douglas-Middelburg Optimisation Optimisation of existing
Energy Coal 460 H1 CY09
(South Africa) – 84% reserve base
Third coal berth capable of
Newcastle Third Port (Australia) –
Energy Coal 230 End CY10 handling an estimated
35.5%
30 million tpa
Preliminary Results Slide 49 22 August 2007 * Indicative only
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Development projects in feasibility
| Minerals Projects (US$5.4Bn) |
Commodity | Estimated Share of Capex US$M* |
Forecast Initial Production* |
Project Capacity (100%)* |
|
|---|---|---|---|---|---|
| Mt Arthur Coal UG (Australia) – 100% |
Energy Coal | 475 | End CY10 | 7 million tpa saleable coal | |
| Navajo South Mine Extension (USA) – 100% |
Energy Coal | 480 | End CY10 | 5.7 million tpa saleable coal | |
| Klipspruit (South Africa) – 100% | Energy Coal | 420 | End CY09 | 1.2 million tpa saleable coal | |
| Perseverance Deeps (Australia) – 100% |
Nickel | 500 | H2 CY13 | Maintain Nickel West system capacity |
|
| Petroleum Projects (US$1.2Bn) |
Commodity | Estimated Share of Capex US$M* |
Forecast Initial Production* |
Project Capacity (100%)* |
|
| Kipper(Australia) – 32.5% | Oil/Gas | 600 | H1 CY11 | 170 million cubic feet gas per day |
|
| NWS North Rankin B (Australia) – 16.67% |
Gas | 600 | H1 CY13 | 2.5 million cubic feet gas per day |
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Key net profit sensitivities
Approximate impact[(1)] on FY 2008 net profit (US$M) after tax of changes of: US$1/t on iron ore price 60 US$1/bbl on oil price 30 US$1/t on metallurgical coal price 20 USc1/lb on aluminium price 30 USc1/lb on copper price 25 US$1/t on energy coal price 25 USc1/lb on nickel price 2 AUD (USc1/A$) Operations[(2)] 60 RAND (0.2 Rand/US$) Operations[(2)] 30
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