skip
Operating & Financial Review 2009
Search Form
Financial statements
Consolidated income statement
For the year ended 31 December (abridged) 31 December 2009 US$m 31 December 2008 US$m
Total sales (Note 1) 3 840 6,888
Less: cost of sales 3 513 5,525
Gross profit 327 1,363
Less: operating costs (Note 2) 402 817
Operating (loss) profit (75) 546
Add:    
Trade investment income 298 583
Foreign exchange (losses) gains 95 (306)
Profit before finance charges and taxation 318 823
Less: net finance charges (Note 3) 225 240
Profit before taxation 93 583
Less: taxation 125 304
(Loss) Profit after taxation (32) 279
Less: interests of outside shareholder in subsidiaries (1) 55
Own (loss) earnings (31) 224
Add: share of retained (loss) income of joint ventures (6) 70
Net (loss) earnings before once-off items (37) 294
Once-off items (Note 4) (706) (204)
Net earnings (743) 90
Underlying (loss) earnings (Note 5) (220) 515
EBITDA 654 1,222
Consolidated balance sheet
31 December (abridged) 31 December 2009 US$m 31 December 2008 US$m
Share capital and reserves 1 943 2,408
Interests of outside shareholders 229 220
Total shareholders’ equity 2 172 2,628
Shareholders’ loans 759 248
Other net interest bearing debt* 3 200 3,552
Other non-current liabilities 709 665
  6 840 7,093
Fixed assets 2 795 3,100
Other non-current assets and investments 2 927 2,933
Net current assets 1 118 1,060
  6 840 7,093

*Other net interest bearing debt includes short-term borrowings and is net of cash.

Summary of cash flows
For the year ended 31 December (abridged) 31 December 2009 US$m 31 December 2008 US$m
Cash available from operating activities 226 700
Less: investing activities    
Fixed assets – stay-in-business 150 204
– expansion 31 199
Investments 10 39
  191 442
Free cash flow 35 258
Less: financing activities    
Ordinary dividends (including payments to outside shareholders) 105 358
Cash flow (70) (100)
Add (Deduct):    
Shareholder advances 553 264
non cash movements (131) 341
Decrease in net interest bearing debt 352 505
Notes
    31 December 2009 US$m 31 December 2008 US$m
1. Total sales of natural rough diamonds (including joint ventures) 3233 5,930
2. Operating costs include:    
  – Exploration, research and development 93 232
  – Sorting and marketing 131 266
  – Group technical services and corporate overheads 178 319
    402 817
3. Net finance charges include preference dividends amounting to 11 16
4. Once-off items comprise:    
  Costs in respect of a class action settlement agreement 1 7
  Costs in respect of restructuring of debt 25  
  Impairment in respect of Canadian mining assets 696  
  Impairment in respect of goodwill attributable to the Element    
  Six and DBDJ business   176
  Net costs in respect of restructuring (16) 21
    706 204
5. Underlying (loss) earnings* are calculated as follows:    
  Net earnings before once-off items (37) 294
  Adjusted for special items and remeasurements:    
  Asset disposals (net) 6 1
  Re-measurement gains on financial instruments (189) 220
  Underlying (loss) earnings (220) 515

*Underlying (loss) earnings comprise net earnings attributable to shareholders adjusted for the effect of any once-off or special items and re-measurements, less any tax and minority interests. Special items include closure costs, exceptional legal provisions and profits and losses on the disposal of or impairments of assets. Special items which are considered to be significant relative to the results are categorised as being once-off. Re-measurements are recorded in underlying earnings in the same period as the underlying transaction against which these instruments provide an economic, but not formally designated, hedge.

Other information
  31 December 2009 US$m 31 December 2008 US$m
Exchange rates    
US$/ZAR average 8.25 7.75
US$/ZAR period end 7.43 9.28
US$/C$ average 1.15 1.08
US$/C$ period end 1.06 1.23
Ordinary dividends paid    
2008 – Interim   77
– Special Interim   88
– Final   53
Production statistics
  December 2009 Tonnes ’000 December 2008 Tonnes ’000
Total tonnes treated 35,109 84,610
South African Mines 11,321 21,832
Kimberley and Contractors 2,696 5,875
Finsch Mine 3,249 6,377
Namaqualand Mines and Contractors 138 1,509
Cullinan Diamond Mine - 1,178
Venetia Mine 2,836 5,975
The Oaks Mine - 149
Voorspoed 2,402 769
Namdeb 3,477 16,922
Land 3,477 16,922
Sea - –
Botswana 17,845 41,012
Orapa Mine 8,817 18,569
Letlhakane Mine 2,362 3,794
Damtshaa Mine 60 2,883
Jwaneng Mine 6,606 15,766
Williamson Diamonds Ltd - 2,154
Canada Mines 2,466 2,690
Snap Lake 354 903
Victor 2,112 1,787
  31 December 2009 Carats ‘000 31 December 2008 Carats ‘000
Diamonds recovered 24,600 48,132
South African Mines 4,797 11,960
Kimberley and Contractors 397 913
Finsch Mine 1,426 2,317
Namaqualand Mines and Contractors 71 310
Cullinan Diamond Mine - 540
Venetia Mine 2,204 7,500
The Oaks Mine - 61
SASA 167 191
Voorspoed 532 128
Namdeb 929 2,122
Land 329 1,067
Sea 600 1,055
Botswana 17,734 32,276
Orapa Mine 7,575 16,869
Letlhakane Mine 1,066 1,200
Damtshaa Mine 54 533
Jwaneng Mine 9,039 13,674
Williamson Diamonds Ltd - 134
Canada Mines 1,140 1,640
Snap Lake 444 926
Victor 696 714