Anglo American PLC — Audit Report / Information 2012

Dec 31, 2012

Company Registration No. 04658814

Anglo American Capital pic

$\ddot{\phantom{0}}$

Report and Financial Statements 31 December 2012

Report and financial statements 2012

Contents	Page
Officers and professional advisers	1
Directors' report	$2 - 3$
Directors' responsibilities statement	4
Independent auditor's report	$5-6$
Profit and loss account	7
Balance sheet	8
Notes to the accounts	$9 - 24$

$\bar{z}$

$\hat{\mathbf{v}}$

Report and financial statements 2012

Officers and professional advisers

Directors

$\bar{1}$

$\Delta$

A W Hodges N Jordan R Médori D Smailes K R Tucker

Secretaries

A W Hodges N Jordan

Registered office

20 Carlton House Terrace London SW1Y 5AN

Bankers

Barclays Bank PLC 1 Churchill Place London E14 5HP

Auditors

Deloitte LLP Chartered Accountants London

Directors' report

The directors present their annual report on the affairs of the Company, together with the financial statements and auditor's report for the year ended 31 December 2012.

Business review and principal activities

Anglo American Capital plc ("the Company") is a wholly owned subsidiary of Anglo American plc ("the Group").

The Company is a finance company participating in the finance arrangements of the Anglo American group of companies. There have not been any significant changes in the Company's principal activities during the year and the directors do not envisage any significant changes in the Company's activities in the foreseeable future.

As shown in the Company's profit and loss account on page 7, the Company's net interest income decreased by \$192 million primarily due to increased interest payable to group companies and the fair value loss on derivatives. This has resulted in profit after tax decreasing from \$720 million to \$523 million.

The Group's finance costs are discussed in the Group's Annual Report, which includes this Company. The Company's directors believe that further key performance indicators for the Company are not necessary or appropriate for an understanding of the development, performance or position of the business.

Principal risks and uncertainties

The principal risks to the Company's business are changes in interest rates and movements in foreign exchange rates. An explanation of these risks and how they are managed is referred to in notes 1 and 7 on pages 9-11 and 17-19 respectively.

The Company is also exposed to intercompany credit risk. Group risks are discussed in the Group's Annual Report, which does not form part of this Report.

Results and dividends

The profit after taxation for the year is \$523 million (2011:\$720 million). A dividend of \$500 million was paid to the ordinary shareholder on 27 June 2012 (2011: \$500 million).

Directors

The following served as directors throughout the year to the present:

A W Hodges N Jordan R Médori D Smailes KR Tucker

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies in the financial statements.

Directors' report (continued)

Charitable donations

The Company made no donations to charitable organisations during 2012 (2011: \$Nil).

Auditors

Each of the persons who is a director at the date of approval of this report confirms that:

• 1) so far as they are aware, there is no relevant audit information of which the Company's auditors are unaware; and
• 2) they have taken all steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Deloitte LLP has expressed their willingness to continue in office as auditors and a resolution to appoint them will be proposed at the forthcoming Annual General Meeting.

Approved by the Board of Directors and signed on its behalf by:

A W Hodges Director 6 March 2013

Directors' responsibilities statement

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently; $\bullet$
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any $\bullet$ material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent auditor's report to the members of Anglo American Capital plc

We have audited the financial statements of Anglo American Capital plc for the year ended 31 December 2012 which comprise the Profit and Loss Account, the Balance Sheet, and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the Company's affairs as at 31 December 2012 and of its profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Independent auditor's report to the members of Anglo American Capital plc

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have $\bullet$ not been received from branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or $\bullet$
• certain disclosures of directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit. $\bullet$

Manbhinder Rana F.C.A (Senior Statutory Auditor) for and on behalf of Deloitte LLP Chartered Accountants and Statutory Auditor London, UK

6 March 2013

÷,

$\sim$

Profit and loss account For the year ended 31 December 2012

US\$ '000	Note	2012	2011
Administrative expenses	3	(4, 511)	(4, 774)
Operating loss		(4,511)	(4,774)
Interest receivable and similar income	4	1,312,651	1,253,446
Interest payable and similar charges	4	(767,521)	(516,445)
Profit on ordinary activities before taxation		540,619	732,227
Tax charge on profit on ordinary activities	5	(17, 939)	(11, 910)
Profit on ordinary activities after taxation and retained profit for the financial year		522,680	720,317

All results derive from continuing operations.

There are no recognised gains and losses for the year other than the profit shown above and
therefore no separate statement of total recognised gains and losses has been presented.

Balance sheet

31 December 2012

US\$ '000	Note	2012	2011
Non-current assets
Other financial assets (derivatives)	7	723,706	515,234
		723,706	515,234
Current assets
Debtors - due within one year	8	33,947,250	26,428,262
Investments	9	4,377,597	6,552,249
Other financial assets due within one year	7	21,037	48,960
Creditors: amounts falling due within one year		38,345,884	33,029,471
Short-term borrowings
Other creditors	6 6	(26,020,550)	(24,063,485)
Other financial liabilities (derivatives)	6,7	(248, 610)	(152, 882)
		(179, 915)	(7, 943)
Net current assets		(26,449,075)	(24, 224, 310)
Total assets less current liabilities		11,896,809 12,620,515	8,805,161
			9,320,395
Creditors: amounts falling due after more than
one year
Medium and long-term borrowings	6	(11,010,524)	(7,575,369)
Other financial liabilities (derivatives)	6,7	(592, 268)	(749, 983)
Preference shares	6,10	(79)	(79)
		(11,602,871)	(8,325,431)
Net assets		1,017,644	994,964
Capital and reserves
Called-up share capital	11	1
Share premium account	12	20,000
Capital contribution	14	1,000	20,000
Profit and loss account	12	996,643	1,000
Total shareholders' funds	$\overline{13}$	1,017,644	973,963
			994,964

$\ddot{\phantom{a}}$

The financial statements of Anglo American Capital plc were approved by the board of directors and
authorised for issue on 6 March 2013. They were signed on its behalf by:

A W-Hodges Director

$\overline{a}$

Company Registration No. 04658814

Notes to the accounts Year ended 31 December 2012

$\mathbf{1}$ Accounting policies

The financial statements have been prepared in accordance with applicable United Kingdom law and Accounting Standards (UK GAAP). The financial information has been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments. The particular accounting policies adopted have been applied consistently throughout the current and prior year.

Going concern

The financial statements have been prepared on a going concern basis. The Company's ability to continue as a going concern is assessed in conjunction with the Group, as its viability is dependent on the ability of other group companies to settle their intercompany balances with the Company. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities for the foreseeable future. The directors of the Company are satisfied after appropriate consultation with the directors of Anglo American plc that the Group has adequate resources to continue in operational existence for foreseeable future.

Preference shares

Under FRS 25 "Financial Instruments: Presentation", where the terms of issuance require the issuer to redeem preference shares for a fixed or determinable amount at a fixed or determinable future date, or where the holder has the option of redemption, these shares are classified as liabilities and the dividends paid on these shares classified as a finance cost. When preference shares are nonredeemable, the appropriate classification is determined by the other rights that attach to them which are not at the discretion of the directors. The Company's preference shares entitle the holders to a fixed cumulative dividend of 3% per annum and these shares are, therefore, considered financial liabilities.

Foreign currency

Foreign currency transactions during the year have been translated and included in the financial statements at the rates of exchange prevailing at the time those transactions were executed. Monetary assets and liabilities denominated in foreign currencies have been translated at the rates of exchange prevailing at the balance sheet date. Profits and losses arising on foreign currency transactions and balances are recognised in the profit and loss account.

Taxation

Current tax, including UK Corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements. Deferred tax assets are recognised to the extent that they are regarded, as more likely than not, to be recovered. Deferred tax assets and liabilities are not discounted.

Notes to the accounts Year ended 31 December 2012

$\mathbf{1}$ Accounting policies (continued)

Derivative financial instruments and hedge accounting

In order to manage its exposure to foreign exchange and interest rate risks, the Company enters into foreign exchange forward, interest rate, and cross currency interest rate swap contracts. Net income or expense associated with interest rate swap agreements is recognised on an accruals basis over the life of the swap agreements as a component of interest.

All derivatives are held at fair value on the balance sheet within other financial assets (derivatives) or other financial liabilities (derivatives) and, are classified as current or non-current depending on the maturity of the derivative.

For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in the fair value attributable to the risk being hedged with the corresponding entry in the profit and loss account. Gains or losses from revaluing the associated derivative are also recognised in the profit and loss account, resulting in an offset.

Where, during the life of the hedge relationship the hedge becomes ineffective, hedge accounting is discontinued and the future fair value changes on the hedge instrument are recorded in the profit and loss account but are no longer offset with the fair value changes of the underlying hedged item.

Changes in fair value of any derivative instruments that are not hedge accounted are recognised immediately in the profit and loss account and are classified within net finance costs.

Segmental Analysis

The Company operates in one geographical region, being the UK and has therefore not performed an analysis of results by geographical region or operating income.

Bank borrowings

Interest bearing bank loans and overdrafts are recorded net of direct transaction costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis and charged to the profit and loss account using the effective interest method. They are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

Cash flows

As the Company is a wholly owned subsidiary of Anglo American plc ("parent undertaking"), the cash flows of the Company are included in the consolidated cash flow statement of its parent undertaking. Consequently the Company is exempt, under the provisions of Financial Reporting Standard 1 (Revised 1996) - "Cash flow statements", from publishing a separate cash flow statement.

l.

÷.

Notes to the accounts Year ended 31 December 2012

$\mathbf{1}$ Accounting policies (continued)

Investments

Investments comprise short term, highly liquid investments in liquidity funds and US Treasury funds that are readily convertible to a known amount of cash and that are subject to an insignificant risk of changes in value.

l,

Reporting currency

As permitted by UK Company law, the Company reports in US dollars, the currency in which most of its business is conducted.

$2.$ Information regarding directors and employees

The Company has no employees (2011: Nil). The directors received no remuneration in respect of their services to the Company (2011: \$Nil).

Notes to the accounts Year ended 31 December 2012

$3.$ Operating loss

4.

Operating loss is stated after charging:

US\$ '000	2012	2011
Auditor's remuneration for audit of Anglo American
Capital plc	16	15
Anglo American Services (UK) Ltd management fees	4,495	4,759
	4,511	4,774
Net finance costs
US\$ '000	2012	2011
Interest receivable and similar income
Interest income	9,545	2,275
Interest receivable from group companies:	1,303,106	1,184,755
Fair value gains on derivatives		66,416
Interest receivable and similar income	1,312,651	1,253,446
Interest payable and similar charges
Bank loans and overdrafts	(348, 304)	(286, 828)
Interest payable to group companies
Anglo American plc	(66, 157)	(148, 647)
Other group companies	(215,008)	(62, 473)
Foreign Exchange Losses	(33, 599)	(18, 497)
Fair value losses on derivatives	(104, 453)
Interest payable and similar charges	(767, 521)	(516, 445)
Net finance income	545,130	737,001

Fair value gains and losses on derivatives, presented above, include the mark-to-market value of changes of interest rate derivatives and currency derivatives designated as fair value hedges, net of fair value changes in the associated hedged risk.

Notes to the accounts Year ended 31 December 2012

5(a). Tax charge on profit on ordinary activities

US\$ '000	2012	2011
Current tax
UK corporation tax on profits for the year (24.5% $(2011:26.5\%)$	(17,939)	(11,910)
Double tax relief	17.939	11,910
Overseas tax - Withholding tax	(17,939)	(11,910)
Total tax on profit on ordinary activities	(17, 939)	(11,910)

5(b). Factors affecting tax charge for year

US\$ '000	2012	2011
Profit on ordinary activities before tax	540,619	732,227
Estimated amount of tax on ordinary activities (calculated at standard rate of corporation tax in the UK of 24.5% (2011: 26.5%)) Expenses not deductible for tax purposes	132,452 68	194,040
Interest on preference shares	1
Group relief received for nil consideration	(114, 582)	(182, 131)
Current tax charge for the year	17,939	11,910

Financial liabilities 6.

In 2012, the Company issued: a €750 million seven year 2.75% bond, a €750 million six year 2.5% bond and a €750 million ten year 3.5% bond under the existing Euro Medium Term Note programme. In addition, the Company issued: a \$600 million five year 2.625% bond; a \$750 million five year 2.625% bond and a \$600 million ten year 4.125% bond.

All notes are quaranteed by Anglo American plc. Any bonds issued in currencies other than US Dollar are hedged to US Dollar, and any fixed interest rates are swapped to result in floating interest rates being paid. Hedge accounting is undertaken for all outstanding US Dollar, Euro and Sterling bonds and the related interest rate swaps.

Notes to the accounts Year ended 31 December 2012

6. Financial Liabilities (continued)

Fair values of financial liabilities

The carrying value and fair value of financial liabilities are as follows:

	2012			2011
US\$ '000	Fair values	Carrying Values	Fair values	Carrying Values
Other creditors (interest accruals)	248,610	248,610	152,882	152,882
Other financial liabilities (derivatives)	772,183	772,183	757,926	757,926
Current external borrowings	1,920,169	1,908,960	256,122	256,122
Current borrowings from group companies (excluding AA plc)	9,493,725	9,493,725	10,517,061	10,517,061
Anglo American plc	14,617,865	14,617,865	13,290,302	13,290,302
Preference shares	79	79	79	79
Non-current external borrowings	11,312,634	11,010,524	8,372,577	7,575,369
Total financial liabilities	38,365,265	38,051,946	33,346,949	32.549.741

Fair value is determined by reference to quoted market prices for similar issues, where applicable; in all other cases, the directors consider that the carrying value is a good approximation to fair value.

In accordance with FRS 25 "Financial Instruments: Presentation" and FRS 26 "Financial Instruments: Recognition and Measurement", the borrowings are presented on an unhedged basis. The fair value of associated derivatives is recorded separately within 'Other financial assets' and 'Other financial liabilities' (see note 7).

In accordance with exemptions under FRS 29 'Financial Instruments: Disclosures', the Company has not presented the financial instruments disclosures required by the standard, as disclosures which are equivalent to the standard are included in the Group's consolidated financial statements. Therefore this exempts the Company from this disclosure in this report.

Notes to the accounts Year ended 31 December 2012

6. Financial Liabilities (continued)

Maturity profile

All liabilities are unsecured. The maturity profile of the Company's borrowings at 31 December 2012 was as follows.

US\$ '000	Within 1 year or on demand	Between 1-2 years	Between 2-5 years	After 5 vears	Total
At 31 December 2012
Bank loans and overdrafts	148,048	÷	-		148,048
Bond issues	1,760,912	1,278,673	3,866,021	5,865,830	12,771,436
Preference shares	٠	۰		79	79
Borrowings from group Companies	24,111,590	-	$\qquad \qquad \blacksquare$	¥	24, 111, 590
Total borrowings (excluding hedges)	26,020,550	1,278,673	3,866,021	5,865,909	37,031,153

US\$ '000	Within 1 year or on demand	Between 1-2 years	Between 2-5 years	After 5 vears	Total
At 31 December 2011
Bank loans and overdrafts	93,211	Ξ	۳		93,211
Bond issues	162,911	1,747,125	3,720,860	2,107,385	7,738,281
Preference shares		٠	٠	79	79
Borrowings from group Companies	23,807,363	٠	٠	$\overline{\phantom{a}}$	23,807,363
Total borrowings (excluding hedges)	24,063,485	1,747,125	3,720,860	2,107,464	31,638,934

The effect of derivatives used to hedge interest and currency risk is as follows:

US\$ '000	Within 1 year or on demand	Between 1-2 years	Between 2-5 years	After 5 years	Total
At 31 December 2012
Total borrowings (1)	1,908,960	1,278,673	3,866,021	5,865,909	12,919,563
Interest rate swaps	(19, 401)	(28,087)	(226, 258)	(404, 738)	(678, 484)
Currency derivatives	123,833	÷.	406,779	120,866	651,478
Total hedged borrowings	2,013,392	1,250,586	4,046,542	5,582,037	12,892,557

Notes to the accounts Year ended 31 December 2012

Financial Liabilities (continued) 6.

US\$ '000	Within 1 year or on demand	Between 1-2 years	Between 2-5 years	After 5 years	Total
At 31 December 2011
Total borrowings (1)	256,122	1,747,125	3,720,860	2,107,464	7,831,571
Interest rate swaps	$\overline{\phantom{a}}$	(24, 221)	(221, 766)	(269, 247)	(515, 234)
Currency derivatives	(3,829)	133, 131	420,612	196,240	746,154
Total hedged borrowings	252,293	1,856,035	3,919,706	2,034,457	8,062,491

Currency and interest rate profile

The exposure of the Company to interest rate and currency risk with respect to financial liabilities is as follows:

US\$ '000	Total	Floating rate borrowings	Fixed rate borrowings	Effective interest rate %	Weighted average for which rate is fixed in years
At 31 December 2012
US\$	5,543,550	148,048	5,395,502	5.58	4.39
Sterling	784,733		784,733	6.88	5.34
Euro	6,591,280		6,591,280	3.82	4.61
Other currencies
Gross borrowings (excluding hedges)	12,919,563	148,048	12,771,515	4.75	4.56
Impact of Interest Rate Swaps	$\overline{\phantom{a}}$	12,771,515	(12, 771, 515)
Gross borrowings (after hedges)	12,919,563	12,919,563	۰
Derivatives	772,183
Total financial liabilities (1)	13,691,746

(1) Excludes other creditors and amounts payable to group companies

J.

Notes to the accounts Year ended 31 December 2012

Financial Liabilities (continued) 6.

US\$ '000	Total	Floating rate borrowings	Fixed rate borrowings	Effective interest rate %	Weighted average for which rate is fixed in years
At 31 December 2011
US\$	3,651,757	243,203	3,408,554	7.01	4.39
Sterling	740,347		740,347	6.88	6.34
Euro	3,426,547	۰	3,426,547	4.95	3.34
Other currencies	12,920	12,920		$\overline{\phantom{0}}$
Gross borrowings (excluding hedges)	7,831,571	256,123	7,575,448	6.07	4.10
Impact of Interest Rate Swaps		7,575,448	(7, 575, 448)
Gross borrowings (after hedges)	7,831,571	7,831,571
Derivatives	757,926
Total financial liabilities (1)	8,589,497

(1) Excludes other creditors and amounts payable to group companies

Undrawn committed borrowing facilities

The Company is a borrower under a \$3.5 billion facility due to mature in July 2015. As at 31 December 2012 there were no outstanding amounts drawn under this facility (2011: \$Nil).

7. Other financial assets/liabilities

In accordance with FRS 25 and 26, the fair values of all derivatives and financial assets and liabilities designated as fair value through P&L are separately recorded on the balance sheet within 'Other financial assets' and 'Other financial liabilities'. Derivatives are classified as current or noncurrent depending on their maturity. Derivatives are only used to hedge fluctuations in foreign exchange rates and interest rates. They are not used for speculative purposes.

Foreign exchange risk

The Company uses currency swaps to limit the effects of movements in exchange rates on foreign currency denominated assets and liabilities.

Notes to the accounts Year ended 31 December 2012

7. Other financial assets/liabilities (continued)

Interest rate risk

The Company uses interest rate swap contracts to manage its exposure to interest rate movements on a portion of its existing debt.

Liquidity risk

The Company ensures that there are sufficient committed loan facilities in order to meet short term business requirements, after taking into account cash flows from operations and its holdings of cash and cash equivalents, as well as any distribution restrictions that exist.

Fair value hedges

The Company policy is to borrow funds at floating rates of interest. The Company uses interest rate swaps to manage its exposure to interest rate movements and the majority are designated as fair value hedges. The respective carrying values of the hedged debt are adjusted to reflect the fair value of the interest rate risk being hedged. Subsequent changes in the fair value of the hedged risk are offset against fair value changes in the interest rate swap and classified within financing costs in the profit and loss account.

Non-hedge transactions

Where the Company has chosen not to designate derivatives as hedges, fair value changes are recognised through the profit and loss account and are classified within finance costs.

The fair values of the open derivative positions as at 31 December 2012 are as follows:

US\$ '000	Asset	Liability
Current
Fair value hedge
Interest rate swaps	19,401
Non hedge
Cross currency swaps		(123, 833)
Foreign currency forwards	1,595	(56, 041)
Commodity forwards	41	(41)
Total current derivatives	21,037	(179, 915)
Non current
Fair value hedge
Interest rate swaps	665,386	(6, 303)
Non hedge
Cross currency swaps	58,320	(585, 965)
Total non-current derivatives	723,706	(592,268)

8.

Notes to the accounts Year ended 31 December 2012

7. Other financial assets/liabilities (continued)

Other group companies

Interest receivable

The fair values of the open derivative positions as at 31 December 2011 were as follows:

US\$ '000	Asset	Liability
Current
Non hedge
Cross currency swaps	3,829
Foreign currency forwards	40,969	(3,781)
Commodity forwards	4,162	(4, 162)
Total current derivatives	48,960	(7, 943)
Non current
Fair value hedge
Interest rate swaps	515,234
Non hedge
Cross currency swaps		(749, 983)
Total non current derivatives	515,234	(749, 983)
Debtors
US\$ '000	2012	2011
Amounts due from fellow group undertakings:
Anglo American plc	6,068	5,686
Other group companies	33,773,543	26,317,822

167,639

33,947,250

104,754

26,428,262

Notes to the accounts Year ended 31 December 2012

9. Financial assets

The carrying amount and fair values of financial assets are as follows:

		2012		2011
US\$ '000	Estimated fair value	Carrying value	Estimated fair value	Carrying value
Debtors	33,947,250	33,947,250	26,428,262	26,428,262
Investments	4,377,597	4,377,597	6,552,249	6,552,249
Other financial assets (derivatives)	744,743	744,743	564,194	564,194
Total financial assets	39,069,590	39,069,590	33,544,705	33,544,705

Currency and interest rate profile

The exposure of the Company to interest rate and currency risk is in respect of financial assets as follows:

Floating rate financial assets

	Total	Total
US\$ '000	2012	2011
US\$	4,366,877	6,496,619
Sterling	10,720	55,630
Total (excluding derivatives)	4,377,597	6,552,249
Derivatives	744,743	564,194
Total financial assets (excluding debtors)	5,122,340	7,116,443

Financial assets include loans to and deposits from other group companies which are denominated in a variety of currencies. Therefore entities may have both loans and deposits in different currencies which are set-off on conversion to US Dollar. Interest on floating rate assets is based on the relevant national inter-bank rates.

$\mathcal{A}$

Notes to the accounts Year ended 31 December 2012

The following methods were used to estimate the fair value of the financial assets and liabilities:

Short and long-term debt

Fair value is determined by reference to quoted market prices for similar issues, where applicable, otherwise carrying value is used as an approximation to fair value.

Derivative instruments

Fair value is determined by reference to market prices where available, otherwise pricing or valuation models are applied to current market information to estimate their value.

Notes to the accounts Year ended 31 December 2012

$10.$ Preference shares

US\$'000	2012	2011
Authorised:
50,000 3% cumulative preference shares of £1 each	79	79
Called up, allotted and fully paid:
50,000 3% cumulative preference shares of £1 each	79	79

The 3% preference shares of £1 each entitle the holders to receive a cumulative preferential dividend at the rate of 3% per annum, on the paid up capital. On a return of capital on winding up, the holders of preference shares have the right to the repayment of a sum equal to the nominal capital and any premiums paid up or credited as paid up on the preference shares held by them, and accruals, if any, of the preferential dividend whether accrued or not up to the date of commencement of winding up.

$11.$ Called-up share capital

US\$'000	2012	2011
Authorised:
1,000,000,000 ordinary shares of US\$1 each	1,000,000	1,000,000
	1,000,000	1,000,000
Called up, allotted and fully paid:
1,200 ordinary shares of US\$1 each	1
	1	1

l,

Notes to the accounts Year ended 31 December 2012

Profit and Loss account & Share Premium $12.$

Profit and Loss account:
US\$ '000	2012	2011
At 1 January	973,963	753,646
Profit for financial year	522,680	720,317
Dividend paid	(500,000)	(500,000)
At 31 December	996,643	973,963

Share Premium:	2012	2011
US\$ '000
At 1 January	20,000	20,000
At 31 December	20,000	20,000

13. Reconciliation of movements in shareholders' funds

US\$'000	2012	2011
Opening shareholders' funds	994,964	774.647
Profit for the financial year	522,680	720,317
Dividend paid	(500,000)	(500.000)
Closing shareholders' funds	1,017,644	994,964

14. Capital Contribution

US\$'000	2012	2011
Capital contribution	1.000	1.000
At 31 December	1.000	1,000

Notes to the accounts Year ended 31 December 2012

15. Related party transactions

At 31 December 2012, as identified in note 16, Anglo American plc is the Company's ultimate parent Company. The Company has taken advantage of the exemption granted by paragraph 3(c) of Financial Reporting Standard 8 - 'Related Party Disclosures' not to disclose related party transactions with Anglo American Group companies. There were no other related party transactions.

16. Ultimate parent company

The immediate and ultimate parent company and controlling entity is Anglo American plc, a company incorporated in Great Britain and registered in England and Wales.

Anglo American plc is head of the largest and smallest group of undertakings of which the Company is a member and for which group accounts are prepared.

Copies of the Group accounts of Anglo American plc, which include the results of the Company, are available from Anglo American plc at 20 Carlton House Terrace, London, SW1Y 5AN.