Learning to live with currency normality

Risk management

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The good news for mining conglomerate Anglo American was that the company’s headline earnings for the first half of 2004, at $1.3 billion, represented a new record for the mining and natural resources giant.

The bad news was that the increase in earnings would have been considerably higher than 52% had it not been for the strength of the rand. With each 1% movement in the dollar/rand rate having an impact of almost $25 million on headline earnings, Anglo American reported currency translation lo