Revenues were US$7.9 billion in FY 2010, up 21% from US$6.6 billion in FY 2009, and EBITDA was US$2.3 billion up 42% from EBITDA of US$1.6 billion in FY 2009. This excellent operating performance was the result of higher volumes across all our businesses, the acquisition of Dempo, improved efficiencies in our operations and effective cost management – all of which countered the adverse economic conditions including inflationary pressures on certain key inputs. Profit after tax increased 68% to US$1.5 billion. Our ROCE (excluding capital work-in-progress) in FY 2010 was 19.9% in FY 2010, compared to 24% in FY 2009.

In December 2009, the US$50 million letter of credit ('LoC') provided to acquire Asarco as part of our agreement was encashed by them. We have expensed the amount through our income statement along with US$7.7 million of other expenses incurred to date on the unsuccessful acquisition. We believe we did not breach the terms of the agreement and Asarco were not entitled to encash the LoC. Hence we are pursuing legal recovery of this amount. Further, Asarco has filed a complaint in the US Bankruptcy Court against Sterlite and Sterlite USA alleging a breach of the agreement, and our subsequent request to renegotiate the US$2.6 billion purchase price in the 30 May 2008 agreement. We believe there is no merit in this claim because Asarco did not suffer any loss as the amount ultimately paid by Grupo Mexico was higher than that specified in our 30 May 2008 agreement. Asarco itself has not quantified any damages in its application.

During the year we spent US$6.9 million on restructuring of our operations, principally to cover voluntary redundancy. Impairment losses recognised in the income statement of FY 2010 are US$2.7 million, reflecting the full write down of a small mine in Sesa impaired due to the non-renewal of its mining lease. All these expenses (including the write off for Asarco), are shown as part of Special Items.

During the year depreciation has increased to US$563 million, 19% higher from US$473 million during FY 2009 reflecting the higher amortisation of mining reserves at iron ore operations in line with higher production, together with the commencement of commercial production at our Alumina refinery, aluminium plant, and zinc smelter. Net interest income in FY 2010 was US$176.0 million compared with US$74.0 million in FY 2009. Investment income was lower at US$272.8 million in FY 2010 from US$456.2 million in FY 2009 as a result of lower yield on investments and conversion losses on dollar deposits kept at our Australian entity.