Search Glossary Investors Shareholder information Glossary SHARE B Backwardation The condition in which the spot price of a commodity exceeds the price of a future in that commodity. Break-even analysis The analysis of the level of sales at which a project would break even. This may or may not include opportunity cost of capital. C Cash costs All those costs, whether fixed or variable, that are actually incurred as cash, rather than as entries in a ledger (e.g. depreciation) when production is proceeding. Convertible bond A bond issued by a company that can be converted into shares in that company during the life of the bond. The holder has the right, but not the obligation, to convert the bond into shares. Cum dividend Means with dividend. Cum rights Means with rights. Current asset An asset that will normally be turned into cash within a year. Current liability A liability that will normally be repaid within a year. D Depreciation The reduction in the book or market value of an asset; or the portion of an investment that can be deducted from taxable income. Discount rate The rate used to calculate the present value of future cash flows. Discounted cash flow (DCF) Is when future cash flows are discounted by a discount rate to obtain a present value. Dividend The payment by a company to its stockholders. Dividend yield The annual dividend divided by the share price. Double-tax agreement The agreement between two countries that taxes paid abroad can be offset against domestic taxes levied on foreign dividends E EBITDA Earnings before interest, tax, depreciation and amortisation. Enterprise value The market capitalisation plus net debt (gross debt less cash and cash equivalents). EPS Earnings per share. This is calculated by dividing the profit (or “underlying earnings”) by the weighted average number of shares in issue Exceptional items The in/out flow of cash on a one-off basis. Ex-dividend The purchase of shares in which the buyer is not entitled to the forthcoming dividend. F Forward cover The purchase or sale of forward foreign currency in order to offset a known future cash flow. Free cash flow Cash left after taxes, interest charges and capital expenditure have been paid and acquisitions and disposals have been made H Hedging Buying one security and selling another in order to reduce risk. A perfect hedge produces a riskless portfolio. Hurdle rate The minimum acceptable rate of return on a project. I Interest cover A ratio showing the number of times interest charges are covered by earnings before interest and tax (EBIT) L LIBOR The London Interbank Offered Rate. This is the rate of interest in the short-term wholesale market in which banks offer to lend money to each other, M Market capitalisation The number of shares in issue multiplied by the share price. N Net present value (NPV) Is used to measure a project's net contribution to the wealth of the group. It is the present value of the project minus initial investment. O Off-balance-sheet financing Financing that is not shown as a liability on a company’s balance sheet. P P/E ratio The share price divided by earnings per share. R Retained earnings Earnings not paid out as dividends. W WACC Weighted Average Cost of Capital. Withholding tax The tax levied on dividends paid abroad. 10 Dec 2021 Investor Update Investor calendar Our websites Australia Brazil Chile China Finland Peru South Africa Group Foundation Kumba Iron Ore Platinum Group Metals United Kingdom Sign up for alerts Be notified of any news, reports or updates straight to your email address Sign up and get the latest news Stay in touch Keep up to date on social media or contact us with any other information Facebook LinkedIn Twitter Instagram Flickr Slideshare YouTube Glassdoor Privacy policy Accessibility Terms and conditions Site map Cookie policy Cookies Settings YourVoice UK Modern Slavery Act Copyright © 2021 This site uses first and third party Necessary, Performance and Marketing cookies to enable basic functionality, add personalisation and understand how our site is used, and to show relevant advertisements. By clicking Accept All you consent to these cookies. If you do not consent, click on Cookie Settings to manage your preferences. To find out more or change your preferences at any time, see ourCookie policy Cookies Settings Accept All Cookies