07 aug: Correction to Standard Chartered Shares Story
07 aug: China National Social Security Fund Injects CNY1.15 Billion to CC..
07-08-2012 10:42:00

Xstrata CEO Eyes Net Real Cost Savings of $390 Million In 2012

Relateret indhold

By Alex MacDonald

LONDON--Anglo-Swiss miner Xstrata PLC (XTA.LN) expects to deliver net real cost savings of around $390 million in 2012 as a mix of higher output levels, lower input costs and greater efficiencies help offset higher costs from lower ore grades and a transition period from old to new mines, the company's chief executive said Tuesday.

Xstrata expects to reduce costs by around $970 million in 2012, Mick Davis told Dow Jones Newswires in a call. About 40% of that will come from increased throughput and productivity, about 30% from more efficient processing and better procurement methods, 17% from lower input costs and the balance from improved energy efficiency.

The savings are partly offset by $580 million of cost headwinds that stem from grade degradation and the transitional nature of the business, Mr. Davis said. Xstrata has faced lower copper grades as it transitions from older mines to newer mines.

"A lot of that [$580 million], a significant part of that is actually found in the first half [of the year] as a result of the transitioning and we have less of that in the second half," he said.

Mr. Davis declined to comment on how shareholders might vote in upcoming Sept. 7 vote on the merger of equals with Glencore International PLC (XTA.LN). Xstrata's second largest shareholder, the sovereign wealth fund Qatar Holding LLC, has called on Glencore to sweeten its offer to 3.25 Glencore shares for every Xstrata share, up from 2.8 at the moment.

"It is now really up to the shareholders to decide whether they want the merger to go ahead on these terms or if they prefer Xstrata to continue as a standalone company," Mr. Davis said, noting that Xstrata had "negotiated a deal in the universe of what was possible at the time. We negotiated a ratio which I said at the time was fair to both companies."

He said that either way, Xstrata is incredibly well positioned to be a major contributor to the combined entity or alternatively have real capacity to add value to shareholders if they decide for it to stand on its own.

Write to Alex MacDonald at alex.macdonald@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 07, 2012 04:42 ET (08:42 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Vestas får endnu en ordre - 53 MW til Finland

31-03-2015 16:15:27
Vestas har offentliggjort tirsdagens anden vindmølleordre og øget sin ordreindgang igen på kvartalets sidste dag.Finske EPV Tuulivoima har bestilt 16 V126-3,3 M..

Kina/Nordea: Indskudsgaranti første skridt mod liberalisering

31-03-2015 14:04:30
Den 1. maj træder Kinas nye indskydergaranti i kraft, hvor alle opsparingsbeløb op til 500.000 yuan (554.000 kr.) vil blive erstattet af staten, hvis der skulle..

Aktier/middag: C20 Cap holder lige netop rekordniveau

31-03-2015 11:21:39
A.P. Møller-Mærsk-aktierne, der steg markant mandag, falder markant tirsdag grundet fragangen af rekordudbytte. Det påvirker det toneangivende aktieindeks, der ..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Aktier/tendens: Udsigt til røde ultimo-kurser
2
Aktier/åbning: Ny rekord på vej trods Mærsks udbyttefest
3
Vestas får medhold i millionsag om skadesforsikring
4
FAKTA: Det gør Bang & Olufsen
5
B&O: Sælger sine aktiviteter inden for bilstereo - NY2

Relaterede aktiekurser

Glencore PLC ORD USD0.01 285,90 0,0% Aktiekurs uændret

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Relaterede selskaber
Få adgang til information og anbefalinger af relaterede selskaber med PLUS pakken.

Du får adgang til 7 værdifulde investorværktøjer til investering.

Klik her og læs mere om PLUS pakken.

Copyright Euroinvestor A/S 2015  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
1. april 2015 07:48:00
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20150325.1 - EUROWEB3 - 2015-04-01 07:48:00 - 2015-04-01 07:48:00 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x