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Anglo-Swiss mining company Xstrata reported operating EBITDA of $7bn in the year to end-December 2009, despite unprecedented destocking in the first half and lower demand and average prices in 2009 as a result of the global downturn.
Revenue fell 16% to $23.53bn, down from $27.952bn the prior year, while attributable profit slipped 41% to $2.773bn, down from $4.698bn. The company said its rapid and comprehensive response to the downturn delivered real cost savings of $501m, representing a 5% reduction in the operating cost base.
The accelerated transformation of Xstrata Nickel operations and restructuring and expansion of Xstrata Zinc's Australian operations reduced average C1 nickel and zinc costs by 33% and 25% respectively.
Xstrata reported operational cash flow of over $5.3bn, with stronger second half cash generation of $3.7bn.
A dividend of 8 cents per share was proposed for payment in May 2010.
Gearing was reduced to 26% from 40%, and a successful rights issue in the first quarter to repay a net $3.7bn of debt.
Xstrata said it has over $8bn of projects currently in construction, with a further $9bn of projects due to be approved in 2010, providing it with significant volume growth to benefit from continued robust demand from Asian and other industrialising economies.
Story provided by Business Financial Newswire
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