Xstrata Reports Decline in Copper and Coal Production due to Maintenance and Weather Conditions

Xstrata PLC, a leading Anglo-Swiss miner, reported a significant decline in its third-quarter copper and coal production. The company cited mine and smelter closures, planned maintenance, and adverse weather conditions as the main reasons for the decline. Copper and coal are the primary earnings drivers for Xstrata, accounting for 42% and 39% of its 2009 earnings before interest, taxes, depreciation, and amortization (Ebitda). The company's total consolidated coal production decreased by 6% to 21.9 million metric tons, while copper cathode output fell by 5.5% to 171,397 tons.

Key Takeaways:

• Xstrata reported a 5.5% decline in third-quarter copper cathode production, with output falling to 171,397 tons from 181,318 tons in the same period last year.
• The company's total consolidated coal production decreased by 4.8% to 21.9 million metric tons, down from 23 million tons in the same period in 2009.
• Xstrata's copper and coal production are the main earnings drivers, accounting for 42% and 39% of its 2009 Ebitda.
• Total zinc in concentrate production fell by 10.2% to 238,464 tons, while refined nickel production decreased by 1% to 23,259 tons.
• Attributable production of saleable ferrochrome was 228,000 tons, compared to 245,000 tons, and consolidated saleable platinum production was 29,520 troy ounces, down from 36,506 ounces in the same period last year.
• Zinc accounted for 12% of Xstrata's 2009 Ebitda, while nickel accounted for 6%.

Statistics:

• Xstrata's copper cathode production declined by 5.5% to 171,397 tons.
• The company's total consolidated coal production decreased by 4.8% to 21.9 million metric tons.
• Xstrata's zinc in concentrate production fell by 10.2% to 238,464 tons.
• The company's refined nickel production decreased by 1% to 23,259 tons.
• Attributable production of saleable ferrochrome was 228,000 tons.
• Xstrata's consolidated saleable platinum production was 29,520 troy ounces.

Sources:

• Dow Jones Newswires
• Dow Jones Commodities News Select
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