Xstrata – Preliminary results for the 12 months ended 31 December 2012

xstrataPreliminary results for the 12 months ended 31 December 2012

Key Financial Results

$m Year ended


Year ended




Revenue 31,618 33,877 (7)
Operating EBITDA* 8,122 11,648 (30)
EBITDA* 8,123 11,677 (30)
Operating profit* 4,790 8,431 (43)
EBIT* 4,791 8,460 (43)
Attributable profit* 3,652 5,785 (37)
Attributable profit 1,180 5,713 (79)
Earnings per share (basic)* $1.24 $1.97 (37)
Earnings per share (basic) $0.40 $1.95 (79)
Dividends per share 45.5¢ 40¢ 14
Net debt to net debt plus equity 24% 15% 60
Net assets 46,791 45,701 2
Net assets per share** $15.80 $15.59 1
Excludes exceptional items
Excluding own shares


¡ A transformational year for Xstrata in which ten major projects commissioned;

¡ Real cost savings of $176 million; the eleventh consecutive year of successfully delivering sustainable, long-term reductions to operating costs;

¡ During 2012, our Reserves and Resource base continued to grow; with significant increases at our South American copper operations and at our zinc sites;

¡ Continued improvements to our safety and environmental performance; with a Group-wide 15% reduction in total recordable injuries on 2011 performance;

¡ Two successful bond issues, raising $7.4 billion, ensuring a benign debt repayment schedule and strong balance sheet;

¡ Final dividend of 31.5¢ per share, bringing the dividends for the year to 45.5¢, a 14% increase on 2011; and

¡ Our shareholders approved the proposed merger between Glencore and Xstrata, subject to the necessary regulatory approvals being received.

Mick Davis, Chief Executive Officer of Xstrata, commented:

“2012 was a transformational year for Xstrata across a number of fronts. The development of our project pipeline reached its zenith in 2012 with ten major projects entering commissioning. The introduction of a number of new world-class operations into Xstrata’s portfolio delivers not only significant volume increases and further improves the relative competitive position of Xstrata’s portfolio through the introduction of structurally lower real unit cost operations, but lays the foundation for further attractive brownfield growth for many years to come.

“Our ongoing focus on reducing costs allows me to report, for the eleventh consecutive year, a reduction of costs in real terms. The $176 million of cost savings achieved in 2012 was predominantly realised through a combination of cost efficiency initiatives and the benefit of increased volumes in our coal and zinc businesses.

“During our current phase of expansionary capital expenditure, required to deliver our organic growth strategy, we have maintained gearing below 30%. Despite a peak capital expenditure of $10.3 billion in 2012, our balance sheet remains robust, with net debt at year end at $14.7 billion and gearing at 24%.

“In November, our shareholders approved our merger with Glencore International plc, heralding the next significant development in Xstrata’s history and the creation of a unique natural resource company with an improved ability to capture returns along the value chain and redefine the competitive landscape.

“My executive team and I are content in that we will hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, a high quality portfolio of operations and growth options, supported by a very healthy balance sheet.”



Neither the content of the company’s website nor the content of any other website accessible from hyperlinks on the company’s website is incorporated into, or forms part of, this announcement

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com