Xstrata reinstates dividend as China supports metal prices
Tuesday 09 February 2010
The mining giant Xstrata reinstated its dividend yesterday, adding that stimulus packages in developing economies were underpinning confidence in commodity markets.
The world's biggest exporter of thermal coal reported a 41 per cent fall in full-year profits, in line with last year's weaker metal prices. The figures beat a number of analysts' expectations, while the markets were buoyed by the 8 cents a share final dividend.
Chinese demand for commodities in particular has led to increased prices in recent months. Accordingly, the group's shares have put on more than 120 per cent in the last year.
Its finance director, Trevor Reid, said that while markets were still nervous, medium-term demand was still strong: "Stimulus packages, especially in China, have reinforced demand, but with the urbanisation process taking place, the medium-term outlook is stronger."
Xstrata has grown over the past seven years thanks largely to acquisitions. The group failed in a bid to merge with Anglo American last year, 12 months on from a failed tilt at the platinum producer Lonmin.
Mr Reid called the failed merger with Anglo American an "opportunity lost".
The group holds a 25 per cent stake in Lonmin, with Mr Reid yesterday refusing to rule out another bid for the company. "If you are looking for a platinum company, Lonmin is attractive. Our first objective is to create value, and we can re-evaluate our position."
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Emergency call 'started off dumb, but got pretty serious'
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
Diwali: What is the festival of lights – and how is it celebrated around the world?
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...