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."
- 1 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 E.L James's #AskELJames Twitter Q&A didn't go exactly as planned
Kim Jong-un shows off airport designed by architect he likely had executed
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Dutch city of Utrecht to experiment with a universal, unconditional 'basic income'
German ethics council calls for incest between siblings to be legalised by Government
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
David Cameron struck double blow in his hopes to win Britain a new EU deal
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...