Xstrata heaps up profits and digs into ColombiaPublished by MAC on 2006-03-01
Xstrata heaps up profits and digs into Colombia
by FT Investor
1st March 2006
Xstrata (LSE: XTA.L - news) promised more alchemy in 2006 as it reported a 71 per cent rise in pre-tax profits for 2005 of $2.46bn and unveiled the acquisition of a $1.7bn stake in the Cerrejon coal mine in Colombia, taking it into the expanding US coal market.
Investors will benefit from a 42 per cent rise in the total dividend to 34 cents.
Mick Davis, chief executive, attributed the Swiss-based, London-listed miner's rise in
profits to three factors: high commodity prices; shrewd acquisitions and project investments as those prices began to take off; and cost control in the face of high energy and construction metals prices.
Shares in Xstrata were 1.2 per cent higher at £16.86 in early trade in London on Wednesday.