Xstrata is a major global diversified mining group. Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Groups operations and projects span four continents and seven countries: Australia, South Africa, Spain, Germany, Argentina, Peru and the UK.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Coal:       42%
Copper:    25%
Zinc:       18%
Chrome:   10%
Vanadium: 4%
Others:     1%

Telegraph
Wednesday 20 May 2009 | Market Report

Mining companies peppered the leaderboard as base metal moved higher. Anglo American topped the blue-chip risers, putting on 112p to 16.00. Xstrata also climbed 31 to 648p as vague talk circulated of a possible merger with Anglo American.

May 21, 2009

Minco Has Led Xstrata To A Very Exciting Base Metal Project In Ireland

Charles Wyatt

Minco, the Irish base metal explorer, has announced an intercept from drilling at the Pallas Green project in Co Limerick which makes even the case hardened geologists at Xstrata gasp. It hit 3.45 metres grading 24.2% zinc and 5.43% lead, which were the highest grades ever recorded at Pallas Green, at a depth of 330.9 metres. This depth is significant as drilling in the past has concentrated on the southern extension of the Tobermalug deposit down to a depth of 500 metres, so this northwest extension is shallower and higher grade. According to Terence McKillen, the chief executive, this hole and three earlier ones confirm the potential of the northwest extension which now extends over a 1,000 metre length and remains open ended.
He went on this extension is located in the hangingwall of a west-northwest striking fault, the Caherconlish Fault, which is associated with higher grade mineralization within the main Tobermalug deposit to the southeast. It should add significantly to the overall zinc-lead resource at Tobermalug. Four drills are now working at Pallas Green as compared with fifteen towards the end of last year. Three of these are exploring the southern extension and one of these will be moved to the northwest extension where it is planned that a programme of four additional holes will be completed by the end of June.

The Pallas Green project is a joint venture between little Minco and the rather bigger Xstrata and four diamond drills have drilled 5,380 metres between 1 January and 30 April this year. A resource estimate should be announced shortly according to people near the company, but it will not take account of the results from this latest drilling. Pallas Green is located on the southern boundary of the Irish Midland orefield and drilling to date has resulted in the discovery of a significant cluster of zinc-lead massive sulphide lenses at Castlegarde, Shrane West, Caherconlish and Tobermalug. This cluster of deposits is thought to be comparable to the mineralised clusters currently being mined at Lisheen and Galmoy approximately 50 kilometres to the northeast.

The carbonate-hosted zinc-lead deposit at Lisheen was discovered in 1990 and mineralization occurs as massive flat lying sulphide lenses at the base of a reef in the northern hanging wall of the Killoran Fault. This description alone is so similar to Pallas Green that it is hardly surprising that Xstrata rates it highly. Anglo American owns and operates Lisheen and in 2007 this underground mine produced 174,435 tonnes of zinc and 20,192 tonnes of lead in concentrate from ore grading 12.01% zinc and 1.91% lead. The Galmoy deposit is owned and operated by Lundin Mining and production commenced in arly 1997. The geological setting is similar to Lisheen, and by inference to Pallas Green where the alternation trend is analogous to the Lisheen alteration trend.

Ireland is an established regional zinc producer supplying around half of Europes mine production and the exploration drilling programme in progress at Pallas Green is reckoned to be the biggest in the 50 year modern history of the Irish mining industry. A budget of 1.5million was agreed for the first half of this year and Minco has paid its share which is in line with its 23.6 per cent interest. It is becoming ever more clear that Xstrata thinks it may have a mine on its hands as the work programme for this year involves a preliminary scoping study which will include a resource estimate, a preliminary mining plan and a preliminary metallurgical report. Work will also be undertaken on cost estimates and environmental baseline studies though both of these will be at an early stage. The programme and budget for the second half of the year will be decided once this scoping study has been reviewed and drilling results received. As a sign of how seriously Xstrata is taking this project all drill cores are being sent out to its Canadian facilities.

There seems little doubt that Minco will have to raise some money when the budget for the second half is agreed as it would not want to be diluted. Presumably at that stage it will raise its profile a bit as at the moment it suffers from the fact that its operations are in Ireland, but its management, in the shape of chairman John Kearney and chief executive Terence McKillen, is based in Canada. The Pallas Green project is a great example of the local Minco minnow leading the Xstrata whale to a project with great potential.

So Andrew Milligan is selling.

o Why is he selling?
o Where is he sticking the cash?

http://www.standardlifeinvestments.com/market_views/video_view_and_mp3s/index.html

Xstrata resumes dividend, profits slump as demand falls
Business Financial Newswire


Anglo-Swiss mining company Xstrata reported operating EBITDA of $7bn in the year to end-December 2009, despite unprecedented destocking in the first half and lower demand and average prices in 2009 as a result of the global downturn.

Revenue fell 16% to $23.53bn, down from $27.952bn the prior year, while attributable profit slipped 41% to $2.773bn, down from $4.698bn. The company said its rapid and comprehensive response to the downturn delivered real cost savings of $501m, representing a 5% reduction in the operating cost base.

The accelerated transformation of Xstrata Nickel operations and restructuring and expansion of Xstrata Zinc's Australian operations reduced average C1 nickel and zinc costs by 33% and 25% respectively.

Xstrata reported operational cash flow of over $5.3bn, with stronger second half cash generation of $3.7bn.

A dividend of 8 cents per share was proposed for payment in May 2010.

Gearing was reduced to 26% from 40%, and a successful rights issue in the first quarter to repay a net $3.7bn of debt.

Xstrata said it has over $8bn of projects currently in construction, with a further $9bn of projects due to be approved in 2010, providing it with significant volume growth to benefit from continued robust demand from Asian and other industrialising economies.

Xstrata to suspend Tahmoor mine in 1 week lockout

from another bb

'BROKER CALL: Morgan Stanley keen on Xstrata 9 February, 2010 07:48:49 AM Morgan Stanley punting Xstrata heavily this morning with an overweight recommendation reckons there is 100% upside from current levels to its buy case of c1900p a share. Price target is 1457p. Broker adds: 'We think the risk-reward at Xstrata is compelling and that the pull-back presents a medium-term buying opportunity.' http://www.intermarketstocks.com/imsmembers/imsnewsdetails.php?id=3584;

Why has spread gone negative i.e. -12%

Damn, missed the golden cross.

Part of the Morgan Stanley note:
"Our highest-conviction commodity exposures are in Base (copper, nickel and tin) and Precious Metals (gold, silver and palladium) in the short term. We expect Bulk commodities to trade in narrow ranges close to current prices over the coming quarter, and our preferred exposure here is iron ore and thermal coal. Our highest conviction Overweight equities include: Implats Limited, Xstrata, Kazakhmys, Mechel."

Xstrata to join forces with Glencore.

Anglo-Swiss mining group Xstrata confirmed today that it has received an approach from and is in discussions with Glencore International regarding an all share merger of equals which may or may not lead to an offer being made by Glencore for Xstrata.

The group said in a brief statement that there can be no certainty that any offer will be made.

In accordance with Rule 2.6 of the City Code on Takeovers and Mergers, Glencore is now required, by no later than 5:00 p.m. on 1st March 2012, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

Any further announcement will be made as appropriate, Xstrata said.

for all this, you wouldn't have wanted to be holding these even for say the last year, for XTA really has underperformed badly

Recommended All-Share Merger of Equals

RECOMMENDED ALL-SHARE MERGER OF EQUALS OF
GLENCORE INTERNATIONAL PLC AND XSTRATA PLC
TO CREATE UNIQUE $90 BILLION NATURAL RESOURCES GROUP

Xstrata hikes dividend

Anglo-Swiss mining group Xstrata This morning reported operating EBITDA of $11.6bn for the year to end-December, up 12% on the previous year.

Attributable profit was $5.8bn, up 12%.

A final dividend of 27¢ per share is proposed, bringing the full year dividend to 40¢, a 60% increase on 2010.

Operational performance:

o Key organic growth milestones reached with ten projects and expansions completed during 2011

o Strong second half production with record annual production of coal and nickel

o Real cost savings of $391 million, moving all commodity businesses into lower half of industry cost curves

o Expansion of mineral resource base, including significant additional copper resource

o Six bolt-on acquisitions supplementing growth

o Continued improvement in safety and environmental performance; 26% improvement in total recordable injuries versus 2010

o Dow Jones Sustainability Index Sector Leader for fifth consecutive year

This come amid a recommended all-share merger between Glencore and Xstrata to create a major $90bn natural resources group with a unique business model, fully integrated along the commodities value chain, from mining and processing, storage, freight and logistics, to marketing and sales.

Xstrata to lift copper, iron ore mining in Australia

SYDNEY | Tue Jul 31, 2012 4:48am BST

(Reuters) - Global miner Xstrata (XTA.L) will boost copper production in Australia by 140,000 tonnes over the next five years from a new mine, which will also yield more than a half-million tonnes of iron ore, the company said on Tuesday.

Glencore offers no Xstrata clues as profit falls

LONDON | Tue Aug 21, 2012 7:29am BST

(Reuters) - Commodities trader Glencore (GLEN.L) stuck to its guns on a $30 billion (19 billion pounds) bid for miner Xstrata (XTA.L) on Tuesday, as it reported earnings for the first half of 2012 dragged down 26 percent by weaker commodity prices.

Glencore said its first half profit net of significant items fell to $1.81 billion, down from $2.44 billion a year ago and marginally above analysts' expectations of $1.6 billion, according to consensus forecasts.

Its operating profit fell 24 percent to almost $2.51 billion, again topping forecasts.

Glencore, already the single largest shareholder in Xstrata with a 34 percent stake, announced in February it would bid for the stock it does not already own, offering 2.8 new shares for every Xstrata share held. It has met with resistance, however, from Qatar Holding, Xstrata's second-largest investor, which in June demanded a ratio of 3.25. (Reporting by Clara Ferreira-Marques; Editing by Andrew Callus)

..Sir John Bond urged to step down after 'failure' of £45bn Glenstrata deal

By Emma Rowley | Telegraph –

Sir John Bond, chairman of Xstrata (Dusseldorf: XTR.DU - news) , is under pressure from his shareholders to step down in the wake of the miner's faltering £45bn merger with commodity giant Glencore, which is expected to be voted down this week.

Ahead of Friday's shareholder vote on the deal, unhappy Xstrata investors have questioned how the City grandee can stay in the role with the board-backed merger expected to fail.

Knight Vinke, the activist investor which holds around 0.5pc of Xstrata, on Friday issued a statement in which it said if the deal collapses it will agitate for a change in the board's make-up to make it more "independent and robust". The Sunday Telegraph understands the fund is scrutinising the roles of the chairman, Sir John, as well as David Rough, the senior independent non-executive, amid concerns as to how they have fulfilled their role of standing up to management to represent the interests of smaller shareholders.

Neil Dwane, chief investment officer for Europe (Chicago Options: ^REURUSD - news) at Allianz Global Investors, a minority shareholder in Xstrata, said the board does not appear to have fought sufficiently for a higher offer, even after a key investor, Qatar Holding, emerged demanding a better deal.

"The chairman and CEO have frequently in meetings argued for the deal despite shareholder disappointment," he said. "So one might conclude that the company will need a new chairman to start with and maybe other new non-execs."

Xstrata is thought to contest criticism of its board, believing that if Glencore let the deal collapse that would indicate board members did get the best offer possible for shareholders. The miner also structured the deal through a scheme of arrangement that needs 75pc of those entitled to vote to approve the deal.

Qatar Holding, the second biggest investor in Xstrata after Glencore, threw the FTSE 100 (Euronext: VFTSE.NX - news) tie-up off course with its demands that the commodity trader raise its offer from the 2.8 of its shares for each Xstrata share.

With Glencore understood to question the logic of the Qataris' valuation and adamant it will walk away from a bad deal, a last-minute bump to save the merger looks unlikely. Despite this, the City has not yet written off the chance of the merger happening.

Shares in Xstrata and Glencore both rose on Friday, almost 6pc and 8pc respectively, which broker sources said was driven by merger arbitrage funds hedge funds that make money by betting on M&A going long on Xstrata and shorting Glencore.

Their buying was said to represent a bet that Glencore will bump its offer in the next few days. The short interest in Glencore was mitigated by buying by institutional investors as it is reweighted in share indices to reflect its increased free float

XTA should be 1050p, given the price of Glen. Too cheap imo.

ahoj --- Glencore/Xstrata deal if aproved values xstrata at 1034p

The major shareholder, who was originally opposed, agreed yesterday.
(Glen @ 345) x 3.05 = 1052 per xta