Summary
XSTRATA - Full-year results confirmed that Xstrata has successfully transitioned from a high-leverage play to a higher quality organic growth.
Lower costs fed into aboveconsensus numbers, while strong cashflows and asset sales have allowed a greater-than-forecast net debt reduction and dividend payments. Looking ahead, fundamentals for copper remain supportive, a $14bn project pipeline underpins a 50% growth in volumes to 2014 and a further 20% reduction in unit cost is targeted.See the full content of this document
Extract
Strong Performance Puts Forms Ahead
We have raised estimates to reflect stronger numbers and margins. At 8.1 x 2011 price/earnings (PE) ratio, the shares are currently tradin...
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