Xstrata pretax profit jumps by more than 400 percent on global commodities surge

Xstrata - Profits Soared on Commodity Price Boom

Xstrata – Profits Soared on Commodity Price Boom

A global surge of commodities prices saw Anglo-Swiss mining group Xstrata’s pre-tax profits jump by more than four times.

Profit for the year was reported at $6.6 billion, up from $1.53 billion reported in 2009.

The company announced a final dividend of 20 cents for 2010, “reflecting a return to pre-financial crisis levels”.

The company said that the restructuring activities undertaken during the financial crisis has helped its performance.

In 2009, Xstrata managed to “restructure higher cost businesses, improve productivity and strengthen the balance sheet”, said chief executive Mick Davis.

The company was naturally positioned “to benefit from a more favourable operating environment in 2010”, he added.

Xstrata also managed to produce record volumes of mined and refined nickel, semi-soft coking coal and coking coal in 2010, the company said.

Last week it had warned that its thermal coal production was badly hit due to severe weather conditions.

However, Xstrata is yet to find out the impact of flooding in its mines in Australia for this year. The company operates zinc, copper and coal mines in Queensland.

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