Copper Production Surges 18% at Glencore Xstrata

LONDON -- The shares of Glencore Xstrata  (LSE: GLEN  ) rallied 1% to 347 pence this morning after the newly merged commodities giant revealed an 18% increase in first-quarter copper production to 321,000 tonnes.

Glencore Xstrata -- now the fourth-largest mining group in the world -- reported a 44% surge in copper production from its African mines, benefiting from both new and expanded projects.

The company, which is the world's largest shipper of thermal coal, posted a 1% increase in coal production.

Despite this, Glencore Xstrata revealed last night that it would abandon its plans to build a high-capacity coal export terminal in Queensland, citing "concerns about the industry's medium-term outlook."

Commenting on its improvement in copper production, the company added:

This increase primarily reflects strong growth from Antapaccay, Katanga, Mount Margaret (Ernest Henry) and Mutanda, as they benefit from their respective expansion plans. ... Overall, Marketing performance during the quarter was broadly in line with our expectations. Metals and Minerals delivered solid results despite some softening in prices toward the end of the quarter. ... Energy saw markedly improved profitability during Q1 2013, while Agricultural Products has made a slow start to the year, in what is often a seasonally weaker quarter.

With a market cap of £21 billion, Glencore Xstrata's shares trade at 10 times expected earnings, and offer a prospective dividend yield of 2.9%.

Of course, whether that valuation, today's results and the future prospects for the commodities industry all combine to make shares of Glencore Xstrata a buy remains your decision.

But if you already own shares in Glencore Xstrata and are looking for alternative buying opportunities, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!

Just click here for the report -- it's free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2427245, ~/Articles/ArticleHandler.aspx, 10/1/2016 6:24:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 12:06 PM
GLEN $211.72 Down -4.13 -1.92%
Glencore CAPS Rating: No stars