Outgoing Xstrata
CEO Mick Davis
London, England — 05 March 2013 – The year 2012 has proved to be a transformational one across a number of fronts for Xstrata plc “’ one of the world’s largest global diversified mining businesses “’ with its project pipeline reaching its zenith during the course of the year.

So says Xstrata plc CEO Mick Davis, announcing the company s preliminary results for the 12 months ended 31 December 2012

“Our project pipeline saw ten major projects entering commissioning. The introduction of a number of new world-class operations into Xstrata’s portfolio delivers not only significant volume increases, and further improves the relative competitive position of Xstrata’s portfolio through the introduction of structurally lower real unit cost operations, but also lays the foundation for further attractive brownfield growth for many years to come,” he stated.

“Our ongoing focus on reducing costs allows me to report, for the eleventh consecutive year, a reduction of costs in real terms. The US$176 million of cost savings achieved in 2012 was predominantly realised through a combination of cost efficiency initiatives and the benefit of increased volumes in our coal and zinc businesses,” Davis explained.

“During our current phase of expansionary capital expenditure, required to deliver our organic growth strategy, we have maintained gearing below 30%. Despite a peak capital expenditure of US$10.3 billion in 2012, our balance sheet remains robust, with net debt at year end at US$14.7 billion and gearing at 24%,” he revealed.

“In November, our shareholders approved our merger with Glencore International plc, heralding the next significant development in Xstrata’s history and the creation of a unique natural resource company with an improved ability to capture returns along the value chain and redefine the competitive landscape,” Davis continued.

“My executive team and I are content in that we will hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, and a high quality portfolio of operations and growth options, supported by a very healthy balance sheet.”

Source: Xstrata plc. For more information, click here.