There has been mixed news in the Australian coal industry, as some miners like Xstrata Plc (OTC:XSRAY) and Anglo American (OTC:AAUKY) have been hit hard by the heave rains, while others like Cloud Peak Energy (NYSE:CLD) have managed to increase production during that time.
A lot of data has yet to be reported, so there's a lot yet that needs to come in and be analyzed before the full story and impact is known.
Xstrata has experienced the worst of it so far, have declared force majeure since September 30, 2010 for some of its customers. They also halted shipments of coal from the lower production levels.
Cloud Peak Energy on the other hand has had production increase quarter over quarter by 5 percent, although that represents results from only two of the four mines affected.
Showing posts with label Xstrata. Show all posts
Showing posts with label Xstrata. Show all posts
Tuesday, October 12, 2010
Thursday, May 13, 2010
Citigroup (NYSE:C) Likes Xstrata (LON:XTA), Metal Industry
Citigroup (NYSE:C) recommended Xstrata (LON:XTA) today, and the share price soared by by $39 to $1,096.50, a 3.69 percent gain.
Xstrata also was given a price target of $1,600 by Citi.
Other mining stocks responded well to the news, with BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP), gaining, although Rio pulled back at the end of the day, depending on what stock exchange they were listed on. On the NYSE, Rio dropped slightly.
Even so, the metals industry should continue doing well, although the shadow of inflation concerns in China and Europe, along with the sovereign debt crisis weighs on the markets as unsurety concerning demand is now an increasing part of the equation.
Xstrata also was given a price target of $1,600 by Citi.
Other mining stocks responded well to the news, with BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP), gaining, although Rio pulled back at the end of the day, depending on what stock exchange they were listed on. On the NYSE, Rio dropped slightly.
Even so, the metals industry should continue doing well, although the shadow of inflation concerns in China and Europe, along with the sovereign debt crisis weighs on the markets as unsurety concerning demand is now an increasing part of the equation.
Wednesday, May 5, 2010
Xstrata (LSE:XTA) Led by Copper and Coal
Xstrata (LSE:XTA) announced today that production for the first quarter was up, led by copper and coal.
Copper and coal is expected to account for just under 75 percent of Xstrata's earnings in 2010, with copper leading the way with 38 percent, and coal just behind it at 36 percent.
For the first quarter, copper production rose by 3 percent, while coal production increased by 9 percent, mostly on solid production in Australia.
Analysts are looking for Xstrata's earnings to surge 93 percent as share on a continual rise in commodity prices.
Copper and coal is expected to account for just under 75 percent of Xstrata's earnings in 2010, with copper leading the way with 38 percent, and coal just behind it at 36 percent.
For the first quarter, copper production rose by 3 percent, while coal production increased by 9 percent, mostly on solid production in Australia.
Analysts are looking for Xstrata's earnings to surge 93 percent as share on a continual rise in commodity prices.
Wednesday, April 7, 2010
Xstrata (XSRAY.PK) Commits $7 Billion to Increase Production
Xstrata (XSRAY.PK) says it will spend around $7 billion over the next four years to increase copper production, most of that targeted to operations in South America. Xstrata is the fourth-largest copper producer in the world.
The goal of Xstrata, is to increase copper production by about 60 percent during that time to 1.5 million metric tons by 2014., accoring to Xstrata Copper chief executive officer Charlie Sartain.
It'll start a little slower this year, although copper production is estimated to increase over the 920,000 tons produced in 2009.
The company reiterates their revenue growth and profitability is tied into their South American projects, which should help the company increase copper production to over 550,000 above their current levels.
The goal of Xstrata, is to increase copper production by about 60 percent during that time to 1.5 million metric tons by 2014., accoring to Xstrata Copper chief executive officer Charlie Sartain.
It'll start a little slower this year, although copper production is estimated to increase over the 920,000 tons produced in 2009.
The company reiterates their revenue growth and profitability is tied into their South American projects, which should help the company increase copper production to over 550,000 above their current levels.
Friday, March 12, 2010
Barrick Gold (TSE:ABX) Wants Xstrata Added to Lawsuit
Barrick Gold, Xstrata, New Gold, Goldcorp
Barrick Gold (TSE:ABX) has been fighting for what it believes is its right to a property in Peru, and have filed a lawsuit against Goldcorp (NYSE: GG) and New Gold (AMEX: NGD) for control of the property. They have now requested that Xstrata, based in Switzerland, to be added ot the suit.
The reason Xstrata is being requested to be added to the lawsuit is Barrick claims they backed out of a deal which would have ended up with the mining property in their hands.
The case centers around a first right of refusal, which had expired for New Gold, which made it illegal to sell the property to Goldcorp, based on a shareholder agreement.
Barrick Gold, Xstrata, New Gold, Goldcorp
Barrick Gold (TSE:ABX) has been fighting for what it believes is its right to a property in Peru, and have filed a lawsuit against Goldcorp (NYSE: GG) and New Gold (AMEX: NGD) for control of the property. They have now requested that Xstrata, based in Switzerland, to be added ot the suit.
The reason Xstrata is being requested to be added to the lawsuit is Barrick claims they backed out of a deal which would have ended up with the mining property in their hands.
The case centers around a first right of refusal, which had expired for New Gold, which made it illegal to sell the property to Goldcorp, based on a shareholder agreement.
Barrick Gold, Xstrata, New Gold, Goldcorp
Monday, February 8, 2010
XSTRATA (LSE: XTA.L) CEO: Commodities Boom Coming
Xstrata: Commodity bull run to continue
According to Xstrata (LSE: XTA.L) CEO Mick Davis, commodities are set to resume their bull run as demand for raw materials outstrips the ability to supply them.
Davis said: "In my opinion, the medium term outlook for commodity demand remains very promising, driven by the ongoing urbanisation and industrialisation of high-growth, populous economies, with China and other industrialising countries taking active steps to rebalance their economies towards domestic consumption-led growth over the next decade."
While I believe that's a true statement, Davis is obviously communicating it in response to the huge drop in annual profits it reported for 2009, which plunged by 41 percent from the year before.
Much of his hope and optimism stems from China and other emerging markets which in the building up of their domestic infrastructure which will require huge amounts of materials to accomplish.
Of course if there is more demand than supply can meet, there will be an inevitable rise in prices, which would be a huge positive for the company.
Overall revenue declined by 16 percent to $23.53 billion from 2008, showing it was the low prices of commodities which caused the 41 percent drop in prices, although demand was an ongoing part of the picture, while managing costs weren't able to turn profits around.
Xstrata: Commodity bull run to continue
According to Xstrata (LSE: XTA.L) CEO Mick Davis, commodities are set to resume their bull run as demand for raw materials outstrips the ability to supply them.
Davis said: "In my opinion, the medium term outlook for commodity demand remains very promising, driven by the ongoing urbanisation and industrialisation of high-growth, populous economies, with China and other industrialising countries taking active steps to rebalance their economies towards domestic consumption-led growth over the next decade."
While I believe that's a true statement, Davis is obviously communicating it in response to the huge drop in annual profits it reported for 2009, which plunged by 41 percent from the year before.
Much of his hope and optimism stems from China and other emerging markets which in the building up of their domestic infrastructure which will require huge amounts of materials to accomplish.
Of course if there is more demand than supply can meet, there will be an inevitable rise in prices, which would be a huge positive for the company.
Overall revenue declined by 16 percent to $23.53 billion from 2008, showing it was the low prices of commodities which caused the 41 percent drop in prices, although demand was an ongoing part of the picture, while managing costs weren't able to turn profits around.
Xstrata: Commodity bull run to continue
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