UPDATE: Xstrata Thermal Coal Output Soars, But Copper Struggles
--Xstrata Sees Record 3Q Thermal Coal Output After Earlier Weather Issues
--Mined Copper Output Slips Following Weather, Lower Grades, Repairs
--Lead Metal Output Falls 32% After Delayed Shipment From U.K.'s Britannia
--Xstrata Says Financial Position Remains Robust
LONDON (Dow Jones)--Anglo-Swiss miner Xstrata PLC (XTA.LN) Tuesday reported record third quarter thermal coal output as the company put weather-related production setbacks from earlier in the year firmly behind it.
But the company's mined copper output suffered from lower ore grades, blizzard conditions and repairs to equipment which reduced performance.
Copper and coal are the main earnings drivers for Xstrata, accounting for 44% and 29% respectively of 2010 full-year operating earnings before interest, taxes, depreciation and amortization, or Ebitda.
Xstrata said its operating and financial performance "continues to be strong" and that its financial position "remains robust." "Significant headroom has been maintained within Xstrata's corporate debt facilities and $6.8 billion remains undrawn," it added.
Third quarter thermal coal output, excluding semi-soft coal, was 13% higher year-on-year and 22% up from the previous quarter, at 20.0 million metric tons.
Total mined copper production in the period was in line with the second quarter but 4% lower than the same period of 2010, at 223,606 tons.
Production at Collahuasi in Chile was impacted by planned lower grades, blizzard conditions in July and 18 days of repairs to the conveyor belt in September which reduced feed to the concentrator. Planned lower grades at Mount Isa, Kidd and Tintaya mines also contributed to lower production, although output at Alumbrera rose due to higher grades and improvements to the grinding and pebbles circuit which improved throughput.
At Antamina in Peru, the processing of a larger proportion of copper-only ores resulted in higher copper grades, while debottlenecking led to improved throughput and recoveries, Xstrata said.
Copper cathode output was also down, by 4.5% year-on-year to 163,683 tons.
The group's results in lead were a mixed bag. Lead in concentrate production rose 5% year-on-year to 53,519 tons, mainly due to increased production at McArthur River mine, but lead metal output fell 32% to 37,396 tons due to a delayed lead bullion shipment to Britannia Refined Metals in the U.K.
Production of nickel and zinc metal were both higher. Total nickel production rose to 26,738 tons in the third quarter, 15% higher than the same period last year, while zinc metal output rose by 4.4% year-on-year, to 184,220 tons.
Xstrata's shares closed Monday at 949.0 pence.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
[email protected]
(END) Dow Jones Newswires
October 18, 2011 02:55 ET (06:55 GMT)
Totally valid to criticise but its a bit empty when you say nothing positive about any stock on any basis. 
