Alloys
Overview
Xstrata Alloys’ EBIT rose by 159% in 2008 to $1 billion, due to record ferrochrome prices and strong cost control, which resulted in real cost savings of $32 million in 2008. An increase in platinum group metals in concentrate production, following the successful commissioning of the Elandsfontein operation was offset by lower ferrochrome volumes. Higher mining and CPI inflation were more than outweighed by the positive impact of the weaker South African Rand against the US dollar.
| Alloys Operations | |||
|---|---|---|---|
| Production | 2008 | 2007 | |
| Ferrochrome (kt)* | 1,126 | 1,219 | |
| Ferrovanadium (k kg) | 3,622 | 4,280 | |
| V2O5 (k lbs) | 16,604 | 18,870 | |
| Platinum Group Metals**(oz) | 222,516 | 99,215 | |
| Employees | 9,476 | 8,499 | |
| Average prices | |||
| Chrome (US¢/lb) (European benchmark) | 175.8 | 89.3 | |
| Ferrovanadium (US$/kg) (Metal Bulletin) | 61.2 | 37.2 | |
| Vanadium pentoxide (US$/lb) (Metal Bulletin) | 13.5 | 7.4 | |
| Platinum ($/oz)(London Platinum & Palladium Market) | 1,578 | 1,337 | |
| Palladium ($/oz)(London Platinum & Palladium Market) | 353 | 355 | |
| Rhodium ($/oz) (Metals Week) | 6,483 | 6,201 |
| Alloys Financial data | ||
|---|---|---|
| 2008 | 2007 | |
| Revenue ($m) | 2,002 | 1,352 |
| EBITDA ($m) | 1,094 | 448 |
| EBIT ($m) | 1,007 | 389 |
| Share of Group EBIT (%) | 13.9 | 4.4 |
| Capital expenditure ($m) | 222 | 120 |
- *Xstrata’s 79.5% share of the Xstrata-Merafe Chrome Venture
- **100% consolidated
Peet Nienaber
Chief Executive
Xstrata Alloys
Contribution to Group revenue in 2008
Contribution to Group EBIT in 2008
Relevant links
For more information visit www.xstrataalloys.com