Nickel
Overview
The decline in Xstrata Nickel’s EBIT (before exceptional items) to $341 million in 2008 predominantly resulted from the significant collapse in nickel price in the latter half of the year, following record price levels in 2007. Average nickel prices fell by 43% in 2008 compared to 2007. Mined nickel production increased with the inclusion of Xstrata Nickel Australia following the acquisition of Jubilee Mines NL at the beginning of 2008.
| Nickel Operations | ||
|---|---|---|
| Production (tonnes) | 2008 | 2007 |
| Total mined nickel production (contained metal) | 54,523 | 52,108 |
| Total mined ferronickel production | ||
| (contained metal) | 18,782 | 29,130 |
| Total mined copper production | ||
| (contained metal) | 27,703 | 31,425 |
| Total mined cobalt production (contained metal) | 1,341 | 1,412 |
| Total refined nickel production (payable metal) | 107,523 | 116,720 |
| Employees | 4,520 | 4,738 |
| Average prices | ||
| Nickel (US$/t) (LME) | 21,104 | 37,089 |
| Copper (US$/t) (LME) | 6,956 | 7,139 |
| Cobalt low grade (US$/lb) (Metal Bulletin) | 35.16 | 27.70 |
| Nickel Financial data | ||
|---|---|---|
| 2008 | 2007 | |
| Revenue ($m) | 3,105 | 5,252 |
| EBITDA ($m) | 816 | 2,577 |
| EBIT before exceptional items ($m) | 341 | 2,172 |
| Share of Group EBIT before exceptional items (%) | 4.7 | 24.7 |
| Capital expenditure ($m) | 1,912 | 705 |
Ian Pearce
Chief Executive
Xstrata Nickel
Contribution to Group Revenue in 2008
Contribution to Group EBIT in 2008
Relevant links
For more information visit www.xstratanickel.com