Zinc
Overview
Xstrata Zinc’s EBIT declined in 2008 largely due to the impact of lower zinc and lead prices. Despite the impact of continued mining sector and CPI inflation on earnings, increased volumes and real savings of $87 million were achieved primarily as a result of enhanced productivity from higher volumes and operating efficiencies. The new Perseverance mine in Canada commenced production ahead of schedule during the year.
| Zinc Operations | ||
|---|---|---|
| Production (tonnes) | 2008 | 2007 |
| Total zinc in concentrate production (t) | 861,033 | 735,555 |
| Total zinc in metal production (t) | 795,565 | 843,726 |
| Total lead in concentrate production (t) | 251,496 | 213,735 |
| Total lead in metal production (t) | 220,391 | 190,168 |
| Employees | 5,029 | 4,734 |
| Average prices | ||
| Zinc (US$/t) (LME) | 1,870 | 3,257 |
| Lead (US$/t) (LME) | 2,084 | 2,594 |
| Zinc Financial data | ||
|---|---|---|
| 2008 | 2007 | |
| Revenue ($m) | 3,202 | 4,726 |
| EBITDA ($m) | 444 | 1,822 |
| EBIT before exceptional items ($m) | 113 | 1,529 |
| Share of Group EBIT before exceptional items (%) | 1.6 | 17.4 |
| Capital expenditure ($m) | 655 | 504 |
Santiago Zaldumbide
Chief Executive
Xstrata Zinc
Contribution to Group Revenue in 2008
Contribution to Group EBIT in 2008
Relevant links
For more information visit www.xstratazinc.com