Xstrata plc Preliminary Results for the year ended 31st December 2006

 Zug, 6 March 2007

Xstrata plc announces preliminary results for the year ended 31st December 2006.

Key financial results

 
$m
Year ended
31.12.06
Year ended
31.12.05
%
Change
Revenue 26,877 17,199 56%
EBITDA* 10,441 5,843 79%
EBIT* 8,340 3,932 112%
Attributable profit 4,885 2,232 119%
Earnings per share (basic, pre-exceptionals)*** $5.13 $2.52 104%
Cash generated from operations 9,370 4,667 101%
Net debt to net debt plus equity (%)** 41% 24% 71%
Net assets** 19,722 8,137 142%
Net assets per share** 20.82 13.57 53%
Dividends per share:      
- interim dividend (paid) 11.6¢† 8.1¢‡ 43%
- final dividend (proposed) 30.0¢ 22.4¢‡ 34%
* Excludes exceptional items
** Assets and debt relate to the statutory balance sheets at year end
***Pro forma weighted average number of shares of 864.15 million and 925.41 million have been calculated as if the share issues in 2006 had been made on 1 January 2005 and 1 January 2006 respectively
† 2006 interim dividend paid was 13¢ per share: adjusted to 11.6¢ for rights issue impact
‡ 2005 dividends have been adjusted for rights issue impact

Highlights

  • Three major acquisitions completed in 2006, Cerrejòn coal, Tintaya copper and Falconbridge Limited, transforming Xstrata and creating an exceptional range of organic growth options
  • Investment grade credit rating maintained following cash acquisitions of $19.6 billion. Gearing ratio of 41% at year end and pro forma operating cash flow of $9.4 billion
  • Falconbridge integration successfully completed at year end, with annual synergies of $545 million confirmed. Work continues to unlock further synergies from the Sudbury basin, in partnership with CVRD
  • Prices for key mining inputs continued to climb in 2006, in particular for labour, mining consumables and equipment
  • Real cost savings of $56 million achieved by former Xstrata businesses, in a challenging environment
  • Increased resources confirmed at Wandoan (thermal coal), Mount Isa, Alumbrera, Antapaccay, Las Bambas and Tampakan (copper), Raglan, Kabanga and Araguaia (nickel)
  • New projects commissioned on time and on budget at Rolleston thermal coal, Lion ferrochrome, Wollombi coking coal, Mototolo PGM and Lennard Shelf zinc-lead

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