Socio-economic & Employees

Our approach

As a natural resources group, Xstrata's activities provide basic materials and energy for social and economic development. Our operations contribute towards the economic development and wealth of their host communities and countries.

Personal safety equipment at Minera Alumbrera, Argentina

Financial performance

• attributable profit (net earnings) up 60% to $1.7 billion
• basic earnings per share up 64% to 279¢
• real unit cost savings of $19 million
• operational cash flow of $2.8 billion, free cash flow of $1.9 billion
• capital expenditure up 72% to $947 million
• dividends increased by 42% To 34¢ per share
• total shareholder return of 278% March 2002 to 1 March 2006

Further detailed information on Xstrata's financial and operating performance is available in our Annual Report, available from www.xstrata.com or as a hard copy on request.

Economic contribution

Our operations contribute towards the economic development and wealth of their host communities and countries in a number of ways including:

• wages paid to employees and contractors;
• job creation through expansion of existing projects or new growth projects;
• indirect job creation at surrounding communities and towns;
• royalties and taxes paid to governments (national, state/provincial and local);
• goods and services procured for our businesses; and
• financial support for community development through Xstrata's corporate social involvement initiatives.

Xstrata's direct foreign investment in the countries in which it operates amounts to over $10 billion since the Group's creation in 2002.

According to the Global Reporting Initiative, economic value added is the value a company creates from the materials, goods and services purchased and is calculated as the difference between revenue and total procurement costs.