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Released August 21, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Glencore Xstrata (LSE:GLEN) (Baar, Switzerland), one of the world's largest mining and commodity-trading companies, reported sharp overall improvement for the first half of 2014, as stronger sales volumes and cost improvements, particularly for copper, zinc, nickel and grain products, offset a continuing weakness in commodity prices. The company reported net profits of $1.72 billion, up from a $9.39 billion loss in the first half of 2013.
Glencore Xstrata incurred massive write-downs in the first half of 2013 amid its merger with mining company Xstrata, which accounted for much of first-half 2013's losses.
Industrial Info is tracking $26.6 billion in projects involving Glencore Xstrata, including more than $10.8 billion in South America and more than $6.9 billion in Africa. In South America, the company is planning the $4.1 billion construction of an open pit copper mine and processing plant at its El Pachon facility in San Juan, Argentina. The project includes a 160,000-ton-per-day concentrator, which will produce 400,000 tons per year of copper. Construction is expected to begin toward the middle of next year.
View Plant Profile - 1057671
View Project Report - 66000003
In Africa, Glencore Xstrata is planning the $2.35 billion construction of an iron ore mine and beneficiation plant at its complex in Zanaga, Congo, including a primary crusher, concentrator and 380-kilometer slurry pipeline. The plant is expected to produce 30 million tons per year of dry iron ore. The project is expected to begin construction in the second quarter of 2015.
View Plant Profile - 3100175
View Project Report - 300133528
Total revenues stood at $114.06 billion, a 1.81% increase from the first half of 2013. The Metals and Minerals segment saw stronger earnings, despite a drop in commodity prices that lowered revenues; production of copper and ferrochrome improved following ramp-ups at the Katanga and Mutanga mines (copper) and the Lion 2 plant (ferrochrome) in Africa. Coal production also improved following expansions in Australia. However, zinc production dropped after two Canadian mines closed toward the end of the first half of 2013, and nickel production fell after two Australian mines were shut down for maintenance.
View Plant Profile - 1062757 2015108 1070680
In July, Glencore Xstrata completed two major transactions that executives say will benefit the company in years to come: the sale of the Las Bambas mine in Peru to a Chinese consortium, which netted Glencore Xstrata $6.5 billion, and the acquisition of Caracal Energy Incorporated (Calgary, Alberta), an oil exploration and development company that focuses on the African nation of Chad, which cost the company $1.35 billion. For more information, see April 18, 2014, article - Glencore Xstrata Buys Oil and Gas Group Caracal for $1.35 Billion.
View Plant Profile - 1080980
Capital expenditures were reported to be $4.83 billion for the first half of 2014, compared with $3.4 billion in the same period last year.
"The industrials side of the business... was pleasing in what was generally a weaker commodity price environment," said Steven Kalmin, the chief financial officer of Glencore Xstrata, in a quarterly presentation. "Again, the Metals side is the biggest part in the current environment, both in operational scale and in growth trajectory. The Energy side is very big in coal--but of course coal, numbers-wise, is not contributing at a more neutral level--and a growing oil business, clearly, in the West African upstream portfolio."
In the presentation, Ivan Glasenberg, the chief executive officer of Glencore Xstrata, said that company executives expect commodity prices to improve throughout the remainder of the year, as prices for nickel and zinc already have increased significantly; however, he said that iron ore prices are expected to remain low.
"Capital expenditures are declining, and at the end of 2015, we should only have sustaining capital expenditures--that only takes us down to figures of about $3.5 billion," Glasenberg said. "We don't have big expansion capital expenditures on the books right now, and that should ensure that this company continues to generate hard cash."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Glencore Xstrata incurred massive write-downs in the first half of 2013 amid its merger with mining company Xstrata, which accounted for much of first-half 2013's losses.
Industrial Info is tracking $26.6 billion in projects involving Glencore Xstrata, including more than $10.8 billion in South America and more than $6.9 billion in Africa. In South America, the company is planning the $4.1 billion construction of an open pit copper mine and processing plant at its El Pachon facility in San Juan, Argentina. The project includes a 160,000-ton-per-day concentrator, which will produce 400,000 tons per year of copper. Construction is expected to begin toward the middle of next year.
View Plant Profile - 1057671
View Project Report - 66000003
In Africa, Glencore Xstrata is planning the $2.35 billion construction of an iron ore mine and beneficiation plant at its complex in Zanaga, Congo, including a primary crusher, concentrator and 380-kilometer slurry pipeline. The plant is expected to produce 30 million tons per year of dry iron ore. The project is expected to begin construction in the second quarter of 2015.
View Plant Profile - 3100175
View Project Report - 300133528
Total revenues stood at $114.06 billion, a 1.81% increase from the first half of 2013. The Metals and Minerals segment saw stronger earnings, despite a drop in commodity prices that lowered revenues; production of copper and ferrochrome improved following ramp-ups at the Katanga and Mutanga mines (copper) and the Lion 2 plant (ferrochrome) in Africa. Coal production also improved following expansions in Australia. However, zinc production dropped after two Canadian mines closed toward the end of the first half of 2013, and nickel production fell after two Australian mines were shut down for maintenance.
View Plant Profile - 1062757 2015108 1070680
In July, Glencore Xstrata completed two major transactions that executives say will benefit the company in years to come: the sale of the Las Bambas mine in Peru to a Chinese consortium, which netted Glencore Xstrata $6.5 billion, and the acquisition of Caracal Energy Incorporated (Calgary, Alberta), an oil exploration and development company that focuses on the African nation of Chad, which cost the company $1.35 billion. For more information, see April 18, 2014, article - Glencore Xstrata Buys Oil and Gas Group Caracal for $1.35 Billion.
View Plant Profile - 1080980
Capital expenditures were reported to be $4.83 billion for the first half of 2014, compared with $3.4 billion in the same period last year.
"The industrials side of the business... was pleasing in what was generally a weaker commodity price environment," said Steven Kalmin, the chief financial officer of Glencore Xstrata, in a quarterly presentation. "Again, the Metals side is the biggest part in the current environment, both in operational scale and in growth trajectory. The Energy side is very big in coal--but of course coal, numbers-wise, is not contributing at a more neutral level--and a growing oil business, clearly, in the West African upstream portfolio."
In the presentation, Ivan Glasenberg, the chief executive officer of Glencore Xstrata, said that company executives expect commodity prices to improve throughout the remainder of the year, as prices for nickel and zinc already have increased significantly; however, he said that iron ore prices are expected to remain low.
"Capital expenditures are declining, and at the end of 2015, we should only have sustaining capital expenditures--that only takes us down to figures of about $3.5 billion," Glasenberg said. "We don't have big expansion capital expenditures on the books right now, and that should ensure that this company continues to generate hard cash."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
