Glencore Xstrata Plc is reporting some good news, having “raised its estimate of the savings it expects following last year’s Xstrata acquisition, as it focuses on cost-cutting and targets higher returns for shareholders,” reports Reuters.
“After being hammered by billion of dollars in writedowns as falling metal prices dented their assets’ value, miners have worked to trim costs and tidy their balance sheets.”
“The group, which completed the record-breaking acquisition of Xstrata in May, was also victim of souring sentiment in the mining sector and in August announced a $7.5 billion impairment on the assets it inherited from the miner.”
“But the company, whose interests range from a 44 percent stake in the Collahuasi mine in Chile, one of the world’s largest copper mines, to a trading hub in its hometown of Baar, Switzerland, has identified cost and efficiency savings from the acquisition of more than $2.4 billion. That compares with guidance of $2 billion given late last year.”
In metal price news for copper…
On Tuesday, March 4, the day’s biggest mover was the 3-month price of copper, which saw a 0.9 percent decline on the LME to $6,961 per metric ton. Also on the LME, the primary copper cash price declined 0.9 percent to $7,032 per metric ton.
The Japanese copper cash price fell 0.8 percent. The price of US copper producer grade 122 saw a 0.3 percent decline. The price of US copper producer grade 110 weakened by 0.3 percent. The price of US copper producer grade 102 declined 0.2 percent.
Chinese copper closed mixed yesterday. The price of Chinese copper bar reached a 30-day low after decreasing 0.3 percent. The cash price of Chinese copper fell 0.3 percent to a 30-day low yesterday. Following two days of downward movement, the price of Chinese copper wire held steady. The price of Chinese bright copper scrap saw essentially no change for the fifth day in a row.