CHRIS ALEXANDER | BNP PARIBAS
We are slightly apprehensive of the near-term on economic growth concerns but on a 12-month view we are more supportive, seeing around 15 per cent upside from current levels. We take comfort from the outlook statement which notes that momentum in production volumes has continued to build.
CAILEY BARKER | NUMIS
Outlook sees higher risks from resource nationalism, especially in Peru and Australia. The usual bullish outlook is on the back of China-led growth. Overall, a fairly in-line update with no major surprises and the market should appreciate the higher dividend.
CHARLES KERNOT | EVOLUTION SECURITIES
Xstrata has produced a solid set of results which reflect its focus on cost control which we see as a key pressure currently facing mining companies through increasing labour, electricity and fuel costs exacerbated by operating in countries with appreciating currencies. The group’s growth plans are on track.