Xstrata Plc "doesnt mind" depleting tonnages at its
mining assets, chief executive officer Ivan Glasenberg said
during the companys investor day webcast Sept. 10.
"Its not the end
of the world. We dont need to have those graphs showing
more production to maintain production," he said. "If we
cant maintain production at the right rate of return, so
The company is
"hostage to external factors" in terms of its return on equity,
Glencore Xstrata chief financial officer Steve Kalmin
"There will be periods
where we are below (expected return on equity), but we would
build on the assumption that assets will deliver in time," he
said. "At the base business today, were running it as
best we can, working assets as hard as we can and trying to
extract as much value as we can."
Switzerland-based company aims to make sure any incremental
capital increases are appropriately invested or returned to
shareholders, Kalmin said.
The sale proceeds from
its Las Bambas copper project in Peru will also improve
headroom in terms of available capital, he added.
"We were going to get
to a period of being significantly cash flow generative
(anyway)the proceeds from Las Bambas accelerates the
flexibility and headroom more than we might otherwise have
seen," Kalmin said. "We will redeploy that capital and then we
will be in a nice position."
A version of this
article was first published in AMM sister publication Metal