* H1 EBITDA down 31 percent to $4 billion
* Cost of Las Bambas project rises 7 percent to $5.2 billion
* Writes down Lonmin investment, takes $514 million hit
* CEO declines to comment on Glencore deal outcome
By Clara Ferreira-Marques
LONDON, Aug 7 (Reuters) – Anglo-Swiss miner Xstrata,
in the throes of a $26 billion takeover bid, posted a
smaller-than-expected 31 percent drop in first-half profit as
cost cuts helped cushion the impact of weaker prices and reduced
copper production.
The miner felt the pain of market turbulence, though, as it
took a $514 million hit to write down the value of its almost 25
percent stake in platinum miner Lonmin – battered along
with the rest of the South African-focused sector by rising
costs, weak demand and stoppages.
Xstrata, one of the world’s largest producers of thermal
coal and copper, agreed earlier this year to be taken over by
commodities trader Glencore, its largest shareholder.
But the deal hit trouble in June after the miner’s
second-largest shareholder, Qatar Holdings, demanded an improved
offer.
Xstrata’s results had been keenly anticipated for signs of
worsening profitability or a deteriorating outlook that could
strengthen Glencore’s case for keeping the offer as it is – 2.8
new shares for every share.
Continued…
