EduBourseActualitésxStrata - Glencore exercise of Prodeco option

xStrata – Glencore exercise of Prodeco option

Pierre Perrin-Monlouis Dernière mise à jour: 20 octobre 2021

Xstrata plc announces that it received formal notification on 4 March 2010 by Glencore International AG (“Glencore”) of Glencore’s exercise of its option to acquire the Prodeco coal operations. Under the option agreement, Glencore will pay Xstrata $2.25 billion in cash upon completion of the sale to Glencore pursuant to the exercise of the option, plus any profits accrued but not distributed to Xstrata during the period 1 January 2009 to the completion date and the net balance of any cash invested by Xstrata.

Mick Davis, Xstrata plc Chief Executive, said: “The acquisition of the Prodeco operations last year facilitated an orderly rights issue process during very challenging market conditions. Glencore’s decision to exercise its option provides Xstrata’s shareholders with a robust cash return on the initial purchase price and provides additional financial flexibility as Xstrata’s capital expenditure programme ramps up to deliver 50% volume growth by 2014, including a 50% increase in coal and copper production and a doubling of current nickel volumes.”


Xstrata contacts:

Claire Divver
Telephone +44 20 7968 2871
Mobile +44 7785 964 340
Email [email protected]

Michael Oke
Aura Financial
Telephone +44 20 7321 0033
Mobile +44 7834 368 299
Email [email protected]

Investors and analysts
Hanré Rossouw
Telephone +44 20 7968 2820
Mobile +44 7879 455 885
Email [email protected]

Notes to editors

The Prodeco business comprises the Calenturitas and La Jagua open pit thermal coal operations, export port facilities and a 39.8% share in a railway in Colombia.

In the 12 months to 31 December 2009, the Prodeco operations produced 10.5 million tonnes of coal, generated $259 million of EBITDA and $159 million of operating profit (before depreciation on the fair value uplift adjustment of $52 million). The final payment due from Glencore will include profits accrued plus the net balance of any cash invested by Xstrata for the option period, namely 1 January 2009 to the completion date.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.