Xstrata confirms estimate for Las Bambas

Xstrata said Friday that the definitive estimate for the Las Bambas project in southern Peru is 5.2bn dollars.

Xstrata said Friday that the definitive estimate for the Las Bambas project in southern Peru is 5.2bn dollars.

This has reconfirmed the updated estimate reported in August 2012 and the project's status as a world class, Tier 1 copper asset that will deliver "substantial value", it said.

The company said the project delivers robust financials, earning Xstrata's cost of capital at a life of mine flat copper price of $1.89 per pound.

Xstrata Copper Chief Executive, Charlie Sartain, said: "Las Bambas represents the next major stage in Xstrata Copper's Peruvian development plans that will result in combined annual production levels in the country of around 700,000 tonnes of high margin copper from 2015.

"Las Bambas will benefit from synergies and the experience derived from our Antapaccay project development and operations and will consolidate Xstrata Copper's position as a leading producer of copper concentrates and one of the world's largest copper producers."

The share price edged 0.13% higher to 1,173p in opening trading.

NR

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021