Share tip of the week: how to buy into the coming infrastructure boom

One of the world's largest mining companies, this week's share tip can take advantage as government stimulus packages kick in, says Paul Hill.

Xstrata is the world's fifth-largest miner. Its earnings before interest, tax, depreciation and amortisation (EBITDA) come from extracting coal (43%), copper (33%), zinc (5%), nickel (8%) and alloys (11%). It owns a 24.9% stake in platinum producer Lonmin (worth around $850m), bought last summer. The big news for Xstrata came in February, with a controversial $5.9bn rights issue to cut its $16.3bn debt load. It also spent $2bn to buy the Prodeco thermal coal-field from its main shareholder Glencore.

Xstrata (LSE:XTA), tipped as a BUY by Deutsche Bank

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.