10th Sep 2013 06:42
LONDON (Alliance News) - Glencore Xstrata Plc. (GLCNF.PK, GLNCY.PK, GLEN.L) said that at least $2 billion of synergies estimated for 2014, materially exceeding the initial merger guidance of $500 million.
The company announced a $3.5 billion reduction in capital expenditure during 2013 to 2015, excluding Las Bambas from 2014, with full optionality being maintained.
Sustaining capex is now expected to be $4 billion, which is the lower end of previous guidance of $4 billion - $5 billion.
The company said it is hosting an investor day in London which will provide a detailed update on the progress of the integration, initial results of the portfolio review, synergies identified and approach to capital allocation.
Ivan Glasenberg, CEO, said, "We have successfully and rapidly completed the integration of Xstrata, identifying at least $2bn of synergies by 2014. A significant portion of the synergies are in overhead costs at head and regional offices. We are only just starting to comprehensively look at the combined mining and metallurgical operations."
Glencore noted that it also intends to make an application to the Johannesburg Stock Exchange for a secondary listing. Subject to obtaining the required approvals, it expects the listing to become effective during the fourth quarter of 2013.
The company stated that Africa is an important and growing market for the Group and South Africa has a strong institutional investor base. The Group's primary listing will remain the London Stock Exchange.
Copyright RTT News/dpa-AFX
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