Johannesburg — XSTRATA, one of the world's top resources companies, turned in a mixed bag of results yesterday, with copper output disappointing the market. Ferrochrome output increased off a low base, good news for its South African partner Merafe Resources.

Ahead of releasing financial results on August 3, Xstrata and Merafe issued output results.

Merafe shares rose 3% to 139c on news that its attributable portion of ferrochrome from the Xstrata joint venture more than doubled to 157 000 tons in the six months to June compared to 63 000 tons a year ago and that prices were well above those received at that time last year.

The joint venture, which is 79,5% owned by Xstrata, the world's leading ferrochrome supplier, increased total production by 149% in the interim period as a result of rising demand. The average received price was 1,18/lb compared to 0,74 a year ago. Ferrochrome is Merafe's key source of revenue.

Xstrata, which is listed on the London Stock Exchange, disappointed with a fall in copper production and flat coal production, the two biggest earners in its suite of assets.

Xstrata's mined copper fell 3% because of reduced grades at its Mount Isa and Ernest Henry mines in Australia and a failure of increased mill throughput to offset lower grades at the Antamina mine in Peru, in which Xstrata has a one-third stake.

Xstrata's gold output, a byproduct of its copper mines, in Australia, Peru and Argentina, came down 60653oz because of falling grades. Using the average price of 1 152/oz over the past six months, these ounces would have been valued at 70m.

Thermal coal, which is used as fuel in power plants, was dragged lower by a 16% decline in South African production because of strikes at Transnet hampering deliveries and a strike at the Tavistock mine.

High levels of rainfall cut into volumes at the Goedgevonden mine, which is increasing to full production. Bad weather in Australia trimmed 2-million tons of output from the Rolleston mine, which flooded during the cyclone season.

Xstrata's platinum group metals output nudged 2% higher at the equally held Mototolo joint venture with Anglo Platinum.

The mine generated a 51% increase in sales revenue for the six months at R471m due to higher platinum prices, Anglo Platinum said in results released this week. Cash operating costs jumped 29% to 1239/oz.

Xstrata wholly owns the Eland mine where a decline shaft is being sunk and is progressing according to plan. A second decline was started in the second quarter. These declines will contribute to Xstrata doubling output to 250 000 tons of ore a month by 2013 and then 500 000 tons a month during 2015.

Xstrata's 3% dip in copper output was less than declines from rivals BHP Billiton and Rio Tinto, which have reported 18% and 5% weaker output of the metal in the latest quarter respectively, Reuters reported.