Although Xstrata's second-half profits collapsed by 97% due to the fall in the prices on coal, copper and other metals, yet it has remained quiet confidence about the future as it looks forward to restore dividend payments.

As per the calculations of MarketWatch, Xstrata's profits in the second half fell to $22 million from $822 million, while revenue rose to $13.66 billion from $11.86 billion.

The Chief Executive, Mr. Mick Davis, said that he expected reasonably strong demand for resources from China and India, coupled with a recovering U. S. economy. "Commodity prices, while they might not have the same upward trend we had previously  they should be stable to reasonably strong", he said.

The company officials said that Xstara would pay a final dividend of 8 cents, the first since its interim report for 2008, when it paid 18 cents.

"We take this dividend as a sign of management's confidence in commodities demand and prices. Xstrata has a big capex program over the next three years, and if it were concerned about cash flow it would not be returning capital to shareholders, in our view", said Rebecca O'Dwyer, Investec Securities Analyst.

Xstrata had, last year, announced that it would seek to raise £4.1 billion in a two-for-one rights issue to pay down the debts.