UPDATE 1-Xstrata H1 copper, nickel output off, sees strong H2

(Adds analyst comment, shares)

By Eric Onstad

LONDON, July 30 (Reuters) - Mining group Xstrata (XTA.L) posted mixed first-half production data on Wednesday, with slightly weaker output in two key metals, but forecast a strong rise in the second half.

Mined copper and nickel output fell by 1.1 percent and 6.1 percent respectively, but the Anglo-Swiss group achieved record output for the first six months of the year in ferrochrome, platinum, semi-soft and coking coal and refined nickel.

Copper and nickel were responsible for the bulk of Xstrata's operating profit last year, with copper accounting for 46 percent and nickel for 24 percent.

"Xstrata has delivered generally sound H1 production data versus our forecasts except total mined copper, which was slightly lower," said analyst Simon Toyne at Numis Securities.

"H2 is expected to be markedly better for the group as a whole so, while we will probably reduce our H1 EPS forecast from 276 cents to around 265 cents, we expect the market to take the data in its stride."

Toyne, who rates Xstrata as "hold", said he would leave his full-year EPS forecast unchanged at $7.10, a rise of 27 percent from 2007.

Xstrata shares, which have shed 11 percent over the past month as investors worry about demand, rose 3.8 percent to 3,566 pence by 0835 GMT, compared to a 3 percent increase in the UK mining index .FTNMX1770.