Xstrata leaps 84% in the boom

Weather-beaten: Xstrata's Queensland mining has been badly affected by the east Australian weather crisis

11 April 2012

London-listed Xstrata was the first mining giant to show off the riches of the commodity price boom today when it posted an 84% leap in annual pre-tax profit.

Surging copper and zinc prices helped Xstrata's pre-tax profit for 2010 hit $7.2 billion (£4.5 billion), before exceptional charges, from $3.9 billion the previous year.

The results beat City expectations and shares, which rose sharply yesterday, put on another 6p to 1473.5p today.

David Butler, mining analyst at JPMorgan Cazenove, said Xstrata had "a seriously impressive set of numbers".

Operating profit at the copper division rocketed 80% to $3.8 billion, whilst zinc rose 81% to $917 million.

Chief executive Mick Davis said fast-growing economies in China, India, Brazil and other Asian economies will continue to fuel the commodity boom, which he said was "profound for the future growth in demand for Xstrata's products".

Xstrata said it was working on 20 new mines and big expansions valued at $18 billion.