Global miner Anglo American said late last week that net profits almost tripled to $6.54 billion last year, boosted by soaring commodity prices and booming demand from emerging markets.
Earnings after tax rocketed 170 per cent in 2010 from $2.43 billion in 2009, London-based Anglo American said in a results statement.
The firm, which has key mining operations in South Africa, said operating profit almost doubled to $9.8 billion in 2010 while revenues jumped 34 per cent to $32.93 billion.
“Anglo American performed strongly in 2010, both operationally and financially, and we have continued to deliver on our clear strategic objectives,” chief executive officer Cynthia Carroll in the earnings release.
“In addition to benefiting from higher commodity prices, our focused commodity businesses are driving superior operating performances, through major productivity improvements, disciplined cost management and the benefits of our asset optimisation and global supply chain programmes.”
Anglo added that demand growth would be driven by the rapid economic expansion of emerging markets – particularly China and India.
“The outlook for demand growth for Anglo American’s commodities remains extremely positive. Such demand will be driven by the resource intensive nature of robust economic growth in the emerging markets, led by China and India and many countries across Asia, Latin America and Africa.
“While there remain a number of uncertainties in the immediate term, not least in the developed economies, our medium- to long-term view of demand growth for our commodities remains positive, driven by the resource intensive nature of economic growth in emerging markets.”
The resources sector enjoyed a vintage year in 2010 owing to sky-rocketing prices for vital raw materials and booming emerging-markets demand.
Earlier this week, the world’s top miner BHP Billiton said its half-year net profits soared 72 per cent to $10.52 billion while global giant Rio Tinto said its annual net profits almost tripled to $14.32 billion.
Copper, iron ore, tin and gold remain near all-time record peaks, while silver and palladium are at multi-decade highs and aluminium, nickel, platinum and coal have risen to their highest levels since the global financial crisis.
Separately, Anglo also unveiled a joint-venture with French building material giant Lafarge to create a leading UK construction materials company with annual sales of about £1.8 billion.