Xstrata full-year profit rises to $4.89B

Mining company Xstrata PLC said Tuesday that full-year profit rose as it made acquisitions and commodity prices surged.

Copper prices surged 83 percent through 2006, boosted by demand from rapidly expanding economies such as China, the company said. Zinc prices more than doubled during the same period.

Commodity prices have again performed very strongly in 2006," Xstrata said. "While it is unlikely that average prices for base metals will continue to rise at a similar rate in 2007, the fundamental outlook for the industry remains positive."

Switzerland-based Xstrata won control of Falconbridge last year after a heated battle against Inco Ltd. and copper miner Phelps Dodge Corp. The US$18.8 billion deal allowed Xstrata to diversify into nickel and aluminium and enter the North American market.

Including results from Falconbridge as if it was a part of the company all year, Xstrata said in a statement that net income more than doubled to US$4.89 billion (euro3.72 billion) in the 12 months through Dec. 31, from 2.23 billion in the previous year.

Sales including what Falconbridge would have contributed rose 56 percent to US$26.9 billion (euro20.5 billion), the company said.

Xstrata did not give results without Falconbridge.

Shares in Xstrata rose 3.8 percent to 2,418 pence (US$46.62; euro35.49) on the London Stock Exchange.