Shares in Eurasian Natural Resources were up on the FTSE 100 in morning trading after the mining company reported a doubling of post-tax profit in the full year 2010.
Group revenue during the year rose 72.4 per cent to $6.6 billion while profit after tax jumped 106.9 per cent to $2.2 billion.
Eurasian said that its results had been driven by record production of high carbon ferrochrome, iron ore, alumina, aluminium and coal and good progress on cost controls.
During the year Eurasian acquired additional copper and cobalt assets in the Democratic Republic of Congo and in Zambia.
Following the results Eurasian said it would be tripling its final dividend to 18.0 cents per share, while the value of the total dividend will rise 154.2 per cent to 30.5 cents per share.
Despite the rise in profitability the group went from having net cash of $402 million at the end of 2009 to a net debt of $37 million.
Looking ahead the group said it expected production to be maintained at full capacity but added that its costs are likely to grow.
Felix Vulis, Chief Executive of Eurasian Natural Resources, said, "The Group's strong performance in 2010 was built on the solid foundations of the businesses in Kazakhstan which delivered record production in the year. China's economic growth and our strategic location remained key, while we also saw recovery in our traditional markets. Maintaining and exploiting our advantaged cost position is also critical. We remain positive on the Group's prospects for 2011, although the control of costs growth and the development of our assets in Africa will be important issues for management, as will be the continued near-term risk of commodity market volatility. We made further progress with our growth strategy by establishing the foundations for growing businesses in Africa and Brazil, with major benefits to be realised in the years ahead."
By 10:20 shares in Eurasian Natural Resources were up 3.06 per cent on the FTSE 100 to 926.00 pence per share.