Positive financial results for mining giants

Positive financial results for mining giants

BHP Billiton (NYSE:BHP) and Vedanta Resources (LSE:VED) have both reported profitable results in their latest respective financial reports, reflecting an optimistic turn in the international mining community.

BHP, the largest mining firm in the world, returned to net profit for the first half of the 2016-17 financial year, earning US$3.2 billion in the six months up to December.

Underlying earnings increased to $9.9 billion in the same period, up from $6 billion in the same period one year earlier.

The miners also reported that improvements have been made in its safety performance indicators, following a fatality at its Chilean Escondida mine.

Meanwhile, India-focused Vedanta Resources said that revenue increased 26% to $3.07 billion in the third quarter, while earnings shot up 79% to $882.3 million, compared to $493.6 million during the previous year.

Despite noting a 15% drop in its major mining arm Zinc India, mined metal production was up 24% year-on-year, thanks to a ramp-up in production at its Rampura Agucha open cast zinc and lead mine.

Vedanta chief executive Tom Albanese looked forward to the opening of Gamsberg zinc project in South Africa, and said: “Our rising capacity utilisations and the continued focus on costs, alongside stronger commodity prices, enabled us to deliver 79% higher EBITDA and strong free cash flow.”