BHP Billiton, the world's largest miner, is expected to post an annual profit exceeding 10 billion US dollars this week, setting a new Australian corporate record, analysts predict.
The Anglo-Australian giant's bottom line has been boosted by ongoing strong demand from Asia, particularly China, for its products and skyrocketing copper prices.
Estimates of the profit figure to be announced Wednesday range from 10.2 to 10.6 billion dollars, eclipsing the previous year's 6.5 billion, which itself was an Australian record.
The company announced record production levels for iron ore, aluminium, copper, nickel and natural gas last month, figures that are expected to translate into a bumper annual profit.
Although BHP Billiton has complained wage and material costs are increasing, analysts do not believe they will prove too much of a drag on the company's result.
The profit announcement will be the first to incorporate the operations of WMC Resources, which BHP Billiton bought last year for 7.0 billion dollars.
"The big gains will be driven by large increases in commodity prices. While costs continue to mount, higher prices will more than offset this," ABN Amro said in a note to clients, which described BHP Billiton as a "money machine". "It is highly likely that BHP will announce another capital management plan, with talk of a large capital management programme of up to three billion US dollars."
Macquarie Bank said in a note that the rise in base metal prices would drive profits.
"Copper underpins a stellar result," it said. "Commodity prices will be the key driver of profit growth.
"While cost related issues may be the cause of disappointment in some divisions, notably thermal coal and aluminium, BHP Billiton will achieve their group estimate and the markets expectation through a record contribution from the Base Metals division."
UBS resources analyst Glyn Lawcock said last month that the rising price of copper meant BHP Billiton may even exceed market expectations.