Takeover target Rio Tinto has unveiled a $7.44bn (Ј3.8bn) profit for 2007 - 1% higher than a year before - on the back of surging commodity prices.
Analysts say the results leave the mining firm well placed as it fends off a hostile bid from rival BHP Billiton.
Anglo-Australian giant Rio last week rejected a $147bn (Ј74.8bn) takeover offer from BHP.
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'Value'
Annual production of aluminium, iron ore, bauxite, refined gold and refined copper were at record levels, the firm said, adding that commodity prices were expected to remain high.
Announcing the results, the chief executive of Rio's iron ore business, Sam Walsh, said that BHP Billiton needed to raise its offer "considerably" before the firm would enter talks.
"In reality, BHP Billiton hasn't offered the value that we believe is in the business," he said.
BHP's bid for Rio offered 3.4 of its shares for each Rio share.
This was higher than its previous informal three-for-one proposal, worth $130bn, that was first announced in December of last year.
BHP has warned Rio that it is not willing to sweeten its offer any further.
(BBC)
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