Falconbridge sees profits treble

The group said profits surged to $728m (£393.7mm) in the three months to 30 June from $202m a year earlier.

Toronto-based Falconbridge is currently at the centre of a takeover tussle between Inco and rival Xstrata.

Falconbridge shareholders must decide whether to accept a $17.3bn offer from Inco by 27 July when the offer expires. Xstrata has tabled a bid of $16.9bn.

However, Inco's bid has since been complicated by the fact it is now itself a takeover target.

Bidding battle

It is aiming to see off a 17.8bn Canadian dollar hostile bid from yet another Canadian mining group, Teck Cominco.

Despite its lower bid, analysts widely expect Xstrata to win the battle for Falconbridge. Its hostile offer for the remaining 80% of the mine that it does not own expires in August.

Meanwhile, Falconbridge chief executive Derek Pannell said he was "extremely pleased with the outstanding financial results".

"This strong performance continues to reflect both the ability of our operations to capitalize on high metals prices and to generate very substantial levels of cash," he added.

As well as a sharp rise in profits, the group added earnings had almost doubled to $3.95 billion, driven by lofty metal prices as well as increased volumes of copper and zinc.

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