LONDON, March 3 (Reuters) - Kazakhmys (KAZ.L), the world's 10th largest copper miner, was confident the long-term outlook for copper remained positive as a surge in prices drove its full-year profit higher.
Kazakhmys said on Thursday its 2010 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 59.5 percent to $1.93 billion. According to Thomson Reuters I/B/E/S estimates, the average EBITDA forecast stood at $1.86 billion.
The company added it was still considering a secondary market listing in Hong Kong, to help tap demand from Asia, as well as the sale of its non-core Maikuben coal mine.
Benchmark London Metal Exchange copper MCU3 rose 31 percent last year and hit a record $10,190 a tonne last month, driven partly by rising demand from markets such as China.
Higher commodity prices also fuelled a surge in profits at commodity trader Glencore [GLEN.UL], which is considering a giant stock market listing, and Kazakhmys said a relative lack of supply would continue to boost copper prices.
"The long-term outlook for copper remains positive, as it is a metal fundamental for economic growth and development, but with constrained supply," said Kazakhmys Chief Executive Oleg Novachuk.
Kazakhmys shares were up 0.9 percent to 1,449 pence by 0849 GMT, giving the group a market capitalisation of around 7.8 billion pounds ($12.74 billion).
"Copper remains one of our preferred commodities and Kazakhmys remains an attractively priced stock compared to global copper peers," Credit Suisse said in a research note, keeping an "outperform" rating on the shares.
According to Thomson Reuters Starmine, Kazakhmys shares are trading on a 2011 price-to-earnings ratio of around 6.1, compared to a sector average P/E ratio of around 11.