Sep 13th, 2007 daily reckoning
“Export earnings from resources punched through the $100 billion mark in 2006-07 on the back of higher prices and volumes,” reports Felicity Williams in today’s Herald Sun. “Nickel, zinc, gold, oil, and iron ore exports were the stand-out performers amid a sustained resources boom fuelled by insatiable commodities demand from China…Uranium, lead, alumina, aluminium, LNG and copper export revenues also increased.”
All together, earnings from mineral and energy exports were up by 17% for the year. The lone laggard was coal. But when you throw in Woodside’s AU$45 billion deal with China last week, and if you accept our proposition that global reflationary policy may find its way directly into commodity prices, well then the scene is set for an earnings blowout in the resource sector ...
