RTZ Corp is world leader in mining

Shearson said that among the factors adding to future earnings growth will be the large exploration portfolio of BP Minerals and RTZ.

The announcement earlier this year that RTZ had agreed in principle to acquire BP Minerals for $4.3 billion was the ultimate expression of RTZ’s commitment to mining.

The broker said a 53% rise in profit achieved last year can truly be described as “momentous.” Most of the growth came through the mining business and was the result of higher metal prices.

RTZ’s operations range all over the western world, but are focused mostly in the U.K., the U.S.A., Canada, Australia and Papua New Guinea. The BP acquisition considerably increases RTZ’s asset base in North America, taking it to more than 50%, Shearson said.

The world’s largest undeveloped copper resource is also owned 30% by RTZ. Lying in northern Chile, Escondida contains 1.8 billion tonnes of ore grading 1.5% copper. However, initial mine plans are only designed to exploit 662 million tonnes of ore grading 2.1% copper.

On the precious metals front, the BP deal will catapult RTZ into the big league of gold producers, which nowadays means having gold production around one million oz per year. The new merged company will have cash production costs of $230 per oz, according to Shearson.

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