BHP Billiton’s half yearly results announced on Tuesday underscored the boom and bust cycle of mining profits and commodity prices.

The world’s largest miner reported a $US3.24 billion underlying profit for the six months to December 31 compared with $US412 million a year earlier (a figure that reflected the cost of the Sanmarco mine dam disaster).

Today’s result beat expectations for a $US3.1 billion profit. BHP announced a dividend of 40 US cents, compared with 16 US cents a year earlier.

BHP’s profit surge mirrors rival Rio Tinto, which posted its first profit increase since 2013.

Miners are rebounding from a commodities downturn that forced asset sales, cost curbs and a cut in investment to check supply amid a glut. Iron ore surged more than 80% last year thanks to Chinese stimulus that boosted steel output, leading to better demand. Still there are worries over whether the turnaround in commodity prices will be sustainable amid increasing supply and potential for a slowdown in Chinese demand.

This table from BHP summarises the earnings statement

More to follow ….

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.