The company announced net earnings per share for 2006 of Bt7.81, compared to Bt2.48 in 2005. Total revenue from sales and services amounted to Bt10.31 billion, an increase of 68 per cent or Bt4.15 billion.

"The increasing zinc price pushed the income of the company up drastically, even if the profit was partially limited by the locked-in forward-sales price and lower production," board secretary Surin Tanticharoenkiat said in a statement submitted to the Stock Exchange of Thailand.

Padaeng Industry said local demand was surprisingly sustained in the first half of last year but slowed in the third quarter, falling by 24 per cent in the fourth quarter amid political uncertainty and a zinc price that had an impact on end-users. On an annual basis, demand grew by only 2 per cent compared to 2005.

Sales of metals totalled 94,823 tonnes, some 7,000 tonnes lower than in 2005, reflecting the reduction in exports, mainly alloys. Despite the drop in the fourth quarter, domestic sales over the period actually increased by 4 per cent compared to the previous year.

The company's income was also limited by a further reduction of import duty for zinc from 5.5 per cent to 3.25 per cent, which, due to the soaring zinc price, went almost unnoticed by the market.

Production of ingots was 96,469 tonnes, a 5-per-cent decrease year on year due to the combined low availability of concentrates on the market and the lower grade produced at the Mae Sot mine, the company said.