Rio Tinto is likely to post a net profit for its first half in the region of $8 billion. The profits have been bolstered by the hike in prices of iron ore, aluminium, and copper.
As per analysts the mining giant is likely to see a 39.1% jump in first half profits compared to the same time period last year. The first half underlying profits last year were $5.77 billion.
Economic analysts have estimated that the strong commodity process will give the company a hike up to $114 per share from its last closing price of $80.05 after the announcement is made. In the last financial year the company has reported a net profit of $14.9 billion.
The multinational is the second largest producer of iron ore in the world. Thanks to the steady demand for iron ore from China to feed its steel mills and the consistently rising prices the company is confident that its expansion plans in the Pilbara region will pay rich dividends. They have begun a $676 million worth expansion program in the Western Australia region.
Fat Prophets analyst David Lennox said that the spotty production results so far this year will be reflected in the announcement, but may be overshadowed if the company bumps up its share buyback program as anticipated.