Analysts Predict $8 Billion Profit for Rio Tinto

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.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Rio Tinto plc. (2019, March 19). Analysts Predict $8 Billion Profit for Rio Tinto. AZoMining. Retrieved on November 11, 2019 from https://www.azomining.com/News.aspx?newsID=4641.

  • MLA

    Rio Tinto plc. "Analysts Predict $8 Billion Profit for Rio Tinto". AZoMining. 11 November 2019. <https://www.azomining.com/News.aspx?newsID=4641>.

  • Chicago

    Rio Tinto plc. "Analysts Predict $8 Billion Profit for Rio Tinto". AZoMining. https://www.azomining.com/News.aspx?newsID=4641. (accessed November 11, 2019).

  • Harvard

    Rio Tinto plc. 2019. Analysts Predict $8 Billion Profit for Rio Tinto. AZoMining, viewed 11 November 2019, https://www.azomining.com/News.aspx?newsID=4641.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Submit