RIO

Iron ore helps Rio Tinto first-half profit beat estimates

Credit: REUTERS/PATRICK T. FALLON

Anglo-Australian miner Rio Tinto reported better-than-expected first-half profit on Wednesday, boosted by firm prices for iron ore and higher output as Chinese demand for the steel-making ingredient recovered from a coronavirus hit.

Adds details on results, forecast, background

July 29 (Reuters) - Anglo-Australian miner Rio Tinto RIO.AX reported better-than-expected first-half profit on Wednesday, boosted by firm prices for iron ore and higher output as Chinese demand for the steel-making ingredient recovered from a coronavirus hit.

Iron ore prices have remained resilient this year on the back of China's infrastructure development push and concerns over a supply shortfall from Brazil, helping miners like Rio weather through disruptions in mining other commodities.

Underlying earnings from iron ore, which typically accounts for about 80% of Rio's earnings, gained 1% to $4.56 billion in the half-year, and shipments rose 3%.

Total underlying earnings for the six months ended June 30 fell to $4.75 billion from $4.93 billion a year earlier, but handily beat a consensus of $4.36 billion from 16 analysts compiled by Vuma.

Rio said it took a $1 billion impairment charge for the period, largely related to four of its aluminium smelters and its Diavik diamond mine in Canada.

The world's largest iron ore miner declared an interim dividend of $1.55 per share, up from $1.51 last year, and stuck to its 2020 production forecast for all its commodities.

(Reporting by Shashwat Awasthi and Shriya Ramakrishnan in Bengaluru; Editing by Bernard Orr)

((Shriya.Ramakrishnan@thomsonreuters.com; +91 8061822842 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

RIO

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More