Rio Tinto shares rise on half-year result
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More news: Shares in Rio Tinto gained on the ASX after the mining group maintained its interim dividend and lifted its half-year profit.
Rio shares were up 2.8% to $117.88 by 12:40pm AEST.
The market thwarted expectations of RBC Capital Markets analyst Kaan Peker, who anticipated a "minor negative reaction" after Rio's interim dividend missed analysts' forecasts.
Peker noted that Rio's key metrics were "broadly in line" with consensus expectations, while the company's increasing pivot to organic growth "continues to assist the investment case" for the stock.
Rio Tinto keeps dividends steady after half-year profit lift
The news: Mining giant Rio Tinto has maintained its interim dividend after lifting half-year profit, as higher shipments helped offset the impact of lower prices for its commodities.
The numbers: Profit after tax for the six months to June rose 14% to USD5.81 billion ($8.9 billion), while revenue for the period rose just 1% to USD26.8 billion. The company will pay an interim dividend of USD1.77 a share, unchanged from a year ago.
The context: Rio said it saw lower prices for its commodities in general, as global supply improved during the period, although copper and aluminium prices were higher. However, it benefited from a focus on cost control. It also benefited from a higher US dollar and stable sales volume. The company said expectations for full-year Pilbara iron ore shipments in 2024 remain at 323 million to 338 million tonnes. Earlier this month, Rio approved its share of the development of the Guinea-based Simandou project’s mine, port and rail infrastructure, which will cost about USD6.2 billion.
What they said: "Rio Tinto is both consistently very profitable and growing. This is being driven by the disciplined investments we are making to strengthen our operations and progress major projects for profitable organic growth,” Rio Tinto chief executive Jakob Stausholm said.
The source: ASX announcement
