“We see the Chinese language economic system rising plus or minus 5 % and that is excellent for commodity markets. You additionally see the US rising. Not implausible, however completely underpinning good markets and good demand for our merchandise,” CEO Jakob Stausholm informed a media name.
The world’s largest iron ore producer reported underlying earnings of $5.8 billion for the six months ended June 30, in contrast with $5.7 billion a yr in the past and in keeping with a Seen Alpha consensus of $5.80 billion.
The miner declared an interim dividend of $1.77 per share, in keeping with final yr’s payout, and beneath consensus estimates of $1.81 apiece.
Like different miners, Rio Tinto has been targeted on increasing its copper division, given robust demand expectations for the vitality transition metallic.
Analysts at Macquarie beforehand stated they count on Rio’s copper and lithium progress to turn out to be “an rising strategic focus” for buyers.
Stausholm stated the agency’s copper equal manufacturing was on observe to develop by round 2% for this yr.
“Our ambition is to ship round 3% of compound annual progress from 2024 to 2028 from current operations and initiatives,” Stausholm stated in respect to Rio’s copper output.
Rio earlier within the month welcomed the Serbian authorities’s reinstatement of its licence to develop Europe’s greatest lithium mine, Jadar, in a possible enhance to the continent’s electrical automobile business.
If developed, the $2.4 billion Jadar lithium venture in Western Serbia may cowl 90% of Europe’s present lithium wants and assist make the corporate a number one lithium producer.
Rio Tinto’s internet debt got here in at $5.1 billion, across the increased finish of analyst estimates, whereas its free money circulate was in line at $2.8 billion.
It expects capital funding in its large Simandou iron ore mine in Guinea to speed up within the second half from $3.7 billion within the first half.
(By Rishav Chatterjee, Adwitiya Srivastava and Melanie Burton; Modifying by Sriraj Kalluvila and Sonali Paul)