Rio Tinto Share Price Edges Higher as Earnings Top Estimates

Rio Tinto raises dividend sees 'V-shaped' China recovery

The No. 2 miner's underlying earnings in the six months to June 30 fell to $4.75 billion, beating estimates.

Jacques, who earlier this month reconfirmed production guidance for the rest of the year across all commodities, said the giant Simandou iron ore deposit in Guinea "progressing" and later insistent to reporters that it will be built "under all scenarios". Tiwai Point smelter on New Zealand's South Island will be shuttered by next August 2021, the firm said earlier this month.The aluminum industry "continues to face challenging conditions in global markets and policy uncertainty, exacerbated by the impact of Covid-19", and Rio is working to ensure the sustainability of smelters in Australia and Iceland, the company said.Rio's board has approved funding for a feasibility study for Jadar lithium project in Serbia, the company said.

The global economy suffered a severe contraction in the three months through June, as the US grappled with rising coronavirus cases and other countries faced second waves of infections that are proving harder to contain than initial outbreaks. Rio is the world's largest iron ore miner.

Rio Tinto said on Wednesday it saw a sharp V-shaped recovery in China as stimulus spurred industrial activity, helping its first-half profit handily beat market expectations.

Rio said in its earnings statement that it had taken a $1 billion impairment charge, largely related to four of its aluminium smelters as well as its Diavik diamond mine in Canada.

Rio Tinto performed fairly upbeat in the stock market previous year with an annual gain of roughly 25%.

Share Centre's Healey said: "Taking a longer-term view, we remain positive on the outlook for steel despite the shorter term uncertainty".

Rio Tinto Limited will pay Australian shareholders $A2.1647 per share, down from $2.1908 a year ago.

"We will look at all options because it is an infrastructure project and scale is important", Jacques said.

He said the strong level of EBITDA, with a margin of 47%, "driven by our strong and stable operations, with all of our assets continuing to operate throughout the half" had resulted in the decision to declare the dividend.

"But for a special dividend, it's better to wait a moment to make such considerations".

For the full year, Rio forecasts 324 million to 334 million tons of iron-ore shipments.

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