Rio Tinto, the world's second-biggest miner by market value, is set to announce its first-half earnings after the Australian market closes on Wednesday.
Underlying Profit Forecast
According to 11 analyst forecasts compiled by Visible Alpha, Rio Tinto is expected to report underlying earnings of approximately $5.85 billion for the six months ended June 30. This is weaker compared to the $8.63 billion underlying profit recorded a year ago, when prices for its key commodities, such as iron ore and aluminum, were higher.
Visible Alpha estimates anticipate half-year sales revenue of about $27.20 billion. In the first half of 2022, Rio Tinto reported sales revenue of $29.78 billion.
What to Watch
The Visible Alpha estimates suggest a first-half dividend of around $1.85 per share. In the previous fiscal year, Rio Tinto paid out $2.67 per share at the end of its first half, typically distributing approximately 50% of underlying earnings.
Investors will be eager for updates on Rio Tinto's various projects, such as the Rincon lithium development in Argentina. The review of the $140 million starter-plant project is currently underway due to rising costs. Additionally, Rio Tinto is expanding its copper operations in Mongolia and the U.S., and negotiations are ongoing for the development of rail and port infrastructure for the Simandou iron-ore project in Guinea.