RIO -3.55%: Released a solid half year result with their UK listing trading overnight and shares there closing 1.3% lower with the shares holding up ok in today’s trade given the historic selloff in copper -20% overnight. Revenue was a beat to expectations though earnings missed primarily due to weaker iron ore prices through the period.
- Revenue came in at $26.87 billion vs $25.26 billion consensus estimate
- Underlying profit of $4.81 billion vs. 5.17 billion consensus estimate
- Dividend of $1.48 vs $1.77 y/y
Promisingly, they reduced FY26 copper cost forecast from $US 1.30–1.50 a pound down to $US 1.10–1.30 and are predicting copper production to land at the high end of 780–850k tonnes for FY26.
All things considered, it was a decent result considering the 13% lower realised price on iron ore with the ramp up of aluminium and copper production offsetting price weakness however we caution that the hit to copper overnight will have a bearing on FY26 numbers, given the growth analysts are expecting out of that segment.
MM remains cautiously bullish toward RIO
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