Latest stock market news videos & Morning Bell

Rio Tinto (ASX:RIO) is Australia’s third biggest miner and reported a resilient half-year report card with earnings results beating expectations, despite mostly weaker commodities from COVID-19 dampening metal demand.

After the market close yesterday, RIO announced its half-year profit fell to US$3.3 billion, a 20% drop compared to the same time last year. 

Underlying earning (EBITDA) fell 6% to US$9.6 billion. The result was also impacted by $1 billion in one-off charges and impairments ranging from falls in aluminium and copper prices, a fall in the U.S. dollar, a fire in the Pilbara and COVID-19 costs like roster changes, temporary relocation and hygiene.

Although earnings fell, the result was better than UBS’ expectations of US$4.5 billion and US$400 million above market expectations.

What was interesting was revenue fell 7% but the total revenue from China grew from 50% to 55%.

RIO declared a half year dividend of US$1.55 per share to be paid in September, equating to a payout of $2.5 billion.

RIO’s shares have gained 45% from their COVID-19 low and have gained over 96% over the last 5 years.