LONDON (ShareCast) - (Sharecast News) - Mining giant Rio Tinto shares edged lower on Wednesday after posting its lowest H1 earnings since 2020 miner as weaker iron ore prices and higher costs weighed on the group.
Rio Tinto posted a 22% drop in H1 net earnings to $4.5bn, despite a 6% rise in copper-equivalent production and strong performances in its aluminium and copper units. Underlying earnings slipped 5% to $11.5bn, while free cash flow dropped 31% to $2.0bn.

The FTSE 100-listed firm said iron ore remained the biggest drag, with EBITDA down 24% as prices fell 13% and shipments were disrupted by cyclones in the Pilbara. Aluminium and copper, on the other hand, saw EBITDA grow 50% and 69%, respectively, buoyed by higher volumes and prices.

Rio Tinto declared an interim dividend of 148 cents per share, down 16% year-on-year, but maintaining its 50% payout ratio.

Looking ahead, Rio said it was on track to meet FY production guidance, though iron ore volumes were expected to be at the lower end of the range. It also flagged a higher effective tax rate of 34.5% for 2025, up from 30%, due to profit mix and deferred tax adjustments.

Chief executive Jakob Stausholm said: "We are delivering very resilient financial results with an improving operational performance helped by our increasingly diversified portfolio.

"We are well positioned to generate value from our best-in-class project execution, together with growing demand for our products, now and over the coming decades. We remain on track to deliver strong mid-term production growth, with solid foundations in place and a diverse pipeline of options for the future."

As of 0915 BST, Rio Tinto shares were down 1.52% at 4,578.00p.





Reporting by Iain Gilbert at Sharecast.com

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