Shares of Rio Tinto PLC (LON: RIO) gained 1.5% today after the mining giant reported better-than-expected first-half profit.
Anglo-Australian miner said its underlying earnings for the first half of the year ending June 30 came in at $4.75 billion. This is lower than $4.93 billion from a year earlier, but easily beating the market's consensus of $4.36 billion.
Earnings from iron ore sales, which account for around 80% of total earnings, rose 1% to $4.56 billion. Strong demand from China for iron ore, a steel-making ingredient, helped the mining giant to weather the pandemic-fueled crisis.
As a result of strong earnings, Rio Tinto was able to declare an interim dividend of $1.55 per share, slightly higher than $1.51 per share paid last year.
“Our world-class portfolio of high-quality assets and our strong balance sheet consistently serve us well in all market conditions and particularly in turbulent times. This, together with our disciplined capital allocation, underpins our ability to sustain production, increase our investment in the business, pay taxes and royalties to governments and continue delivering superior returns to shareholders,” wrote Rio Tinto Chief Executive J-S Jacques in a statement.
Rio Tinto share price gained around 1.5% on the latest results. Last week, Rio Tinto stock price hit a 1-year high near 5000p.