CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Rio Tinto share price: what to expect from its half-year results

Unpredictable weather and a weakened iron ore outlook have all put downward pressure on Rio Tinto’s share price in recent times.

When is Rio Tinto’s results date?

Rio Tinto Ltd (ASX: RIO) will release its half-year 2019 results on August 1, after the market close.

What to expect from Rio Tinto's half-year results

With expectations for the mining giant’s half-year results already lowered, it will be interesting to see how investors respond to the official HY2019 release later this week.

As we've reported previously, not only has the company faced challenging conditions across the first-half of 2019, but a weakened outlook for iron ore has dragged the share price of the mining giant down in recent weeks.

In the last month, Rio Tinto's share price has slid a little more than 6%.

Even with this recent volatility, the company’s CEO, Jean-Sébastien Jacques remains upbeat about the mining giant’s long-term prospects, noting that:

‘Whilst we experienced operational and weather issues at our iron ore operations in Australia, pricing and market demand has remained robust.’

Unpredictable events drive the outlook down

Bad weather conditions have played havoc with Rio Tinto’s production targets in the last six months.

Pilbara iron ore shipments came in at 85.4 million tonnes in the second quarter, which was 3% lower than the quarter from the year prior.

Costs have also risen, as ‘unit cost guidance has been revised to $14 - $15 per tonne (previously $13 - $14 per tonne).’

These lower iron ore figures also hurt Rio Tinto’s copper output in the second quarter, which was also down 2%.

The future isn’t all negative

Even though the company's production misses are likely to have been disappointing for investors, Rio Tinto looks to be in a strong financial position for the long-term.

Namely, the company’s focus on performance and productivity, coupled ‘with our value over volume strategy and the disciplined allocation of capital, will continue to deliver superior returns to our shareholders in the short, medium and long term,’ said Rio Tinto’s CEO.

In-line with Rio Tinto’s previous half-year results, investors will likely be keen to see further details of the company’s 2019 interim dividend.

The company has previously noted that over the long-term it is committed to returning between 40% to 60% of underlying earnings to investors.

Rio Tinto Ltd currently has a dividend yield of 4.02%.

Closing remarks

Heading into the HY2019 results release, analysts remain mixed on the company’s outlook.

According to the Wall Street Journal, only five out of the 25 analysts covering the stock rate it as a buy. The current consensus estimate is a hold.

Moreover, just in May, Morgan Stanley analysts, speaking of the iron ore cycle, raised concerns that we are starting to close in on ‘peak levels’. With such concerns beginning to materialise, the mixed consensus for iron ore miners like Rio Tinto may potentially prove justified in the medium-term.

Even with the difficulties outlined above, Rio Tinto Ltd's share price is still up 28% year-to-date.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.