Updated Aug 6 at 3:26pm ET.
Follow Rio Tinto to never miss an important update.
Berenberg Bank set a price target of $113 for the stock. This is higher than the average analyst target of $106. It suggests the firm sees room for the stock to rise from its current price of about $100.
Source: Berenberg Bank
The company reported a 47 percent rise in first-half profit, fueled by higher prices for the materials it digs up and strong production levels. It earned $4.10 per share, which was slightly better than what analysts expected. Revenue came in at about $31 billion.
Cash flow from operations rose 75 percent, allowing the company to raise its interim dividend. This performance shows the business is successfully managing its costs while benefiting from its shift toward metals like copper and aluminum, which now make up half of its underlying earnings.
The company signed an agreement to explore selling its 50 percent stake in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo. This is a small move to hand over local infrastructure to a specialized operator. It fits the broader pattern of the company focusing its capital on its core mining operations rather than utility assets.
Source: Business Wire
The company managed to cut its copper unit costs nearly in half for 2026. At the same time, its iron ore unit in Australia saw its strongest first-half production in eight years.
Lowering the cost to produce each ton of metal is vital because it protects profits even if market prices for copper or iron ore fall. This efficiency, combined with higher shipment volumes, suggests the company is running its existing mines more effectively while it builds out new projects.
Source: Proactive Investors
UBS analysts noted that while the company is on track to grow copper output to 1 million tonnes by 2030, it may need to find new projects to maintain that growth afterward. They pointed to the Los Azules project in Argentina as a possible candidate. This highlights the long-term challenge for miners: they must constantly find and build new mines just to replace the ones that eventually run dry.
Analysts are split on the stock following strong second-quarter earnings and a dividend increase. Currently, 12 of 31 analysts rate it a buy, and the average target of $106 suggests a modest 6% gain from today's price.
The company has a habit of clearing the bars set by analysts, including two straight beats where profits came in higher than expected.
| Expectation | |
|---|---|
| EPS | $3.88 |
| Revenue | $32.91B |
