Rio Tinto has problems with a smelter. Therefore, the forecast for refined copper is being reduced. In the current year, 135,000 to 175,000 tons are to be produced. So far one spoke of 165,000 to 205,000 tons. This problem can partly be compensated for with rising iron ore prices. The raw material currently costs around $ 120 per ton, which is close to the multi-year high reached in mid-2019. Rio Tinto said a 10 percent increase in iron ore price increased adjusted EBITDA by $ 1.89 billion on an annualized basis.
The analysts of Independent Research confirm their hold recommendation for the shares of Rio Tinto. The target price drops from GBp 4,900.00 to GBp 4,800.00.
In the current year, the analysts expect adjusted earnings per share of 6.28 dollars (old: 5.53 dollars). The forecast for 2021 increases from $ 4.88 to $ 5.41. The dividend should be $ 3.70 (old: $ 3.20) and $ 3.20 (old: $ 2.75). This corresponds to a return of 6.0 percent and 5.2 percent respectively.
At a glance – chart and news: Rio Tinto