Mining giant Rio Tinto has reported its weakest first-half profit since 2020. In the first six months of 2025, the company's underlying profit decreased by 16% YoY to $4.81 billion, according to Reuters.
This is slightly less than analysts expected (Visible Alpha's forecast was $5.05 billion). The main reason was a 15% drop in iron ore prices.
Amid weaker financial results, Rio Tinto announced its lowest interim dividend since 2018, at $1.48 per share, compared with $1.77 a year earlier. At the same time, the company remained optimistic about the future. CEO Jacob Stausholm, who is leaving the post in August, said Rio Tinto is in good shape and has growth prospects in copper and lithium.
Among the challenges is rising costs in the Pilbara region of Western Australia. The cost of iron ore production there increased to $24.3 per ton from $23.2 last year. This is due to a decrease in supply volumes and the effects of the cyclone. The company maintains its annual cost forecast in the range of $23-24. 5 per ton.
Iron ore prices have fallen due to a decline in Chinese steel production and rising global supply. At the same time, Rio Tinto hopes for a gradual market recovery – Morgan Stanley predicts a price recovery to $100 per ton by the end of the year. Demand for copper and lithium is also growing, in particular due to the development of data centers and battery systems.
