Rio Tinto Net Plunges 71% as Mining Boom Wanes

Marcus Jacob
08 Aug, 2013
New York City

Australian stocks jumped and jobless rate held at 5.7% in July. Rio Tinto net plunged 71% in first-half on 3% decline in revenues as a decade long mining boom slows and commodities prices fall.

[R]4:45 PM Sydney – Australian stocks jumped and jobless rate held at 5.7% in July. Rio Tinto net plunged 71% in first-half on 3% decline in revenues as a decade long mining boom slows and commodities prices fall.[/R]

Australian stocks traded higher after jobless rate was near a four-year high and China reported better than expected growth in imports and exports.

Australian dollar increased to 90.76 U.S. cents and in stock trading turnover rose to 878 million shares worth $4.2 billion.

The ASX 200 index climbed 53.50 or 1.1% to close at 5,064.80 and the broader All Ordinaries increased 50.50 to 5,047.10.

Australia’s economy lost 10,200 jobs in July and jobless rate held at 5.7% in the month, Australian Bureau of Statistics.

In addition, China’s General Administration of Customs reported imports surged 10.9% and exports increased 5.1% resulting in a trade surplus of $17.8 billion in July.

Stocks in Review


Rio Tinto jumped 88 cents to $59.48 after the mining company agreed to provide bridge funding facility of $600 million to Turquoise Hill Resources to develop the Oyu Tolgoi mine in Mongolia. Rio Tinto owns nearly 50.8% stake in the Turquoise Hills.

Rio Tinto today released its results for the first-half and said revenue in the period ending in June dropped 3.2% to $24.5 billion from $25.3 billion a year earlier.

Net income for the period tumbled 71% to $1.72 billion compared to $5.88 billion and diluted earnings per share declined to 92.6 cents from 315.7 cents a year ago period.

BHP gained 41 cents to $35.31 and Woodside Petroleum Limited rose 5 cents to $38.26.

David Jones Limited added 7 cents to $2.69 and Breville Group gained 7 cents to $7.46. Woolworths increased 22 cents to $33.06.

Mirvac Group rose 1 cent to $1.65 and Lend Lease gained 14 cents to $8.98.

Westpac climbed 37 cents to $30.91 and Commonwealth jumped 1.3% to $73. National Australia Bank added 21 cents to $30.74.

Aurora Oil & Gas Limited fell 0.3% to $3.20 after the Australia based oil and gas explorer said revenue in the first-half surged 170% to $134 million. Net profit surged two-fold to $61 million.

BWP Trust closed unchanged at $2.41 after the real estate investment reported revenue in the year ending in June jumped 8% to $109 million. Net profit for the year soared 58% to $110.6 million.

Karoon Gas Australia Ltd plunged 8.4% to $5.13 after the hydrocarbon explorer has successfully raised $150 million. The underwritten placement priced at $5.10 per share.

Perpetual Limited rose 0.6% to $39.01 after the wealth manager acquired a stake in Fonterra Cooperative Group for $5.83 per unit or $7.3 million.

Telstra Corporation Limited gained 2.4% to $5.13 after the telecommunications and information provider said revenue in the year ending in June grew 1.2% to $25.7 billion. Net profit for the year climbed 12% to $3.8 billion.