Press Release Summary: London-Based Rio Tinto's impressive first half profits have Portway Fund Chiefs set to increase their position on the mining firm.
Press Release Body: Net income for the first half of this fiscal year at Rio rose to $6.91 billion, from $3.25 billion a year earlier,. Underlying earnings climbed to $5.47 billion, beating the $5.15 billion median estimate of six analysts surveyed by Bloomberg News. This news should be music to the ears of portfolio managers at Bordeaux-based Portway Capital, after well-founded rumor earlier this year that the firm were taking a long position on the stock following the news of a $142 billion hostile offer from BHP Billiton Ltd. Jean Richard - a senior analyst at Portway, said following the earnings news that "Rio's dominance of the iron ore production market will pave the way for further earnings bumps going through the second half". Richard went on to explain that a drop in demand for steel (of which iron ore is a primary component) from developing countries will be negligible in comparison to the continued strong demand from emerging economies. Furthermore, Rio Tinto are now the world's second largest producer of aluminium, following their acquisition of Canada's Alcan Inc. in a deal which cost them $38.1Billion and boosted second-quarter output of the lightweight metal almost fivefold. Amidst the backdrop of an imminent, significantly sweetened bid from BHP, Portway Capital are said to be confident that the fundamentals suggest a significant windfall opportunity for shareholders should the deal go through, or for that matter, be the subject of further market speculation.
Web Site: http://www.portwaycapital.com
Contact Details: Michael Brown news@pr-newsnow.info
2022
