The Rio Tinto share price declined by more than 1% ahead of the company’s half-year results. The stock declined 6,026p, which is below last week’s high of 6,188p. Other mining stocks like BHP and Glencore also declined.
Rio Tinto news: Rio Tinto is the second-biggest mining company in the world after BHP. The company is well-known for its products like iron ore, aluminium, copper, diamonds, borates, and titanium dioxide. The firm will publish its half-year results on Wednesday.
Analysts expect that the firm’s earnings rose to more than $12.01 billion in the past 6 months. That compared to more than $4.75 billion in the same period last year. They also expect the company to report a dividend of about $4.93 per share. This strong growth will be because of the recent surge in commodity prices.
The Rio Tinto share price is falling after the company cut its aluminium at its Kitimat smelter to 35% of normal as it struggles with a labour dispute. The firm also struggled to hit its full-year guidance for its iron ore business after heavy rain and labour shortages. In a note, an analyst at Jefferies said:
“We believe something below the bottom end of the range is more likely as a very strong second half [of the year] would be needed to hit the targeted range after first-half shipments were just 154m tonnes,”
Rio Tinto share price forecast
The Rio Tinto stock price has been in a tight range recently. A quick look shows that it has formed a head and shoulders pattern, with the head zone being at 6,782p. The stock is also at the same level as the 25-day and 50-day moving averages while its volatility has dropped.
Therefore, the stock will likely punch lower on Wednesday when it publishes its results. If this happens, the next key level to watch will be 5,276p, which is along the lowest level on May 25. On the flip side, a move above 6,400p will invalidate this price action.