Rio Tinto Posts Strong H2, 2004 Net Profit

Diversified global miner Rio Tinto said today profits for its second half jumped 66 percent. The company reported net profit of $1.23 billion compared with $741 million for the same period a year ago. Analysts had forecast net profit of $1.33 billion before one-off items.

 

For the full-year, net profit rose 61 percent to $2.22 billion, from $1.38 billion in 2003.

The company said strong demand for rough diamonds in 2004 enabled price rises for stones from its Argyle and Diavik operations.

Production at its wholly owned Argyle mine last year fell by a third on 2003 to 20.6 million carats. Meanwhile, output at the Diavik mine, in which it has a 60 percent stake, almost doubled last year to 4.55 million carats from 2.30 million carats in 2003.

In its gold operations, Rio Tinto said production was down 26 percent last year on 2003 to 388,000 ounces.

“While the rate of growth in the major OECD (Organization for Economic Co-operation and Development) economies now appears to be slowing, current market conditions for the majority of our products suggest that we will continue to see strong demand in 2005,” said Rio Tinto Chairman Paul Skinner.