Rio Tinto misses profit view on iron ore challenges
Rio Tinto “reported flat annual earnings that met expectations as weak iron ore prices weighed on its core business, while strong copper prices and higher production helped limit the impact.”
The world’s largest iron ore producer, which recently pulled out of merger talks with Glencore, posted underlying earnings of US$10.87 billion ($15.43 billion) for the year ending December 31, 2025; this was unchanged from the previous year and below the Visible Alpha consensus of $11.03 billion.
The miner also declared a final dividend of 254 cents per share; This implies a payout rate of up to 60 percent of base earnings from 225 cents in 2024.
The results reveal miners’ interest in copper as demand increases due to the growth of power-hungry AI data centers and the transition to cleaner energy.
Annual unit costs for Pilbara iron ore were approximately US$0.5 per tonne higher than in 2024 due to inflationary pressures and weather-related disruptions.
Pilbara unit costs are forecast to rise to between $23.5 and $25.0 per wet metric tonne in 2026.
Rio’s copper business delivered stronger results, with average realized prices rising 17 percent in 2025 and production rising 11 percent, supported by an increase at the Oyu Tolgoi mine in Mongolia.
The metal has surpassed iron ore in rival BHP’s earnings for the first time, the world’s largest miner said this week.
This strategic pivot has sparked a wave of deal-making across the industry as companies race to secure long-lasting copper supplies.
Rio’s talks with Glencore collapsed in February after the companies failed to agree on valuation and ownership terms, ending discussions that would create the world’s largest mining company and significantly increase its copper exposure.
Rio Tinto’s ASX shares closed 2.0 per cent higher at $168.55 on Thursday before the results were announced.
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