Latest news with #Rio Tinto
Reuters
a day ago
- Business
- Reuters
Australia PM Albanese to discuss trade, security in meeting with China's Xi
BEIJING, July 15 (Reuters) - Australian Prime Minister Anthony Albanese is expected to meet with Chinese President Xi Jinping and Premier Li Qiang in Beijing on Tuesday, where he said resources trade, energy transition and security tensions are key topics for discussion. Albanese is due to meet Xi ahead of an annual leaders dialogue with Li, and later attend a business roundtable at the Great Hall of the People. Albanese said on Monday he looked forward to a "constructive dialogue" with the Chinese leaders. Australia, which regards the United States its major security ally, has pursued a China policy of "cooperate where we can, disagree where we must" under Albanese. Australia has expressed concern at China's military build-up and the jailing of an Australian writer, while Beijing has criticised Canberra's increased screening of foreign investment in critical minerals and Albanese's pledge to return a Chinese-leased port to Australian ownership. Chinese state media outlet Xinhua said the relationship between the two countries, which have complementary economies, was steadily improving. Australia's exports to China, its largest trading partner, span agriculture and energy but are dominated by iron ore, and Albanese has traveled with executives from mining giants Rio Tinto ( opens new tab, BHP ( opens new tab, and Fortescue ( opens new tab, who met with Chinese steel industry officials on Monday, as part of a six-day visit. Bran Black, CEO of the Business Council of Australia, said Australia's Bluescope Steel ( opens new tab will also be at Tuesday's business roundtable, along with China's electric vehicle giant BYD ( opens new tab, Chinese banking executives, Baosteel and COFCO. "First and foremost we use fixtures such as this to send a signal that business-to-business engagement should be welcomed and encouraged," Black told Reuters on Tuesday.
Yahoo
4 days ago
- Business
- Yahoo
Rio Tinto shares: here's the latest dividend and share price forecast
Rio Tinto (LSE:RIO) shares have fallen by a high single-digit percentage since the start of 2025. At £43.97 per share, they're down 8% on fears over trade tariffs and their potential impact on commodities demand. They're now down 15% over the last 12 months. I've clung onto my own shares in the FTSE 100 company, however, in anticipation of a recovery during the new commodities supercycle. I'm confident this will lead to some healthy share price gains and dividend income. But when could this price recovery come about? Here's what City analysts think. On the whole, forecasts for Rio Tinto are pretty encouraging. Currently, 19 brokers have ratings on the Footsie share, providing a good depth of opinion. And they think it will rise by almost a fifth in value between now and next summer. As is typical, however, there is a range of both bullish and bearish views across this group. To be honest, though, I wouldn't put a large bet on any of these analysts' estimates. That's no reflection of the quality of the forecasts. Rather, it indicates of high level of uncertainty in the global economy and by extension the mining industry, which is a highly cyclical sector. Punishing trade tariffs introduced by the US and its trading partners could significantly impact metals demand and prices. But volatile White House trade policy makes it tough to predict near-term movements. This illustrates how even strong operational performance doesn't always lead to profits growth. Last year, production from all Rio's assets rose 1% on a copper equivalent basis. But lower iron prices meant revenues and underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) still fell 1% and 2%, respectively. Like Rio Tinto's share price, dividends over the near term are also tough to predict in the current climate. That said, City analysts believe that they'll continue falling through to the end of next year along with profits. Earnings per share are tipped to fall 6% and 1% in 2025 and 2026. For 2025, they predict a full-year payout of 362 US cents per share, down from 402 cents last year. Another drop to 352 cents is predicted for 2026. But on the plus side, dividend yields for 2025 and 2026 still make mincemeat of the Footsie average of around 3.5% — these are 6% and 5.9%. As I've shown, investing in mining stocks can be a bumpy ride. Earnings are highly sensitive to factors outside of the firms' control. The process of metals excavation itself is also difficult and fraught with risk. Yet, I believe holding Rio Tinto shares is worth serious consideration from long-term investors. I continue to hold mine, as I expect industrial metals prices to appreciate significantly over the next decade. The company produces a variety of metals (including iron ore, copper, cobalt, and aluminium) for which demand is tipped to explode. This is thanks to multiple megatrends like the booming digital economy, rejuvenated defence spending, emerging market urbanisation, and the growing green economy. Rio's diversified approach gives it a chance to seize each of these opportunities, while simultaneously reducing reliance on one or two commodities to drive growth. Over the long term, I'm confident the company could prove a lucrative investment. The post Rio Tinto shares: here's the latest dividend and share price forecast appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Rio Tinto Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
