Rather large and well known mining Company (but no thread on here)...I do wonder about this site sometimes.

However a rather good divi In the offing this week I see at 85p. thinking of having ago

anyone else thinking along the same lines?

Ed:Just to add that this thread Is for the purpose of discussing Rio only, thanks all.

Much smaller and less well known mining company,KMR. could one day become a victim to RIO.ie. takeover.Do yourself a favour and check it out.I did 12 months ago. SP.up 100% since,with much more to come.Plenty of info.on a few BB'S.

It is unusual that the large mining stocks are hardly discussed here. Probably not the type of share to interest the average punter on this site. If it changed it's name to Stanelco Mining then there would be 50 postings a day !!

;o)

VED for me although i do have 800 rio.

VED is a sitting duck and should rise sharply next few weeks as it qualifies for the ftse100 at the next quarterly review.

OUTLOOK - Rio Tinto to set scene for a strong resources reporting season
AFX


SYDNEY (XFN-ASIA) - Rio Tinto will set the scene for a bumper reporting season in the resources sector, with first-half earnings due on Thursday, analysts said.

The dual-listed Anglo-Australian global miner is expected to reveal a 60 pct increase in net profit for the six months ended June, fuelled by high commodity prices, including for iron ore, copper and coal.

The consensus puts Rio Tinto at a record 3.5 bln first-half net profit, with forecasts ranging from 3.2 bln to 3.6 bln.

Copper prices reached as high as 8,800 usd a metric ton in the first half, double the price at the start of year, while the benchmark price for iron ore rose 19 pct from April .

That is expected to tip off a strong showing overall from resources companies listed on the Australian Stock Exchange; expectations are for aggregate earnings per share growth of 58 pct for the year to June, compared to less than 10 pct for industrial companies.

Analysts expect companies in the benchmark S&P/ASX 200 index to report EPS growth on average of 20 pct, compared with nearly 24 pct in fiscal 2005 and about 13 pct in fiscal 2004.

Shane Oliver, head of investment strategy with AMP Capital Investors, said key themes are likely to be ongoing efficiency gains to deal with cost pressures and continuing strength in companies

exposed to non-residential construction and infrastructure spending.

Mixed results are likely for companies exposed to discretionary consumer spending, said Oliver.

Nevertheless, shareholders are likely to be rewarded with capital management initiatives including buybacks and dividends.

Oliver said positive news on profits and attractive valuations should underpin share markets, and the outlook remains positive.

'We remain of the view that while profit growth may slow, it won't collapse,' he says.

Insulating profit margins from higher costs will be all important in protecting profits and share prices over the reporting season, according to many analysts.

Investment bank UBS, which is forecasting aggregate fiscal 2006 EPS growth at around 17 pct and 50 pct in the resources sector, said rising input costs will be a key theme.

Resource companies have been strong and financial services solid, but some industrial companies have come under pressure because of higher costs, it said in a research note.

These include paper and packaging companies, as well as chemical companies, airlines, steel makers and food and beverage companies.

Stocks exposed to soft spots in the economy, such as selected retail and media stocks, may report weaker earnings growth, UBS said.

The investment bank said Rio Tinto and BHP Billiton, which reports its full-year result on Aug 23, could surprise on the upside because of strong commodities.

BHP Billiton is likely to report a near 60 pct rise in net profits in the June year, to a record 10.5 bln usd, according to market consensus forecasts.

UBS said Rio Tinto is unlikely to announce any new capital management initiatives as it already has a 2.5 bln usd capital return program in place over the two years to December 2007.

BHP Billiton announced a 2.0 usd bln aud buy-back program in February, which it completed 15 months ahead of schedule in May.

UBS noted that BHP Billiton's cash flow generation has been high, which means the world's largest diversified resources group is likely to announce a minimum capital return program of 2.0 bln usd when it reports along with an increased final dividend of 0.195 usd a share, up from last year's 0.145 usd per share final payment.

Credit Suisse expects Rio Tinto to report a half-year result at the top of the 3.2-3.6 bln usd range and announce an increased interim dividend of 0.40 usd, up from last year's 0.385 usd per share interim payout.

It said Rio Tinto has the capacity to supplement the dividend payment with additional capital management, including topping up its buyback program or announcing a special dividend.
bruce.hextall@xfn.com


...As I said above this Is a thread for discussing RIO, there are plenty of other individual threads on other Companies on MAM. So please use them. Thank You.