Shares in miner Rio Tinto have risen sharply, in response to the better than expected annual earnings figures the miner released late yesterday.
One of the world's largest producers of copper, coal and iron ore, Rio Tinto yesterday evening announced an underlying profit of $US6.3 billion ($7.1 billion).
The figure beat expectations it would be $US6 billion, and in London trade overnight Rio shares were up 2.4 per cent.
Rio Tinto shares jumped $2.22, or 3.2 per cent, to close at $71.94.
The company yesterday offered an upbeat commentary on its forecasts for 2010, saying it was experiencing a broad uplift in demand for its commodities.
It said the factors that drove last year's recovery in commodity prices were expected to continue during 2010.
CommSec market analyst Juliette Saly said Rio Tinto’s share jump added to Thursday’s 2.6 per cent rise prior to its earnings announcement.
‘‘It was a really strong result, particularly with iron ore prices, and that looks good heading into the contract negotiation season,’’ Ms Saly said.
‘‘I think Rio has also been under quite a bit of pressure in the last couple of months or so, so the fact this result looks solid has given investors the confidence they needed in the big mining stocks,’’ she said. ‘‘We have been saying for two years now that there is strength in the miners and China is where we should be looking for growth rather than the US."
AAP
