Rio Tinto and BHP awaits a sharp reduction in profit - Australian press

Today it became obvious that the mining boom was over. Rio Tinto and BHP Billiton showed a tendency to reduce profitability and unprecedented zeal to reduce costs. The weakening of the prices for raw materials forced industry monsters to tighten financial discipline and cut off payments. About this writes The Australian.

The market believes that there is a real possibility that a strong increase in the offer will ultimately undermine the prices of raw materials. And Rio Tinto is most vulnerable to such a development of events. The company is preparing to publish a half -year report on Thursday, in which, according to analysts, it will reflect a reduction in the main income by 18.6 percent - up to 4 billion 320 million dollars compared with 5 billion 200 million in the APPG -2012. For example, JPMorgan expects the main income in Rio at a level of not higher than 4 billion 300 million US dollars.

The key information for investors, according to JPMorgan, should be a message about the terms for expanding the capabilities of Pilbar to the previously stated 360 million tons per year of iron ore.

BHP Billiton will be reported for the first half of 2013, August 20. It is expected that the profit will be reduced by 26 percent from 17.1 billion to 12.5 billion US dollars.