On August 5, Australian iron ore giant Rio Tinto announced its financial results for the first half of 2010, with net earnings having increased by 260 percent compared to the first half of 2009, stating that it was an outstanding half reflecting higher prices and Rio Tinto's strengths in operational excellence.
Rio Tinto posted net earnings of US$5.76 billion in the first half of 2010, up 260 percent compared to net earnings of US$1.62 billion in the same period of 2009. Comparing the same periods, the company's sales revenues climbed by 37.1 percent, from US$19.52 billion to US$26.76 billion. Rio Tinto's earnings before interest, taxes, depreciation and amortization (EBITDA) of US$11.26 billion in the first half of 2010 were 85 percent higher that US$6.09 billion in the same period of 2009. Net debt had declined to $12 billion by June 30, 2010, from $18.9 billion on December 31, 2009.
Commenting on the results, Rio Tinto chairman Jan du Plessis said, "Our business is robust with a strong balance sheet which is able to withstand volatility or further shocks from the global economy. Developing our relationship with China is a key priority for Rio Tinto and I was very pleased to sign the agreement with Chalco last week for the Simandou joint venture."
As SteelOrbis previously reported, Rio Tinto and Chinese resources giant Chinalco's subsidiary Chalco on July 29 signed a binding agreement to establish a joint venture covering the development and operation of the gigantic Simandou iron ore project in Guinea.