RIO’s profits are being smoked

Wednesday 1 April 2015

As iron ore plunges so too does RIO’s outlook whether markets are pricing it or not. On a spot price scenario, RIO’s iron ore margin is now down to mid teens:

Pre-tax profits are 35% below consensus for this year and below half in later years:

And the idiocy spread is as wide as ever:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.