Thursday preview: Rio Tinto, Ladbrokes

12th Oct 2011 16:11

Mining titan Rio Tinto is set to reveal its third quarter production numbers on Thursday, where the focus will be on the group's two big money earners: iron ore and copper.Credit Suisse is forecasting Rio's share of iron ore production at its mines all over the world will be 49.6m tonnes, while third quarter mined copper should be in the region of 134,000 tonnes. "We expect Rio has continued to ship at rates exceeding current capacity from the Pilbara iron ore operations (225Mtpa [tonnes per annum]/ 56.3Mt/qtr [tonnes per quarter] at 100% [ownership]) while Rio's production share from Grasberg (copper and gold) is expected to be minimal due to strike action," the broker said."Based on the indexed production profile provided at the recent investor seminar we see upside risk to guidance for iron ore, thermal coal and coking coal; and 5% downside risk for alumina," Credit Suisse added.Betting shops group Ladbrokes gives every indication of having money that is burning a hole in its pocket, something it has in common with much of its regular clientele. Having pulled out of talks to buy online poker firm 888 earlier this year the company announced on Monday of this week that talks to buy web-based sports betting specialist Sportingbet have been abandoned."The potential benefits and risks associated with a combination with Sportingbet were clear to us from the outset and have been well covered by the market. Having completed our analysis we have been unable to agree a structure which delivers increased shareholder value within an acceptable regulatory environment. We have therefore agreed to end our discussions," Ladbrokes said.Thursday's third quarter interim management statement may reveal why the company is keen to expand through acquisition, with numbers likely to pale in comparison with last year, when there was the FIFA World Cup around to interest punters. Panmure Gordon thinks the bookie will indicate a decline in profits of around 5% from last year's level to £48.5m."In our view Ladbrokes continues to underperform its key competitor [William Hill] in Retail, Online and Telephone and ... we believe there is further downside despite trading close to all-time lows," Panmure Gordon said. The broker is a seller of the stock. INTERIMSBooker GroupINTERIM DIVIDEND PAYMENT DATEBerendsen, Hikma Pharmaceuticals, Macfarlane Group, Molins, UBM, ZotefoamsINTERNATIONAL ECONOMIC ANNOUNCEMENTSTertiary Industry Index (JPN)Crude Oil Inventories (US) (00:00)Consumer Price Index (GER) (07:00)ECB Report (EU) (09:00)Continuing Claims (US) (13:30)Initial Jobless Claims (US) (13:30)Balance of Trade (US) (13:30)Bloomberg Consumer Confidence (US) (14:45)Treasury Budget Statement (US) (19:00)Q3JP Morgan Chase & CoGMSHighams Systems Services GroupFINALSAir Partner, Clinton Cards, DotDigital Group, WH SmithIMSSAshmore Group, Eaga, Hargreaves Lansdown, Ladbrokes, RenishawEGMSTelekomunikacja Polska GDR (Reg S), Zhejiang Expressway Co 'H' SharesAGMSArgos Resources Ltd. (DI), Eaga, Mattioli Woods, RenishawTRADING ANNOUNCEMENTSGrainger, Rio TintoUK ECONOMIC ANNOUNCEMENTSUK Trade (09:30)FINAL DIVIDEND PAYMENT DATEBest of the Best--jh