North announced a bumper profit of $424.5 million dollars for the year to June 30, but with Rio gradually soaking up more of the stock as part of its $3.5 billion takeover deal, the focus was on how North will integrate into its fold.
“The current aim of North management is to ensure that this transition occurs smoothly and professionally,” managing director, Malcom Broomhead, said.
“It is certainly sad to see a great Australian mining house such as North losing its independence but the dedication to ensuring that North always operates to the highest possible standards is a tradition that will be maintained through to the end.”
Rio now holds 54.25% of the target stock, allowing it to automatically extend its offer to August 25.
North’s profit for the year was helped by $260.6 million worth of abnormals from tax gains and asset sales, including the Warman pumps manufacturing business and a half share in the Kanowna Belle gold mine in Western Australia.
Earnings before tax from its 53% interest in Robe River Iron Ore Associates – the main object of Rio’s desire – rose to $178.6 million from $166.7 million a year ago, and profit from its 56% stake in Iron Ore Co of Canada jumped to $112.3 million from $44.5 million.
