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Rio Tinto Group (RIO)

NYSE - Nasdaq Real Time Price. Currency in USD
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74.70-1.46 (-1.92%)
As of 01:55PM EST. Market open.
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  • J
    Jazenevc
    Take it easy, folks. The lithium project, while being big and important for Serbia, is less important for Rio. This company produces iron ore plus variety of auxiliary products. Lithium could become one of these auxiliaries or could not. It is more important that China intends to continue making steel, by buying the iron ore, and recent rate cut over there indicates that Chinese government prioritizes economic growth over anything else.
    Talking about the market situation, it goes full way to stagflation scenario. Please note, before jumping out of windows, that market performed very well in 1979-80, when stagflation ruled US last time. Certainly, some sectors are suited better for this environment and industrial miners are the best fit.
  • G
    G
    So Jadar is dead, Resolution also dead, Kennecott-long term wall stability , Escondida-ageing with fast high cost inflation, Kitimat Canadian power in trouble, Australia-social license for major projects dead.....OT???? only major project....Rio will have to buy TRQ
  • p
    paola
    Grantham predicting 1929 market crash. nothing is safe
  • J
    Jazenevc
    The guidance for 2022 is likely the most important part of today's report. Production of iron ore and aluminum will grow slightly, almost flat. Copper and diamonds show more growth. No big surprises in development projects are expected. One can say that the guidance is solid, but not entirely brilliant.
  • j
    jack
    Admit it or not we are in correction territory.
  • J
    Jazenevc
    The market reaction to production/guidance report was quite positive. Flat iron ore output is not a bad thing; it helps to get better pricing. This is much better to produce at few percentage points below capacity and get 20-30% better price comparing to producing at capacity. Hopefully, other two iron ore producers have brains too.
  • J
    Jazenevc
    Maintained as Buy at Berenberg. Price target raised from GBP5500 to GBP5700. This came before London opening today and the stock almost made the new target. Further raises are due.
  • J
    Joe
    I caught all kinds of hecfinite. the Serbia mine being finito. That didn't take long for conclusive ending. #RIO still a buy on sell-offs in my opinion. Perhaps #BHP will make a bid for them now. Be good for a friendly merger, though it may not pass anti-monopoly regulators.
  • J
    Jazenevc
    Lithium news are relevant for Rio, obviously, and copper can be relevant. Hey, even talk about “green energy” can be relevant for mining. However, one better keep clear sight of this stock; this is an iron ore play. Iron ore is used, primarily, by construction industry, especially in places where construction is active and growing. In this regard, Chinese construction demand is very important.
    Rio investment looks positive now, because inflation goes higher helping industrial miners a lot. Also, this is because China buys enormous amount of iron ore while production potential is limited. It is very difficult to build new competitive iron ore mine, even in the most barren places of this planet. Iron ore mines are truly enormous and environmental impact is very big. Rio is lucky to have iron ore mines that are already built and will be in production for many decades. Also, these mines are in Australia. This is not a perfect location; perfect locations for mining do not exist anymore on this planet. However, Australia is still a much better place for mining than almost any other location.
  • P
    Positive
    It looks like 80 is the next resistance area... You might want to add some protective puts at that level... Also, think about having puts when the Div is paid out in March, because the stock price will drop right after. I am going to guess we get at least $3 Div this time.
  • J
    Jazenevc
    Serbia-Jadar news. Serbian Prime Minister said today that the government has decided to wait with the decision regarding Jadar project until elections in April.
    It looks, as it was expected, that “rumors” about speedy termination of the project were slightly exaggerated. The project fate will be decided by the government after the elections. Why after? Perhaps, most people around understand why. If the governments wins the election, then the project will likely proceed to construction instead of termination.
  • P
    Positive
    Rio is big in aluminium - this is often overlooked... largest aluminium producer outside China and Russia. Look at aluminium prices.
  • J
    JT_kirk20
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    Serbia may suspend lithium deal with Rio Tinto - PM Brnabic
    BY Reuters
    — 9:34 AM ET 01/08/2022

    SARAJEVO (Reuters) - Serbia may soon decide to annul all contracts related to mining group Rio Tinto's $2.4 billion lithium project in the country, Prime Minister Ana Brnabic said on Saturday, as green groups blocked roads across Serbia protesting against the plan.

    Rio Tinto wants to develop the mine near Loznica in the western Jadar valley, but the local municipality has already scrapped a plan https://www.reuters.com/markets/commodities/rio-tinto-pause-lithium-mine-serbia-after-protests-report-2021-12-23 to allocate land for it.

    The development is part of Serbia's efforts to bring in investment and boost economic growth. But environmentalists have staged protests and blocked roads to press authorities to end the project, which they say would cause irreparable damage to the area.

    Rio has said any development would meet domestic and European Union environmental standards.

    The protests have caused a political headache for the ruling coalition loyal to President Aleksandar Vucic ahead of April elections.

    "We have neither brought them (Rio Tinto) in, nor have we made promises, nor have we done anything that the people did not know about," Brnabic told television channel Pink, saying the government was close to accepting all requests from environmentalists.
  • J
    Jazenevc
    FWIW. As it is reported today, British Columbia court dismissed environmental case brought by two native tribes against Rio. The natives demanded to remove hydroelectric dam, generating electricity for aluminum smelters in the province and, of course, compensate unhappy folks. The company has proven that the dam was built in full compliance with government authorizations and permits and if natives want to extort few bucks through litigation then they should deal with the government.
    The case has been closed. However, one can expect that it will be mentioned in next round of anti-mining hysterics whenever they appear, something in tune “a mining giant Rio Tinto destroyed well-being of native tribes of Canada”.
  • J
    Jazenevc
    Higher inflation helps all stock sectors, just because all asset prices get inflated. However, stocks linked to industrial commodities are the main beneficiaries. More specifically, mining enterprise get in better position, financially, comparing to other industries, when inflation goes higher. Mining enterprises have expenses frontloaded, good part of investment happens when a mine gets build; the expense is fixed in past. Once it’s built, miners sell products, getting new higher prices with higher inflation.
    This process is not automatic, however. In many places of the world governments steal mining super-profits. When mining profits go higher this encourages demagogues of various stripes, usually leftwing, to demand “fait share”. Fortunately, Rio is in better position in this regard, comparing to many other miners, because it has main mining assets in Australia, still the best mining jurisdiction of the world, where taxes are not set arbitrarily by leftwing mobsters.
  • J
    Jazenevc
    FWIW. Tesla has signed first US nickel supply agreement with Talon Metals - Rio Tinto joint venture, developing Tamarack nickel project in Minnesota. The project promises a lot in mineral resource terms. It could be in production in 2026. The only problem is that getting mining permit is about impossible in present political conditions; present US administration delays and obstructs every mining project in the country. On the other hand, reasonable chance exists that different administration will be in power by 2026. In any case, this is good to see Tesla CEO optimistic about the project. It can be noted that he is a much better pro-business person than most other ultra-rich folks.
  • s
    scott
    Just think about the increased interest in RIO once BHP delists from from FTSE. Rio will continue is upward trajectory , maybe to 7000p over next 24months
  • J
    Jazenevc
    If Serbian government decides to cancel Rio mining rights then it will have to reimburse Jadar development expenses which would be calculated in many hundreds of millions, perhaps more than a billion.
  • p
    paola
    vanguard has a strong buy with 85 target