RIO - Rio Tinto Group
| Previous Close | 48.55 |
| Open | 48.59 |
| Bid | 47.65 x 1300 |
| Ask | 49.77 x 800 |
| Day's Range | 47.88 - 49.11 |
| 52 Week Range | 44.62 - 64.02 |
| Volume | 1,951,812 |
| Avg. Volume | 2,345,120 |
| Market Cap | 79.918B |
| Beta (3Y Monthly) | 0.44 |
| PE Ratio (TTM) | 6.02 |
| EPS (TTM) | 7.97 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 3.02 (6.22%) |
| Ex-Dividend Date | 2019-08-08 |
| 1y Target Est | 57.70 |
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- Bloomberg
BHP Should Stand Pat on Copper
(Bloomberg Opinion) -- All major miners agree that copper has a bright future. The trouble is how to get at it. Take BHP Group, set to be the world’s biggest producer this year after Freeport-McMoRan Inc. sold down its stake in Indonesia’s Grasberg mine. Costs at BHP’s massive Escondida pit in Chile, which accounts for about one in 20 tons of copper mined globally, keep on disappointing. They’ll rise from the current $1.14 a pound to a range of $1.20 to $1.35/lb next year, the miner said in annual results Tuesday, well above its ambitions to keep them shy of $1.15/lb.When the copper price is trading close to three-year lows at $2.61/lb, that still makes for a pretty profitable business. But with production for the whole copper business seemingly capped at around 1.75 million metric tons a year, it isn’t clear where volume growth will come from. Miners love copper because it’s seen as a way to make a bet on a clean-energy future. Electric cars contain between four and 10 times as much copper as conventional ones, and wind and solar generators are forecast to consume 813,000 tons annually by 2027. It’s not clear that projects currently in the pipeline will be sufficient to produce enough metal to keep the market supplied once those sources of demand start ramping up around the middle of the next decade.BHP’s main expansion at the moment is an extension of its Spence mine in Chile, which is set to go into production by December next year. That should add about 185,000 tons of annual production – barely enough to offset the the gradual exhaustion of the Cerro Colorado and Antamina pits, which have less than a decade of reserve life left in them.Beyond that is the potentially massive, geologically difficult expansion of South Australia’s Olympic Dam mine. That pit has long been a challenge. Its significant uranium content would make BHP a major and low-cost producer of the atomic fuel. The risk, though, is that such a large influx of supply would crash the uranium oxide market and weaken the high-stakes economics of the project itself. In theory, there ought to be interesting opportunities for M&A in the current environment. Freeport, for instance, could almost double BHP’s copper production, and has a lot less political risk attached now the long tussle with Jakarta over Grasberg is over.With return on capital employed of about 11%, it’s outperforming the underlying 6% return in BHP’s copper business and could be bought for about nine months’ cashflow. But with Elliott Management Corp. still a lingering presence on the shareholder register, management are unlikely to want to do anything too splashy. Indeed, BHP’s rivals are prime examples of the risks that can be run from being too bold around copper. Rio Tinto Group’s Oyu Tolgoi mine in Mongolia could cost as much as $1.9 billion more than forecast, with first production from the expanded project delayed until the middle of 2023, the company said last month. Glencore Plc this month announced plans to shut its Mutanda copper mine in the Democratic Republic of Congo due to rising costs and weak pricing for cobalt, an important by-product from the operation.There may be a lesson in that. For all the billions BHP has spent on copper over the past decade, its returns from the red metal are still among the worst in the group. Rather than chasing volume, it might be better off watching the pennies, letting the market tighten and hoping prices rise to justify the money that’s already been spent. When the cards on the table look weak, there are worse things to do than just stand pat.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Simply Wall St.
Did Rio Tinto Group's (LON:RIO) Share Price Deserve to Gain 64%?
It might be of some concern to shareholders to see the Rio Tinto Group (LON:RIO) share price down 17% in the last...
- Zacks
Southern Copper's Tia Maria Construction License Suspended
Southern Copper Corporation's (SCCO) Tia Maria copper mine put on hold following protests owing to environmental concerns.
- Bloomberg
Rio Tinto CEO Defends Company as ‘Cash Machine’ Amid Stock Retreat
(Bloomberg) -- As plummeting iron ore prices weighed on Rio Tinto Group’s stock for a seventh-straight trading day, CEO Jean-Sebastien Jacques defended the miner as a “cash machine” that will keep rewarding shareholders.“We have a cash machine,” the chief executive officer said Thursday in an interview on Bloomberg TV. The “strong quality of the asset portfolio will generate cash no matter where we are in the cycle.”The world’s second-largest miner had been on a roll this year, with a strong first half anchored by surging prices for iron ore more than offsetting operational setbacks at its top-earning business. But prices for the key steelmaking ingredient have tumbled this month, and taken Rio with it. The London-based company’s shares have fallen 12% since July 30.Another looming hurdle for Rio has been slowing growth in China, by far the world’s biggest steel producer. Jacques tried to ease those concerns by saying that the Asian nation would use stimulus spending to maintain steel production, including by rebuilding older cities.“One thing that maybe people don’t see clearly is China is launching, or is going to launch, a program to renew the cities, the buildings that were constructed 10 years ago, 20 years ago, 30 years ago,” Jacques said. “We fully acknowledge that China is slowing down, but as expected China is managing the slowdown pretty well.”\--With assistance from Thomas Biesheuvel.To contact the reporters on this story: Matt Townsend in New York at mtownsend9@bloomberg.net;Joe Deaux in New York at jdeaux@bloomberg.net;Jonathan Ferro in London at jferro10@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Thomson Reuters StreetEvents
Edited Transcript of RIO.L earnings conference call or presentation 1-Aug-19 9:00am GMT
Half Year 2019 Rio Tinto PLC Earnings Call
- Bloomberg
The Top Miners Are Split on How to Chase the EV Battery Boom
(Bloomberg) -- The world’s biggest miners, including BHP Group and Glencore Plc, are finally firm believers in the electric vehicle battery revolution -- what they don’t agree on is which metals will deliver the best long-term exposure to the developing global market.BHP has revived a declining nickel unit in Western Australia to target the sector, while Rio Tinto Group is accelerating work to enter the lithium market. Glencore is focusing on cobalt and copper and Anglo American Plc is examining prospects for platinum and palladium to be deployed in future battery technologies.“We did a review of all the battery input materials -- nickel, cobalt, lithium,” said Eduard Haegel, asset president at the BHP’s Nickel West unit. “We think that in the medium-to-longer term there will be a margin that will be sticky for nickel -- we think it’s an attractive commodity.”BHP, the biggest miner, this year reversed long-term efforts to seek a buyer for the division, opting to retain Nickel West to benefit from forecast growth in lithium-ion batteries and a scarcity of high-quality nickel supply. From the second quarter of 2020, the unit will begin production of bright-turquoise colored nickel sulphate -- a premium raw material for the battery supply chain -- from a nickel refinery south of Perth, with plans to potentially carry out the industry’s largest expansion.The outlook for battery materials is firming as governments set targets on phasing out combustion engine vehicles, and as automakers commit to expanding line-ups of electric models, according to Angela Durrant, a Sydney-based principal analyst at Wood Mackenzie Ltd. “The demand profile is certainly becoming more clear,’’ she said.Deployment of more than 140 million electric vehicles by 2030 will require 3 million tons more copper a year, 1.3 million tons of nickel and about 263,000 tons of cobalt, according to Glencore Plc’s forecasts. By 2040, almost 60% of new vehicle sales and about a third of cars on the road will be electric, BloombergNEF said in a May report.BHP sees an abundant global supply of lithium, and regards cobalt as at risk of substitution, reducing the attractiveness of both commodities, Chief Financial Officer Peter Beaven said in a May speech. Rio also remains wary over cobalt, while Glencore CEO Ivan Glasenberg said in 2017 the company has “zero interest’’ in lithium, in part because of a lack of arbitrage opportunities.Picking winners hasn’t been helped by price gyrations. Key battery metals have faltered in the past year after dramatic gains. That’s chiefly been on concern that incumbents and new producers have added too much volume too quickly, as well as on short-term worries over a slower pace of growth in China’s electric vehicle market, the world’s largest.Lithium prices tripled between mid-2015 and May last year on fears of shortages and have since slumped more than a third as new mines started up. Cobalt in London quadrupled in the two years to March 2018 before tumbling by almost three-quarters.Even as they warm to the battery theme, major mining companies aren’t yet prepared to move beyond familiar commodities and remain cautious on acquisitions, said Robert Baylis, managing director at Roskill Information Services Ltd. “They don’t want to stray too far from the nest,’’ he said. “Some miners have instead concentrated on developing their own existing projects.’’Base metals are more traditional ground for the largest producers, and nickel is increasingly in focus. Vale SA’s Indonesian unit and partners have outlined plans to invest about $5 billion on nickel projects, in part aimed at the battery market, while Rio has expanded exploration work to find new deposits in nations including Uganda and Finland.BHP’s sales to the battery sector of nickel products now account for more than 75% of the unit’s total production, up from less than 5% in 2016, according to Haegel, who will speak Monday at the Diggers and Dealers mining forum in Kalgoorlie, alongside Rio’s head of growth and innovation, Stephen McIntosh.“It makes sense that these companies are primarily focused on copper and nickel,” said Sophie Lu, Sydney-based head of mining and metals for BNEF. The companies typically already have producing assets and both metals “display significant growth potential in the future from batteries,” she said.Nickel has jumped about a third this year as global inventories decline amid better demand in traditional stainless steel markets and expectations for longer-term battery growth. Battery-grade nickel may face a deficit by 2024 as demand rises, according to BNEF.“We’ll always say they are a lithium battery, but actually the weight is in the nickel – that’s the biggest volume of material,’’ said Wood Mackenzie’s Durrant.To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.netTo contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Keith Gosman, Phoebe SedgmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Simply Wall St.
Should You Buy Rio Tinto Group (LON:RIO) For Its Upcoming Dividend In 3 Days?
It looks like Rio Tinto Group (LON:RIO) is about to go ex-dividend in the next 3 days. This means that investors who...
Motley FoolRio Tinto plc (RIO) Q2 2019 Earnings Call Transcript
RIO earnings call for the period ending June 30, 2019.
- Reuters
UPDATE 2-Shell, Fed stance weigh on FTSE 100; BoE action hurts mid-caps
London's FTSE 100 ended flat on Thursday despite a profit miss from Shell and dampened hopes of big U.S. interest rate cuts, while the mid-cap FTSE 250 index slipped after Brexit worries led the Bank of England to cut its growth forecasts. Losses were contained by BAT and as London Stock Exchange surged 6.5% to an all-time high after a deal to buy financial information firm Refinitiv, in which Reuters News parent Thomson Reuters holds a 45% stake.
- Reuters
Rio Tinto addresses operational problems, delivers record payout
Rio Tinto announced its highest margins in a decade and a record dividend payout on Thursday, but acknowledged it was grappling with operational issues in Australia and Mongolia. Rio's shares were down 3.4% by 1330 GMT in London. Analysts cited macro-economic tensions as a reason for caution, as growth slows in China, Rio's biggest customer for iron ore.
- Bloomberg
Glencore’s Troubles Pile Up While Rivals Get Rich on Iron Ore
(Bloomberg) -- The bad news just keeps coming for Glencore Plc -- this time out of Africa.The commodities giant has had a tough few years, from corruption probes to getting caught up in the fallout from U.S. sanctions on Russia. This year, it’s been forced to watch from the sidelines a breathtaking rally in iron ore, a metal Glencore doesn’t produce at all, while rivals like BHP Group and Rio Tinto Group cash in.The list of headaches got a little longer Wednesday, as the company warned it will take a $350 million hit to its fabled trading business when it reports first-half earnings next week, after prices for cobalt plunged. Glencore also signaled it’s likely to cut the target for copper production this year as it struggles with mines in the Democratic Republic of Congo.Glencore has underperformed its major rivals this year, even after announcing bumper share buybacks. While other producers benefit from the rally in iron ore, the pressure on Glencore’s shares from probes by the U.S. Commodity Futures Trading Commission and Department of Justice has been compounded by a rout in prices for thermal coal, one of the company’s major profit drivers.“With still no certainty on the DoJ investigation, a lack of momentum in operations, with lower coal prices eroding cash flows, the current discount in Glencore shares is likely to persist in the absence of more significant management action,” said Tyler Broda, an analyst at RBC Capital Markets. “The cobalt price drop continues to wreak havoc on the marketing books.”Cobalt has quickly transformed from a star performer to a headache for the world’s biggest producer of the key battery ingredient. After quadrupling in two years, prices have now collapsed back to the lowest since 2016 as new supplies pour into the market. With few hedging tools available, that’s left Glencore exposed.Excluding the cobalt loss, Glencore expects first-half trading profit of about $1.3 billion. It said previously that full-year profit for the unit would be toward the middle of its $2.2 billion to $3.2 billion long-term range.Glencore has cut its cobalt sales in response to falling prices, but is still mining the metal from its African copper mines. The company said the loss from cobalt will be principally non-cash and described the inventories it’s holding as an “unrealised profit lag.” Effectively, the company’s marketing business has bought the cobalt from its mining unit, but has yet to sell it.Read: Cobalt’s Drop to 2-Year Low Tarnishes Glencore’s Trading JewelThe disappointing trading performance is a blow for Glencore, which has always said its traders can make money in any kind of market. The company touts the unit as a differentiator from other big miners, cushioning the ups and downs of the commodities cycle. The marketing unit deals in almost 100 raw materials including oil and agricultural products.Last year’s trading profit was $2.4 billion, the lowest since 2013, with Glencore pointing to weak results from cobalt and alumina trades.The cobalt losses aren’t Glencore’s only headache from its African copper business, which operates mines across the Democratic Republic of Congo and Zambia.Glencore’s Katanga Mining Ltd. unit, where the company has taken tighter control after Canadian regulators fined and banned executives, is reviewing its mine plans and is likely to lower output expectations. Glencore’s Peter Freyberg, who has joined Katanga’s board, will discuss the turnaround plan at the company’s earnings next week.“Our African copper business did not meet expected operational performance,” billionaire Chief Executive Officer Ivan Glasenberg said in a statement. “We have moved to address the challenges at Katanga with several management changes as well as overseeing a detailed operational review.”While African copper is a relatively small part of Glencore’s overall business, the unit gets a disproportionate amount of interest from investors given both its role as one of the company’s key drivers of growth and a source of legal and operational risks.When the company reports earnings next week, analysts are expecting sharply weaker results.It’s been a different story for Glencore’s rivals this year. Even though Rio Tinto has struggled at its giant iron ore mines in the Pilbara, it’s been bailed out by the surge in prices and is expected to report a big jump in profits tomorrow. Anglo American Plc last week reported bumper earnings, driven by iron ore.To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel Hill, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Simply Wall St.
What Do Investors Need To Know About Rio Tinto Group's (LON:RIO) Future?
In December 2018, Rio Tinto Group (LON:RIO) released its earnings update. Generally, the consensus outlook from...
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Rio Tinto Sees Hammer Chart Pattern: Time to Buy?
Rio Tinto has been struggling lately, but the selling pressure may be coming to an end soon.
- Simply Wall St.
What Kind Of Shareholders Own Rio Tinto Group (LON:RIO)?
A look at the shareholders of Rio Tinto Group (LON:RIO) can tell us which group is most powerful. Generally speaking...
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Sherwin-Williams (SHW) Q2 Earnings Top, Sales Miss Estimates
Q2 results of Sherwin-Williams' (SHW) Americas Group unit benefit from higher paint sales volume across all end markets in North American stores along with higher selling prices.
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Contingenciamento poderia ser R$10,3 bi maior por conta de Estados e municípios, aponta Economia
Governo anunciou um congelamento de R$ 1,4 bi. Ministério da Economia diz que necessidade de limitação seria na realidade de R$ 2,2 bilhões
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Has Rio Tinto (RIO) Outpaced Other Basic Materials Stocks This Year?
Is (RIO) Outperforming Other Basic Materials Stocks This Year?
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Is WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) a Strong ETF Right Now?
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Nucor (NUE) Surpasses Q2 Earnings, Lags Revenue Estimates
Nucor's (NUE) profitability in the steel mills unit fell sequentially in Q2 due to the impact of service center destocking on order rates.
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Univar Starts Distribution Deal with Novozymes in Canada
Univar's (UNVR) agreement includes the addition of Novozymes' leading product brands to NexusBioAg's extensive portfolio of biological and crop fertility products.
