49.85 0.00 (0.00%)
After hours: 4:34PM EDT
|Bid||48.00 x 4000|
|Ask||50.29 x 800|
|Day's Range||49.62 - 50.18|
|52 Week Range||45.62 - 60.72|
|Beta (3Y Monthly)||0.89|
|PE Ratio (TTM)||8.98|
|Forward Dividend & Yield||2.54 (5.15%)|
|1y Target Est||61.93|
With its biggest stock overhang -- a deal around its flagship asset in Indonesia -- close to being solved, the miner has said all options are open, even potentially a sale of the entire company. Major miners, including Rio Tinto Group, have said they’re keen to boost production of copper, the industrial metal that’s benefiting from demand for new energy systems and rechargeable batteries. “I’m not sure there is a buyer for large-scale assets at premium in the market now,” Christopher LaFemina, an analyst at Jefferies LLC, said in a phone interview from New York.
Freeport-McMoRan (FCX) is having a rough year, losing 32.2% of its market capitalization based on its October 12 closing price. Among the other copper miners, Rio Tinto (RIO) and Southern Copper (SCCO) have lost 1.5% and 10.9%, respectively, this year.
In the previous part, we discussed analysts’ projections for Alcoa’s (AA) third-quarter earnings. In this part, we’ll look at the key updates that markets might watch in Alcoa’s third-quarter earnings call.
Alcoa (AA), the leading US-based aluminum producer (XME), is scheduled to release its third-quarter earnings on October 17 after the markets close. Century Aluminum (CENX) is scheduled to release its third-quarter earnings on October 25. Alcoa’s dismal 2018 price action isn’t hard to comprehend.
Alcoa: Should You Be Bottom Fishing? In the previous part, we discussed Alcoa’s bearish drivers. Despite the equity market sell-off, aluminum prices (RIO) have held onto the $2,000 per metric ton level.
Alcoa (AA), the leading US-based aluminum producer (DIA), is having a terrible year. The company has lost 33.8% year-to-date. The sell-off has intensified in October. The stock has lost 11.7% of its market capitalization this month based on the closing prices on October 11. Century Aluminum (CENX) and Norsk Hydro (NHYDY) have also been on a losing spree this year. Rio Tinto (RIO) has done better since iron ore prices have been surprisingly strong.
Rio Tinto is close to restarting a sale process for some of its aluminium assets, including a plant in Iceland, which have been valued at around $350 million, two sources familiar with the matter said. The assets include a 53 percent stake in a Dutch anode facility and 50 percent of the shares in a Swedish aluminium fluoride plant, which are ingredients in aluminium production, the sources added. French investment bank Natixis has been helping Rio with the sale, one of the sources said.
First, while China’s steel demand has likely peaked, the country’s copper demand could continue to rise. Copper’s supply dynamics are also different from some of the other metals like steel and aluminum that face structural and chronic overcapacity, especially in China. Most observers expect copper markets to enter into a structural supply deficit in the next decade as existing mines fail to churn out enough metal to meet the demand.
After the 2015 commodity crash, mining companies like Glencore (GLNCY) and Freeport-McMoRan (FCX) had to suspend their dividend programs. While miners have restored their dividends, they have chosen a flexible dividend policy. Glencore announced its dividend policy.
When the cycle turns for the worse and commodity prices fall, mining companies’ free cash flows also fall. There isn’t much that mining companies can do when commodity prices fall. After the 2008–2009 economic crisis, we saw a sharp rally in metal prices. Copper prices briefly topped the $10,000 per metric ton level in 2011.
After all the “blood, sweat and tears,” the hardest work has been done, paving the way for a closing that will involve multiple documents changing hands simultaneously on a single day, Richard Adkerson said Thursday in a 90-minute interview. After Freeport and Indonesia signed a “definitive” agreement last week for the U.S. miner to cede majority ownership of its local operations to a state-owned firm, the company said it was conditional on solving key points. Adkerson said Thursday much of that work is almost complete.
Europe finished Friday's session on a negative note as investors digested the latest jobs report out of the U.S., while monitoring moves in the bond markets.
China is the world’s largest aluminum producer (RIO), consumer, and exporter. Chinese aluminum exports are often blamed for the global aluminum industry’s woes. Meanwhile, China’s aluminum exports have risen sharply this year.
Alcoa (AA) carries a mean consensus price target of $58.3, which represents a 42.7% upside over its October 1 closing price. Alcoa has received a “strong buy” rating from three analysts, while eight analysts rate it as a “buy.” The remaining four analysts polled by Thomson Reuters on October 1 rate Alcoa as a “hold” or some equivalent. Last month, Berenberg initiated coverage on Alcoa with a “buy” rating and a $54 price target.
BHP Billiton Limited (BHP) is poised to gain from its focus on investment plans across iron ore, copper, coal and petroleum.
Alcoa (AA) is having a dismal run this year. Based on October 1 closing prices, the stock has lost 24.1% YTD. Century Aluminum’s (CENX) performance hasn’t been any better with losses of 38.5% so far this year. Diversified miners like Rio Tinto (RIO) have performed better as iron ore prices have been strong despite the weakness in other industrial metals. The SPDR S&P Metals and Mining ETF (XME), which seeks to build a diversified portfolio of US-based metal and mining companies, has also sagged this year with a loss of 4.2% YTD.
Rio Tinto plc (LON:RIO) has pleased shareholders over the past 10 years, by paying out dividends. The company is currently worth UK£66.31b, and now yields roughly 7.0%. Does Rio Tinto Read More...
Rio Tinto and its joint venture partners, Mitsui & Co and Nippon Steel & Sumitomo Metal , will spend about $1.55 billion (£1.2 billion) to maintain production capacity at two iron ore projects in Western Australia. Rio will invest a total of $820 million to develop the projects at the Robe River Joint Venture in Australia's mineral rich Pilbara region, the Anglo-Australian miner said in a statement on Monday. Rio said the investments would enable it to sustain production of its Pilbara Blend brand of iron ore and its Robe Valley lump and fines products.
Investing.com - Stocks in focus in pre-market trade Thursday:· Geron (NASDAQ:GERN) stock slumped 65.32% as of 8:17 AM ET (12:17 GMT) after the company announced that Janssen Biotech terminated a collaboration and license agreement with them.· Rite Aid (NYSE:RAD) stock rose 2.34% after the company posted sales that beat expectations and matched profit expectations, excluding items..· ConAgra Foods (NYSE:CAG) stock fell 6.41% after the company missed its fiscal first-quarter sales and earnings estimates.· Freeport-McMoran (NYSE:FCX) stock increased 1. ...
I’ve been keeping an eye on Rio Tinto Limited (ASX:RIO) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believeRead More...
The news helped to drive Rio Tinto's London share price nearly 2 percent higher by 0927 GMT and pushed up the Australian listing by 3.5 percent. Across the mining sector, a trend to hand money back to shareholders has gathered steam following a recovery from the mining and commodity crash of 2015-16 and pressure from investors not to waste growing piles of cash on buying up assets that may never deliver returns. In its latest move, Rio Tinto, which has already returned more money to shareholders than its peers, said it will conduct an off-market share buyback for up to 41.2 million shares in its Australian entity Rio Tinto Ltd, worth about $1.9 billion, and further on-market purchases of London's Rio Tinto plc shares, bringing the total to $3.2 billion.
MELBOURNE, Australia—Rio Tinto (RIO) unveiled plans to buy back a swath of its Australia-listed shares before the end of the year as part of its move to return about $3.2 billion in proceeds from the sale of coal assets to its shareholders. It comes on top of an ongoing program to buy back London-listed Rio Tinto PLC shares, where the company said it has A$1.7 billion still to repurchase by no later than Feb. 27. The cash comes from the sale of the company’s Hail Creek and Valeria coal operations, and Winchester South and Kestrel mines.
European markets opened higher on Wednesday with investors appearing to brush off escalating trade tensions between the U.S. and China. The Stoxx 600 index opened 0.17 percent higher with most sectors in positive territory. European markets are trading on Wednesday morning with investors appearing to brush off escalating trade tensions between the U.S. and China.