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Rio Tinto Group (RIO)

NYSE - NYSE Delayed Price. Currency in USD
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75.40-0.26 (-0.34%)
At close: 04:00PM EST
76.00 +0.60 (+0.80%)
After hours: 07:54PM EST
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  • 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
    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.
  • 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.
    Bullish
  • 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.
  • 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.
    Bullish
  • 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
  • P
    Paul
    Is there somewhere on the website I’m supposed to register to get the dividend? I can’t find it
  • 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
  • J
    Jon
    Special dividends a possibility for 2022.
    Bullish
  • B
    Bigggggs
    RIO stocks will be skyrocket, dividend 20-30% up from present levels. Everywhere and everything needs cu, fe etc. Look at Europer/China/US post Covid and Green Energy plan.
    Bullish
  • P
    Positive
    $173 trillion! "BloombergNEF estimates that the global transition will require ~$173 trillion in energy supply and infrastructure investment over the next three decades with renewable energy expected to provide 85% of our energy needs by 2050."
    Mining stocks are LT Buy and holds
    Bullish
  • s
    scott
    Tesla has good quarter sales numbers, and market is gobs jump 100+
  • s
    scott
    I still say we sit on fence for a few weeks maybe end of Feb before putting in our last tranche of funds to this.

    Found this to back my earlier comments

    Sharecast News) - Liberum upgraded Rio Tinto to 'hold' from 'sell' on Tuesday as it argued that bad news was now priced in.

    "We upgrade Rio Tinto, as much of the near-term iron price downside risk has been realised (stocking pricing in $90/t iron ore) with the possibility of a seasonal uptick in Q1," the broker said.

    "We still struggle to build a sustainable bull case for Rio Tinto from current levels, as iron ore still has further downside risk over the medium term. For now though, the risks appear more balanced - certainly versus BHP."

    Liberum noted that Rio shares have underperformed since the company outlined the cost of going 'green' at its investor seminar, at $7.5bn between 2022-30.

    In a broader note on the mining sector, Liberum said its most preferred stocks are Anglo American, Ferrexpo, Thungela, Shanta Gold and Gemfields. Least preferred are BHP, Centamin and Taseko Mines.
  • J
    Jacky
    This stock has everything.

    + Exposure to Copper, Lithium, Boron commodities essential for transportation electrification and renewable energy machinery.
    + Impressive dividend.
    + Exposure to broad varieties of commodities.
    + This will explode if RIO adds Graphite in the basket in future.

    At this price, this is bargain.
  • A
    Alfredo
    Hi fellow investors :)
    Several analytical companies downgraded RIO in the second half of 2020.
    After a quick look I see that RIO has growing free cash flow, their assesses and current assets exceed their liabilities. Their net income has been growing in the recent three years including ttm.
    So what is wrong?
    Any thoughts?
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