47.44 -1.57 (-3.20%)
Pre-Market: 6:48AM EDT
|Bid||47.24 x 1100|
|Ask||47.27 x 800|
|Day's Range||48.71 - 49.29|
|52 Week Range||44.26 - 60.72|
|PE Ratio (TTM)||10.07|
|Forward Dividend & Yield||2.20 (3.93%)|
|1y Target Est||61.12|
So far in this series, we have discussed Freeport-McMoRan’s (FCX) bearish drivers. In this part, we’ll discuss Freeport’s bullish drivers.
After a four-minute descent in a dark, two-storey lift, the latest shift of workers arrives at Mongolia’s largest ever construction project — a huge underground copper mine called Oyu Tolgoi 1.3km below the Gobi desert. Capable of processing 4,000 tonnes of copper-bearing rock per hour, the machine is a key part of a near $7bn expansion project that will see Oyu Tolgoi emerge as the world’s third largest source of copper by 2027, producing more than 500,000 tonnes a year. Once finished Oyu Tolgoi will help supply a metal that will be in ever-greater demand as the green energy revolution takes hold.
In July, Freeport-McMoRan (FCX) announced a “Heads of Agreement with the Indonesian state-owned enterprise PT Indonesia Asahan Aluminium (Inalum) and PT Freeport Indonesia’s (or PT-FI) joint venture partner Rio Tinto.” Under the agreement, Rio Tinto (RIO) would receive $3.5 billion from Inalum for its 40% stake in PT-FI. Freeport-McMoRan will receive $350 million for roughly a 5.5% stake in PT-FI.
Rio Tinto , the world's second largest listed mining company, is exploring a public listing of its Iron Ore Company of Canada business, banking and industry sources said, as it focuses on boosting revenue from its flagship Australian assets. Iron ore, which accounts for most of Rio's profit and is used in making steel, has provided healthy margins for years but the outlook is uncertain as major buyer China is expected increasingly to rely on recycling rather than importing raw material. Following a commodity price crash in 2015, Rio put a string of assets on the block, mostly in coal, to decrease its debt load.
By Clara Denina LONDON (Reuters) - Rio Tinto, the world's second largest listed mining company, is exploring a public listing of its Iron Ore Company of Canada business, banking and industry sources said, as it focuses on boosting revenue from its flagship Australian assets. Iron ore, which accounts for most of Rio's profit and is used in making steel, has provided healthy margins for years but the outlook is uncertain as major buyer China is expected increasingly to rely on recycling rather than importing raw material. Following a commodity price crash in 2015, Rio put a string of assets on the block, mostly in coal, to decrease its debt load.
The world’s largest mining companies are spending big again, but it isn’t on new pits or megadeals. Companies including Rio Tinto PLC and Glencore PLC are throwing off billions of dollars to shareholders via dividends and share buybacks, making good on a pledge to increase payouts as they dig their way out of a steep market slump. “We fully acknowledge [in] the mining business you need to grow, because depletion is a reality,” said Rio Tinto Chief Executive Jean-Sébastien Jacques.
Glencore Plc investors looking for bigger shareholder returns after the commodities giant’s record first-half profit may yet get their way. While the company’s failure to increase its dividend or share buyback leaves the door open for more acquisitions, it emphasized that the focus will remain on cutting debt and returning money to shareholders. As far as potential deals go, Chief Executive Officer Ivan Glasenberg said there’s little out there.
A government-led crackdown on pollution and excess steelmaking capacity in China has helped drive the price of iron ore close to $70 a tonne for the first time in almost six months. While copper has dropped 15 per cent since the start of June on concerns that the China-US trade spat would hit global growth, iron ore has risen 9 per cent. The raw material rose $1.95, or 2.9 per cent, to $69.50 a tonne on Tuesday, according to S&P Global Platts.
Miners and investors are poring over satellite images, tracking drilling rigs and quizzing company executives for clues on whether the sector’s heavyweights are close to a new jackpot discovery. As Rio Tinto Group searches Australia’s Great Sandy Desert for copper and Anglo American Plc scours a 19,000-square kilometer package of land in Brazil, they’re among the mining giants stoking excitement over potential reserves that’ll replenish project pipelines and overturn the industry’s lack of recent success in unearthing deposits. It’s part of a broader global push across the industry that’s driving a revival in exploration spending on key metals, forecast to top $11 billion after hitting a low of about $9 billion in 2016, according to Melbourne-based MinEx Consulting Ltd.
Asia-Pacific equities were mostly higher on Monday but Tokyo stocks were lagging as concerns from a fresh round of trade war rhetoric between the US and China over the weekend appeared to have largely ...
Brent crude prices are up 40 percent in the past year, cheering oil industry executives but causing concern among their customers in the mining sector. The concern is especially acute for underground miners, with power and labour costs about two-thirds of their expenses. "Let's be clear: Inflation is going to hit – is hitting all communities and all players across the industry," Rio Tinto Chief Executive Jean-Sébastien Jacques told investors earlier this week after the company's profit for the first half of the year missed estimates.
Rio Tinto Group may struggle to cut costs further after profit at the world’s second-biggest miner was hit by higher-than-expected energy and raw material prices at its aluminum unit, analysts say. The cost of input materials, including coke and caustic soda, is likely to remain elevated, Chief Financial Officer Chris Lynch said on a conference call after they helped to cut earnings by $500 million. The Sydney-listed shares fell as much as 3.7 percent, the most since March 23, after Rio Tinto PLC declined 3.4 percent in London.
SYDNEY—Rio Tinto PLC said it would buy back a further $1 billion in stock as it recorded a 33% rise in first-half net profit and raised its dividend by 15%, aided by recovering prices of some commodities. The world’s second-biggest miner by market value, behind BHP Billiton Ltd., on Wednesday reported a profit of $4.38 billion for the six months through June, up from a net profit of $3.31 billion a year earlier. The company, one of the world’s top iron-ore suppliers, said profit before one-off items was up 12% at $4.42 billion.
European shares retreated slightly on Wednesday as a mixed batch of corporate earnings failed to offset concerns about the U.S.-China trade conflict and subdued euro zone manufacturing growth. Caution ...
Jean-Sebastien Jacques, chief executive officer at Rio Tinto, discusses first-half results and the impact of China and trade tariffs on the company's business. He speaks with Bloomberg's Jonathan Ferro ...
Global miner Rio Tinto said on Wednesday its first-half profit grew 12 percent, missing estimates and sending its shares lower even though it earmarked an additional $1 billion (£0.76 billion) to buy back London-listed stock. Rio Tinto emerged from the commodity market crash of 2015-16 with the strongest balance sheet among major miners, but concerns about rising inflation and reliance on iron ore for the bulk of its profits are denting confidence in its shares. Underlying earnings for the six months to June 30 grew to $4.42 billion as higher iron ore output overcame lower prices.
NEW YORK, NY / ACCESSWIRE / August 1, 2018 / Rio Tinto plc (NYSE: RIO ) will be discussing their earnings results in their H1 Earnings Call to be held on August 1, 2018 at 10:00 AM Eastern Time. To listen ...
Check out the companies making headlines before the bell: Apple AAPL – Apple reported quarterly profit of $2.34 per share , beating the consensus estimate of $2.18 a share. Revenue also beat forecasts with a boost from Apple's iPhone X, and the company also gave upbeat revenue projections for the current quarter.
Under the strong headline numbers, however, some warning signs are flashing. Rising operating costs, particularly for energy and raw materials, were only barely offset by stronger shipment volumes and higher sales prices for copper and aluminum. Rio is also forecasting higher capital spending for 2020, although management emphasized that this primarily represents existing plans being expedited, rather than new projects.
Mining giant Rio Tinto reported a rise in profit for the first six months of 2018. David Lennox, resource analyst at Fat Prophets, says the second-half of the year may not stack up as well as the first.
Peter O'Connor, senior analyst from Shaw and Partners, discusses Rio Tinto's latest financial performance and the company's need to diversify.