|Bid||0.00 x 1400|
|Ask||52.00 x 1800|
|Day's Range||51.45 - 52.00|
|52 Week Range||44.62 - 60.72|
|Beta (3Y Monthly)||0.43|
|PE Ratio (TTM)||9.30|
|Forward Dividend & Yield||2.54 (5.01%)|
|1y Target Est||59.02|
PLC calls it the world’s largest robot: mile-long driverless trains traversing the sparsely populated Australian Outback on roughly 1,000 miles of track. American railroad companies, seeking to boost network efficiencies, call it the future. A decade in the making, Rio Tinto’s driverless train system, called AutoHaul, now manages roughly 200 locomotives that move iron ore from inland mines to coastal ports in Western Australia.
Global miner Rio Tinto on Friday logged a slight drop in quarterly iron ore production in December and said it expected to produce more iron ore in 2019 in a target range that was at the lower end of analyst expectations. Mined copper production beat its guidance, mostly due to higher grades and better productivity at Rio Tinto's Kennecott operations in the Utah, the company said in a statement. Meanwhile its outlook for iron ore production for this year, was in a range of 338 million tonnes to 350 million tonnes, making a Vuma consensus of 348.8 million tonnes at the top end of its guidance.
PLC (RIO.AU) shipped more iron ore from its Australian mining operations in 2018 as it increased output from its newest mine and worked others harder, and forecast a further rise in exports in the year ahead. Rio Tinto, one of the world’s biggest mining companies and top exporters of steel ingredient iron ore, has continued to raise output after a multiyear expansion, betting it can make strong margins over the long run from a market it relies on for the bulk of its earnings. The miner said it shipped 338.2 million metric tons of iron ore from its pits in the remote Pilbara region in northwest Australia last year, up 2% on 2017.
Alcoa: Strong Q4 Numbers Can’t Hide Its WeaknessAlcoaAlcoa (AA), the leading US-based aluminum producer (XME), released its fourth-quarter earnings on January 16 after the markets closed. The company reported revenues of $3.3 billion during the
Alcoa: Could There Be a Surprise in Its Q4 Earnings? In the previous part, we noted that Alcoa’s (AA) 2019 earnings estimates look elevated. Aluminum prices (RIO) are hovering near $1,800 per metric ton, while the Alumina Price Index is ~$400 per metric ton.
Alcoa: Could There Be a Surprise in Its Q4 Earnings? (Continued from Prior Part) ## Alcoa As we noted previously, aluminum producers, including Century Aluminum (CENX), fell sharply last year and aluminum prices fell. Alumina was relatively strong in 2018 amid supply disruptions. While Alcoa (AA) stock also fell last year, its earnings were actually strong due to higher alumina prices (AWC). Analysts polled by Thomson Reuters expect Alcoa to post an adjusted EBITDA of $3.0 billion in 2018, which is ~30% higher than its 2017 EBITDA. ## Fourth-quarter estimates Looking at the fourth-quarter estimates, Alcoa is expected to post revenues of $3.35 billion in the fourth quarter. The company posted revenues of $3.39 billion in the third quarter and $3.17 billion in the fourth quarter of 2017. Alcoa’s adjusted EBITDA is expected to fall to $717 million in the fourth quarter from $795 million in the third quarter. While Alcoa’s fourth-quarter numbers don’t look that bad, the real test could be in 2019. Analysts expect Alcoa’s adjusted EBITDA to fall to $531 million in the first quarter of 2019. Although analysts expect the company’s EBITDA to rise in the following quarters, the estimates seem to be assuming higher aluminum prices from the current levels. ## Key drivers Falling aluminum prices (RIO) have dented Chinese aluminum smelters’ profitability. Later in 2018, Chinese smelters decided on capacity curtailments. The situation is particularly bleak for smelters that don’t have captive alumina refineries. The alumina-to-aluminum ratio is elevated, which hurts standalone smelters’ earnings. While alumina has come off its highs and the alumina-to-aluminum ratio has come down, it’s still high compared to historical averages. Alumina prices might fall more in 2019, which could hurt integrated producers like Alcoa. Alcoa’s fiscal 2019 estimates appear to be on the higher side compared to other metal prices. Next, we’ll discuss how analysts are rating Alcoa before its fourth-quarter earnings release. Continue to Next Part Browse this series on Market Realist: * Part 1 - Alcoa: Could There Be a Surprise in Its Q4 Earnings? * Part 3 - Alcoa Stock: Analysts Might Be a Little Too Optimistic
Diamond giant De Beers is fighting back on the threat posed by lab-grown diamonds startups, but "it's not going to work," according to one startup founder.
PLC (RIO.LN) has declared force majeure on some iron-ore contracts after a fire at its Australian port facilities last week. The mining company, one of the world’s top exporters of steel ingredient iron ore, said a fire broke out at the Cape Lambert port in Western Australia state on Jan. 10, causing damage to a section of the plant that separates its Robe Valley lump and fine products. “Rio Tinto is assessing the full impact of the damage and will do all it can to try and minimize disruption to our customers,” the company said in an emailed statement.
Palladium, once considered an unattractive by-product of platinum mining until the rise of catalytic converters in the 1970s, is hitting new records. You might think this spike will spark an immediate reversal and slump, as is often the case with commodity prices. Palladium and platinum are part of an intertwined group of rare metals(1) that occur in only three regions on the planet: Southern Africa, Siberia and, in smaller amounts, in the U.S. and Canada.
Rio Tinto Ltd closed part of its Cape Lambert iron-ore export terminal in Western Australia after a fire caused damage, the company said on Thursday. Cape Lambert is located about 1,250 km (780 miles) north of the Western Australian capital of Perth. A video posted on the Facebook page of the Construction, Forestry, Mining and Energy Union showed flames rippling down a conveyor belt in the pre-dawn darkness as on-looking workers exclaim.
Why Goldman Sachs Expects Iron Ore Prices to Drop to $60 ## Resilient iron ore prices As we noted in Is the Party Over for Commodities as China Steel Feels the Heat? in November, iron ore prices started collapsing after Chinese steel mills’ margins gave way. In iron ore’s typical price pattern, prices once again started rising and increased ~11% in December. Prices have rallied back to over $70 per ton. ## Goldman Sachs says prices could drop to $60 According to Bloomberg, in a note released today, Goldman Sachs (GS) analysts, including Hui Shan, stated that while the industry’s fundamentals have improved, more supply is on the way, which should restrict the rise in prices. The bank expects iron ore prices to fall to $60 per ton in the next six months. Goldman’s analysts argue that $75 per ton for iron ore is not sustainable for two reasons: “First, part of the rally was fueled by mills restocking ahead of the Chinese New Year. Second, supply is set to increase in 2019.” ## Downside ahead for iron ore? Morgan Stanley (MS) also expects to see losses in the commodity (XME). On January 7, it said, “We’re iron ore bears from here, though, expecting falling crude steel output and growing seaborne supply to ultimately bring price back to the mid-low-$60s/ton.” Moreover, big miners such as Vale (VALE), BHP (BHP), and Rio Tinto (RIO) have been enjoying higher premiums on higher-grade ore due to China’s switch in a bid to control pollution. This switch was supported by higher margins. As margins have waned, it seems like the party might be over for iron ore miners, at least in the short term. The producers of metals such as copper (FCX) and aluminum (AA) have also been under pressure due to China’s muted demand outlook. You can read Why Iron Ore Is Bucking Falling Price Trends Unlike Other Metals for more on this topic.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return Read More...
In 2017, the company said it would postpone any short- and long-term incentives owed to Sam Walsh for a minimum of two years. Rio is now planning to extend that time period. “Given investigations remain ongoing the board has asked Sam to agree to a further deferral until the investigations have concluded,” a Rio spokesman said in an email Tuesday.
The category 1 cyclone, with wind gusts of up to 100 kilometers per hour, is expected to weaken into a tropical low later Tuesday evening as it crosses Cape York Peninsula, according to the Bureau of Meteorology. Penny crossed the coast near the mining town of Weipa, a community of some 3,500 people where Rio Tinto operates a bauxite mine.
LONDON/ULAANBAATAR (Reuters) - Rio Tinto (RIO.L) (RIO.AX) and Mongolia have signed a deal for the supply of power to the miner's giant copper mine extension at Oyu Tolgoi by mid-2023, with both sides saying the framework agreement marked a step forward after a protracted dispute. The Oyu Tolgoi project is central to Rio Tinto's push to diversify its portfolio away from iron ore, but it has faced a series of challenges as Mongolia's fragile government wrangles over how to maximise benefits for the country. The government of Mongolia owns 34 percent of Oyu Tolgoi with the remainder held by Turquoise Hill Resources (TRQ.TO), which in turn is 51 percent owned by Rio Tinto.
As of December 21, Vale (VALE) had returned 5.5% year-to-date. While the stock’s gains haven’t been much in absolute terms, it has outperformed most of its close peers. In the same period, Rio Tinto (RIO) has returned -9.8%, BHP (BHP) has returned 2.4%, and Freeport McMoran (FCX) and Glencore (GLNCY) have fallen 47.2% and 32.8%, respectively.
Among the three major seaborne iron ore miners we’re discussing in this series, Vale (VALE) stock has the highest percentage of “buy” ratings from 78% of the analysts covering it. At the end of April, 56.0% of analysts had “buy” ratings on the stock. Approximately 18.0% of analysts have given it “holds,” and 4.0% have given it “sells.” Vale’s target price suggests a potential 32% upside based on its current market price.
Rio Tinto (RIO) (TRQ) stock has returned -9.8% YTD (year-to-date) as of December 21. Similar to BHP Billiton (BHP) stock, it fell 2.6% in the first quarter, but as commodity prices firmed up, miners’ stocks picked up in April. Rio Tinto’s stock price has lagged those of its peers, including BHP Billiton and Vale, primarily due to its lack of catalysts. In 2018, analysts expect Rio Tinto’s revenue to show flat growth over 2017, coming in at $40 billion.
Of the 16 analysts covering Rio Tinto (RIO) stock, 62.0% have given it “buys,” 25.0% have given it “holds,” and 13.0% have given it “sells.” Its ratings have remained more or less the same for the last few months. Of the analysts covering BHP Billiton (BHP) and Vale (VALE) stocks, 39.0% and 78.0% have given them “buys,” respectively. Cleveland-Cliffs (CLF), which is mainly exposed to the US domestic market, has “buy” recommendations from 64.0% of the analysts covering its stock. Analysts generally expect its premium to come down compared to those of its peers due to the lack of any significant catalysts.
As we noted previously in this series, Alcoa (AA) and other aluminum producers—including Century Aluminum (CENX)—are having a terrible year as aluminum prices have plunged. With the recent fall in aluminum prices, several Chinese smelters are losing money.
The company has hired investment banks Royal Bank of Canada, Credit Suisse and JPMorgan Chase to lead the IPO, according to sources who spoke on condition of anonymity as the information is not public. Rio Tinto, the world's second-biggest listed miner, is targeting a valuation of about $4 billion, they said. While Rio did not see much traction with a sale process, it has not ruled that out, the people said.
Anglo-Australian miner Rio Tinto is preparing to take its Iron Ore Company of Canada business public in the first half of 2019 by dual-listing it in New York and Toronto, people familiar with the situation told Reuters. The company has hired investment banks Royal Bank of Canada , Credit Suisse and JPMorgan Chase to lead the IPO, according to sources who spoke on condition of anonymity as the information is not public. Rio Tinto, the world's second-biggest listed miner, is targeting a valuation of about $4 billion, they said.
Dec 24 (Reuters) - Minmentals Development Co Ltd : * SAYS UNIT TO SIGN IRON ORE PROCUREMENT AGREEMENT WORTH 999.6 MILLION YUAN ($144.97 million) WITH RIO TINTO'S UNIT RIO TINTO COMMERCIAL Source text in ...
As we discussed in this series, falling copper prices have taken a toll on Freeport-McMoRan (FCX). Other miners including Southern Copper (SCCO), First Quantum Minerals (FM), and Rio Tinto (RIO) are also having a somber year. Falling copper prices aren’t the only concern for Freeport-McMoRan investors. The company is staring at a sharp fall in earnings in 2019 as the Grasberg mine transitions from overground to underground operations. Freeport-McMoRan still needs to sort out the environmental claims made by the Indonesian government.