Rio Tinto Share Discussion Threads

[christh] 13/2/2017 11:05

New upgrade
------------------------
Date...........Broker.............recommendation......New target price...Notes
13 Feb 17....RBC Capital Markets....Outperform.........4000.00......Reiterates


from 3700.00 to 4000.00

link here

[christh] 13/2/2017 10:57

Surging Iron Ore Won’t ‘Fall Off a Cliff,’ Says Rio Tinto
by David Stringer and Haidi Lun
13 February 2017, 00:25 GMT 13 February 2017, 05:29 GMT

Rio CFO says China in fundamental shift to less-polluting ore
2nd-biggest miner sees robust growth to continue in China

Iron ore will defy forecasts for a dramatic price collapse as China’s economy remains strong and the top buyer boosts demand for higher-quality imports, according to Rio Tinto Group, the 2nd-largest exporter.

“I wouldn’t necessarily say that it’s going to fall off a cliff,” Chief Financial Officer Chris Lynch said Monday in an interview with Bloomberg Television’s Daybreak Australia. “I guess the key issue is that we have to be robust in case the price goes up, down or sideways, and that’s what we set out our business to do.”

Global exporters are benefiting as mills in China, the world’s top steelmaker, increasingly prefer higher-quality raw materials as they seek to raise efficiency and cut pollution, according to Lynch. Iron ore, which accounted for about 60% of Rio’s profits last year, soared in 2016 to defy predictions that rising supply would overwhelm demand.

“There’s another fundamental shift going on in China and that’s the preference for the more efficient and less polluting end of the industry,” Lynch said in the interview. The switch by mills to higher-quality imports will support Rio and other exporters, while China’s growth becomes less reliant on commodities as it balances toward consumption and services from a focus on infrastructure and construction, he said.

The raw material, trading at the highest in more than 2 years as stimulus in China has supported steel output and consumption, is poised to correct sharply in the second half on rising supply from Australia and Brazil, according to Citigroup Inc. Prices will fall each quarter this year to $55 a ton in the final three months, according to the median of 13 analysts’ forecasts compiled by Bloomberg.

Iron ore will plunge back below $50 a metric ton as an extra 90 million tons of seaborne ore hits the market in 2017 with holdings at China’s ports are already at an all-time high, Liberum Capital Ltd. analyst Richard Knights said last week in an interview.

“We like the idea of higher prices, but there’s not a lot you can do about it,” Lynch said. “I can’t give you any justification for why it’s $2 higher today than it was yesterday.”

China’s imports jumped to an all-time high of more than 1 billion tons last year. Stockpiles rose 2.8% last week to a record 127 million tons, Shanghai Steelhome Information Technology Co. said Monday.

Ore with 62% content in Qingdao advanced 3.3% Friday to $86.62 a dry ton, the highest since September 2014, according to Metal Bulletin Ltd. Rio advanced 3.6% to A$68.32 in Sydney trading Monday.

Higher prices are boosting earnings for the top producers including Rio, which last week reported its first annual profit gain since 2013, though the company has maintained its disciplined approached to acquisitions, according to Lynch. It has looked at “a hell of a lot” and a lot more than than “we’ll ever pull the trigger on,” he said.

“We looked at a lot of things, there was a lot of stress on a lot of our competitors through the early part of last year,” Lynch said. “Notwithstanding the drop in market caps, the enterprise value didn’t change that much given that the debt was still there at 100 cents in the dollar.”

While London-based Rio sees “a fairly robust future in China,” the producer is no longer focused as exclusively on the nation in its demand outlook, according to Lynch.
Higher infrastructure spending under President Donald Trump and faster approvals for projects in the U.S. are both potential positives for Rio, he said.

interview and story

[christh] 13/2/2017 09:01

Consensus recommendation
As of Feb 11, 2017, the consensus forecast amongst 28 polled investment analysts covering Rio Tinto plc advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts improved on Dec 05, 2016. The previous consensus forecast advised investors to hold their position in Rio Tinto plc.

Dividends
In 2016, Rio Tinto PLC reported a dividend of 1.66 USD, which represents a 22.91% decrease from last year. The 24 analysts covering the company expect dividends of 2.04 USD for the upcoming fiscal year, an increase of 23.08%.

[christh] 13/2/2017 08:10

will it get to £38 today?

the momentum is strong, the Dow will push it further.

Will it make the target of £44.90 that Barclays has set?

It certainly has strengthened its management, the debt is coming down, the share buyback, the mines keep producing well.

So not a black cloud in the horizon.

Also the dividend is good 100.056p (£1.056p)...and rising on the interims and
next year.

[christh] 11/2/2017 11:10

Date ..........Broker ............Recommendation ........New target price ........Notes
10 Feb 17 ........HSBC ................... Buy ............. 4000.00 .......Reiterates
09 Feb 17 .......JP Morgan Cazenove ..... Overweight.. ..4000.00 ....Reiterates
09 Feb 17 ........Deutsche Bank .............Buy ..............4000.00 .....Reiterates
06 Feb 17 ........ Macquarie ...............Outperform ......4300.00 ..... Reiterates
26 Jan 17 ........Barclays Capital ...........Overweight .....4490.00 .... Reiterates


general consensus £40 and over

[bookbroker] 11/2/2017 11:04

Interesting moves here, the concern here would be can China maintain its growth rate, they are importing more iron ore, more capacity coming on stream globally 2017, difficult to believe the fall from 2015 to early 2016, but in the process this chart has large gaps all the way back to £24, if filling those gaps is a feature in analysis this stock could easily fall back and in fill at some point, but momentum appears very strong, but then the global economy has become increasingly volatile, and I just don't believe that China can maintain its stellar growth rate, the debt to GDP is 240%, and that is just staggering for an economy that size, and its current state of development. There will be a point where the banking system comes under enormous pressure somewhere down the line, the Govt. simply cannot continue to underwrite the economy there, the larger it gets, rates will have to rise again sooner rather than later, the policy makers are stuck between a rock and a hard place!

[keya5000] 11/2/2017 08:13

Thoughts on SF87 Rio dec 2018 £40 warrants?

They will give massive leverage at £40+

[malcolmmm] 10/2/2017 19:35

bought in yesterday on results, nice rise today though

[robrah] 10/2/2017 16:02

It was only a matter of time till this spring back . The results the divi the amount of cash they have.This is a buy the dips . Heading to 40 quid i hope .

[ian davenport] 10/2/2017 15:28

Hi guys
just got in and cant find any news other than the board appointments in Oz - has that really sparked a 5% rise?

[babywolf] 09/2/2017 12:29

that's better :)

[babywolf] 09/2/2017 08:54

Mmm... must be why its doing so well this morning...

[christh] 09/2/2017 08:34

Rio Tinto surges to profit as commodity prices bounce back
February 9, 2017

Rising commodity prices have guided Rio Tinto to a full-year profit of $US4.6 billion ($6.02 billion) in 2016, a massive turnaround from the previous year.

Rio Tinto recovered from a $US866 million loss in 2015 as operating cash flow and underlying earnings reached $US8.5 billion and $US5.1 billion, respectively.

The company will deliver $US3.6 billion to shareholders for the year in the form of a $US1.25 per share final divided and a previously announced 45 US-cent per share interim dividend.

Rio Tinto’s energy and minerals division was a standout in the improved results – earnings were 249 per cent higher than 2015 at $US610 million. The performance of the division was boosted by surging commodity prices, particularly coal.

The company’s iron ore operations also played a key role in the turnaround, with earnings rising by 17 per cent against 2015 to $US4.6 billion. However, its aluminium, and copper and diamonds divisions both lost ground.

Rio Tinto chief executive Jean-Sebastien Jacques said the results showed that the company had kept a commitment to maximise cash and productivity from its assets, delivering $3.6 billion in shareholder returns while maintaining a robust balance sheet.

“At the same time, we strengthened the portfolio and advanced our high-value growth projects as we look to the future,” Jacques said.

“We enter 2017 in good shape. Our team will deliver $US5 billion of extra free cash flow over the next five years from our productivity programme. Our value over volume approach, coupled with a robust balance sheet and world-class assets, places us in a strong position to deliver superior shareholder returns through the cycle.”

[robrah] 08/2/2017 13:09

Wow what a turn around . Just toped up Looking forward for a huge divi

[babywolf] 08/2/2017 12:03

A lit mystified why the UK appears to not be impressed with results.
Just profit taking?

Hope you're right christh re the US

[ian davenport] 08/2/2017 10:39

Yes that's going back a bit now Losses - it looked well set above £40 for some time, I think early 2008 it spiked above £50 and on to £70 when BHP were going to buy them, then the sub prime cr*p hit and we were sub £10 in a few months.
I'm not sure divesting Coal is a great plan , but there's other ways to play that if you are so inclined, and I'd prefer to see them paying down debt whilst they can , the next crisis cant be far away

[losses] 08/2/2017 10:29

Ian, I didn't get in this but did really well with KAZ & Glen.I do remember trading rio years ago £50-£70 ranges

[ian davenport] 08/2/2017 09:32

Losses - I think the problem with buyback timing is that the reason we got to 1700 was a combination of a lack of available money and worry over the outlook, I suppose we all could individually have doubled up down there, I know I didn't, although of course now realise I should have done!
post results surge seems to be waning, lets hope the early US get excited about it as well

[christh] 08/2/2017 08:25

Ordinary dividend per share 100.56p (£1.056p)

Dividends will be paid on 6 April 2017 to holders of ordinary shares and ADRs on the register at the close of business on 24 February 2017.
The ex-dividend date for Rio Tinto Limited and Rio Tinto plc holders will be 23 February 2017 and the ex-dividend date for Rio Tinto plc ADR shareholders will be 22 February 2017.

[christh] 08/2/2017 08:18

Hargreaves site on RIO



Barclays Capital
date:26/01
Latest assessment: Reiterates Overweight
Latest target price: 4,490.00p

[philo124] 08/2/2017 08:04

Results out. Look good.

[losses] 08/2/2017 08:00

Share buy back... did it happen when rio went down to 1700? Wrong timing most of the time.Definitely good results..

[robrah] 08/2/2017 07:40

There we go . Dividend plus sharebuy back .

[bigbigdave] 08/2/2017 06:23

David Buik ‏@truemagic68

Rio Tinto post greatly improved results with a profit of $4.61bn against loss of $866m in 2015 - shares up 89% in past year!

[stevenrevell] 07/2/2017 16:25

Fingers and toes crossed