Rio Tinto Share Discussion Threads

[podgyted] 07/10/2019 06:59

Rio down 0.1% in Oz.

[the grumpy old men] 05/10/2019 09:05

MOTELY FOOL


Are Fortescue, Rio Tinto and BHP shares a buy for their dividends?

Lina Lim | October 3, 2019 1:23pm | More on: BHP FMG RIO
ASX iron ore miners

ASX 200 iron ore miners BHP Group Ltd (ASX: BHP), Fortescue Mining Group Ltd (ASX: FMG) and Rio Tinto Limited (ASX: RIO) have all staged significant share price recoveries after iron ore supply woes throughout August. But are they a buy for their dividends, on current prices?
What’s the outlook for iron ore?

The iron ore spot price currently sits at around US$90 per tonne, while Chinese iron ore futures soared by more than 2% on Wednesday. I believe the market has largely internalised the news that the world’s largest iron ore miner, Vale SA, is returning to form after its tailings dam disaster earlier this year. The Brazilian miner maintained its 2019 iron ore and pellet sale guidance of 207–322 million tons, with sales expected to be around the mid-point of that range.

With that in mind, the Australian government sees iron ore prices in 2019 averaging around $80 per tonne FOB, reflecting the full effect of supply disruptions and firm demand from China. However, it also expects the price to gradually decline to average $57 by 2021, as the seaborne market gradually returns to balance.

In terms of global economies, China has maintained a steady level of steel production with its central bank announcing that it will continue to implement a prudent monetary policy and increase the strength of counter-cyclical measures. This should buoy the iron ore spot price and steel production levels.

On the flip side, US manufacturing purchasing managers’ index (PMI) signalled that manufacturing business activity was contracting at a stronger pace than expected. This reflects lower consumer demand and a contraction in new export orders.

In the short term, the iron ore spot price could maintain the US$80–90 mark as the Australian dollar continues to pivot lower on the back of lower interest rates. This could expose investors to both capital upside and strong dividends.

In terms of dividend yield, Fortescue pays a whopping 14% gross yield thanks to its 195% increase in underlying net profit and 266% increase in earnings per share in FY19. This represents a 78% dividend payout ratio – a delicate position where there isn’t too much space to increase dividends, while a lower iron price could potentially lower dividends in the future.

BHP and Rio Tinto, on the other hand, pay a 7.8% and 8.7% gross yield, respectively.

Foolish takeaway

Current market conditions are volatile as lower interest rates drive capital inflows into equity markets, while global economic is showing signs of sluggish growth. A short-term opportunity may exist for investors as iron ore prices remain steady and miners continue to reap the benefits of a higher spot price and increased steel production from China. However, investors should be wary of the medium–long term outlook and the implications that may have on dividends.

[waldron] 04/10/2019 17:25

Iron Ore 92.18 USD -0.08(-0.09%)
Gold COMEX 1,508.70 -0.34%
Silver COMEX 17.53 -0.85%
Platinum NYMEX 883.10 -1.26%
Copper COMEX 2.55 -0.12%
Brent Crude Oil NYMEX 58.39 +1.18%
Gasoline NYMEX 1.57 +1.19%
Natural Gas NYMEX 2.56 +2.28%
(WTI) 52.84 USD +0.86%


Rio Tinto
4,035.5 +1.08%

Bhp
1,683.2 +1.42%

Anglo American
1,819.4 +2.16%

Glencore
226.65 -0.57%

[waldron] 04/10/2019 07:05

U2 TED

HAVE A GOOD ONE

[podgyted] 04/10/2019 06:57

Nothing to report (except I hope it gets back above 4000).

Rio up 0.7% in Oz.

Have a good weekend.

[cpap man] 03/10/2019 16:45

KAV



SP Angel . Morning View .


Kavango Resources (KAV LN) 2.0p, Mkt Cap £3.1m – Kavango selects new targets for 1,000m drill campaign

Kavango Resources has signed a contract mobilising a number of drill rigs to test targets in Botswana.

The drill program is for three vertical holes covering 1,000m on the Kalahari Suture Zone ‘KSZ’

The team plan to intersect conductor targets at depths of between 200m and 400m.

To save time and cost, the holes will be pre-collared to approximately 150m with reverse circulation drilling followed by diamond core drilling for better information on the geology below this point.

Management are hoping to find mineralisation in a 10km x 6km magnetic anomaly, which is interpreted as a potential magma chamber.

The other two targets relate to significant linear magnetic and conductive structures.
Water will be trucked in from a local town.

Conclusion: Botswana hides many interesting mineral discoveries under a significant depth of Kalahari desert sand.

Kavango hopes the use of modern remote sensing techniques will help it pinpoint mineralisation in anomalies of significant scale under the sand.

While drilling these targets feels a bit like wildcatting in the oil industry investors can rest assured that target generation is supported by a thorough analysis of the latest data.

[waldron] 03/10/2019 16:44

Iron Ore 92.26 USD 0.00(0.00%)
Gold COMEX 1,516.00 +0.54%
Silver COMEX 17.69 +0.04%
Platinum NYMEX 897.20 +0.31%
Copper COMEX 2.56 -0.43%
Brent Crude Oil NYMEX 57.14 -0.95%
Gasoline NYMEX 1.55 +0.16%
Natural Gas NYMEX 2.45 -0.04%
(WTI) 52.03 USD -0.76%


Rio Tinto
3,992.5 -0.34%

Bhp
1,657 -0.48%

Anglo American
1,781 -1.00%

Glencore
227.95 -2.06%

[podgyted] 03/10/2019 07:08

China on holiday so.....



Rio down 3.8% in Oz.

[waldron] 02/10/2019 16:55

Iron Ore 92.26 USD 0.10(0.11%)
Gold COMEX 1,508.50 +1.31%
Silver COMEX 17.68 +2.18%
Platinum NYMEX 894.00 +0.89%
Copper COMEX 2.58 +0.66%
Brent Crude Oil NYMEX 57.27 -2.75%
Gasoline NYMEX 1.53 -2.47%
Natural Gas NYMEX 2.47 -0.52%
(WTI) 52.36 USD -3.20%


Rio Tinto
4,021.5 -4.28%


Bhp
1,672 -3.69%

Anglo American
1,805.2 -3.14%


Glencore
232.6 -2.27%


A GREY DAY FOR MOST SHARES AND PERHAPS A BUYING OPPORTUNITY FOR SOME

[waldron] 02/10/2019 15:49

cnbc

Dow drops 450 points as stocks fall for a second day to start the fourth quarter
Published Wed, Oct 2 20191:59 AM EDTUpdated Moments Ago
Fred Imbert
@foimbert

[podgyted] 02/10/2019 07:06

Down 1.6% in Oz

[la forge] 01/10/2019 20:45

Last Signal: STAY IN CASH
Last Close:
4,201.50
Change:
-7.50
Percent change
-0.18%


Signal Update

Our system’s recommendation today is to STAY IN CASH. The previous SELL signal was issued on 24/09/2019, 7 days ago, when the stock price was 4,205.85. Since then RIO.L has fallen by -0.10%
.
Market Outlook

The bears still have the upper hand in the market. A more cautious attitude may be required, but there is no definite sign to urge you into action and to disturb your comfort of being on the sidelines.

[la forge] 01/10/2019 20:41

Summary

The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

Strengths

Graphically speaking, the timing seems perfect for purchasing the stock close to the GBp 3924.5 support.

The group's activity appears highly profitable thanks to its outperforming net margins.

Thanks to a sound financial situation, the firm has significant leeway for investment.

Its low valuation, with P/E ratio at 7.08 and 7.22 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.

This company will be of major interest to investors in search of a high dividend stock.

Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

Over the past year, analysts have regularly revised upwards their sales forecast for the company.

For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

Weaknesses

As estimated by analysts, this group is among those businesses with the lowest growth prospects.

Prospects from analysts covering the stock are not consistent.

Such dispersed sales estimates confirm the poor visibility into the group's activity.

Financial statements have repeatedly disappointed market stakeholders.

Most often, they were below expectations.

Analysts covering the stock have recently lowered their earnings forecast.

[turvart] 01/10/2019 20:25

Rio has the 3rd quarterly review in 2 weeks.

[la forge] 01/10/2019 20:11

October/15/2019 | 10:30pm Q3 2019 Sales and Revenue Release - Operational Review


all will become clear

[la forge] 01/10/2019 20:09

The world according to advfn

Market Cap. 54,807.95 m
Shares In Issue 1,304.49 m
Prev. Close 4,209.00
PE Ratio 6.51
Dividend Yield 5.75

[turvart] 01/10/2019 19:54

This share price level is just ridiculous, Rio is running on a PE ratio of some 5.3 and a PEG ratio of just 0.09

[waldron] 01/10/2019 17:26

Iron Ore 92.16 USD -0.75(-0.81%)
Gold COMEX 1,491.10 +1.24%
Silver COMEX 17.36 +2.10%
Platinum NYMEX 886.70 -0.28%
Copper COMEX 2.56 -0.81%
Brent Crude Oil NYMEX 58.99 -0.44%
Gasoline NYMEX 1.57 +0.51%
Natural Gas NYMEX 2.48 -1.00%
(WTI) 53.69 USD -1.01%

Rio Tinto
4,201.5 -0.18%

Bhp
1,736 +0.21%


Anglo American
1,863.8 -0.40%

Glencore
238 -2.76%

[podgyted] 01/10/2019 07:49

End of term report:-



Down 0.1% in Oz

[waldron] 30/9/2019 16:56

Iron Ore 92.89USD -0.06(-0.06%)
Gold COMEX 1,475.90 -2.02%
Silver COMEX 17.12 -3.04%
Platinum NYMEX 887.90 -5.15%
Copper COMEX 2.58 -0.50%
Brent Crude Oil NYMEX 60.17 -1.43%
Gasoline NYMEX 1.59 -1.04%
Natural Gas NYMEX 2.34 -2.75%
(WTI) 55.05 USD -1.78%

Rio Tinto
4,209 -0.95%

Bhp
1,732.4 -1.28%

Anglo American
1,871.2 -0.81%

Glencore
244.75 -0.91%

[maywillow] 30/9/2019 14:15

Jon Hopkins

13:45 Mon 30 Sep 2019
Rio Tinto plc
Rio Tinto has cancelled plans for the sale or flotation of its Canadian iron ore business: media reports

The Wall Street Journal said the Anglo-Australian miner - which owns a 59% stake in Iron Ore Co of Canada - was unable to settle on a suitable price
Iron ore pellets in furnace
The business is a joint venture between Rio Tinto, Japan’s Mitsubishi Corp., and the Labrador Iron Ore Royalty Income Corp.

Rio Tinto plc (LON:RIO) has cancelled plans for the sale or flotation of its Canadian iron ore business, following unsuccessful attempts to find buyers, according to media reports.

The Wall Street Journal said at the weekend that the Anglo-Australian miner - which owns a 59% stake in Iron Ore Co of Canada - was unable to settle on a suitable price with potential buyers as iron-ore prices have been volatile.
READ:Rio Tinto warns of costly delay to Mongolian copper project, while iron ore production falls

Iron Ore Co. of Canada produces iron-ore concentrate and pellets from mining operations and processing facilities in Newfoundland and Labrador, and also runs port facilities in Quebec.

The business is a joint venture between Rio Tinto, Japan’s Mitsubishi Corp., which owns 26%, and the Labrador Iron Ore Royalty Income Corp., which owns 15%.

Rio Tinto recorded net earnings of $166 million from the business in 2018, down from $235 million a year earlier, although the operations had been suspended for two months during the year due to labour negotiations.

A number of global mining companies including Rio Tinto have been selling off a string of assets in recent years to cut their debt and focus on operations that are more profitable.

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