Rio Tinto Share Discussion Threads

[waldron] 05/2/2020 11:26

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Why I’m optimistic about FTSE 100 shares SSE, Shell and Rio Tinto
I think these 3 FTSE 100 (INDEXFTSE:UKX) shares could deliver improving returns: SSE PLC (LON:SSE) (SSE.L), Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) and Rio Tinto plc (LON:RIO) (RIO.L)
February 5, 2020 Robert Stephens, CFA FTSE 100 (INDEXFTSE: UKX), Rio Tinto (LON:RIO), Shell (LON: RDSB) (RDSB.L) (RDSB.LON), SSE (LON: SSE) (SSE.L) (SSE.LON)
SSE PLC
SSE PLC

FTSE 100 stocks SSE PLC (LON:SSE) (SSE.L), Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) and Rio Tinto plc (LON:RIO) (RIO.L) could offer long-term growth potential in my view.

I’m not normally optimistic about utility stocks owing to their slow pace of growth, but I think SSE could deliver an improving financial performance. Its switch towards renewables could help it to transition to what is likely to become an increasingly ‘green’ UK economy in my view.

SSE’s share price has risen over the past few months. It gained on the general election victory and without the threat of nationalisation, I feel that investor sentiment may improve. Global economic risks could make utility shares more attractive to investors, and may help to increase demand for SSE stock over future months.

Shell has struggled alongside many of its sector peers with low gas prices. They are showing little sign of mounting a strong recovery to my mind, so I’m expecting further challenges for the business in the short run.

Still, Shell has a solid growth strategy to my mind. It is reducing the debt on its balance sheet, which could cause its overall risk to fall. It is also aiming to improve its free cash flow, which may help to sustain dividend growth in the long run to my mind.

Rio Tinto also faces uncertain operating conditions. A potential slowdown in China, which is the biggest iron ore market in the world, could hurt the company’s progress and expose what I consider to be its major weakness. This is its lack of diversification, since the company is still heavily reliant on iron ore for its sales.

Rio Tinto has been able to strengthen its balance sheet over the past few years, and I think this could help it to overcome potential risks facing the global economy. Its P/E ratio of around 10 suggests to me that it may offer good value for money at the moment.
About Robert Stephens, CFA 6256 Articles
Robert Stephens is an Equity Analyst who runs his own research company. He is a CFA Charterholder and a passionate private investor who has been buying and selling shares for many years. He currently writes for The Telegraph's Questor column, What Investment, Master Investor, Investomania and Gurufocus. To contact Robert, please email [e-mail] or connect via Twitter

[podgyted] 05/2/2020 07:08

Rio up 1.1% in Oz

[waldron] 04/2/2020 17:19

Iron Ore 81.63 USD 3.30(4.04%)
Gold COMEX 1,558.00 -1.54%
Silver COMEX 17.58 -0.54%
Platinum NYMEX 967.60 -0.32%
Copper COMEX 2.54 +1.30%
Brent Crude Oil NYMEX 54.97 +0.96%
Gasoline NYMEX 1.64 +0.18%
Natural Gas NYMEX 1.90 +1.77%
WTI 50.6 USD +1.42%



Rio Tinto
4,206.5 +3.01%

Bhp
1,702.2 +2.79%

Anglo American
2,066.5 +3.72%

Glencore
233.1 +5.19%

[christh] 04/2/2020 09:54

well done ted!

Looking forward to £49.
Special divi to be paid to shareholders as surplus cash.

Profits as always but exceptional as iron ore in great demand.

A reminder that the final results are due on 26 February

[waldron] 04/2/2020 09:22

cheers ted

[podgyted] 04/2/2020 07:09

Up 0.5% in Oz

[waldron] 03/2/2020 17:09

Iron Ore 78.33USD -14.11(-18.01%)
Gold COMEX 1,583.30 -0.29%
Silver COMEX 17.66 -1.95%
Platinum NYMEX 970.00 +0.84%
Copper COMEX 2.50 -0.75%
Brent Crude Oil NYMEX 54.57 -3.62%
Gasoline NYMEX 1.63 -2.08%
Natural Gas NYMEX 1.86 -1.22%
WTI 50.01 USD -2.00%

Rio Tinto
4,083.5 -0.01%

Bhp
1,656 -0.23%

Anglo American
1,992.4 +0.34%

Glencore
221.6 -0.40%

[christh] 03/2/2020 08:41

Top stories

The Times:
China’s central bank The People’s Bank of China is injecting more than £130 billion into the financial system to offset coronavirus-linked sell-off.


Financial Times:
Short-sellers betting against Tesla suffered record losses of $5.8 billion after the stock hit a new high.

[christh] 03/2/2020 08:28

Also
Upgrades
Epic Company Broker New Rec Target
DLN Derwent London Barclays Capital Equal weight 342
CPG Compass Group PLC Deutsche Bank Hold 1,850

[christh] 03/2/2020 08:23

BROKER FORECASTS
03 February 2020
MNG Barclays Capital Equal weight 256
ADM Admiral Group PLC Barclays Capital Overweight 2,356
AV. Aviva PLC Barclays Capital Equal weight 461
BBY Balfour Beatty PLC Peel Hunt Buy 350
BVIC Britvic PLC Deutsche Bank Buy 1,100
CPG Compass Group PLC Deutsche Bank Hold 1,850
COST Costain Group PLC Peel Hunt Buy 225
DGE Diageo PLC Deutsche Bank Hold 3,250
DLG Direct Line Insurance Group PLC Barclays Capital Equal weight 342
HL. Hargreaves Lansdown PLC Deutsche Bank Hold 1,800
HL. Hargreaves Lansdown PLC Liberum Capital Buy 2,075 2,125
HSX Hiscox Ltd Barclays Capital Underweight 1,231 1,246
JUST Just Group Plc Barclays Capital Overweight 67
KIE Kier Group PLC Peel Hunt Buy 200
LRE Lancashire Holdings Ltd Barclays Capital Equal weight 781 758
LGEN Legal & General Group PLC Barclays Capital Overweight 343
NAH Nahl Group finnCap Corporate Corporate 87
NG. National Grid PLC Deutsche Bank Buy 1,060 980
PNN Pennon Group PLC Deutsche Bank Buy 1,170 1,080
PHNX Phoenix Group Holdings Barclays Capital Equal weight 662
PPC President Energy Plc finnCap Corporate Corporate 10
PRU Prudential PLC Barclays Capital Overweight 1,725
SVT Severn Trent PLC Deutsche Bank Buy 2,750 2,650
SSE SSE PLC Deutsche Bank Hold Hold 1,500 1,400
STJ St James's Place PLC Barclays Capital Overweight 1,351
TALK TalkTalk Telecom Group PLC Deutsche Bank Buy 190
UU. United Utilities Group PLC Deutsche Bank Buy 1,070 980

[christh] 03/2/2020 08:11

FTSE 100 called to open +30 points at 7309

[sarkasm] 02/2/2020 23:37

Should you buy BHP, Rio Tinto, or Saracen Mineral shares?

James Mickleboro | February 2, 2020 12:52pm | More on: BHP RIO SAR
Rio Tinto share price

I think that having a little exposure to the resources sector would be a very good thing for a portfolio.

This is because as well as offering the benefits of diversification, I believe there are strong potential returns on offer in the sector again this year.

But which resources shares should you buy? Here are three that I would consider buying:
BHP Group Ltd (ASX: BHP)

I think BHP would be a good option for investors looking for exposure to the resources sector. This is due to the mining giant’s portfolio of assets that are amongst the highest quality in the world. Thanks to their low costs and favourable commodity prices, these assets have been generating significant free cash flow for BHP. The majority of which has been returned to shareholders through dividends and buybacks. As long as the coronavirus doesn’t curtail global economic growth, I feel confident there will be more of the same in FY 2020 and FY 2021.
Rio Tinto Limited (ASX: RIO)

Another top option to consider in the resources sector is Rio Tinto. It also owns a number of world class assets across several different commodities. This has allowed the mining giant to generate strong free cash flow over the last few years. And as with BHP, it has returned the majority of it to shareholders through dividends and buybacks. If iron ore prices remain favourable in the near term, I expect Rio Tinto to be in a position to reward shareholders with generous dividends again in 2020.
Saracen Mineral Holdings Limited (ASX: SAR)

If you’re looking for exposure to the gold industry, then I think Saracen Mineral could be a great option. This is due to its attractive valuation, strong performance in FY 2019, and its very positive medium term outlook. In respect to the latter, a note out of Goldman Sachs reveals that it believes Saracen Mineral has the most compelling production and earnings growth profile under its coverage. It has forecast production of >800,000 ounces by FY 2024. This will be a material increase on the 500,000 ounces it expects to produce in FY 2020.

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[sarkasm] 02/2/2020 23:25

walders

why bother with the guy

obviously he has some issues to come to terms with

he never really wishes to help other posters

if you disagree with him he goes into a tantrum

60pc of posts tend to be him boasting

30pc might be him ranting and raving

10pc if you are lucky if referring to shares or company are guesses without backup

[turvart] 02/2/2020 23:11

The Rio workers might say is that your Dad? and I'll say no it's Waldron off ADVFN!

[turvart] 02/2/2020 23:09

I mean just think of the atmosphere that I'm holding your hand in one of the deepest mines and RIO know I'm holding hands with the legend on ADVFN?

[waldron] 02/2/2020 23:07

Turvart
2 Feb '20 - 23:04 - 2577 of 2577
0 0 0
Just think, I could hold your hand into

you get dafter by every post

[turvart] 02/2/2020 23:04

Just think, I could hold your hand into the OYU tolgoi mine and boast to the Rio workers that you are Waldron off ADVFN!

[waldron] 02/2/2020 23:04

chuckle

you not dare go outside europe let alone mongolia

[turvart] 02/2/2020 23:01

I bet you would like that Waldron holding my hand into the Oyu Tolgoi mine?

[waldron] 02/2/2020 23:00

chuckle turvart

your posts get sillier by the day

unlike you i am spreading my wealth through out the family as i advance in years


Turvart
2 Feb '20 - 22:52 - 2571 of 2572
0 0 0
Im tell you what Waldron your so funny I seem to think we can both get high viz vests on and go into tunnel
Turvart
2 Feb '20 - 22:55 - 2572 of 2572
0 0 0
How about it Waldron? would you like to come into the tunnel with Turvart into RIO at the Oyu Tolgoi mine?

[turvart] 02/2/2020 22:57

We could even hold hands Waldron LOL!

[turvart] 02/2/2020 22:55

How about it Waldron? would you like to come into the tunnel with Turvart into RIO at the Oyu Tolgoi mine?