Rio Tinto Share Discussion Threads

[la forge] 17/7/2020 08:28

TOP NEWS: Rio Tinto's Quarter A Mixed Bag And Boosts Spending Plans

Fri, 17th Jul 2020 05:57
Alliance News

(Alliance News) - Rio Tinto PLC on Friday left its annual guidance unchanged after posting mixed second-quarter production figures.

Bauxite and iron ore output grew in the three months to June 30, though there was a double-digit fall in titanium dioxide slag production, figures from the miner showed.

The FTSE 100-listed firm did edge its capital expenditure forecasts higher as the bite from Covid-19 eased and the US dollar weakened.

"We delivered a strong performance, particularly in iron ore and bauxite, demonstrating the underlying resilience of our business and ability to adapt in difficult conditions. Our iron ore assets are performing well in a strong pricing environment and we are on track to meet our 2020 iron ore guidance. Despite various Covid-19 related challenges, all our assets have continued to operate, with our first priority to protect the health and safety of all our employees and communities," Chief Executive Officer Jean-Sebastien Jacques said.

Pilbara iron ore production rose 4% year-on-year in the second quarter to 83.2 million tonnes, with shipments edging 1% higher to 86.7 million tonnes.

IOC iron ore pellets & concentrate output climbed 9% to 2.8 million tonnes during the second quarter. Also seeing a 9% annual hike was bauxite production which rose to 14.6 million tonnes.

Dropping annually, however, was second-quarter titanium dioxide slag production, by 13% to 262,000. Rio Tinto noted that this was due to Covid-19 restrictions in South Africa and Quebec.

Mined copper output slipped by 3% to 132,800 tonnes, while aluminium production decreased by 2% to 785,000.

Rio Tinto last week Thursday said it will wind-down and then eventually close its New Zealand aluminium smelters amid a "challenging" time for the industry.

The FTSE 100-listed miner said NZAS had served Meridian Energy with a notice to terminate the power contract which ends in August next year. The news follows a strategic review which Rio said showed "the business is no longer viable given high energy costs and a challenging outlook for the aluminium industry".

Rio Tinto also has aluminium assets in Australia, Canada and Iceland.

"Governments are gradually lifting restrictions on the movement of goods and people as part of their Covid-19 recovery plans. However, some restrictions remain in place or are being reintroduced. As a result, there continues to be an impact on projects in general although to a lesser degree than earlier in the year," Rio Tinto said.

It added that capital expenditure for 2020 will be around USD6 billion, due to a weaker US dollar and a "reduced impact of Covid-19 on both sustaining and development expenditure".

It had previously forecast annual capex between USD5 billion and USD6 billion.

Capex forecasts for 2021 and 2022 have been nudged higher to USD7 billion from USD6.5 billion.

"Production guidance remains unchanged across all commodities," the miner added.

By Eric Cunha; [e-mail]

[stevenrevell] 17/7/2020 08:23

Christ we may get 52 to 54 report not bad

[waldron] 17/7/2020 07:31

European stocks seen slightly higher as EU leaders meet for stimulus talks

Published Fri, Jul 17 20202:09 AM EDT

Elliot Smith
@ElliotSmithCNBC

Key Points

European leaders will meet in Brussels on Friday looking to hash out a deal on the proposed 750 billion euro ($853.8 billion), which could face opposition from the “frugal four” member states.

U.S. initial jobless claims came in at 1.3 million for the week ending July 11, the Labor Department said Thursday, missing expectations from economists polled by Dow Jones for 1.25 million new filings.

Daimler revealed ahead of its July 23 earnings report that it will post a smaller-than-expected operating loss of 1.68 billion euros for the second quarter.

European stocks are set for a cautiously higher open Friday as European Union leaders prepare to discuss a deal on the bloc’s key coronavirus recovery package, while U.S. coronavirus cases continue to soar.

Britain’s FTSE 100 is seen around 14 points higher at 6,265, Germany’s DAX is set to gain around 22 points to 12,897 and France’s CAC 40 is expected to inch five points higher to 5,090, according to IG data.

[waldron] 17/7/2020 06:43

SYDNEY--Rio Tinto PLC said its iron-ore shipments rose by 1% in the three months through June as it capitalized on strong prices of the steelmaking ingredient, although production of other key commodities was mixed.

The miner said it shipped 86.7 million metric tons of iron ore in its fiscal second quarter. Half-year shipments were 3% higher than a year earlier at 159.6 million tons and were achieved despite damage to infrastructure such as access roads, accommodation and power lines caused by Tropical Cyclone Damien in February.

Rio Tinto said it continued to expect annual iron-ore shipments of between 324 million tons and 334 million tons.

Management said it now expected capital expenditure of around US$6 billion this year, narrowing an earlier forecast of between US$5 billion and US$6 billion. That reflected "an appreciation in our major operating currencies against the U.S. dollar since the first quarter and a reduced impact of Covid-19 on both sustaining and development expenditure," the company said.

Iron-ore prices this month topped US$110 a ton after supply from Brazil was disrupted by the spread of the novel coronavirus and demand strengthened in China, the world's top buyer of the commodity. On Thursday, China said its economy grew 3.2% from a year earlier in the second quarter, as authorities benefited from an aggressive campaign to eradicate the virus within its borders.

Mining executives say key indicators, such as utilization rates at steel mills, have recovered to levels before coronavirus pandemic. Steel inventories are also falling from high levels, signaling demand has gotten stronger.

The World Steel Association, an industry group, expects Chinese steel demand to increase by 1.0% this year, despite the early disruption to manufacturing. Infrastructure projects begun this year will also support steel consumption in 2021, it says.

Still, the virus pandemic has forced Rio Tinto to shutter some operations temporarily, reduce output at others, and rethink how it staffs operations that have traditionally relied on open borders to bring in mineworkers from far away.

On Friday, Rio Tinto said capital expenditure for next year and 2022 is expected to be around US$7 billion annually, up from a prior forecast of US$6.5 billion per year. "This includes spend from 2020 that has been rephased as a result of Covid-19 restrictions," the company said.

Among its other commodities, Rio Tinto said quarterly bauxite output rose by 9% to 14.6 million tons while copper production dropped by 3% to 132,800 tons and aluminum output fell by 2% to 785,000 tons.



Write to David Winning at [e-mail]



(END) Dow Jones Newswires

July 16, 2020 18:49 ET (22:49 GMT)

[podgyted] 17/7/2020 00:19

Volumes rise, prices rise - hopefully looks good for Rio - but WTFDIK.

[waldron] 16/7/2020 17:14

Iron Ore 105.59 +0.98( +0.93%)
Gold COMEX 1,808.00 -0.27%
Silver COMEX 19.75 -0.30%
Platinum NYMEX 842.20 -0.27%
Copper COMEX 2.90 +0.61%
Brent Crude Oil NYMEX 43.61 -0.05%
Gasoline NYMEX 1.22 -1.82%
Natural Gas NYMEX 1.80 -1.43%
(WTI) 41.015 USD +0.12%


FTSE 100
6,250.69 -0.67%
Dow Jones
26,728.52 -0.53%
CAC 40
5,085.28 -0.46%
SBF 120
4,005.41 -0.34%
Euro STOXX 50
3,365.35 -0.57%
DAX
12,874.97 -0.43%
Ftse Mib
20,368.7 +0.43%




Rio Tinto
4,823 -0.44%


Bhp
1,749.4 -0.62%


Anglo American
1,930.6 -1.17%



Glencore
181.8 -0.50%

[christh] 16/7/2020 15:34

Hi Ian,
long time no see!
I hope all is well,good to hear from you.

Well I was hoping but never mind, I hope Rio gets to £54 or £57 by end of July.
Trading update tomorrow!

gla

[waldron] 16/7/2020 10:28

Dow futures drop 200 points as investors focus on earnings, China sell-off

Published Wed, Jul 15 20206:04 PM EDT

Updated 18 Min Ago

Pippa Stevens
@PippaStevens13

[ian davenport] 16/7/2020 07:44

Chris - housing only! Probably of more concern for us investors, he's looking at capital gains tax reform to raise some of the billions he needs

[christh] 16/7/2020 07:33

Does the stamp duty apply to Buying shares ?
Shares are an investment!!!
Anybody any information,please!
----------------------------------------------------

Last week, Chancellor Rishi Sunak announced several new initiatives to help jumpstart the economy. The main aim of his Summer Statement was to outline the government’s plan to stabilise the workforce and to stimulate new employment opportunities amid the ‘profound economic challenges’ that COVID 19 has brought about.

In his address, the Chancellor expressed the vital role the housing market has in supporting the economy as a whole. As a result, with immediate effect, the stamp duty threshold will increase from £125,000 to £500,000.
The stamp duty holiday only lasts until 31 March 2021, so it makes sense if you are considering buying a home or investment, to do it sooner rather than later.

Given the stamp duty holiday, we anticipate prices may increase as a result following yesterday’s announcement, so to take advantage we would recommend buying sooner rather than later.

[christh] 16/7/2020 07:23

Rio Tinto plots path towards 2023 production at Winu
July 16, 2020News Salomae Haselgrove

Rio Tinto has lodged an environmental approval request with the Australian Government for the Winu copper project in Western Australia, a key step in its plan to be in production at the site by 2023.

[waldron] 16/7/2020 06:44

European stocks head for lower open, shrugging off Chinese growth data that beat expectations

Published Thu, Jul 16 20201:15 AM EDT

Holly Ellyatt
@HollyEllyatt

Key Points

London’s FTSE is seen 34 points lower at 6,272, Germany’s DAX is seen 123 points lower at 12,827, France’s CAC 40 is expected to open 45 points lower at 5,076 and Italy’s FTSE MIB down 142 points at 20,001, according to IG.

[waldron] 15/7/2020 17:31

Iron Ore 105.59 +0.98 (+0.93%)
Gold COMEX 1,814.80 +0.10%
Silver COMEX 19.72 +0.41%
Platinum NYMEX 843.10 -0.33%
Copper COMEX 2.88 -1.72%
Brent Crude Oil NYMEX 43.28 +0.09%
Gasoline NYMEX 1.23 -2.09%
Natural Gas NYMEX 1.77 -0.84%
WTI 40.61 USD +0.28%



FTSE 100
6,292.65 +1.83%
Dow Jones
26,697.2 +0.20%
CAC 40
5,108.98 +2.03%
SBF 120
4,018.99 +1.96%
Euro STOXX 50
3,378.21 +2.00%
DAX
12,930.98 +1.84%
Ftse Mib
20,308.22 +2.16%



Rio Tinto
4,844.5 +0.41%


Bhp
1,760.4 +2.49%



Anglo American
1,953.4 -0.71%



Glencore
182.72 +1.75%

[waldron] 15/7/2020 13:29

Dow futures surge 500 points after Goldman’s blowout quarter, Moderna’s vaccine news

Published Tue, Jul 14 20206:03 PM EDT

Updated 13 Min Ago

Fred Imbert
@foimbert

Yun Li
@YunLi626

[gibbs1] 15/7/2020 10:54

RIO JP Morgan Cazenove Neutral up from 5,140.00 to 5,440.00 Reiterates

[gibbs1] 15/7/2020 10:33

RIO Goldman Sachs Neutral down from 4,440.00 to 4,410.00 Reiterates

such much

[stevenrevell] 15/7/2020 10:26

Hope Friday goes well

[waldron] 15/7/2020 07:39

Dow futures jump more than 200 points after Moderna says its vaccine produces
antibodies to coronavirus

Published Tue, Jul 14 20206:03 PM EDTUpdated 3 Hours Ago

Yun Li
@YunLi626

[waldron] 15/7/2020 07:25

European stocks head for higher open on vaccine hopes

Published Wed, Jul 15 20201:15 AM EDT

Holly Ellyatt
@HollyEllyatt

Key Points

London’s FTSE is seen opening 54 points higher at 6,223, Germany’s DAX is seen 171 points higher at 12,834, France’s CAC 40 is expected to open up 66 points at 5,058 and Italy’s FTSE MIB is seen 263 points higher at 20,034, according to IG.

The latest developments surrounding a potential coronavirus vaccine are one of the main focuses for markets Wednesday.