Rio Tinto Share Discussion Threads

[waldron] 24/5/2023 18:46

aok ted

trust you ok too

all the best

[podgyted] 24/5/2023 18:43

Well, we'll see W.



I think we also need to see some good data coming out of China - I've got a large part of my portfolio in cash awaiting that and for the yanks to stop playing chicken.

Hope you're keeping well.

[waldron] 24/5/2023 15:39

aye

this debt ceiling needs putting to bed

and once agreed i expect a nice trend up

[tuftymatt] 24/5/2023 15:23

My thoughts exactly Waldron.

If we get the debt ceiling issue resolved I would me more confident in buying where as right now I think it's worth waiting for slightly better.

Long term though 6000+ I think and the dividends make it very worthwhile at these kind of levels 👍🏻

[waldron] 24/5/2023 15:01

Philip Whiterow

13:33 Wed 24 May 2023

Rio Tinto offers 'compelling' opportunity for the long term, suggests Jefferies


Rio Tinto, BHP and Vale share prices all reflect iron ore prices way below current spot levels, according to broker Jefferies, which concludes the three mining giants look good value as a result.

Markets currently are pricing in a benchmark iron ore price of US$81.37/t, it says, which compares to a spot price of US$99.05 and Jefferies' own long-term forecast of US$90/t.

“Chinese demand weakness is a near-term risk and valuation alone is not a catalyst for mining share prices to go higher.

“But our analysis indicates that shares of Rio, BHP, and Vale are trading at compelling levels now,” it said.

Using an enterprise value/underlying profit [EBITDA] ratio as a tool, the US bank estimates Rio is pricing in an iron price of US$81/t (on a 5.5x ratio), BHP is at US$86/t (6.5x) and Vale US$77 (at 5x).

Jefferies emphasises, however, that these are long-term forecasts, adding that it is “concernedR21; about seasonal and cyclical demand risk driving the iron ore price lower in the near future.

However, “If iron ore mining share prices are discounting a scenario more bearish than the outlook we envision, then our recommendation would be to buy these shares now before the iron ore price recovers.

“Yes, there will be near-term risks, but the opportunity for longer-term value investors could be now.”

Proactive

[tuftymatt] 24/5/2023 12:00

The longer they take to sort out the debt ceiling then the bigger the chance of that Crafty.

I think if that gets sorted it may not go that low. That said Copper is sub 8000 on LME so you never know!!

[craftyale] 24/5/2023 11:27

Chance to purchase at 4500 again?

[podgyted] 23/5/2023 22:44

Several analysts still calling the start of the next commodity super-cycle.

Didn't look like that today - commodities took a hammering.

Still a wait on the sidelines position for me.

(The debt ceiling stuff doesn't help either.)

[anhar] 17/5/2023 10:21

What's even more moronic is that they never give a timescale in which they expect their TP to be achieved. A week, a month, a year, 20 years? This renders it even more useless, as if it wasn't already.

Public broker recs are just plain rubbish. They know it and everyone around the markets knows it. Nobody with the slightest knowledge of shares would act on this guff. So you might wonder why they do it? The reason is that it's just cynical advertising to promote their name, even though they are fully aware that the rec is rubbish.

[tempted] 05/5/2023 16:34

Agree, waiting to add more if we hit £45, but do sense we are seeing the beginning of a repeat rise seen in Nov for the mining sector. Could be wrong, but have funds to take advantage if we encounter a further drop. There is mixed news out there but not enough to look in depth at other sectors, even if housing sector is turning.

[spud] 05/5/2023 13:27

Yeah, it's a FWIW price target!

spud

[tuftymatt] 05/5/2023 13:23

Wow that's some jump and some distance from where we are now!!

[philanderer] 05/5/2023 10:31

Barclays raises Rio Tinto price target to 6,700 (5,800) pence - 'equal weight'

[gibbs1] 04/5/2023 08:19

The chief executive of Rio Tinto, the world's second-biggest miner by market value, said he is interested in expanding the company's lithium business, but mindful of paying too much for more of the battery material used to power electric cars.

"We wouldn't mind having a stronger lithium business," Jakob Stausholm told reporters after a shareholder meeting in Australia.

"I think it is very difficult to justify to go in and buy at these high prices unless you already know you can sell the lithium at a high price," which is uncertain, he said of the potential for dealmaking.

Lithium prices surged to record highs last year amid strong electric-vehicles sales in China, but have pulled lower in recent months. Mr. Stausholm said the outlook for long-run lithium prices is unclear.

"I'm not sure the short term is giving you any indications of" long-term pricing, he said. "What we do know is the world needs to build a number of lithium mines."

Mr. Stausholm said he remains hopeful of a way forward for Rio Tinto's Jadar lithium project in Serbia, which ground to a halt last year when the government there revoked its licenses.

At its Rincon lithium project in Argentina, Rio Tinto is reviewing a $140 million estimate and schedule to develop a starter plant because of searing local inflation and rising equipment costs.

"Of course, I don't like any cost overruns but, on the other hand, it basically provides invaluable learnings for us before a project is being recommended for full sanctioning," Mr. Stausholm said.



Write to Rhiannon Hoyle at [e-mail]



(END) Dow Jones Newswires

May 04, 2023 01:47 ET (05:47 GMT)

[tourist2020] 01/5/2023 11:20

I don´t know where the steel, and therefore the ore, will come from but there is going to be a fair amount of (re)construction when the war in Ukraine eventually ends ....

[podgyted] 30/4/2023 10:52

Does seem to be some gloom around the sector:-



Anyway we'll see - Oz markets open on Monday.

[garycook] 30/4/2023 04:12

Look at the bright side. At or near a bottom in Iron Ore. Could mean more upside for RIO into year end.

[podgyted] 29/4/2023 14:50

Outlook still uncertain IMO.

Good bank holiday weekend all.

[paulruss1] 29/4/2023 07:11

Scarey times. Pure evil. Japanese professor Murakami of Tokyo University of Science makes an astonishing finding.

Pfizer's jab contains the SV40 sequence which is known as a promoter of the cancer virus.

The SV40 sequence is completely unnecessary to produce the mRNA jab.

[paulruss1] 28/4/2023 17:37

Yump I'm guessing you took the experimental Mrna gene therapy drugs for covid?