Rio Tinto, BHP shares slip as Vale tracks guidance
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The news: Shares in iron ore heavyweights Rio Tinto and BHP lowered on the ASX as the world's largest producer, Vale, reiterated its full-year guidance.
The numbers: Rio Tinto (-1.3%) and BHP (-0.7%) weighed on materials (0.1%), which was the worst performing sector by 12:15pm AEDT.
However, fellow iron ore stocks Fortescue (0.8%) and Champion Iron (0.4%) edged higher.
Brazil-based Vale reported Q4 iron ore production of 85 million tonnes, largely in line with consensus forecasts of 86 million tonnes. It meant 2024 calendar year production totalled 328 million tonnes, level with guidance and estimates.
Vale's realised price for iron ore in the December quarter was 1% above consensus forecasts at USD93 ($149) per tonne. Copper prices also beat estimates by 1% at USD9,187 per tonne, while nickel prices were 2% higher at USD16,163 per tonne.
The context: RBC Capital Markets analyst Marina Calero said she expects a "largely neutral reaction" to Vale's result, as slightly weaker-than-expected iron ore sales will likely be offset by better-than-expected realised prices in iron ore, as well as stronger performance at the company's base metals division.
The sources: RBC Capital Markets research, Vale production update
