Rio shares lift on steady quarterly performance, outlook
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More news: Shares in Rio Tinto are up 2.5% to $118.59 in early trading on the ASX after the mining giant reported a slight improvement in third quarter iron ore shipments from the Pilbara and kept its full-year output guidance unchanged. Rio has also indicated stability in the key Chinese market, saying steel demand has remained resilient with growth drivers shifting from property to infrastructure and manufacturing.
Rio Tinto iron ore production dips in third quarter
The news: Mining giant Rio Tinto has kept its full-year guidance for iron ore production unchanged despite a small dip in third quarter output.
The numbers: Iron ore output from the Pilbara operations was down 1% from a year ago at 83.5 million tonnes. However, shipments rose 1% to 83.9 million tonnes. The global miner has kept its full-year output estimate at 320-335 million tonnes. However, it has trimmed guidance for full-year production from its Canada iron ore business to between 9.3 million and 9.8 million tonnes, from 10 million to 11.0 million tonnes previously.
The context: Iron ore typically accounts for more than 80% of Rio's underlying earnings. Demand for the steel-making ingredient has remained resilient this year, even in the face of weaker economic growth in key market China. Rio said its Canadian operations were impacted by extended plant downtime and conveyor belt failures, as well as a continuing recovery from the wildfires which took place in Northern Quebec in the previous quarter.
The source: ASX announcement
