Rio Tinto shares lift on solid fourth quarter performance
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Rio Tinto are up nearly 1% to $120.61 after the global mining giant lifted full-year production across divisions and achieved its full-year guidance for iron ore production.
While the company reported a small dip in fourth quarter iron ore output, full-year aluminium output was up 1% to 3.3 million tonnes, bauxite up 7% while mined copper output jumped 13%.
Overall, analysts backed the company's December quarter performance.
RBC Capital markets analysts said the company had a good finish to the year with beats across divisions, with the small exception of titanium dioxide.
Citi analysts kept their rating on the stock at 'neutral'.
What they said: "A solid DecQ [production] result as Rio focuses on delivering growth from major projects. The Oyu Tolgoi underground copper mine continues to ramp up successfully and the Simandou high-grade iron ore project and Western Range mine are on schedule for first [production] this year," Citi said.
Rio Tinto reaches iron ore production guidance despite Q4 dip
The news: Mining giant Rio Tinto has achieved its full-year guidance for iron ore production despite a small dip in fourth quarter output.
The numbers: Full-year iron ore production from its Pilbara operations came in at 328 million tonnes, down 1% from a year ago but within the company’s 323 to 328 million tonne shipment guidance.
December quarter production was down 1% year-on-year to 86.5 million tonnes, while shipments for the quarter were also down 1% to 85.7 million tonnes..
The context: The global miner expects output to remain steady in 2025, with full-year shipments estimated at 323 to 338 million tonnes. Guidance for its Canada iron ore business is up slightly to a range of 9.7 million tonnes to 11.4 million tonnes.
Iron ore typically accounts for more than 80% of Rio's underlying earnings and demand for the steel-making ingredient has remained resilient as inflation moderates and growth stabilises across the world.
Across its other major divisions, full-year aluminium output was up 1% to 3.3 million tonnes, bauxite production was up 7% to 58.7 million tonnes while mined copper output jumped 13% to 697,000 tonnes, thanks to a ramp up at its Oyu Tolgoi mine in Mongolia.
The source: ASX announcement
