Rio Tinto shares rally on Q3 update, guidance tweaks
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More news: Rio Tinto shares gained in morning trade after the mining giant upgraded its full-year bauxite production guidance and reaffirmed output forecasts across the rest of the business.
Shares were up 3.5% to $129.56 at 11am AEDT. The mining sectoral index was up 3.1% as the benchmark ASX 200 index lowered 0.1%.
RBC Capital Markets analysts Kaan Peker and Ben Davis said Rio Tinto's trading update was "unlikely to be meaningful to consensus".
However, Barclays analysts said third-quarter iron ore shipments from the Rio Tinto's Pilbara operations were 1% below consensus estimates, leaving the miner "needing a big Q4 to meet guidance".
Rio Tinto upgrades bauxite guidance as Amrun mine tops nameplate capacity
The news: Rio Tinto has upgraded its full-year bauxite production guidance and reaffirmed output forecasts across the rest of the business.
The numbers: The miner recorded bauxite production of 16.4 million tonnes in the third quarter, up 9% year on year. The strong performance led the company to upgrade its bauxite output guidance from 57-59 million tonnes to 59-61 million tonnes.
Rio Tinto said copper equivalent production increased 9% in the third quarter, with total copper output on track to hit the higher end of its full-year guidance.
The group's iron ore division achieved its second highest Q3 shipments since 2019, up 6% quarter over quarter. However, Pilbara iron ore shipments are expected to be at the lower end of guidance following 13 million tonnes of cyclone impacts in the first quarter.
The context: Rio Tinto said the upgrade to its full-year bauxite production reflected consistently higher utilisation rates, particularly at its Weipa operations in Far North Queensland. Amrun, one of three bauxite mines at the site, has continued to exceed nameplate capacity, the company said.
The sources: ASX, Barclays research, RBC Capital Markets research
