Core Viewpoint - Rio Tinto is strategically expanding its lithium operations to enhance its position in the battery metals market, despite facing challenges from weaker lithium prices and market volatility [1][2][3]. Group 1: Investment and Expansion - Rio Tinto has announced a $2.5 billion investment to expand its Rincon lithium project in Argentina, targeting a production capacity of 60,000 tonnes per year of battery-grade lithium carbonate [1]. - The company completed a $6.7 billion acquisition of Arcadium Lithium, making it the world's third-largest lithium miner, with a significant revenue base in Asia [2]. Group 2: Market Conditions and Challenges - The expansion aligns with Argentina's pro-investment policies, which include tax incentives and regulatory stability for foreign investments [3]. - The lithium market is currently experiencing weaker prices due to oversupply from China and a slowdown in electric vehicle demand, leading to delays or cancellations of other lithium projects [3]. Group 3: Performance Metrics - Rio Tinto's stock has shown volatility over the past four years, with returns of -1% in 2021, 18% in 2022, 11% in 2023, and -15% in 2024 [4]. - In Q4 2024, Pilbara iron ore production was 86.5 million tonnes, with shipments at 85.7 million tonnes, reflecting a 1% year-over-year decline [5]. - Mined copper production increased by 13% year-over-year to 697,000 tonnes, driven by improved operations at Oyu Tolgoi and better ore grades at Escondida [5].

Core Insights - Rio Tinto is one of the largest and most recognized mining and metals companies globally, with a history spanning over a century [1] - The company's American Depositary Receipts (ADR) have decreased by 12.3% over the past twelve months, primarily due to pressure on iron ore prices [1] Company Overview - Rio Tinto operates in the mining and metals sector, focusing on various commodities including iron ore [1] - The company is publicly traded on the New York Stock Exchange under the ticker symbol RIO [1] Market Performance - The decline in Rio Tinto's ADR is attributed to external market pressures affecting iron ore, which is a significant part of its business [1]

Core Viewpoint - Rio Tinto reported a decline in iron ore shipments and production for 2024, while other commodities like copper and bauxite showed growth. The company faces challenges from lower iron ore prices and production guidance for the upcoming years, but maintains a robust project portfolio for long-term growth. Group 1: Iron Ore Production and Shipments - Rio Tinto's iron ore shipments for Q4 2024 were 86.5 million tons, a 1% decline year over year, totaling 328 million tons for the year, also down 1% year over year but within guidance of 323-338 million tons [1] - The company expects Pilbara iron ore shipments for 2025 to be in the range of 323-338 million tons, indicating a potential year-over-year decline of 2% to growth of 3% [6] - Iron ore prices have declined by 27% over the past year due to weak demand in China, although recent optimism has seen prices recover to $100 per ton [16] Group 2: Other Commodities Performance - Bauxite production rose 2% year over year to 15.4 million tons in Q4, with a total of 58.7 million tons for 2024, up 7% year over year, exceeding expectations [3] - Copper production increased by 26% year over year in Q4 to 202 thousand tons, with a total of 697 thousand tons for 2024, marking a 13% increase [5] - Aluminum production for 2024 rose 1% year over year to 3.3 million tons, within the company's guidance [4] Group 3: Financial Outlook and Earnings - Rio Tinto reported a 10% decline in average realized iron ore prices for 2024, while copper and aluminum prices rose by 4% and 8%, respectively [9] - The Zacks Consensus Estimate for Rio's 2024 revenues is $51.2 billion, indicating a 5% year-over-year dip, with earnings projected to drop 7% to $6.77 per share [11] - Earnings estimates for 2024 and 2025 have undergone negative revisions, raising concerns about the company's financial performance [12] Group 4: Future Growth and Investments - Rio Tinto is focusing on building its lithium portfolio to meet rising demand for batteries and electric vehicles, with plans to invest $2.5 billion in the Rincon lithium project [19] - The company has earmarked $10 billion for capital expenditure annually, including $7 billion for existing projects and decarbonization efforts [18] - Despite current challenges, the company maintains a robust portfolio of growth projects, including Simandou and Oyu Tolgoi, which are expected to drive future growth [18]

Core Viewpoint - Rio Tinto Group (RIO) has experienced a significant decline in stock price, down approximately 16% over the past year, and is currently near its 52-week low, which raises concerns about its future performance and production guidance [1][4]. Financial Performance - RIO reported revenues of $54 billion in fiscal 2023, which is 3.5% higher than the 5-year average, but underlying earnings of $11.8 billion were 15% lower than the 5-year average [11]. - The Zacks Consensus Estimate for 2024 earnings is projected at $6.38, indicating a year-over-year decline of 12% [12]. Production Outlook - Copper production is expected to be at the lower end of the previously stated range of 660-720 kt for fiscal 2024, with a potential impact of approximately 50,000 tons due to operational challenges [6]. - Iron ore shipments are forecasted to be between 323-338 Mt in 2024, reflecting a 0.4% year-over-year dip at the midpoint [7]. - Alumina production is anticipated to decline to between 7 Mt and 7.3 Mt for fiscal 2024, down from 7.5 Mt in 2023 [8]. Cost and Pricing Challenges - Pilbara iron ore unit costs are projected to be in the upper half of $21.75-$23.50 per ton for 2024, indicating an increase from $21.50 per ton reported in 2023 [9]. - Iron ore prices have decreased by 29.4% over the past year, currently at $98 per ton, due to weak demand in China [10]. Strategic Initiatives - Rio Tinto has earmarked $10 billion for capital expenditure annually, with $7 billion allocated for existing projects and decarbonization efforts [17]. - The company is focusing on growth projects, including the Simandou iron ore project and Oyu Tolgoi copper project, which are expected to ramp up production significantly by 2028 [18][19]. Acquisition Strategy - In 2022, RIO acquired the Rincon lithium project in Argentina and plans to invest $2.5 billion to expand it, with a mine life expected to be 40 years [20]. - RIO also acquired a 50% stake in Matalco to strengthen its position in the North American recycled aluminum market, where demand is projected to increase by over 70% from 2022 to 2032 [21]. Market Valuation - RIO trades at a forward price-to-earnings multiple of 9.2, which is lower than the industry average of 12.13, indicating a potentially attractive valuation [27].

Core Viewpoint - Rio2 Limited is advancing construction activities at the Fenix Gold Mine in Chile, with significant milestones achieved and a focus on first gold production expected in January 2026 [1][3][15]. Overview - Pre-construction activities began in 2022, and the Environmental Impact Assessment (EIA) was approved in December 2023 after an 18-month appeal [2]. - Construction activities resumed in October 2024 following successful financing efforts [3]. Financials - The projected construction capital expenditure (capex) for 2025 is estimated at USD 122 million, excluding refundable Chilean VAT [3]. - The total investment in the Fenix Gold Project is approximately USD 235 million, covering initial and sustaining capital [17]. Construction Progress - Bulk earthworks at the plant site are completed, and concrete bases for the processing plant have been poured [4]. - Earthworks for the leach pad stability platform have commenced, designed to be built in four phases over the mine's 17-year life [5]. - Excavation earthworks for the Pregnant Leach Solution (PLS) pond have started, with a capacity of 28,000 cubic meters [6]. Personnel and Safety - Over 531 staff and contractors are currently on-site, with approximately 50% from the Atacama region and 16% being women [7]. - The project achieved 161,917 person-hours worked with no lost time injuries reported by the end of Q4 2024 [8]. Geological and Exploration Activities - A 12,000-meter grade control drilling program will commence in February, focusing on the first three years of production [11]. - A 25,000-meter CSAMT electromagnetic survey will be conducted to identify geological targets for future exploration [12]. Expansion Potential - A preliminary study indicates the potential to expand the mining rate from 20,000 tonnes per day to 80,000 tonnes per day, potentially increasing gold production from approximately 100,000 ounces per annum to a target range of 250,000 to 300,000 ounces per annum [14]. - Baseline studies for an EIA related to the expansion are anticipated to be ready for review by Q4 2026 [14]. Company Leadership - Enrique Garay has returned as Senior Vice President - Geology to lead the geological team in preparation for mining [13].

UKRAINE - 2021/10/08: In this photo illustration, Freeport-McMoRan Copper & Gold Inc. logo seen ... [+] displayed on a smartphone and in the background. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images Freeport-McMoRan (NYSE: FCX), one of the largest producers of copper, has seen its stock underperform over the last three months, falling by 25% compared to the S&P 500 which was up 3%. Freeport’s stock price movement is aligned with that ...

I discussed Arcadium Lithium "ALTM" (NYSE: ALTM ) last August when the stock was trading around the $2.50-$3 range . The stock had become absurdly oversold and undervalued, enabling me to accumulate a considerable position around this time frame.Are You Getting The Returns You Want? Invest alongside the Financial Prophet's All-Weather Portfolio (2024 75% return) and achieve optimal results in any market.The Daily Prophet Report provides crucial information before the opening bell rings each morning.Implemen ...

Rio Tinto (RIO) has joined forces with BHP Group (BHP) and BlueScope to develop Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant in Western Australia. The BHP-RIO alliance will work on processing iron sourced from Pilbara using an electric furnace replacing traditional blast furnaces. This could lead the way in decarbonizing the steelmaking process, which is the need of the hour considering that steel production accounts for around 8% of the world’s carbon emissions.Details of RIO ...

Rio Tinto Group (RIO) announced that it is assessing the potential for extracting and valorizing gallium from the bauxite processed in its Canada alumina refinery in Saguenay-Lac-Saint-Jean. This is part of Rio Tinto’s research and development program, which aims to solidify the North America supply chain for critical and strategic minerals .Details on RIO’s Gallium Extraction ExplorationRio Tinto intends to develop a demonstration plant for extraction  in Saguenay, following the completion of the prelimina ...

VANCOUVER, British Columbia, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO), after completing the Company’s highly successful debt and equity financing announced on October 21, 2024, provides an update on the progress made by its Chilean subsidiary, Fenix Gold Limitada (“Fenix Gold”), which is currently constructing the Fenix Gold Mine located in the Maricunga Gold Belt of the Atacama Region, in Chile. Advancements include the commencement of hir ...