RIO Share Price History
12 Aug, 2020
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As the coronavirus pandemic upended the global diamond industry, shuttering mines from Lesotho to Canada and disrupting supply chains, Rajen Patel swapped diamond polishing for peanut farming. With temporary mine closures at risk of becoming permanent, diamond miners are seeking ways to extract more value from their stones. The lone bright spot has been steady demand for large, high-quality diamonds from affluent investors, according to financiers and sales data.
10 Aug, 2020
British and Australian investment funds said on Monday that Rio Tinto's testimony last week over its destruction of ancient caves in Australia raised questions about the accountability of its senior leadership. Rio chief executive Jean-Sébastien Jacques was grilled by an Australian Senate enquiry on Friday over how the company had legally destroyed two prehistoric rockshelters, causing deep distress to their Aboriginal owners. “The fact that Rio Tinto’s senior management had not reviewed a critical report about the site itself calls into question the company’s governance and oversight processes," Councillor Doug McMurdo, Chair of Local Authority Pension Fund Forum (LAPFF), said in a statement.
07 Aug, 2020
(Bloomberg) -- A decision by Rio Tinto Group to destroy Aboriginal Australian heritage sites dating back more than 46,000 years delivered about $135 million in extra value to its iron ore division, according to the miner’s top executive.Rio rejected three other options that would have avoided damaging two rockshelters in Western Australia in order to access about 8 million tons of high-value ore, Chief Executive Officer Jean-Sebastien Jacques said Friday. The company recorded about $4.6 billion in profits from its iron ore unit in the first half.“The economic value at the time of the decision, or the net present value, was around $135 million,” when mining plans for the site in the Juukan Gorge region of the Pilbara district were decided in around 2012 or 2013, Jacques told a hearing of an Australian parliamentary committee investigating the blasts.At the time those decisions were made, the Puutu Kunti Kurrama and Pinikura Aboriginal Corporation, the region’s traditional land owners, were not made aware that Rio had been considering a total of four options, including three proposals that could have avoided the Juukan Gorge sites, Jacques told legislators on the conference-call hearing.Rio, the world’s second-largest miner, has made decisions on heritage preservation, or environmental grounds, that have removed about 380 million tons of iron ore -- more than a year’s worth of exports -- from mine plans over the past five years, he said.The producer has faced criticism from investors and lawmakers over the incident in May, when explosions to open up a mining area for the Brockman 4 operation blasted the Juukan Gorge sites. Archaeologists had told the company in a 2018 report the sites were among the most significant of their type in Australia and that evidence had been recovered showing use by humans more than 40,000 years ago.The incident, along with delays and a budget blowout at Rio’s flagship growth project at Mongolia’s Oyu Tolgoi mine, has stoked investor concern over Rio’s management and about Jacques’ leadership. “The buck stops with me, my focus is on putting this right,” Jacques told the Friday hearing.On Friday, the Australian Centre for Corporate Responsibility, a shareholder advocacy group, said the CEO should resign.“At every turn, Rio’s group CEO JS Jacques has sought to deflect blame,” said Brynn O’Brien, executive director of ACCR. “His suggestion today that no single person is accountable for the decision to detonate the Juukan Gorge sites in May is indefensible. The buck always stops with the CEO, and he should resign.”Still, so far none of the company’s major investors have joined the call for Jacques to go and it is the best performing major miner this year, making bumper profits from iron ore.Read more: A Miner Blew Up Ancient Human History. An Industry May PayRio and competitors are facing the prospect of tighter regulation that could make it more difficult to win approvals to expand existing sites, or to build new mines, in the Pilbara. It’s the world’s key iron ore hub that generated forecast annual export earnings of A$100 billion ($72 billion) in the 12 months to June 30.Enhanced scrutiny is particularly significant for Rio, which probably needs about eight replacement mines in its iron ore division by 2026, according to Goldman Sachs Group Inc.The blasts were legal, permitted under a Western Australian government process that’s used to rule on cases where an impact on Aboriginal sites is deemed unavoidable. That system is scheduled to be replaced by legislation that will offer more protection for heritage areas and give communities rights of appeal.Repeated chances were missed to recognize the significance of the Juukan Gorge site’s heritage value from about 2008 onwards and those problems were exacerbated by miscommunication with traditional owners, Jacques told the hearing.When Rio belatedly recognized the potential damage that blasting the site would cause, it was already too late -- explosive charges had been laid and couldn’t safely be removed, the company said in a written submission.“The events at Juukan should not have happened,” Jacques, who has since traveled to meet with Indigenous community leaders in some other regions, told the hearing. “The destruction of the rockshelters has triggered some reflection in our company.”Rio will fund about $50 million of initiatives aimed at promoting more Indigenous people into leadership positions, he said. About 12% of the residential workforce in Rio’s iron ore unit are Indigenous people, according to the company’s most recent annual report.(Updates with ACCR comment in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Rio Tinto did not tell Aboriginal traditional owners of two ancient caves destroyed to mine iron ore about three alternative mine plans, its CEO told an inquiry on Friday, despite saying it had won fully informed consent for blasting. Rio Tinto CEO Jean-Sébastien Jacques faced an Australian Senate inquiry after the miner in late May legally destroyed the sacred caves which sat atop a high grade ore body it planned to mine, against the wishes of the traditional owners. The destruction of the sites, which showed evidence of 46,000 years of human habitation, fuelled a public furore and became a facet of Black Lives Matter protests in Australia, sparking the parliamentary inquiry.
Rio Tinto was able to reach high grade iron ore worth about $135 million with the blasting of two sacred caves in Western Australia, the global miner's chief executive told a government enquiry on Friday. Rio Tinto CEO Jean-Sébastien Jacques told a Senate probe into the destruction of the culturally significant site in May that the company had four options for its mine plan and chose the most valuable one.
(Bloomberg) -- The Trump administration will reimpose tariffs on some Canadian aluminum imports, hitting a crucial trade partner just weeks after the president’s landmark North American trade agreement went into effect. Canada threatened retaliation.President Donald Trump announced Thursday that he’s removing Canada’s exemption from 10% tariffs, effective Aug. 16. The decision comes more than a month after U.S. Trade Representative Robert Lighthizer expressed concern about recent struggles by American aluminum producers, who have said they are hurting from a “surge” of metal from Canada flowing into the U.S.“Several months ago, my administration agreed to lift those tariffs in return for a promise from the Canadian government that its aluminum industry would not flood our country with exports and kill all our aluminum jobs, which is exactly what they did,” Trump said during a speech at a Whirlpool Corp. factory in Ohio. “Canadian aluminum producers have broken that commitment.”“In response to the American tariffs, Canada intends to swiftly impose dollar-for-dollar countermeasures,” Deputy Prime Minister Chrystia Freeland said in a statement, calling the U.S tariffs “unwarranted and unacceptable.”Trump made the announcement at a time when he’s behind Democrat Joe Biden in the polls and trying to portray himself as best positioned to revive the U.S. economy from a recession caused by the coronavirus -- even as some economists have questioned the benefit to the U.S. of imposing tariffs.“To be a strong nation, America must be a manufacturing nation and not be led by a bunch of fools -- that means protecting our national industrial base. We have to protect our great companies and our great workers,” Trump said.Earlier, Bloomberg News reported that the measures would be unveiled as soon as Thursday, causing shares of aluminum producers Alcoa Corp. and Century Aluminum Co. to surge as much as 5.6% and 6.1% respectively, and the price to ship aluminum to the U.S. Midwest climb as much as 21%.The tariffs will drive up costs for end users such as brewers, Jim McGreevy, the president and chief executive officer of the Beer Institute, said in a phone interview. “The tariffs aren’t bringing back aluminum jobs, they’re creating higher costs for end users and that’s not really good for anyone.”That sentiment was echoed by the U.S. Chamber of Commerce.“These tariffs will raise costs for American manufacturers, are opposed by most U.S. aluminum producers, and will draw retaliation against U.S. exports -- just as they did before,” the group said in an emailed statement. “We urge the administration to reconsider this move.”Raw MetalThe tariff will affect “non-alloyed unwrought aluminum articles from Canada, commensurate with the tariff imposed on such articles imported from most countries,” according to a proclamation from the White House. That raw material made up abut 73% of all Canadian aluminum imports -- including value-added products -- in the first half of the year, according to U.S. Census Bureau data.A spokesperson from Deputy Prime Minister Chrystia Freeland’s office didn’t respond to a request for comment. Canadian trade and business groups panned the move.“Tariffs were the wrong instrument when they were first imposed in 2018, and they remain the wrong instrument now,” the Canadian Chamber of Commerce said. “At a time when our economies are struggling with the economic fallout of Covid-19, these tariffs will only exacerbate disruptions to North American supply chains.”Raising Costs“Re-imposing tariffs only raises costs for U.S. consumers and businesses in the middle of economic recovery efforts,” the Aluminium Association of Canada said in a statement. “Since there is no surge in aluminium exports from Canada to the U.S., all options for retaliation should be considered by Canada.”Alcoa, the biggest U.S. aluminum producer, which has some smelters in Canada, said in an emailed statement it was “disappointed” that the U.S. decided to reimpose the tariffs.“We are working with our U.S. customers to minimize any negative impacts to the integrated supply of aluminium in North America,” a Rio Tinto Plc spokesperson said in an email, adding that the tariffs undermine “market confidence in secure supplies of aluminium in North America.”The decision was applauded by Century, a producer that had supported tariffs.“The president’s leadership helps to secure continued domestic production of this vital strategic material and level the playing field for thousands of American aluminum workers,” CEO Michael Bless said in an emailed statement.In July, Canadian Ambassador Kirsten Hillman said that the U.S. should be “patient” about determining whether to impose the tariffs, saying the increase in the production of raw aluminum is temporary because producers shifted from value-added products amid a drop in demand during the pandemic.Aluminum traded on the London Metal Exchange, the global benchmark for prices, is down almost 2% this year as demand evaporated due to lockdowns put in place to stem the global pandemic. This sent shockwaves through the industry, pummeling aluminum producers not only in the U.S., but from Canada to Russia to China and the Middle East.Despite the downturn, China is on track to increase its aluminum output in 2020, according to Bloomberg Intelligence. The world’s largest producer and consumer of the metal could boost domestic output by 3% as some producers closed down old facilities to build new plants that are more efficient and lower cost. This also comes as demand has recovered from the virus outbreak since April.“Tariffs do not address the issue of Chinese overcapacity, which is the fundamental issue challenging primary aluminum production,” Alcoa said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
06 Aug, 2020
Is (RIO) Outperforming Other Basic Materials Stocks This Year?
05 Aug, 2020
Asia futures were mixed on Wednesday and gold traded mixed, after U.S. and European equities gained overnight on strong earnings results. Hong Kong futures were 0.01% lower, while Nikkei futures were trading slightly above the Nikkei 225 index's previous close and Australian shares were set to track Wall Street higher. "Low rates of interest just increase the attractiveness of real assets," David de Garis, director of economics at National Australia Bank, said on the bank's morning podcast.
Gold pushed further past $2,000 an ounce on Wednesday in the face of a weak dollar and expectations of more stimulus measures for the pandemic-ravaged global economy, while stocks in Europe and on Wall Street rallied on encouraging corporate earnings. Oil prices rose to their highest since early March on a big drop in U.S. crude inventories and on the weak dollar, which was pushed lower by data showing euro zone business activity returned to modest growth in July. Gold set a new record after scaling $2,000 for the first time on Tuesday, as investors seek a store of value on fears government stimulus in response to the pandemic will trigger inflation, devalue other assets and keep bond yields low.
Mining companies need more skilled engineers if they are to meet strict new global safety standards for tailings dams aimed at preventing catastrophic failures like those in recent years that have killed hundreds of people and inundated nearby communities with mine waste. Experts said miners had not placed as much importance on tailings management, with little prestige attached to the unglamorous work of trekking to remote mine waste dams where engineers analyze the consistency of the slurry and verify the integrity of the structure. In Brazil, more than 250 people died in 2019 when the Vale SA's Brumadinho upstream tailings dam collapsed, flooding the nearby community with mine waste.
04 Aug, 2020
Rio Tinto today reiterated its determination to ensure that the destruction of heritage sites of exceptional archaeological and cultural significance, such as the Juukan rockshelters, never occurs again.
03 Aug, 2020
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
31 Jul, 2020
Pfizer tops the list Continue reading...
Australian miners Rio Tinto and Fortescue post record iron ore shipments as China industrial recovery continues
Australian mining giants Rio Tinto and Fortescue Metals Group have joined BHP Group in reporting record shipments of iron ore, the bulk of it to China, as an infrastructure and property construction boom in the world's second largest economy drives a rebound in steel production.The companies have reported record earnings on the back of the iron ore shipments, even though exports of other minerals like aluminium and copper remain in the doldrums as the coronavirus pandemic saps global demand.Australia's record iron ore exports to China, combined with a surge in shipments of coking and thermal coal, indicate trade in the key industrial ingredients has not suffered because of a diplomatic spat between the two countries.Rio Tinto reported on Thursday its iron ore shipments to China in the first half of the year rose 3 per cent compared to the same period a year-earlier.This pushed earnings up 2 per cent and allowed the Anglo-Australian miner to promise a US$2.5 billion dividend payout for shareholders.Announcing its fourth quarter fiscal results, Fortescue projected that iron ore shipments to China would rise 6 per cent to 178 million tonnes for the full financial year ended in June, exceeding its target of 177 million tonnes. Full-year results will be announced in a few weeks.The miner said exports were buoyed by strong Chinese steel production of 499 million tonnes in the first six months of the year, 1.4 per cent higher than the same period last year.Rio Tinto chief executive Jean-Sebastien Jacques said China had effectively absorbed the additional iron ore diverted from weaker steel markets in Europe and Asia."The main market for our high-quality iron ore is China, which compared to the broader global economy has recovered exceedingly well," Jacques said while announcing company results on Wednesday."China's steel production and demand for iron ore in 2019 was strong and this has continued despite disruptions in the first quarter."In 2020, [China's] crude steel production has again exceeded the 1 billion tonne annualised run rate and June production was a new all-time high record."Steel markets in Europe, the United States, Japan, South Korea and Taiwan were still weak, Rio Tinto said.BHP also said last week it had met production targets for iron ore, thanks to China's economic recovery."In China, blast furnace utilisation rates have increased from around 80 per cent earlier in February 2020 to above 90 per cent in June 2020," BHP said in its financial year review."We continue to believe that if China can avoid a second wave of Covid-19, steel and pig iron production can both rise in the 2020 calendar year versus the prior year."Rio Tinto said Australia's contract-based iron ore shipments were strong, despite impacts from the coronavirus outbreak, allowing it to outperform other major miners such as Vale in Brazil, which has suffered from production restrictions and delays.But Vale, which has recently suffered setbacks including the Brumadinho dam collapse at its Corrego do Feijao mine, also saw profit recover in the second quarter thanks to higher iron ore prices. It said on Wednesday it would pay dividends that have been suspended since the dam accident last January.The continued demand for iron ore in China means Rio Tinto is committed to developing new iron ore projects at Simandou blocks 3 and 4 in Guinea, along with Chinese partner Chinalco Mining and the country's government.The diversified miner said it had drawn up plans to commission China-based design institutes to update and re-engineer the infrastructure of the project, which was approved in 2010."The Chinese are pretty active and they want to see a pathway to develop the two blocks," Jacques said.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
30 Jul, 2020
Rio Tinto has approved an additional investment of almost $200 million to progress the next stage of the development of the lithium-borate Jadar project in Serbia. This will primarily fund the feasibility study, including the completion of detailed engineering designs, as well as permitting and land acquisition by the end of 2021, in line with the initial project schedule.
29 Jul, 2020
RIO earnings call for the period ending June 30, 2020.
Every investor in Rio Tinto Group (LON:RIO) should be aware of the most powerful shareholder groups. Institutions will...
(Bloomberg Opinion) -- The world’s second-largest miner is proving pandemic-resistant.Rio Tinto Group’s latest results show earnings dipped only modestly as iron ore offset tarnished base metals. The steel ingredient’s long-term future looks distinctly rusty, but that’s not yet reality in 2020. Stubbornly high prices have again helped sate investors with dividends in a climate of sub-zero yields, meaning boss Jean-Sebastien Jacques is under little pressure to change tack. Until the global economy recovers, Rio will remain a near-perfect bond proxy.First-half underlying earnings came in at $4.75 billion, before impairments largely related to the aluminum business. That’s down 4% from a year earlier but above market expectations, thanks to top-earner iron ore, which cushioned the impact of worse performances in copper, aluminium and diamonds. Even compared to 2019, when it surged after Brazilian miner Vale SA’s fatal dam collapse, iron ore has shone this year — this time thanks to coronavirus-linked closures and other disruptions. The 72% margin at Rio's Pilbara — based on earnings before interest, tax, depreciation and amortization — and an average realized price of $85.4 per dry metric ton bode well for peers including Vale, reporting later Wednesday, not least as the current market price is now a quarter above that.Jacques’ team presented broadly what investors have come to expect from mining majors: relatively pedestrian production, decent free cash flow — even if a drop to $2.8 billion will disappoint some — and modest debt, with a net gearing ratio of just 10%. Plus, of course, a respectable payout. After all, miners are still building up their reputations as good custodians of shareholder cash.The trouble is just how much of this picture depends on iron ore — for this six-month period, the division accounted for roughly 80% of group Ebitda and well over 90% of earnings. That’s great news for the digger’s profits today, but less so for tomorrow’s prospects. Appetite is set to eventually ease along with China’s latest infrastructure splurge, and steel demand will cool. Supply looks plentiful, thanks to projects like Rio’s own problematic but alluring Simandou in Guinea. As Jacques said Wednesday, there is no question that mega-mine will eventually get built.Still, future problems look a lot less pressing when you’re the world’s top producer and iron ore is trading at over $100 per ton. Anglo American Plc’s South African iron ore business has pointed to a price level closer to $90 for the second half — hardly a headache for Rio, with cash costs at $14.5 per ton. In a volatile world of second-wave outbreaks and rock-bottom borrowing costs, investors are less anxious about growth than they are about stability and yield.On that front, Rio continues to deliver. There was no one-time splurge, but Rio still promised $2.5 billion of interim dividends, bringing what shareholders have received in cash returns since 2016 to $38 billion. Even with spending ticking higher, it’s hard to see that shifting. Deals are expensive, too: The balance sheets of long-mooted copper targets like Freeport-McMoRan Inc. and First Quantum Minerals Ltd. are looking healthier than they have in some time, making them harder prey.Super-generous returns are ultimately hard to sustain for a company that digs stuff for a living, especially one that should be doing far more to edge toward a greener, carbon-light economy. And there were welcome glimmers of growth, not least from higher spending and Rio’s exploration work in the Australian outback, where copper and gold finds could boost output and prove the sort of progressive investment that is likely to be welcomed.Corporate heavyweights change slowly. The truth, though, is that iron ore is simply working too well for now, for both Rio and dividend-hungry investors. Until they begin to demand more production, the global economy recovers, and inflation moves higher, there just isn’t a lot of incentive to shift away from austerity and splurge on risky growth. As in past cycles, it will eventually happen. Jacques just needs to call the turn before his rivals.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Rio Tinto Group is accelerating work toward potential development of the giant Simandou iron ore project in Guinea, as half-year earnings showed the steel-making ingredient dominated the second-biggest miner’s profits.There’s been a longstanding question mark over Rio’s stake in the massive African deposit. For years, a cast of owners including Israeli billionaire Beny Steinmetz and authorities in the West African nation fought over rights to develop Simandou. Even with those disputes now settled, Rio must decide whether it’s prepared to spend the large amounts needed to extract and transport the super-rich ore from its part of the project.New studies with Rio’s Chinese partners are aimed at cutting the capital intensity, operating costs and development timetable, with some fieldwork to start this half, the London-based miner said Wednesday in an earnings statement. Meanwhile, the Guinean-led and Chinese backed consortium with rights to the other half of the project could be producing within five years.“Under all scenarios Simandou will be developed, with or without Rio Tinto,” Chief Executive Officer Jean-Sebastien Jacques said in an interview Wednesday. “There is a huge incentive for the Chinese to make it happen now.”Read: Rio Rewards Keep Flowing on Iron Ore Even as Virus Hits ProfitAfter years of being largely forgotten by the mining world, Simandou snapped back into the spotlight last year when Steinmetz ended a seven-year dispute with Guinea’s government that saw him relinquish claims on half of the mine.The project’s reemergence could have big implications for the iron ore market. Half of the deposit could deliver more than 100 million tons a year of the highest-quality ore, which is increasingly in demand in China. China’s State-owned Assets Supervision and Administration Commission, which oversees the biggest government-owned enterprises, is actively pushing forward with the project, people familiar with the situation said earlier this year.Simandou is divided into four blocks, with 1 and 2 controlled by the consortium backed by Chinese and Singaporean companies, while Rio Tinto and Aluminum Corp. of China, known as Chinalco, own blocks 3 and 4.The renewed interest from China, as well as new owners for the half not controlled by Rio, means the company will consider options including joint development of the sites or their infrastructure.“We will look at all options because it is an infrastructure project and scale is important,” Jacques said. “I think it’s important for people to understand what would be the benefits of putting together 1, 2, 3 and 4.”Rio, which has surpassed Brazil’s Vale SA as the top supplier of iron ore, could generate an additional $1 billion in annual revenue by replacing some lower-grade exports from Australia with better-quality material from Guinea, Goldman Sachs Group Inc. analysts including Paul Young wrote in a July 23 note.Forming a joint venture between two separate projects at the vast site could also cut total capital expenditure by as much as $7 billion, through the sharing of costs for rail, port and power infrastructure, the Goldman analysts said.(Updates with details throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.