Rio Tinto Released Q4 Production Results
Portfolio Pulse from Charles Gross
Rio Tinto (RIO) reported a 3% increase in total copper equivalent production in Q4 2023, driven by the Gudai-Darri mine reaching capacity and increased ownership in Oyu Tolgoi. Iron ore production rose 2%, and aluminium production increased 9% with the Kitimat smelter at full capacity. The company formed the Matalco JV, acquired a 50% stake for $0.7 billion, and completed the acquisition of PanAmerican Silver's stake in Agua de la Falda. Challenges included a 16% drop in refined copper production and a 7% decrease in TiO2 production. Rio Tinto settled an SEC suit for $28 million and sold the Lake MacLeod operation for $251 million.
January 15, 2024 | 9:41 pm
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POSITIVE IMPACT
Rio Tinto reported increased production in copper, iron ore, and aluminium, formed a joint venture, and settled an SEC suit. The company also sold its Lake MacLeod operation.
The positive production results and strategic moves such as the formation of the Matalco JV and the sale of the Lake MacLeod operation are likely to be viewed favorably by investors. The settlement of the SEC suit removes a legal overhang, which is also positive. However, challenges in refined copper and TiO2 production could temper the impact.
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