Why Rio Tinto Shares Are Diving Today?

Author: Lekha Gupta | July 16, 2024 11:34am

Rio Tinto Group (NYSE:RIO) shares are trading lower today after the company disclosed second-quarter production results.

The company reported production of 79.5 million tonnes (67.5 million tonnes for Rio Tinto), a decrease of 2% Y/Y, attributed to a mid-May train collision that disrupted rail capacity for about six days and led to full stockpiles at some mines.

Bauxite production increased to 14.7 million tonnes, up 9% from last year, driven by improved utilization and feed rates at Weipa, aligning with the company’s full-year guidance to the upper end of 53 to 56 million tonnes.

Outlook: Rio Tinto reiterated outlook for production at Pilbara Iron ore of 323 to 338 million tonnes.

Rio Tinto Chief Executive Jakob Stausholm said: “Our operational performance continues to progress. While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business following the roll-out of the Safe Production System.”

Read: Rio Tinto Scrambles to Avoid Repeat Strike at Mongolian Mine: Report

“We continue to prioritise the decarbonisation of our business, announcing the installation of carbon free aluminium smelting cells using ELYSIS technology at our Arvida smelter in Quebec and an investment in a R&D facility to test our low-carbon ironmaking process, BioIron, in Western Australia. We also signed 20-year electricity arrangements backed by renewable electricity to secure the future of the Tiwai Point aluminium smelter in New Zealand.”

Also Read: Australia’s Ngarluma Country Shines Bright: Solar Project Aims to Slash Rio Tinto’s CO2 Footprint

Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE:EV).

Price Action: RIO shares are down 2.4% at $65.92 at the last check Tuesday.

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Posted In: EV RIO SLX