Core Viewpoint - Rio Tinto's fiscal 2024 results showed declines in revenues, EBITDA, and earnings per share, primarily due to lower iron ore prices, despite some offset from higher prices in other commodities [1][5][6]. Financial Performance - Total revenues for fiscal 2024 decreased by 1% to $53.7 billion, driven by a 9% decline in iron ore segment revenues to $29.3 billion [5][6]. - Underlying EBITDA fell by 2% to $23.3 billion, while underlying earnings per share dropped by 8% to $6.70 [6][14]. - Iron ore production was 328 million tons (Mt), down 1% year-over-year, with shipments also declining by 1% to 328.6 Mt [5][6]. Commodity Performance - Aluminum production increased by 1% to 3.3 million tons, with revenues rising 11% year-over-year to $13.7 billion [6]. - Copper segment revenues surged by 39% year-over-year to $9.3 billion, supported by an 8% increase in copper prices and a 13% rise in production to 697 thousand tons [6][7]. Production Guidance - For 2025, Rio Tinto expects Pilbara iron ore shipments to range between 323-338 Mt, indicating a potential decline of 2% to growth of 3% [8]. - Bauxite production is projected between 57-59 Mt, while alumina production is anticipated to be between 7.4 Mt and 7.8 Mt [9]. - Copper production is expected to be in the range of 780-850 thousand tons for 2025 [10]. Earnings Estimates - The consensus estimate for Rio Tinto's 2025 revenues is $52 billion, reflecting a 3.7% year-over-year decline, while earnings are expected to drop by 6.3% to $6.28 per share [13][14]. - Earnings have been on a downward trend since 2022, with 2024 figures falling below the five-year average [14]. Market Performance - Over the past year, Rio Tinto shares have declined by 4%, compared to a 5.9% drop in the industry and a 19.1% rise in the S&P 500 [16]. - Iron ore prices have decreased by 10% over the year due to weak demand in China, although recent market optimism has seen prices recover to $107 per ton [17]. Long-Term Strategy - Rio Tinto maintains a robust portfolio of projects across 18 countries, focusing on growth in iron ore and copper [19]. - The company plans to invest $10 billion annually in capital expenditures, including $2.5 billion for expanding the Rincon lithium project in Argentina [23][22]. Valuation - Rio Tinto is currently trading at a forward price-to-earnings multiple of 9.90, which is lower than the industry average of 13.26 and below competitors like BHP Group and Freeport-McMoRan [25].

Core Viewpoint - The price of Rio Tinto (NYSE: RIO) has decreased by 10% since November of the previous year, which was anticipated given market conditions [1]. Group 1 - The article discusses the performance of Rio Tinto, highlighting a significant decline in its stock price [1]. - The author, Manika, is a macroeconomist with over 20 years of experience in various industries, including investment management and investment banking [1]. - Manika runs a profile called Long Term Tips (LTT), focusing on opportunities in the green economy, and leads an investing group named Green Growth Giants that explores deeper investment opportunities in this sector [1].

Financial Performance - Rio Tinto reported a total revenue of $63.5 billion for the fiscal year ended December 31, 2024, representing a 10% increase compared to the previous year[6]. - The company achieved an underlying EBITDA of $30.2 billion, which is a 12% increase year-over-year, driven by higher production volumes and improved pricing[6]. - The company reported a net profit of $12.5 billion, reflecting a 15% increase compared to the previous fiscal year[6]. - Consolidated sales revenue for 2024 was $53.7 billion, a slight decrease from $54.0 billion in 2023[40]. - Profit after tax attributable to owners of Rio Tinto rose to $11.6 billion in 2024, up from $10.1 billion in 2023[38]. - Underlying earnings for 2024 were $10.9 billion, a decrease of 8% compared to $11.8 billion in 2023[180]. - Free cash flow decreased by $2.1 billion to $5.6 billion in 2024, primarily due to increased capital expenditure on major growth projects[150]. - Free cash flow decreased by 27% to $5.6 billion from $7.7 billion in 2023[186]. - Net cash generated from operating activities increased to $15.6 billion in 2024, compared to $15.2 billion in 2023[38]. - Net debt increased by $1.3 billion to $5.5 billion, largely due to free cash flow of $5.6 billion offset by dividends of $7.0 billion[160]. Revenue Segmentation - Iron Ore segment revenue was $36.5 billion, accounting for approximately 57% of total revenue, with a production increase of 5% to 330 million tons[6]. - Aluminium revenue reached $14.2 billion, up 8% from the previous year, supported by strong demand and higher prices[6]. - The company reported a 1% production growth and a 3% increase in sales volumes on a copper equivalent basis in 2024[102]. - Total copper equivalent production increased by more than 1% over 2023, reflecting the ramp-up of the Oyu Tolgoi underground copper mine[177]. Capital Expenditure and Investment - The company has set a capital expenditure budget of $7 billion for 2025, focusing on expanding its existing operations and developing new projects[6]. - Capital investment rose to $9.5 billion, driven by projects like Western Range and the Simandou iron ore project[179]. - The company plans to invest $1.5 billion in new technology initiatives aimed at reducing carbon emissions by 30% by 2030[6]. - Investment in research and development increased by C%, focusing on innovative technologies and sustainable practices[16]. Strategic Initiatives and Future Outlook - Future guidance indicates expected production growth of 3-5% across all segments for 2025, with a focus on operational efficiency[6]. - Rio Tinto is actively pursuing strategic acquisitions to enhance its mineral portfolio, with a focus on copper and lithium assets[6]. - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of B% driven by new product launches and market expansion strategies[15]. - The company aims to stabilize assets such as the Iron Ore Company of Canada and Kennecott to unlock value[60]. - The company is focused on expanding its lithium business and has proposed the acquisition of Arcadium to enhance its portfolio[44]. Environmental, Social, and Governance (ESG) Commitments - The board emphasized a commitment to ESG initiatives, with a budget allocation of J million for sustainability projects in the upcoming year[15]. - The company aims to reduce emissions by 50% by 2030 and achieve net zero by 2050, with a roadmap developed to support these targets[49]. - The company is committed to reducing emissions and has made investments expected to deliver abatement of around 3.6 Mt per year through renewable energy and biofuels[172]. - The company is focusing on impeccable ESG and social license, with projects aimed at reducing emissions while retaining value[62]. - The company is targeting to co-manage cultural heritage with communities by 2027[91]. Workforce and Community Engagement - The workforce included 25.2% women in 2024, an increase from 24.3% in 2023[38]. - There was a 27.7% increase in spending with Indigenous businesses in Australia, reaching A$926 million in 2024, up from A$725 million in 2023[97]. - The employee satisfaction rating (eSAT) remained stable at 74 points in Q4 2024, consistent with Q4 2023[96]. Operational Efficiency and Cost Management - The company has set a goal to reduce operational costs by G% through efficiency improvements and technology integration[19]. - The company remains focused on generating free cash flow while investing in long-term growth and addressing operational challenges[136]. - The company achieved consistent iron ore production in the Pilbara and reached nameplate capacity at the Amrun bauxite mine in 2024[59]. - Production at the Oyu Tolgoi copper mine is expected to grow by more than 50% in 2025[58]. - The company is on track for first production at the Simandou mine gate in 2025[58]. Safety and Health Metrics - The all-injury frequency rate remained stable at 0.37 in 2024, consistent with 2023[38]. - The company achieved a total of 5 million tonnes in its Safe Production System (SPS) target at Pilbara iron ore operations[102]. - The company reported a consistent all-injury frequency rate (AIFR) of 0.37 in both 2023 and 2024[106].

Core Viewpoint - Rio2 Limited has officially commenced construction of the Fenix Gold Mine in the Maricunga Gold Belt, marking a significant milestone for the company and the region [1][3]. Company Overview - Rio2 Limited is focused on developing and operating mining projects, particularly the Fenix Gold Project in Chile, with a commitment to high environmental standards and responsible development [6]. Project Details - The Fenix Gold Project is one of the largest undeveloped gold oxide heap leach projects in the Americas, with a Measured and Indicated mineral resource of 4.8 million ounces of gold [5]. - The total investment for the project is approximately USD 235 million, which includes both initial and sustaining capital [5]. - The construction phase is expected to create employment for at least 1,200 people, while the operational phase will employ around 550 individuals over 17 years [5]. Financial Aspects - The projected construction capital expenditure (capex) for 2025 is estimated at USD 122 million, excluding refundable Chilean VAT tax [3]. - Construction is anticipated to be completed by November 2025, with first gold production expected in January 2026 [3]. Community and Environmental Impact - The project has been designed with a focus on technical, environmental, and social considerations, aiming to minimize its overall impact and footprint [5]. - The mining operation will utilize a run-of-mine heap leach method, eliminating the need for crushing or tailings storage facilities [5].

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 ...