Rio Tinto sinks to bottom of the FTSE 100 as output misses estimates
Rio Tinto tumbled yesterday, as the miner's second quarter production results came in below expectations.
Rio continued to feed the global glut of iron ore, as production in Australia swelled eight per cent annually to 80.9m metric tonnes in the second quarter. Meanwhile, the group's global copper output rose five per cent to 141,000 tonnes.
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Both came in below analysts' expectations, helping Rio's shares close down 3.47 per cent to 2,377p per share this afternoon.
But its aluminium arm beat forecasts, as output swelled 11 per cent to 911,000 tonnes during this period. Thermal coal also surprised to the upside, as production rose two per cent to 5,216,000 tonnes.
Canaccord Genuity said in a note that this was a "mixed performance" which was likely to negatively impact its forecasts.
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"We continue to focus on value and maximising cash flow from our assets, through both commercial and operational excellence while maintaining capital discipline," J-S Jacques, chief executive of Rio Tinto, said.
"This will ensure that Rio Tinto is well-positioned to generate compelling and consistent returns for our shareholders."