Rio Tinto: Mixed quarter but steadier where it counts

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

21 July 2023, 8:00 AM

Sectors Covered:

Mining, Energy

• Rio Tinto (ASX:RIO) had a softer quarter on balance, 2Q’CY23 Pilbara shipments fell just short of consensus, RIO downgraded refined copper, bauxite and IOC production guidance, downgraded copper cost guidance.
• The positive was RIO now expecting CY23 Pilbara iron ore production in the upper half of 320-335mt guidance.
• RIO conceded that with multiple downgrades across three segments it still has more to do with its global productivity program to sustainably lift output. But understandably investors were encouraged by the steadier outlook for the Pilbara.
• A quality miner with lower but still healthy earnings. Trading in-line with our unchanged (login to view) Target Price we maintain our Hold rating.

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