Rio Tinto share price falls despite record iron ore exports
The Rio Tinto Ltd (ASX: RIO) share price is in the red amid the mining giant announcing record first-quarter iron ore shipments. The S&P/ASX 200 Index (ASX: XJO) company’s Pilbara iron ore business shipped 82.5 million tonnes of the steel-making material in the March quarter – a 16% jump on the prior comparable period.
The Rio Tinto share price is down 1.75% in early trade on Thursday, with stock in the miner swapping hands for $121.04 a share. Rio Tinto share price drops on record first-quarter iron ore exports
Here are the key takeaways from the miner’s quarterly production report:
Its Pilbara iron ore business produced 79.3 million tonnes and shipped 82.5 million tonnes – marking respective jumps of 11% and 16%.
Its aluminium and titanium dioxide slag production lifted 7% and 4% to 785 kilotons and 285 kilotons respectively
Finally, its mined copper production was flat at 145 kilotons
Production at the company’s Kennecott copper operation dropped 36% due to record snowfall and the failure of a conveyor belt, while its Escondida and Oyu Tolgoi operations saw their copper production jump 6% and 41% respectively.
Rio Tinto spent US$310 million pre-tax on exploration and evaluation last quarter – up from $168 million in the prior period.
What else happened last quarter?
Commodity prices generally strengthened last quarter amid a resilient global economy, the company notes.
Iron ore prices increased 8% over the period, lifting to an average monthly price of US$125 per dry metric tonne – up 27% on that of the final quarter of last year.
Meanwhile, the aluminium price slipped 1% over the quarter to an average of US$2,395 a tonne (up 3% quarter-on-quarter) and the copper price rose 7% to US$4.05 a pound.
Rio Tinto also entered a joint venture to kick start the development of its La Granja copper project and delivered the first sustainable production from the underground mine at Oyu Tolgoi during the period.
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