{"id":1478,"date":"2023-02-03T12:09:33","date_gmt":"2023-02-03T12:09:33","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1478"},"modified":"2023-02-03T12:09:33","modified_gmt":"2023-02-03T12:09:33","slug":"rio-tinto-buoyed-by-strong-commodities","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/03\/rio-tinto-buoyed-by-strong-commodities\/","title":{"rendered":"Rio Tinto&#8217;s Strategic Moves: The Key to Profitable Commodity Production"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1478\" class=\"elementor elementor-1478\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a8dd573 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a8dd573\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6e218723\" data-id=\"6e218723\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-45eb5627 elementor-widget elementor-widget-text-editor\" data-id=\"45eb5627\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The 2023 production guidance, announced in mid-January alongside Rio Tinto&#8217;s <a href=\"https:\/\/www.businesswire.com\/news\/home\/20230116005422\/en\/Rio-Tinto-releases-fourth-quarter-production-results\">fourth-quarter output figures<\/a>, shows the increased output for iron ore, copper, and alumina\/bauxite. And the business is moving rapidly to construct a lithium test plant at the Rincon mine in Argentina, which it purchased last year \u2013 a critical step for Rio Tinto&#8217;s future.<\/p><p>I anticipate lithium will play a larger role in the company&#8217;s future. <a href=\"https:\/\/finance.yahoo.com\/news\/ford-rio-tinto-sign-mou-113000185.html#:~:text=DEARBORN%2C%20Mich.,be%20used%20in%20Ford%20vehicles.\">Rio Tinto reached an agreement with Ford<\/a> in 2022 that might lead to the carmaker becoming a key customer for the miner&#8217;s Argentine lithium supply.<\/p><p>Rio Tinto is already a remarkable firm, divided into four divisions: iron ore (65% of first-half 2022 EBITDA), aluminum (18%), copper (9%), and minerals (8%). Minerals include salt, borates, mineral sands, and diamonds.<\/p><p>The company&#8217;s fantastic fourth-quarter earnings and improved forecast greatly impressed me. <br \/><br \/>Rio Tinto&#8217;s iron ore production of 89.5 million tons equates to a yearly production of over 350 million tons. The forecast for 2021 was 320 million to 335 million tons. <br \/><br \/>The corporation maintained its cost projection for 2022, and more exact figures will be provided next month. Iron ore guidance is likely to be raised at that time.<\/p><p>Rio Tinto increased its copper forecast for 2023 to between 650,000 and 710,000 tons after purchasing the minority shareholders in the Oyu Tolgoi holding firm Turquoise Hill Resources for $3 billion. <br \/><br \/>Rio Tinto produced 521,000 tons of copper last year.<\/p><p>For those who are unfamiliar with Oyu Tolgoi, it is a copper and gold deposit located in Mongolia&#8217;s South Gobi region. <br \/><br \/>It is one of the world&#8217;s largest known copper and gold resources. Oyu Tolgoi is planned to generate 500,000 tons of copper per year at full capacity.<\/p><p>The anticipated full<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-31\/china-s-economic-activity-rebounds-sharply-after-reopening\"> reopening of China&#8217;s economy<\/a> following several years of coronavirus pandemic-related lockdowns will significantly increase demand for what Rio Tinto and other miners produce. In 2021, China will account for almost 60% of Rio&#8217;s sales.<\/p><p>Rio Tinto also has a significant portfolio of assets with extended lives and low operating costs. That makes it one of the few miners capable of remaining profitable throughout the commodity cycle. <br \/><br \/>The majority of its ore comes from operations in the safe havens of Australia and North America.<\/p><p>Rio Tinto pays a regular dividend twice a year, in April and September, as well as a special payout on occasion. <br \/><br \/>The payout ratio targeted by management is 40% to 60% of underlying earnings.<\/p><p>The 2018 dividend was $4.08, consisting of $3.08 from the regular dividend and $1.00 from the special dividend. <br \/><br \/>The 2019 dividend was $4.43, which included a $3.82 regular dividend and a $0.61 special dividend. It paid a regular dividend of $4.64 and a special dividend of $0.93 in 2020. It paid total dividends of $13.49 per share in 2021.<\/p><p>Dividends are expected to be $8.00 in both 2022 and 2023. With China reopening, commodities prices are expected to rise in 2023. Rio and other miners will benefit from this.<\/p><p>I believe the dividend will be closer to $10.00 per share in 2023. Even if it is $8.00, the dividend yield would be greater than 10% based on the present stock price. <br \/><br \/>Rio Tinto is a good buy in the $70s per share range.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1675505237173000&amp;usg=AOvVaw2_HHSlu2x_QkY8rcLyOnTi\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The 2023 production guidance, announced in mid-January alongside Rio Tinto&#8217;s fourth-quarter output figures, shows the increased output for iron ore, copper, and alumina\/bauxite. And the business is moving rapidly to construct a lithium test plant at the Rincon mine in Argentina, which it purchased last year \u2013 a critical step for Rio Tinto&#8217;s future. I&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[138,365,404,508],"class_list":["post-1478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-commodities","tag-lithium","tag-mining","tag-rio-tinto"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1478"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1484"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}