| Rio Reports Solid Q4 Operational Results on Higher Efficiency | |
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Premium basic materials company Rio Tinto plc RIO reported sound fourth-quarter 2015 production results. Barring mined copper and titanium dioxide slag, output volumes of all other major products such as iron ore, bauxite, aluminum, hard coking coal and thermal coal exceeded the respective year-ago values. Encouraging results came on the back of Rio Tinto’s greater efficiency in all business processes. However, the company’s share price declined 2.7% in spite of the declaration of robust results on Jan 19, 2016, mainly due to persistent headwinds in the contemporary mining industry.
During the fourth quarter of 2015, the company’s gross iron ore production was 91.3 million tons (Mt), up 10% year over year. The year-over-year improvement was driven by accomplishment of brownfield developments, stronger trade from the Iron Ore Company of Canada and extended infrastructure in the Pilbara.
Aggregate output of bauxite was 11,211 kilo tons (Kt) and that of aluminum was 864 Kt, both up 4% year over year. The bauxite volume rose due to greater third-party shipments, while aluminum productivity increased on account of record output produced by 9 major smelters of the company.
Production of hard coking coal was 1,900 Kt, up 16% year over year. The output of thermal and semi-soft coal was 5,979 Kt, also up 9% year over year.
However, in fourth-quarter 2015, productivity of titanium dioxide slag dropped 30% year over year to 223 Kt. According to management, the production was purposely lowered in order to match the product’s market demand.
Also, mined copper productivity for the quarter was 111.1 Kt, down 13% year over year due to dewatering activities conducted in Kennecott.
Despite the unfavorable pricing environment, Rio Tinto aims to expand its margins as well as increase shareholders’ value in the near future, backed by its economical management system and highly productive asset base.
Stocks to Consider
Rio Tinto currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the industry include Denison Mines Corp. DNN, Platinum Group Metals Ltd. PLG and Rare Element Resources Ltd. REE. All three stocks hold a Zacks Rank #2 (Buy).
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Companhia Vale Do Rio Doce
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PRODUCER |
CODE : RIO |
ISIN : US7672041008 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Vale do Rio is a copper producing company based in . Vale do Rio produces copper, aluminum, bauxite, iron, manganese, nickel and silica in Brazil, develops coal and copper in Australia and in Brazil, and holds various exploration projects in Brazil and in Peru. Its main assets in production are ALUNORTE, URUCUM MINE, MILTONIA 3, MORRO DA MINA, TAQUARI - VASSOURAS, SOSSEGO MINE, CAPAO XAVIER, CARAJAS, ANDRADE, SAMARCO, CONCEIÇÃO, MINAS DO MIEO, AGUA LIMPIA / CURURU, GONGO SOCO, BRUCUTU, BAU, FABRICA NOVA, FAZENDAO, TIMBOPEDA, CORREGO DO FEIJAO, SEGREDO/JOAO PEREIRA, PICO/SAPECADO/GALINHEIRO, VARGEM GRANDE COMPLEX TAMANDUA, CAPITAO DO MATO, ABOBORAS, PARAOPEBA COMPLEX JANGADA, SERRA NORTE - N4W, SERRA NORTE - N4E, SERRA NORTE - N5-W, SERRA NORTE - N5E, SERRA NORTE - N5E-N, SERRA NORTE - N5S, SERRA LESTE, MILTONIA 5 and MRN (BAUXITE MINING) in Brazil, its main assets in development are BELVEDERE in Australia and SALOBO PROJECT in Brazil and its main exploration properties are SALOBO, MAR AZUL MINE, ONÇA PUMA, PROJECT 118 and VERMELHO in Brazil and CORDILLERA DE LAS MINAS in Peru. |