RIO -2.72%: March quarterly production figures highlighted the miner’s weakest start to a year in a decade on the back of severe weather conditions hitting its Pilbara iron ore operations, with iron ore production and export volumes taking a hit.
- Pilbara iron ore shipments 70.7 million tons, -9.4% y/y, estimate 72.32 million
- Pilbara iron ore production 69.8 million tons, -10% y/y
Four cyclones disrupted operations over the period, preventing the shipment of a total of 13 million tonnes of iron ore; management expects to recover only about half of that lost volume. On an encouraging note – bauxite, aluminium and copper production were all higher on a quarterly basis which represents an industry-shift to diversify away from iron ore.
MM remains cautiously bullish RIO
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