RIO +0.78%: Reported a mixed 1Q operational update, with Pilbara iron ore shipments missing expectations after weather disruptions, though copper output was a clear bright spot.
- Pilbara iron ore shipments: 72.4Mt vs. 76.6Mt est.
- Pilbara iron ore production: 78.8Mt, +13% y/y
- Copper production: 229kt, +9% y/y
- Bauxite production: 13.3Mt, -11% y/y
- Alumina production: 2.04Mt, +6.1% y/y
Impressively Rio posted its strongest third-quarter iron ore output since 2018 despite being impacted by two cyclones in the Pilbara during the quarter. Iron ore remains the earnings engine for now, though copper isn’t far behind.
Quarterly copper numbers were strong, with production rising 9% year-on-year as the company continues to position itself for the electrification and energy transition thematic. With copper demand expected to accelerate through grid expansion, EV adoption and AI-driven power demand, RIO’s growing exposure to the brown metal is crucial to the long-term bull case for the stock.
MM is bullish toward RIO, but we prefer BHP
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