RIO -0.35%: out with their December Quarter and full year production numbers today which managed to largely meet expectations, if not on the weak side. Iron ore production fell 3% in the year, in line with expectations but it did include a larger portion of lower grade product which weighed on price realisation. It was a challenging year for iron ore with weather, cultural heritage headwinds and delays to growth projects all contributing to a soft result. These issues are expected to continue into 2022 with guidance of flat to marginal growth in iron ore production. The copper result read a little easier. Production fell as expected given the reduced capacity at the flagship Escondida mine due to COVID impacts largely offset by improved pricing. Strikes and weather impacted bauxite and aluminium production however this was well flagged.
MM is neutral RIO
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