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Australian Investment Blog

ASX:RIO 16/07/2019

Rio Tinto raises cost guidance

Stock Rio Tinto (RIO) $103.88 as at 16/07/2019 Event Rio is trading slightly lower today, but it is significantly lagging the other iron ore stocks in the index on the back of a soft quarterly production report from the miner. Production was hindered over the quarter on weather issues which forced Rio to downgrade production guidance twice, however the strength in the iron ore price has been more than enough to support the stock over the period. In today’s announcement, Rio looks on track to meet the updated guidance targets from a production standpoint, however the company was forced to increase cost guidance at their main iron ore operations in the Pilbara by $1/t. Also unsettling investors was the commentary around the copper projects. Rio had a softer quarter on the copper front, with volumes reasonable but at a lower grade. The company also flagged some risks to capital needs at the Mongolia underground mine Oyu Tolgoi, which may need an additional $2bn above what has been provisioned. Production is set to achieved here between May 2022 and June 2023. Rio Tinto (RIO) Chart RIO Tinto Daily Chart Market Matters Take/Outlook

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