RIO Tinto delivered stronger-than-expected fourth-quarter production across iron ore and copper operations, marking a positive start for new CEO Simon Trott as the company pursues merger discussions with Glencore.
The Anglo-Australian miner shipped 91.3 million tons of iron ore from Pilbara operations in the December quarter, up from 85.7Mt the previous year and exceeding analyst estimates of 88.2Mt, said Reuters in a report on Wednesday.
Consolidated copper output rose five percent to 240,000t, surpassing forecasts of 214,400t. Annual copper production climbed 11% to 883,000t, above the top end of guidance, driven by underground expansion and improved grades at Mongolia’s Oyu Tolgoi mine.
“A solid quarter, they have pretty much beat across the board in the main businesses of iron ore, copper, aluminium,” Glyn Lawcock of Barrenjoey said.
However, Lawcock said Rio’s realised iron ore prices increased just one percent sequentially compared with BHP’s two percent growth, despite BHP’s pricing challenges with Chinese buyers.
Full-year Pilbara shipments reached 326.2Mt, landing at the lower end of Rio’s 323-338Mt forecast range. The performance positions Rio Tinto closely against Brazil’s Vale, which reports on Monday, in the contest for largest global iron ore producer status, said Reuters.
Rio faces a 5 February deadline to make a formal Glencore offer or withdraw. Shares gained one percent.
