Although Rio’s H1 results were ahead of the street’s expectations, the performance moderation – due to falling iron ore prices – was evident. Fortunately, Aluminium and Minerals provided a useful cushion. While prices are expected to remain volatile/weaken further, the very-high dependence on high-margin (>50%) iron ore and favourable dynamics in aluminium imply that the firm remains well-positioned to withstand the on-going challenges. Add to this the copper exposure ‘differentiation’ vs. peers ....
28 Jul 2022
Iron ore-induced H1 moderation; but attractiveness remains intact
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Iron ore-induced H1 moderation; but attractiveness remains intact
Rio Tinto plc (RIO:LON) | 5,030 2565.3 1.0% | Mkt Cap: 63,001m
- Published:
28 Jul 2022 -
Author:
Varun Sikka -
Pages:
4
Although Rio’s H1 results were ahead of the street’s expectations, the performance moderation – due to falling iron ore prices – was evident. Fortunately, Aluminium and Minerals provided a useful cushion. While prices are expected to remain volatile/weaken further, the very-high dependence on high-margin (>50%) iron ore and favourable dynamics in aluminium imply that the firm remains well-positioned to withstand the on-going challenges. Add to this the copper exposure ‘differentiation’ vs. peers ....