Stock Spotlight: Rio Tinto Group (ASX:RIO)
This week's Stock Spotlight is ASX-listed Rio Tinto Group.
About Rio Tinto Group.
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.

Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance, ASX. Data as of 09/08/24.
Price Performance

Growth Potential
- One of the largest miners in the world with a competitive cost structure.
- Tier 1 assets globally, which are difficult to replicate.
- Highly cash generative assets with attractive free cash flow profile.
- Iron ore prices are now trading around or below the global marginal cost of supply.
- Shareholders return focused - ongoing capital management initiatives.
- Commodities price surprises on the upside (potential China stimulus the moderating economy or new growth in demand emerges from countries such as India).
- Strong balance sheet position.
- Electrification and light-weighting trends in the automobile industry provide long-term growth runway for aluminium demand.
Key Risks
- Further deterioration in global macroeconomic conditions.
- Deterioration in global iron ore/aluminium supply & demand equation.
- Production delay or unscheduled site shutdown.
- Natural disasters such as Tropical Cyclone Veronica.
- Unfavourable movements in AUD/USD.
- Company not achieving its productivity gain targets.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.





