Insights

Rio Tinto (ASX:RIO) share price on watch after Q3 update & guidance downgrade

This mining giant had a difficult quarter…
The post Rio Tinto (ASX:RIO) share price on watch after Q3 update & guidance downgrade appeared first on The Motley Fool Australia. –

The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Friday.

This follows the release of the mining giant’s third quarter update this morning.

Rio Tinto share price on watch after downgrading guidance

The Rio Tinto share price could come under pressure today after it downgraded its full year guidance following a difficult quarter.

In respect to its performance, below is a summary of what happened during the third quarter:

Pilbara iron ore shipments of 83.4Mt, up 2% year on year (YoY) and 9% quarter on quarter (QoQ)
Bauxite production down 3% YoY but up 2% QoQ to 14kt
Aluminium production of 774kt, which is down 3% YoY and 5% QoQ
Mined copper came in at 125.2kt, down 3% YoY but up 8% QoQ
Titanium dioxide slag down 29% YoY and 30% QoQ to 209kt

Guidance downgraded

In light of the above, the company has downgraded its guidance for a number of key commodities.

The key one is its Pilbara iron ore shipments guidance which is now expected to be in the range of 320 to 325Mt. This compares to its previous guidance of 325 to 340Mt. This follows modest delays to the completion of the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia.

Elsewhere, its guidance for Bauxite production has been trimmed to 54 to 55Mt (from 56 to 59Mt) and its Mined Copper production guidance has been reduced to 500kt (from 500 to 550kt).

Management commentary

Rio Tinto’s Chief Executive, Jakob Stausholm, commented: “The third quarter has demonstrated the resilience of our people in dealing with ongoing COVID-19 challenges. It has been another difficult quarter operationally and despite improving versus the prior quarter, we recognise the opportunity to raise our performance. We have consequently modestly adjusted our guidance.”

“We are progressing against our four pillars and striving to make Rio Tinto even stronger, notably to become the best operator. This will ensure we continue to deliver attractive returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society, particularly in relation to the drive to net-zero carbon emissions,” he added.

The Rio Tinto share price is down 13% in 2021.

The post Rio Tinto (ASX:RIO) share price on watch after Q3 update & guidance downgrade appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto right now?

Before you consider Rio Tinto, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Friday

Rio Tinto (ASX:RIO) share price climbs amid news of latest green push
5 things to watch on the ASX 200 on Thursday

Why this top broker says the Rio Tinto (ASX:RIO) share price is a buy despite weak iron-ore outlook
ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!