Rio Tinto rises as iron output grows two per cent in line with expectations

Rio Tinto showed its metal this morning as iron shipments increased two per cent in line with the company’s 2018 guidance.

Shares in the FTSE 100 miner had risen around one per cent by the early afternoon to 2,937p as the company reported that copper output had rocketed 33 per cent, ahead of expectations.

However forecasts for next year look less rosy. Iron production is expected to be at the lower end analysts’ expectations at 338m to 350m tonnes. Vuma Consensus predicted around 349m.

“You’d have to say it’s a pretty good result. It’s not shooting the lights out, but given the economic background, you can’t really complain too much,” said Fat Prophets analyst David Lennox in Sydney.

Rio Tinto chief executive Jean-Sebastien Jacques said: “We delivered a solid operational performance in the final quarter of 2018, in particular across our copper assets. During the year, we further strengthened our asset portfolio, continuing to invest in high quality growth.”

“Meanwhile, we completed disposals of $8.6bn (£6.64bn), including the Grasberg mine in Indonesia and our remaining coal assets. With a firm ‘value over volume’ focus and disciplined allocation of capital, we will continue to progress our strategic objectives and to deliver superior returns to shareholders in the short, medium and long term.”