Rio Tinto plc (RIO Quick QuoteRIO - Free Report) reported robust second-quarter 2016 production results. Output volumes of iron ore, bauxite, aluminum, mined copper and coal increased year over year. However, hard coking coal and titanium dioxide slag were the exceptions.

Aggregate Pilbara iron ore production and shipments during the quarter were 80.9 million tons (Mt) and 82.2 Mt, up 8% and 6%, respectively, both on a year-over-year basis. The upside was supported by greater operational efficacy and superior ramp up of new as well as expanded mines across Pilbara.

Aggregate bauxite output during the quarter was 12,073 kilo tons (Kt), up 13% year over year. Increased production in major mines supported the improvement.

Output of aluminum was 911 Kt, up 11% from the year-ago tally. The year-over-year productivity improvement was driven by higher production from the expanded and modernized Kitimat smelter facility.

Mined copper volume was 141 Kt, up 5% year over year. Higher copper grades supported growth.

During the quarter, thermal and semi-soft coal production totaled 5,216 Kt, up 2% year over year.  

However, output of titanium dioxide slag was 236 Kt, down 22% year over year. Gross volume of hard coking coal was 1,798 Kt, down 14% year over year.

Growth Strategy

Rio Tinto strives to improve its operational performance through disciplined cost management and productivity enhancement strategies. The company is widening its manufacturing capacity through new investments that are financed by its increased free cash flow.

Zacks Rank and Stock Price

Rio Tinto currently sports a Zacks Rank #1 (Strong Buy). Share price of the company stood at $32.99 per share as of Jul 18, 2016. We expect the company’s robust second-quarter production result announcement to boost investors’ confidence on the stock and result in further share price movement.  

RIO TINTO-ADR Price

RIO TINTO-ADR Price | RIO TINTO-ADR Quote

Other Stocks to Consider

Other well-ranked stocks in the industry include Silvercorp Metals Inc. , Silica Holdings, Inc. (SLCA Quick QuoteSLCA - Free Report) and Mountain Province Diamonds Inc. . Both Silvercorp Metals Inc. and Silica Holdings, Inc. sport a Zacks Rank #1 (Strong Buy), while Mountain Province Diamonds Inc. holds a Zacks Rank #2 (Buy).

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