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RIO Tinto (RIO) Reports Robust Production Results in Q4
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Premium basic materials company, Rio Tinto plc (RIO - Free Report) reported sturdy fourth-quarter 2016 production results. Barring semi-soft and thermal coal; output volumes of all major products such as iron ore, bauxite, aluminum, mined copper, hard coking coal and titanium dioxide had exceeded the respective year-ago tallies.
Over the last three months, shares of this Zacks Rank #1 (Strong Buy) stock recorded a return of 29.16% – outperforming 21.41% return provided by the Zacks categorized Mining-Miscellaneous industry.
Production Details
Aggregate Pilbara iron ore production was 85.5 million tonnes (Mt), up 4% year over year. The upside was driven by improved productivity and constant ramp-up activities conducted in the expanded mines. In addition, minimal disruption from weather events supported the year-over-year upside.
Gross Pilbara iron ore shipments inched up 1% year over year to 87.7 Mt. The company estimates that its Pilbara shipments would lie within 330–340 Mt, at the end of 2017.
Aggregate bauxite output during the quarter was 12,120 kilo tonnes (Kt), up 8% year over year. The improvement was supported by enhanced productivity in the company’s Gove and Weipa mines.
Output of aluminum was 925 Kt, up 7% from the year-ago tally on the back of higher production from the expanded and modernized Kitimat smelter facility.
Mined copper volume was 133.8 Kt, up 20% year over year. Higher copper grades boosted growth.
Output of titanium dioxide slag was 300 Kt, up 35% year over year.
Gross volume of hard coking coal was 2,187 Kt, up 15% year over year. Outperformance of the company’s Kestrel mine bolstered this volume.
However, thermal and semi-soft coal production in the fourth quarter totaled 5,223 Kt, down 13% year over year. The company mentioned that quarterly output was reduced to align with the aggregate demand in the market.
Growth Strategy
Rio Tinto strives to improve its operational performance through disciplined cost management and productivity enhancement strategies. The company has been fortifying its manufacturing capacity through new investments financed by its increased free cash flow.
Key Picks
Some other favorably placed stocks within the industry are listed below:
BASF SE (BASFY - Free Report) currently flaunts a Zacks Rank #1 and has an average earnings surprise of 34.34% for the trailing four quarters.
Albemarle Corporation (ALB - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of 27.13% for the last four quarters.
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RIO Tinto (RIO) Reports Robust Production Results in Q4
Premium basic materials company, Rio Tinto plc (RIO - Free Report) reported sturdy fourth-quarter 2016 production results. Barring semi-soft and thermal coal; output volumes of all major products such as iron ore, bauxite, aluminum, mined copper, hard coking coal and titanium dioxide had exceeded the respective year-ago tallies.
Over the last three months, shares of this Zacks Rank #1 (Strong Buy) stock recorded a return of 29.16% – outperforming 21.41% return provided by the Zacks categorized Mining-Miscellaneous industry.
Production Details
Aggregate Pilbara iron ore production was 85.5 million tonnes (Mt), up 4% year over year. The upside was driven by improved productivity and constant ramp-up activities conducted in the expanded mines. In addition, minimal disruption from weather events supported the year-over-year upside.
Gross Pilbara iron ore shipments inched up 1% year over year to 87.7 Mt. The company estimates that its Pilbara shipments would lie within 330–340 Mt, at the end of 2017.
Aggregate bauxite output during the quarter was 12,120 kilo tonnes (Kt), up 8% year over year. The improvement was supported by enhanced productivity in the company’s Gove and Weipa mines.
Output of aluminum was 925 Kt, up 7% from the year-ago tally on the back of higher production from the expanded and modernized Kitimat smelter facility.
Mined copper volume was 133.8 Kt, up 20% year over year. Higher copper grades boosted growth.
Output of titanium dioxide slag was 300 Kt, up 35% year over year.
Gross volume of hard coking coal was 2,187 Kt, up 15% year over year. Outperformance of the company’s Kestrel mine bolstered this volume.
However, thermal and semi-soft coal production in the fourth quarter totaled 5,223 Kt, down 13% year over year. The company mentioned that quarterly output was reduced to align with the aggregate demand in the market.
Growth Strategy
Rio Tinto strives to improve its operational performance through disciplined cost management and productivity enhancement strategies. The company has been fortifying its manufacturing capacity through new investments financed by its increased free cash flow.
Key Picks
Some other favorably placed stocks within the industry are listed below:
AK Steel Holding Corporation has a whopping average earnings surprise of 170.80% for the last four quarters and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF SE (BASFY - Free Report) currently flaunts a Zacks Rank #1 and has an average earnings surprise of 34.34% for the trailing four quarters.
Albemarle Corporation (ALB - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of 27.13% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>