We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rio Tinto (RIO), First Quantum Join Forces to Develop La Granja
Read MoreHide Full Article
Rio Tinto plc (RIO - Free Report) and First Quantum Minerals (FQVLF - Free Report) have formed a joint venture to develop the La Granja copper project in Peru. It is one of the largest undeveloped copper deposits in the world and has the potential to be a Tier 1 copper mine.
Located at a high altitude in Cajamarca, Northern Peru, La Granja, has an indicated and inferred mineral resource of 4.32 billion tons at 0.51% copper. The combined development capabilities and expertise of Rio Tinto and First Quantum Minerals are expected to make it a significant new source of copper.
Per the agreement, First Quantum has acquired a 55% stake in the project for $105 million. It will further invest up to $546 million into the joint venture to fund capital and operational costs to advance the project through a feasibility study and development. Following the completion of the sole funding commitment, further expenditures will be applied on a pro-rata basis according to the share in the ownership of the project. First Quantum, being the majority owner, will operate the La Granja project with the initial work focused on completing the feasibility study.
Rio Tinto had acquired the La Granja Project from the government of Peru in 2006. Since then, the company’s extensive drilling program has indicated a much higher resource and provided information regarding the ore body. Developing La Granja is expected to further augment Rio Tinto’s copper portfolio. The company is also developing the Oyu Tolgoi project, in the South Gobi region of Mongolia. It is one of the largest known copper and gold deposits in the world. When the underground mine is complete, it will be the fourth-largest copper mine in the world.
Rio’s Kennecott mine is a world-class, integrated copper mining operation located near Salt Lake City, UT, in the United States. The mine produces gold, silver and tellurium as byproducts of copper mining. The company has progressed on pre-feasibility studies to further push back the northern wall to extend open-pit mining beyond 2032. It is also advancing studies to support an underground mine below the existing open pit, which is expected to be completed next year.
Rio Tinto, like other miners, is trying to capitalize on the growing demand for copper, driven by electric vehicles, renewable energy and infrastructure investments. Meanwhile, grade decline, rising input costs, water constraints and the scarcity of high-quality developmental opportunities continue to disrupt the industry's supply. This demand-supply imbalance will support copper prices in the future.
Price Performance
In the past year, shares of Rio Tinto have gained 2.4% against the industry’s 4.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Rio Tinto currently carries a Zacks Rank #3 (Hold).
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 43% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 4.3%. PPG’s shares have gained 10% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Rio Tinto (RIO), First Quantum Join Forces to Develop La Granja
Rio Tinto plc (RIO - Free Report) and First Quantum Minerals (FQVLF - Free Report) have formed a joint venture to develop the La Granja copper project in Peru. It is one of the largest undeveloped copper deposits in the world and has the potential to be a Tier 1 copper mine.
Located at a high altitude in Cajamarca, Northern Peru, La Granja, has an indicated and inferred mineral resource of 4.32 billion tons at 0.51% copper. The combined development capabilities and expertise of Rio Tinto and First Quantum Minerals are expected to make it a significant new source of copper.
Per the agreement, First Quantum has acquired a 55% stake in the project for $105 million. It will further invest up to $546 million into the joint venture to fund capital and operational costs to advance the project through a feasibility study and development. Following the completion of the sole funding commitment, further expenditures will be applied on a pro-rata basis according to the share in the ownership of the project. First Quantum, being the majority owner, will operate the La Granja project with the initial work focused on completing the feasibility study.
Rio Tinto had acquired the La Granja Project from the government of Peru in 2006. Since then, the company’s extensive drilling program has indicated a much higher resource and provided information regarding the ore body. Developing La Granja is expected to further augment Rio Tinto’s copper portfolio. The company is also developing the Oyu Tolgoi project, in the South Gobi region of Mongolia. It is one of the largest known copper and gold deposits in the world. When the underground mine is complete, it will be the fourth-largest copper mine in the world.
Rio’s Kennecott mine is a world-class, integrated copper mining operation located near Salt Lake City, UT, in the United States. The mine produces gold, silver and tellurium as byproducts of copper mining. The company has progressed on pre-feasibility studies to further push back the northern wall to extend open-pit mining beyond 2032. It is also advancing studies to support an underground mine below the existing open pit, which is expected to be completed next year.
Rio Tinto, like other miners, is trying to capitalize on the growing demand for copper, driven by electric vehicles, renewable energy and infrastructure investments. Meanwhile, grade decline, rising input costs, water constraints and the scarcity of high-quality developmental opportunities continue to disrupt the industry's supply. This demand-supply imbalance will support copper prices in the future.
Price Performance
In the past year, shares of Rio Tinto have gained 2.4% against the industry’s 4.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Rio Tinto currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Hawkins, Inc. (HWKN - Free Report) and PPG Industries, Inc. (PPG - Free Report) . HWKN sports a Zacks Rank #1 (Strong Buy) at present while PPG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 43% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 4.3%. PPG’s shares have gained 10% in the past year.