Back to top
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Rio Tinto and Sumitomo Metal Mining to Jointly Develop Winu Project
Rio Tinto Group (RIO - Free Report) recently announced that it has signed a Term Sheet deal with Sumitomo Metal Mining, a subsidiary of Sumitomo (SSUMY - Free Report) , to sell a 30% stake in its Winu copper-gold project and to jointly develop the same. This move aligns with Rio Tinto's goal of finding new methods to deliver value throughout the metals and minerals supply chain.
Details on Rio Tinto-Sumitomo Metal Mining Deal
Per the deal, Sumitomo Metal Mining will pay Rio Tinto $399 million for a 30% equity stake in the Winu project, including $195 million upfront and $204 million in deferred considerations. RIO will continue to develop and operate the project as a managing partner.
The Term Sheet deal includes exclusivity obligations to work toward a binding Definitive Agreement, which the companies expect to finalize in the first half of 2025.
Rio Tinto has signed another letter of intent with Sumitomo Metal Mining to develop a broader strategic partnership, expected to be formalized in the first half of 2025. Under the broader partnership, the companies aim to explore opportunities for commercial, technical and strategic collaboration across copper, other base metals and lithium.
The closing of the transaction is subject to regulatory approvals.
RIO & Sumitomo Metal Mining’s Roadmap for the Winu Project
The Winu project, located in the Great Sandy Desert region of Western Australia, is a low-risk, long-life copper-gold deposit with a high prospect for expansion. It was discovered by Rio Tinto in 2017.
The companies expect a pre-feasibility study for the Winu project with an initial development of processing capacity of up to 10 mtpa to be completed in 2025. RIO will also submit an Environmental Review Document to the EPA's Environmental Impact Assessment procedure in 2025.
Rio Tinto Stock’s Price Performance
In the past year, shares of Rio Tinto have lost 1.5% compared with the industry’s 3.3% decline.
Image Source: Zacks Investment Research
RIO’s Zacks Rank and Stocks to Consider
Rio Tinto currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are CF Industries Inc. (CF - Free Report) and Ingevity Corporation (NGVT - Free Report) . While CF sports a Zacks Rank #1 (Strong Buy) at present NGVT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares gained 20.6% in the last year.
Ingevity has an average trailing four-quarter earnings surprise of 95.4%. The Zacks Consensus Estimate for NGVT’s 2024 earnings is pegged at $2.55 per share. Its shares gained 25.7% in the last year.