Rio Tinto Limited (AU:RIO) lifted its copper output for FY25 by 3% to 780-850kt (kilotonnes) as compared to 660-720 kt projected for FY24. Meanwhile, the company kept its Pilbara iron ore shipments stable at 323-338Mt (million tonnes), in line with its forecast for 2024. The company released these figures as part of its guidance update for the next year before its investor seminar in London today. Rio shares in London fell by 0.88% as of writing.
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While the company outlines its growth strategy, it is also facing pressure from UK-based activist investor and hedge fund manager Palliser Capital to remove London as its primary listing. The company has a primary listing on the London Stock Exchange and a secondary listing in Australia.
Rio Tinto to Ramp Up Copper
Rio Tinto is shifting its focus to copper, driven by the metal’s growing demand as a key component in the energy transition process. The company aims for annual copper production of 1 million tonnes by 2030, positioning itself as a key player in the clean energy supply chain. The higher production will be mainly driven by a more than 50% expected increase in output from the Oyu Tolgoi mine in Mongolia next year.
Additionally, Rio Tinto expects a rise in total capital expenditure for FY25 to $11.0 billion from the $9.5 billion projected for 2024.
Rio Tinto Faces Activist Call to Quit Dual Listing
Palliser, which owns a stake valued at around $250 million in Rio Tinto, has urged the company to abandon its dual listing on the London and Sydney stock exchanges. Palliser claims that the dual structure has been a complete failure and has resulted in a loss of $50 billion in value for the company’s shareholders.
Further, Palliser Capital has urged Rio to follow the example of its competitor BHP Group (AU:BHP), which moved its primary listing to Australia in 2022.
Is RIO Stock a Good Buy Now?
According to TipRanks, RIO stock has received a Moderate Buy rating based on a total of 11 recommendations, of which eight are Buys. The RIO share price forecast is AU$130.15, which is 8.2% above the current trading level.
