ASX-listed Rio Tinto Limited (AU:RIO) announced its Q4 results, highlighting a surge in its copper production while reporting a decline in iron ore shipments. In the December quarter, mined copper production rose 26% year-over-year to 202,000 tonnes, significantly surpassing the consensus forecast of 182,000 tonnes. On the other hand, both Pilbara iron ore shipments and production declined by 1% year-over-year. After the results, Rio’s shares gained 0.10% on Thursday.
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Based in Australia, Rio Tinto is engaged in mineral exploration, mining, and processing activities.
Rio Tinto Delivers Mixed Output in 2024
For the full year 2024, Rio’s copper production reached 697,000 tonnes, marking a 13% year-on-year increase. The growth is attributed to the ramp-up of production at the Oyu Tolgoi underground operations in Mongolia and higher output from the Escondida Mine joint venture in Chile.
Meanwhile, the company’s iron ore shipments fell by 1% to 328.6 million tons (Mt) compared to 2023. This fell short of earlier projected annual shipments, which were expected to range between 323 million and 338 million tons. Rio Tinto blamed the decline on declining resources from older mines and severe rainfall, exceeding historical levels by more than five times.
Among other products, Rio’s bauxite and aluminum production increased by 7% and 1%, respectively, on a year-over-year basis in 2024.
Looking ahead, Rio expects its iron ore shipments to range between 323 Mt and 338 Mt in 2025. Moreover, copper production is forecasted to range between 780,000 and 850,000 tons.
Analysts Weigh in on Q4 Update
Following the update, UBS analyst Daniel Major reiterated his Hold rating on RIO stock, predicting an upside of 3.7%.
Meanwhile, RBC Capital Markets praised the Q4 numbers, stating them as a robust end to 2024. RBC also highlighted that bauxite and aluminum production exceeded expectations.
Is Rio Stock a Good Buy Now?
According to TipRanks, RIO stock has received a Moderate Buy rating based on a total of 10 recommendations, of which six are Buy. The RIO share price forecast is AU$129.30, which is 8% above the current trading level.
