Shares of ASX-listed Rio Tinto Limited (AU:RIO) fell 1.32% today despite the miner reporting an increase in its Q3 iron ore shipments. For the third quarter, Rio Tinto reported Pilbara iron ore shipments of 84.5Mt (million tonnes), reflecting a 1% year-on-year increase and a 5% rise compared to the second quarter. Still, the share price reacted negatively, likely due to shipments falling short of Goldman Sachs’ estimate of 86.2Mt for the quarter.
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Based in Australia, Rio Tinto is engaged in mineral exploration, mining, and processing activities.
Rio Confirms Simandou Project on Track for 2025
In its Q3 update, Rio confirmed that the first production from its Simandou high-grade iron ore project remains on track for 2025. The company received the final approvals to start the development of the Simandou iron ore deposit in Guinea in July 2024. As part of this project, Simfer mine will gradually increase its production over 30 months, reaching an annual capacity of 60 million tonnes after the initial output.
Additionally, Rio will start its first lithium production from the Rincon project in Argentina by the end of 2024. The company has also recently reached an agreement to acquire Arcadium Lithium (AU:LTM) (ALTM) for $6.7 billion. This deal will position the company among the leading producers of this battery metal.
Among its other metals, copper production fell 1% year on year and 2% quarter on quarter to 168kt (thousands of tonnes). Nonetheless, copper production was up 8% in the first nine months of 2024. Meanwhile, production of aluminium declined by 2% as compared to the same period last year.
Rio Maintains Full-Year Guidance
For the full year 2024, Rio maintained its guidance of iron ore shipments between 323Mt and 338Mt, as well as mined copper production of 660kt to 720kt. However, it expects cash costs for its Pilbara iron ore unit to come in at the upper range of its guidance of $21.75 to $23.50 per tonne, largely because inflation is running at the higher end of its projections.
What Is the Target Price for Rio Stock?
According to TipRanks, RIO stock has received a Moderate Buy consensus rating based on a total of 10 recommendations, of which seven are Buys. The RIO share price forecast is AU$130.38, which is 8.4% above the current trading level.
