Rio Tinto (NYSE: RIO) eked out higher iron ore shipments in the third quarter, largely in line with expectations, and said it remained on track for first production from its Simandou high-grade iron ore project in Guinea next year.
The Simfer mine in the project will ramp up over 30 months to an annualized capacity of 60 million tonnes (Mt) per year following the first output, the world’s largest iron ore producer said on Wednesday.
Rio is also on track for the first lithium production from its Rincon project in Argentina by the end of this year. The global miner recently agreed to buy Arcadium Lithium (NYSE: ALTM) for $6.7 billion in a deal that will make it the world’s third-largest miner of the battery metal.
Shares of Rio fell as much as 2.1% to A$119.510 as of 2359 GMT before paring some losses — in line with the broader mining index, which was down 0.8%.
The company shipped 84.5 Mt of the steel-making commodity from its Pilbara operations in the three months ended Sept. 30, helped by operational improvements.
That was largely in line with a Visible Alpha consensus estimate of 84.74 Mt and higher than 83.9 Mt a year earlier.
Rio Tinto (NYSE: RIO) said that the unit cash costs for Pilbara iron ore for the year would be at the upper half of its forecast of $21.75 to $23.50 per tonne, reflecting higher inflation expectations.
Analysts at Citi said the production report was “disappointing,” stating a higher outlook for Pilbara costs, ongoing issues at its Kennecott operations, and impacts on IOC production from forest fires, among others.
Rio said iron ore production from its Iron Ore Company of Canada (IOC) operations fell 11% following a site-wide shutdown due to forest fires in mid-July.
The company cut its IOC iron ore pellets and concentrate production forecast to 9.1 to 9.6 Mt for 2024 following the shutdowns.
Mined copper production was marginally lower as higher output from Escondida and Oyu Tolgoi were offset by a 44% drop in production from Kennecott due to operational snags.
(Source: ReutersReuters)
