Rio Tinto: order books are full, pricing strong
LONDON -(MarketWatch)- Rio Tinto PLC (RIO.LN), the miner, Tuesday said its order books are full and pricing is strong, but added that markets are somewhat weaker than they were six months ago.
MAIN FACTS:
-Rio Tinto's order books are full and commodity prices remain robust; However, customer sentiment is now more cautious and physical markets are softer than they were six months ago, reflecting concerns over the health of the OECD economies and persistent volatility in financial markets.
-Rio Tinto's growth program is well underway with work progressing on $27 billion of major capital projects, and a $35 billion pipeline of high-quality, unapproved projects currently in the advanced-study phase.
-Growth projects are well balanced between brownfield expansion of existing assets such as iron ore in the Pilbara and newer, world-class quality projects including coal in Mozambique and copper-gold in Mongolia.
-Rio Tinto's estimated net debt as at August 31 was $7.6 billion, a reduction of $1 billion since June 30.
-More than $4 billion of Rio Tinto's $7 billion share buy-back program has now been completed.
-Challenges on the supply side are limiting the speed of new supply to market; Project finance is tight because of the current market jitters.
-Copper: Rio Tinto is ramping up production from 2011 as grades improve from existing operations and with commencement of commercial production from Oyu Tolgoi in 2013 resulting in a compound annual growth rate of about eight per cent for the copper division from 2010 to 2015.
-Energy: Australian coal operations have largely recovered from the floods in early 2011, ramping up with an expected compound growth rate of over six per cent to 2015; The Kestrel Mine Extension is well advanced and will extend the life of the mine to 2032. -Shares closed Monday at GBP35.05 valuing the company at GBP51.379 billion.
MAIN FACTS:
-Rio Tinto's order books are full and commodity prices remain robust; However, customer sentiment is now more cautious and physical markets are softer than they were six months ago, reflecting concerns over the health of the OECD economies and persistent volatility in financial markets.
-Rio Tinto's growth program is well underway with work progressing on $27 billion of major capital projects, and a $35 billion pipeline of high-quality, unapproved projects currently in the advanced-study phase.
-Growth projects are well balanced between brownfield expansion of existing assets such as iron ore in the Pilbara and newer, world-class quality projects including coal in Mozambique and copper-gold in Mongolia.
-Rio Tinto's estimated net debt as at August 31 was $7.6 billion, a reduction of $1 billion since June 30.
-More than $4 billion of Rio Tinto's $7 billion share buy-back program has now been completed.
-Challenges on the supply side are limiting the speed of new supply to market; Project finance is tight because of the current market jitters.
-Copper: Rio Tinto is ramping up production from 2011 as grades improve from existing operations and with commencement of commercial production from Oyu Tolgoi in 2013 resulting in a compound annual growth rate of about eight per cent for the copper division from 2010 to 2015.
-Energy: Australian coal operations have largely recovered from the floods in early 2011, ramping up with an expected compound growth rate of over six per cent to 2015; The Kestrel Mine Extension is well advanced and will extend the life of the mine to 2032. -Shares closed Monday at GBP35.05 valuing the company at GBP51.379 billion.
Comments
Post a Comment