Market News

Why Did Rio Tinto Stock Decline on Tuesday?

Shares of Rio Tinto (NYSE: RIO) declined 3.4% at the time of writing after it announced disappointing production results for the first quarter of 2021.

Production Details

The company said that Pilbara iron ore production declined 6% year-over-year to 71.7 million tonnes and Pilbara shipments tanked 8%. The company expects to perform better in the second half of 2022 on the back of “commissioning and ramp up of Gudai-Darri, commissioning of the Robe Valley wet plant and improved mine pit health.”

Bauxite production remained stable at 13.6 million tonnes in the first quarter. Titanium dioxide slag production declined 2%.

Further, aluminium production of 0.7 million tonnes was 8% lower year-over-year due to reduced capacity at Kitimat smelter. The capacity has been impacted by the strike that commenced in July 2021. Mined copper production rose 4% on elevated recoveries and grades at Kennecott.

Stock Rating

Last month, Jefferies analyst Chris LaFemina maintained a Hold rating on Rio Tinto and raised the price target to $92 from $86. The new price target implies 14% upside potential from current levels.

The stock has a Hold consensus rating based on four Holds and one Sell. Rio Tinto’s average price forecast of $92 implies 14% upside potential.

News Sentiment

News Sentiment for Rio Tinto is Neutral based on 10 articles over the past seven days. Half the articles have Bullish sentiment, compared to a sector average of 60%, and the remaining have Bearish Sentiment, compared to a sector average of 40%.

Conclusion

While the company is making efforts to improve its production levels, operating or weather-related challenges continue to offset them. As of now, a wait-and-watch strategy is expected to help investors interested in this stock.

Discover new investment ideas with data you can trust.

Read full Disclaimer & Disclosure

Related News:
J.B. Hunt’s Q1 Results Impress Analysts
Stride Beats Q3 Expectations; Shares Rise 5.6%
IBM Posts Solid Q1 Results; Shares Rise

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More