Rio Tinto Ltd [ASX:RIO] fell 1.5% this morning, to $65.26 per share. However, the billion-dollar miner is still up 9.2% for the year.
What caused 1.5% drop for Rio Tinto Shares?
This morning Rio released their second-quarter production results. Hard coking coal, iron ore and aluminium production fell, while titanium slag, soft thermal coal and bauxite all improved for the quarter.
Rio chief executive Jean-Sebastien Jacques said:
‘This was a solid quarter for production, including record output at our bauxite operations. Iron ore production was in line with last year, although iron ore shipments were impacted by an acceleration in our rail maintenance programme following poor weather in the first quarter.’
Rio expects iron ore shipments for FY17 to be lower than expected, in a range of 330–340 million tonnes. This lower expectation is likely why the miner fell this morning.
Iron ore is long term
When investing, especially in commodity businesses, it’s important to have a long time horizon. So if you believe iron ore demand will remain robust 10 years from now, quarterly, semi-annual and even yearly data shouldn’t worry you too much.
As an individual investor, one of your biggest advantages is time. Let’s face it, you don’t have the expertise or market knowledge of professional money managers.
However, you can hold on to investments through short-term volatilities and end up with great long-term returns.
Junior Analyst, Money Morning
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