Rio Tinto Share Price Rises Due to Iron Ore Production

Productivity improvements have sparked Rio Tinto‘s [ASX:RIO] share growth over the course of March and early April.

The overall consistency of Rio’s dedication to iron mining has paid off, with their shares growing by 1.08% this morning.

Rio’s shares have continued to grow on their successful mining ventures throughout last year.

By meeting the necessary number of iron tonnes, Rio has met its iron ore 2018 guidance.

Rio lucks out with high iron turnover and few environmental issues

Rio’s new Silvergrass mine faced fewer weather disruptions, and a higher turnout of iron throughout last month.

Despite aluminium being down by 5% compared to last year’s first quarter, Rio has managed to compensate this, with its iron ore contribution.

Iron ore shipments rose overall by 5% to a total of 80.3 million tonnes.

Rio has stated that its production numbers are currently in line with its expectations, and iron isn’t the only prominent factor of growth for Rio.

The turnover rate for bauxite and coal have also been positive and are expected to grow even further.

Rio’s first production turned over a total of 80.3 million tonnes of iron ore, which was 5% higher than last year’s turnover.

Rio reported that its chief executive, J S Jacques, stated:

‘We delivered a solid operational performance across most commodities in the first quarter of 2018. Our world-class Pilbara iron ore assets continue to demonstrate flexibility and the benefits of increased productivity, and production at our bauxite and copper assets was also higher. We announced $5 billion of divestments in the quarter, highlighting our ongoing drive to strengthen the portfolio and raise return on assets.’

Jacques believes that by raising their mine to mine productivity rate, they will be able to deliver great results for its shareholders over time.


Ryan Clarkson-Ledward,
For Money Morning

PS: Money Morning’s Harje Ronngard has written a free report detailing the growth in Australian mining and ‘The Top 10 Australian Mining Stocks’ that could be set to soar in 2018.

Ryan Clarkson-Ledward is an Editor at Money Morning.

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