Rio Tinto’s fourth quarter results meet its guidance, iron ore prices remain stable, but costs are rising too

According to SP Angel, Rio Tinto PLC’s fourth quarter production numbers are in line with its full-year guidance.

However, iron ore shipment from the Pilbara was at the lower end.

According to the FTSE 100-listed miner, the received iron ore price in 2022 was US$97.6/wet metric tonne. Costs ranged from US19.50 to US$21 per tonne.

The new Gudai Dam Iron Ore Operation is expected to achieve nameplate capacity on an ongoing basis in 2023.

Rio Tinto anticipates that its Pilbara ironore operations will produce between 320-335mln and 320-335mln tons by 2023.

Rio Tinto chose to also highlight the substantial expansion of its copper capability during this period.

In the production report, Jakob Stausholm, chief executive of Rio Tinto, stated that “The acquisition Turquoise Hill Resources strengthens the copper portfolio” and “demonstrates our ability to allocate capital with discipline and grow in materials needed for the energy transition and delivering long term value for our shareholders.”

He said that the copper guidance had been increased in line with market needs. Rio Tinto is likely to produce between 650,000- 710,000 tonnes copper by 2023.

Notably, the company did not destroy any important archaeological sites during the quarter as it had done in the past. Instead, it chose to “invest in” “genuine partnerships” with the Yindjibarndi, Puutu Kunti Kurrama, and Pinikura peoples of Australia and the Pekuakamiulnuatsh First Nation, Canada.