Rio Tinto is a world leader in finding, mining and processing the earths mineral resources. The Groups worldwide operations supply essential minerals and metals that help to meet global needs and contribute to improvements in living standards. Rio Tinto encourages strong local identities and has a devolved management philosophy, entrusting responsibility with accountability to the workplace. Major products include aluminium, copper, diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and zircon), and iron ore. The Groups activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto comprises wholly owned subsidiaries (such as Borax, Comalco, Hamersley, Rio Tinto Coal Australia, Kennecott and Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal & Allied and Palabora) and non-managed, (Escondida) and joint ventures (Grasberg) in which public shareholders, other companies or governments are partners.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Iron:        29%
Coal:       19%
Copper     18%
Aluminum: 14.5%
Minerals:  12.5%
:              6%
Misc:        1%

yesssssssssssssssssss

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present share price is very low -especially as this is one of the better mining stocks.

The Times August 04, 2006

Tempus

Prudent Rio Tinto offering investors a promising vein
By Domnic Walsh

THESE are heady days for the mining sector. Soaring metal prices are delivering huge rises in profits, producing so much surplus cash that the financial discipline of mining companies is being severely tested.

Rio Tinto, which reported an 80 per cent rise in underlying half-year profits to $3.5 billion (2 billion) yesterday, is a case in point. Cashflow from operations was a record $5.2 billion, driven by near-record output of metals from its global suite of mines, and sold at near-record prices. High metal prices contributed most of the uplift in profit, offsetting inflationary cost pressures for items such as labour and materials.

The key question facing chief executives such as Rio Tintos Leigh Clifford is what to do with the spare cash. The FTSE 100 stalwart is already two thirds through a $4 billion capital return programme, on top of which it tweaked its interim dividend 4 per cent higher to 40 cents a share. It has also started a $5 billion investment programme to ensure that new projects are developed and existing mines expanded to boost future metal production. All that, yet Rio Tintos gearing remains at 14 per cent.

Rivals such as BHP Billiton, Teck Cominco, Phelps Dodge and, in particular, Xstrata, have dug deep and splashed out billions to acquire rivals. Such is the general confidence in the China-led metal price rally that even cash bids such as Xstratas 11.5 billion offer for Falconbridge, at a high-point in the cycle. has won plaudits from usually cautious investors.

Rio Tinto has a reputation for being a disciplined and conservative miner. Mr Clifford, who joined in 1970, has been through enough ups and downs in this cyclical industry to resist pressure for a quick-fire move just because prices are booming. Its last takeover spree came in 1999-2000, when it acquired Ashton Mining and North. Since then, it has invested heavily in its own business but also picked up undeveloped gems such as the Hope Downs iron ore project in Western Australia.

Just because Rio Tintos name is not part of the current carousel of industry consolidation does not mean that Mr Clifford is ignoring the shenanigans. Only fools would rule him out of any future action. In the meantime, Rio Tintos shares are trading on ten times forecast earnings, in line with a low-priced sector. The companys track record, however, suggests scope for outperformance. Dig in.

Associated Press - 08.18.2006, 11:56 PM

Chile Copper Mine Talks to Resume


Workers and management at the world's largest privately owned copper mine agreed Friday to resume talks aimed at ending a 12-day strike.

The agreement was reached in a government-mediated meeting ordered by President Michelle Bachelet. It includes a promise by the workers "to maintain public order," said Julio Manque, who represents the labor ministry in the northern region where the Escondida mine is located.

Workers had blocked the entrance to the mine Thursday evening, triggering clashes with police and prompting the company to break off talks and suspend the mine's limited 40 percent production maintained with contract workers.

On Friday, company representative Pedro Correa said that activity at the mine will resume "but the process takes a while."

President of the workers' union, Luis Troncoso, said he expects an agreement can be reached by Tuesday.

Friday's decision came just hours after Bachelet ordered the labor ministry to offer the government's help to get both parties to talk again. Labor laws do not permit formal mediation by the government.

The Escondida mine, 1,000 miles north of Santiago, produces about 4 tons of copper a day, or 8 percent of world output. Company executives have estimated daily losses from the strike at $16 million.

The 2,052-member union's demand for an across-the-board wage increase was the main hurdle in the talks, Troncoso has said. The workers' original demand for a 13 percent increase was reduced Thursday to 10 percent, but the company has offered 3 percent.

The workers are also demanding a $26,900 end-of-conflict bonus, but the company has offered half that amount, plus low interest loans.

Talks for a new contract also included health and education benefits.

The Australian-British consortium BHP Billiton PLC owns 57.5 percent of the mine, while Rio Tinto PLC, also Australian-British, holds 30 percent, and the Mitsubishi Corp.-led Japanese consortium 10 percent.

If I have read the chart right, RSI looks very low so could be a good time to buy into this first class mining stock

Mining Weekly - 21 august 2006

BHP Chile copper mine workers reject new wage offer


Striking workers at the world's largest copper mine rejected a revised pay offer from BHP Billiton, extending a two-week strike in Chile that has cut production by as much as 60%.

The world's biggest mining company is offering more pay and higher bonuses, BHP Billiton spokeswoman Alejandra Wood said from Santiago. The 2 052 workers in the mine's main labor union decided the offer wasn't enough at a meeting late yesterday in Chile, union spokesman Francisco Aedo said.

Prices of copper, used in wires and pipes, have more than doubled in the past year as consumption soared in China, prompting unions to seek a greater share of mining companies' record profits. Mine management said August 16 the dispute was costing owners including BHP Billiton, Rio Tinto Group and Mitsubishi Corp. $16-million in profit a day.

The strike looks like it's going to go on longer than people expected, and in the short-term that's good for copper prices, said Ron Cameron, a resources analyst at Ord Minnett Ltd. in Sydney. They will have to reach a compromise at some stage.

Copper for delivery in October rose as much as 310 yuan, or 0,5%, to 66 7000 yuan ($8 370) a metric ton on the Shanghai Futures Exchange. It traded at 66 520 at 11:30 a.m. local time. It had fallen as much as 0,9% after BHP raised its pay offer.

Shares of BHP Billiton, which owns 57,5% of the mine, rose as much as 40 cents, or 1,4%, to A$28,50 on the Australian Stock Exchange. They traded at A$28,45 at 2:22 p.m. in Sydney. Shares in Rio Tinto, which owns 30%, fell 6 cents to A$75,19. Shares in Mitsubishi fell 0,8% to 2 425 yen in Tokyo.

The company has directed these talks poorly, said Pedro Marin, another union spokesman, in a phone interview from Antofagasta.

BHP Billiton raised its offer to a wage increase of 4 percentage points above inflation, 1 percentage point higher than previously offered, and a bonus of as much as 9,5% pesos ($17,834) for a 36-months contract. If workers sign a 48-months contract, BHP Billiton will raise pay by 1,3% in the fourth year, and pay a total bonus of 13-million pesos.

The Escondida's Workers Union No. 1, which represents 94% of the mine's employees, is seeking a wage increase of 10 percentage points above inflation and a bonus of 16-million pesos ($30,036) per worker for a 36 months contract. Chile's inflation rate was 3,8% in July.

The 4 percent offer wasn't large enough, Marin said. He added that the union was prepared to negotiate on its demand for a 10 percentage points above inflation. He also said the union isn't willing to agree to a four-year contract.

The workers could be in a precarious position if they reject this new offer, said Mark Pervan, head of research at Daiwa Securities SMBC in Melbourne. When you're dealing with a company that's this large and a tough negotiator, this is a good offer.

The strike had already cut capacity at the mine to between 40% and 60%, and led BHP Billiton on Aug. 8 to say it may stop delivery of copper concentrate, which is smelted in refineries to make the metal, to customers in Asia and Europe because of the strike.

The remaining share of the Escondida mine is held by the International Finance Corp. Escondida accounted for 8,5% of all mined copper worldwide last year.

Dow Jones Newswires - Tuesday, September 26, 2006

UBS Lowers Iron Ore Forecast


UBS cuts its iron ore forecasts and reduces earnings for BHP Billiton and Rio Tinto as result. Now expects 5% drop in iron ore prices in 2007, where previously forecasting 10% rise. Lowers Rio earnings forecast for CY07 by 6% and BHP by 3%. Cites growing iron ore production in China as well as slowing materials consumption.

SYDNEY, - Oct 18 - (Reuters)

Rio Tinto Q3 refined copper output down 15 pct


World number two miner Rio Tinto Ltd./Plc. on Wednesday posted a 15 percent fall in third quarter refined copper production after a smelter was shut down at the giant Kennecott mine in Utah.

Mined copper was also down in the quarter owing to a month-long strike at Rio Tinto's 30 percent-owned Escondida lode in Chile, it said.

Copper is seen as a key component underpinning forecasts for a sharp rise in the Australia and London-listed company's 2006 profits.

Rio, which sees strong demand for metals for the remainder of the year, is forecast to post a full-year net profit of around $7.6 billion, up by nearly half from 2005.

"Mined copper production was lower due to industrial action at Escondida and refined copper production was down due to the commencement of a scheduled smelter shutdown at Kennecott Utah Copper," the company said.

Close rival and 57.5 percent partner in Escondida, BHP Billiton Ltd./Plc is also expected to show a drop in copper output due to the strike when it reports its quarterly production on Oct. 24.

London Metal Exchange-traded copper sold for around between $7,150 and $8,100 a tonne in the third quarter. In May it fetched as much as $8,800 a tonne, double its January price.

Third quarter refined copper output of 75,600 tonnes was down from 89,200 tonnes in the same period a year ago.

Mined copper production fell to 182,800 tonnes from 195,400 tonnes over the period.

Rio's share of third-quarter mined copper from Escondida dropped to 81,100 tonnes from 101,700 tonnes a year earlier.

Rio Tinto also reported a 1 percent fall in aluminium output to 215,200 tonnes over the third quarter versus the same period a year ago.

Iron ore production over the period rose 11 percent to 35.74 million tonnes, it said.

Rio Tinto's stock, which has largely tracked metals prices this year was down 1.8 percent to A$74.18 in late trading versus modest gains in the wider S&P/ASX200 index. The stock started the year at A$69 a share. ($1=A$1.33)

Rio Tinto PLC
27 October 2006

Rio Tinto increases capital management programme to US$7 billion


Rio Tinto has announced today that it will increase its capital management
programme to US$7 billion. This is US$3 billion more than the previously
announced capital management programme for 2006 and 2007 of US$4 billion. The
additional cash return will be made through the buyback of shares between now
and the end of 2007.

Rio Tinto's finance director Guy Elliott said, "In today's favourable markets,
the Group's high quality assets are generating record cash flows. This allows us
to make substantial investments in the growth of the business and to return cash
to shareholders. Our balance sheet remains strong, and we are pleased to make
this increase in our capital management programme. Of course the programme
remains subject to market conditions."

Under the current US$4 billion capital management programme, US$1.5 billion was
returned to shareholders on 6 April 2006 in the form of a special dividend. Of
the remaining US$2.5 billion of that programme, US$1.9 billion has been returned
to shareholders through the buyback of Rio Tinto plc shares in the London
market, leaving an outstanding balance of US$600 million to be completed.

43 to 53 in the blink of an eye! Some people will have made some big money today! (Due to the rejection of a bid from BHP Billiton).

Over 57 at one point, very nice indeed. Taken some profits, these deals have a habit of not coming to fruition.

Expensive share, but good to see someone benefitted from the surge. Had BLT myself, so took profit on that before it went down.
Would now expect RIO to drift off a bit, although BLT still hoping to do a deal. It looks like RIO might be interested, but at the right price.

It's been talked of for so long that it probably will happen at the right price. POG is a good 'un too which was pulled up on the back of rio today.

i admit to a vested interest (like Onslow!), but i would be surprised if a proper bid does not materialise.
meanwhile, please see the chart below and make up your own mind as to when or if it is worth buying on fundamentals alone

Evening cynic,made a small profit last week on these and glad i got out as this week i would made a loss.I am going back in next week as i think there will be (1)a new bid from blt or (2) a new bid from a different company.
Over a £6 drop this week.I think i will wait for this weekends papers as there is always something about rio.

6 is not a big deal in %age, but I think BLT may have another go.
Interesting to see XTA is fishing around also. Not in the same league as BLT or RIO, but it looks like the sector is starting to consolidate. May well be worth holding a stake in a few of the big companies just on M & A rumour alone.

seems that Goldman put out a general warning about commodity prices yesterday which sparked the selling ..... however, they also reiterated that consoilidation in the sector was effectively a racing certainty

Takeover Panel has told BHP to put up an offer this week or to bugger off ...... interesting and possibly quite scary times ahead, at least in the very short term ..... big Q is whether another bidder will put his head over the parapet if BHP walks out

Not sure there is anyone else who can raise the dosh. Plus I don't think BLT would be very happy to see someone else become a joint partner in the world's biggest mining company. To be fair to BLT, they have made a couple of offers now, which have been rejected by RIO, but in theory they could continue to make offers well in to 2008. The main sticking point seems to be valuation of RIO, as BLT don't seem to have any problem raising the cash. Tricky one to call, imo.

the chinese might well be very interested .... but that is pure hypothesis .... we shall just have to wait and see

From AFX today/yesterday:

BHP Billiton/Rio Tinto merger threatened by Takeover Panel deadline - reportAFX
LONDON (Thomson Financial) - BHP Billiton PLC's proposed 162 bln stg merger with rival mining group Rio Tinto PLC is in danger of being derailed this week as the Takeover Panel looks set to impose a deadline on a formal offer from the world's largest miner, said The Mail on Sunday. The intervention of the Panel comes at the request of Rio's management, which has lost patience with BHP Billiton after it failed to come up with a concrete takeover bid after weeks of informal overtures.

Rio chief executive Tom Albanese has already said that a tentative all share merger proposal from BHP 'seriously undervalues' his company's growth prospects.A 'put up or shut up' ultimatum from the Takeover Panel would mean BHP either walking away from what would be one of the largest takeovers ever seen or mounting a hostile assault, which would be much more complicated and would therefore stand less chance of success. A hostile approach, which BHP has been at great pains to avoid, would mean the company could not structure the deal as a simple scheme of arrangement as this would require a recommendation from Rio's board. Instead of simply merging the shares of both companies' shareholders, BHP would have to make a formal offer to Rio's shareholders in Britain and Australia as Rio is in both countries.

RIO is on the rampage today - currently +103 - though i fear it is no more exciting than some bears taking their profits as volume is pretty unexciting ..... unless there still some large hidden/incomplete orders still to be recorded

following worth reading, especially in conjunction with BRR thread .....

Lehman Brothers raised its 2008 earnings estimate for Rio Tinto by 3 pct, or 641 mln usd, following the company's plan to sell as much as 15 mln tonnes of iron ore in the spot market next year.

Rio Tinto said yesterday it plans to take advantage of the 'huge' gap between spot prices and the lower prices received under long-term contracts.

The world's third-largest mining company normally sells most of its iron ore production under long-term contracts, although it sold about 1 mln tonnes of iron ore this month on the spot market for about 190 usd a tonne. The broker estimates the delivered cost of similar quality ore from Australia, assuming a contract ore price and spot freight rate, is 86 usd a tonne.

Annual price negotiations between major suppliers, including BHP Billiton, Rio Tinto and Brazil's Vale, are under way. Lehman Brothers expects a 50 pct increase in iron ore prices, above the consensus of 35 pct, although it noted that even this figure may be conservative.

'We expect Rio Tinto to be more aggressive than usual in iron ore contract price negotiations for 2008 as a higher-than-expected iron ore price increase is likely to increase the standalone value of Rio Tinto and increase the price that BHP Billiton would have to pay to acquire Rio,' it said in a research note.

Rio Tinto has announced a number of major investments in projects and stressed its organic growth potential since receiving an unsolicited takeover approach from BHP Billiton last month.

Lehman expects Rio Tinto to post 2008 EBITDA of 21.09 bln usd after the broker factored in the spot market iron ore sales for next year. Lehman's forecasts does not factor in any possible spot market sales after 2008.

'We recommend that investors buy shares of Rio Tinto at current levels as we expect iron ore contract prices to significantly exceed the market's expectations,' it said in a research note.

The 15 mln tonnes Rio Tinto hopes to sell is equivalent to about 10 pct of its iron ore production.

The only thing is, that the RIO share price would be trading around the 4800p level had it not been for the BLT takeover approach. The spike from 4400p to 5600p was mainly due to that factor, so would it not be reasonable to assume that RIO is currently a littler overvalued? The potential is very encouraging though, as you say.

Something strange is going on with the price at rio to buy 55 to sell 49.20 @10:12

Just been looking round at other shares and the same thing just happerned share price dropped and then back up again.

have decided to be prudent and top-sliced ..... while a bid remains odds on, it may well not happen before the imposed deadline of early february

A touch risky to buy just on M & A rumour. Still, RIO is pretty solid as a long term defensive stock, imo. Though I know that's not your strategy, cynic.

see chart on post 16 ..... sp now nestling on 50 dma and unless the market tumbles again, there must be a good chance of a bounce from here ..... sp was whacked on friday, but much of that may have been profit taking precipitated by US dire performance .... general concensus is that BHP will not walk away, and the re must also be a reasonable chance that the chinese or another of the big miners will wade in .....

for myself i bought too high, but earlier made (banked!) a good turn on another tranche i bought cheaper, and indeed bought a tranche late friday at 5203 ..... i think it's a fairly good bet (i would wouldn't i!), and if i cannot make a quick(ish) turn, shall be reasonably happy to keep holding while the t/o story unfolds

Hard to say whether RIO will go up or down from here in the next few days. I believe BLT have said they're not improving their offer (in the short term that is, though no doubt part of the bargaining game). So maybe sp will drop a bit before it picks up again?

even if opening formal bid stays the same, i think that is still appreciably higher than RIO's current price, albeit that it will depend on the value of BHP's own paper.

LONDON (Thomson Financial) - "Rio Tinto and Xstrata PLC are both taking legal action over Argentina's plan to introduce new export duties on mining companies and other mining corporations may follow their example.

In December, Argentina announced the elimination of a tax exemption for mining exports in a move that could reduce the profitability of mining operations as well as threaten foreign investment in the country. Under the plan, companies may face export duties of between 5 and 10 pct.

A spokesman for Rio Tinto said Rio Tinto Minerals Argentina, formerly Borax Argentina, is one of the companies taking legal action.

'It is creating an environment of uncertainty for the mining sector and we require predictable legal and fiscal conditions under which to operate,' the spokesman said.

Rio Tinto Minerals produced 15,000 tonnes of borates -- used in fiberglass, glass, ceramics, and many other products -- in 2006.

Claire Divver, a spokeswoman for Xstrata, said: 'We continue to be hopeful that we will reach a solution through dialogue with the government to respect legislation currently in effect, but, in the meantime, it has been necessary for us to protect our short-term interests and we have commenced legal proceedings to protect our rights.'"

apparently following in FT .... Rio Tinto (rumours of an increased offer from BHP Billiton)

anyone got the full comment to post?

bought into XTA at a good price this morning (phew!) and am now undedcided whether or not RIO is worth a flutter at current level (4490), even if still perhaps 3.00 or even 4.00 above BHT's opening offer

RIO should drop to the 200 DMA, imo, which would be about 4200.
XTA certainly seems a better bet at the moment. But both of these are M&A driven at present, so DMAs may not be the best guide.

you are right that they are not, but at least they give some sort of support logic

Beware of what might happen today; this is the news from Australia, via AFX:

"Index leader BHP Billiton shed 2.29 dollars or 6.7 percent to 31.00 dollars and takeover target Rio Tinto dropped 13.25 dollars or 11.6 percent to 101.00 dollars."

An 11% drop here would certainly take it well below the 4200 level.

does anyone know what 3.58 BLT shares and $16.50 would mean as a RIO price.[from BLT RNS as poss price for t/o]?

3.58 x ~12.50=~44.50 + $16.50 does that make RIO's price about 50.00 a share

Is the 3.58 factor for a closing price published earlier and not a price from today(which i used)

Anyone shed some light please?

Alex

i have just banked my profit (again!) in RIO because there still seems to be considerable doubt as to whether or not a revised bid from BLT or the Chinese will even materialise, and if it does, whether that will justify the current market price of 4850/4900 ...... personally, I have my doubts, and that will lead to a major fallout, albeit that that may drag others into the ring.

Sorry cynic but didn't you buy rio @ 52.

yes, and took an absolute hammering for my pains and allowing pure greed to rule ..... bit several bullets and dumped them about 10 days ago, since which time i have acted far more prudently and profitably by trading in and out ... ditto with XTA

This looks like the BHP prospect of an offer is now over:
"Earlier today, Shining Prospect, a Singapore-based entity owned by China's Chinalco and US firm Alcoa, which has committed $1.2bn into the company by way of a convertible instrument, announced it has acquired about 12% of Rio Tinto's shares.

Chinalco and Alcoa confirmed that they do not currently intend to make an offer for Rio Tinto but said they reserve the right to do so.

No official figure was mentioned for the purchase price of the Rio Tinto stake but traders noted talk that the two companies paid 6,000p a share, well above last night's closing price."

Staggering jump today, glad I wasn't short!

Earlier today, Shining Prospect, a Singapore-based entity owned by China's Chinalco and US firm Alcoa, which has committed $1.2bn into the company by way of a convertible instrument, announced it has acquired about 12% of Rio Tinto's shares.

Chinalco and Alcoa confirmed that they do not currently intend to make an offer for Rio Tinto but said they reserve the right to do so.

No official figure was mentioned for the purchase price of the Rio Tinto stake but traders noted talk that the two companies paid 6,000p a share, well above last night's closing price.

BHP Billiton has until February 6th to formalise an offer for Rio Tinto, a deadline imposed by the UK Takeover Panel under the regulator's 'put up or shut-up' rule.

Analysts had believed that BHP Billiton would at least formalise its indicative 3-for-1 paper offer for Rio Tinto, which would have valued the world's third-largest miner at about $130bn.

The Australian newspaper had reported on Wednesday that BHP Billiton could afford to hike its share offer for Rio Tinto to 4.25-for-one, according to Rio Tinto advisor Macquarie Bank.


it would therefore make sense for anyone buying into RIO at this juncture to keep an eye on BLT price and multiply it by anything between 3 and 4.25 if only as an estimate of where a bid may be pitched

Jonathan Compton from BBC2 Working Lunch says that this investment by Shining Prospect is a blocking tactic to prevent BHP from taking control of RIO, with no intention at all of a counter bid for RIO. He says watch out; Big bounce, followed by a big fall.

he may be right or he may be wrong ...... if BLT come in with an eventual thumping bid (not necessarily the initial sighting one) of say 65, then SP will be hard pressed to block and/or RIO board will be hard pressed to counter

looks like lots of interesting reading about this over the w/e

Blimey,..... 50 stocks......hefty..!

i do it on CFD, but T10/20 would work just as well i guess ...... whichever one does, a guaranteed stop must surely be mandatory unless one is in need of a cure for severe constipation!

Cynic, and others if interested: here's some weekend reading for you from today's Times:

Move on Rio signals China's determination to secure supply

Aluminium group comes out of the shadows

Dealmaker role for Beijing as battle shifts to new metal

There's also this:

Link to Times website for earlier articles

Dinner is about to be served (aren't I lucky!) so may I wish happy studying!

If it's a spoiling move, I wonder if sp will head the same way as ITV after Sky's 135p grand purchase. Strange to think that you could have picked them up for 38 a fortnight ago when the world appeared to be caving in!

as far as i can determine, and i hope it's not wishful thinking, the consensus is that BLT will put in a low bid (norgreat surprise there), but a battle royal will ensue

I'm sure there will be a battle - there's too much at stake for the Chinese economy. This quote is from one of the above Times articles:

"Even before the ink was dry on China's deal to acquire a 12 per cent stake in Rio plc, advisers to Beijing had already approached regulators to get clearance to lift the holding to just under 20 per cent."

And I can just picture this meeting:

"It is now BHP's move. If Mr Kloppers is desperate, he might bid high for Rio and offer the Chinese a quick, dirty profit. More likely is a stalemate in which BHP makes a modest bid and the four companies, Rio, BHP, Chinalco and Alcoa sit around a table, awkwardly waiting for the first person to speak. It is like the good old days when Edwardian railroad and mining barons carved up the spoils in a gentlemen's club in Pall Mall."

interesting to note that BLT has strengethened again this morning, albeit quite modestly .... i do NOT believe that this is a reflection of a view that BLT will not step to the mark .... indeed, were that to happen, i rather suspect BLT sp will tumble

You could well be right, Cynic

So, Chinalco + Alcoa now have a 9% stake in RIO, but are also looking to buy a 35% stake in XTA. But, Anglo Am are interested in buying XTA as are Vale. But, at the same time BHP Biliton are interested in buying RIO, but that may now be blocked.
I hope I am not misreading this, but XTA would seem to be the most likely to be swallowed up or controlled by large shareholders. Unless BHP substantially revise their offer, RIO would appear to be safe from predators?

aussies not liking what is going on , if you care to read their press

i do not believe for one mo that RIO are safe ...... given that the chinese stake is effectively via the chinese gov't, it is a racing certainty that there will already have been talks at senior gov'mental level

some curious manoeuvring ......

Australia's Prime Minister Kevin Rudd said Tuesday that his government will assess Chinese state-owned aluminium giant Chinalco's application to move to a 19.9 percent stake in Rio Tinto on the basis of national interest under Australian foreign investment rules. ....... Chinalco said Monday it had voluntarily made a submission the FIRB to move to a 19.9 percent holding in Rio Tinto, the maximum level permitted before a takeover offer must be made under Australian takeover law.

But, the Chinese company said Monday it had no intention to move beyond the 12 percent holding it had jointly acquired with Alcoa Inc
Rudd said he had met today with China's Foreign Minister Yang Jiechi in Canberra and had discussions regarding Chinalco's investment in Rio Tinto.

Australian Treasurer Wayne Swan said he would apply the law in the national interest but he did not wish to comment on individual proposals.

BHP's board meet today to consider its options as well as sign off on the group's first half to December accounts.

The group will report its interim results early Wednesday morning in Sydney.

Analysts are forecasting the group (BHP) will report an interim net profit of about 6.45 billion US dollars, up from the previous first half's 6.17 billion dollars.

The result is expected to be down about 14 percent from the 7.5 billion dollar net profit posted for the second half of 2007, reflecting increasing costs across the group's operations and adverse currency movements.

and some more ......

BHP Billiton, the world's largest mining company, turned down an offer from Chinalco to discuss the Chinese company's acquisition of a 9 pct stake in the Rio Tinto group, the Times reported, citing no sources.

The Chinese state-owned aluminium producer is understood to have written to Don Argus, BHP Billiton's chairman, about starting talks, but is not thought to have received a reply, the paper said.

BHP Billiton's three-for-one share approach to Rio Tinto last November had been rejected by its smaller rival as undervaluing the company. BHP Billiton has been given a UK Takeover Panel deadline of tomorrow to make a formal offer or walk away for six months.

BHP Billiton is expected to make its intentions clear regarding Rio Tinto when it announces its interim results after the market's close in London tonight.

930pm London time according to their website

Couldn't find anything published here but this is on the Australian ASX website:

BLT offer for RIO: 61-page document 06 Feb2008

Basically 3.4 BLT shares for 1 RIO

Here's a link to the presentation by BLT re their offer for RIO:

Link to a 19-page presentation re BLT offer for RIO

at close of biz last night, BLT's bid was worth 5168
patently this was merely an opening salvo to force RIO to undo their flies or even take off their trousers.
it is certainly no less than reasonable to expect Chinalco to come back with a counter.
the Oz gov't will not be happy about this, but for sure there will have been high level talks between them and their counterpart in China

So
one now has the conundrum of guessing at what price a bid might be successful and then discounting that by the time element (it must surely take 6/9 months to completion) and also by the uncertainty as to whether everything will eventually fall apart at the seams.

at close of biz last night, RIO's sp was already 250 ahead of the game at 5418, so any purchase at that level is taking a fairly significant amount on trust

Fairly lengthy RNS out today from RIO, but we are not much further forward, imo.
"Analysts estimate the regulatory approval process could take up to a year to complete.
On whether BHP's approach could turn hostile, Rio Tinto said: 'It's a matter for them. We will play the card we are dealt with very thoughtfully.'
This would mean that any friendly takeover by BLT would be a very long & protracted affair, but a hostile takeover may seem more likely if BLT think that RIO's sought after price (?) is too great.

From today's Times:

BLT to press ahead with RIO bid

Last para is of particular interest:
"Chinalco will continue to raise the pressure, however. Xiao Yaqing, its chairman, is this week due to meet Australian government officials in Sydney to brief them on his lightning share raid and seek approval to raise his stake further still. The visit will fuel speculation that Chinalco and its partner Alcoa, the American aluminium miner, may be laying the groundwork for a potential full takeover."

Written 14/04/08...

The rally in UK stocks appears to be over following GE's profit warning. Before the warning the consensus was that the economy was slowing. Now there is evidence that the slowdown is hurting companies. When one of the largest companies in the world does not meet targets, the chances are that more companies will miss earnings forecast.

This comes at the end of a four-week rally in equities which I have labelled a bear market rally. This is because one of my sentimentindicators, the 34-day BTI, has been negative since January. A negative 34-day BTI is associated with bear markets. I suspect the next leg downhas started but for a few stocks like Rio Tinto (RIO) and BG Group (BG-), the oncoming decline could be seen as a simple correction. Thesestocks are making new highs in a bear market.

Take Rio Tinto. The recent break into new highs completes an inverse headand shoulders which is a bullish continuation pattern.

Note that prices tested the area 5910p-5920p on several occasions before breaking decisively higher a few days ago. The long term uptrend is intact. The stock may pull back in the next few days if the general market continues to decline but in the medium term an initial target is 6800p

LONDON (Thomson Financial) - "Rio Tinto said it secured an overall 85 percent increase in iron ore prices for the contract year starting April 1, 2008.

The world's third-largest mining group said the price for iron ore fines will increase 79.9 percent to 144.66 cents per dry metric tonne, while lump iron ore prices will jump 96.5 percent to 201.69 cents a metric tonne. The overall 85 percent rise is based on the production split with fines accounting for about three quarters of output and lump iron ore the remainder.

The price increase exceeds the 65 percent rise secured by Vale, the world's largest iron ore producer, for fines and the 71 percent gain the Brazilian company agreed for lump iron ore under the annual contracts with steelmakers.

The new prices could boost Rio Tinto's sales by about $2 billion a year in addition to the 65 percent already factored in based on the Vale contract negotiations, an analyst who asked not to be named said."

Bought some of these today at just over 49 today. They are so massively volatile they make the dow look tame. Could be quite a risky purchase with move to banks from miners oils but could also be a big winner. They bounced from this level in the feb sell off to 73 but then again the landscspe has changed since then

The talk of 60 share offer doesn't look too bad at the moment.

Just bought some of these at 32 nice falling knife though it did visit 36 as recently as this morning probably be long term hold as lots of support at 30/29, not convinced that Asia will lose interest in building over the next 5 years

Another drop today due to the price of metals going down again.
Shares are trading 19% below BHP's offer of 3.4 shares for each RIO shares.

It cannot make it's mind up today up 80 down -30 up 70 down 20.

She's certainly a volatile beast, short term target of 35

Probably worth a punt at these levels?

i note RIO closed down a whopping 326 at 2424

Had to hedge position at 2800 good feature of ig cfds and also reduces margin to zero

Had to hedge position at 2800 good feature of ig cfds and also reduces margin to zero

am i right in thinking that BLH's bid for RIO has now been approved by Oz gov't?

the answer is yes, my memory is not as soggy as many imagine ..... Oz gov't cleared the (potential) bid on 1st October

any time frame for the t/o ofer?
at 3.4 BLT for one RIO . RIO is at a nice discount, obviously if deal doesn't go through...DYOR
Alex

and both pay a divi too

RIO in freefall now BLT deal off. anyone care to speculate a bottom price for this now?

bloody hell, and that is an understatement!
RIO down 9.00+ having been up 3-4.00 yesterday.
Some serioulsy hurt people today following news of BHP dumping their bid .... surely that has been less than doubtful for some time.
Could be worth a small flutter to catch the bounce that must surely come

I am assuming some of the high price of RIO was due to the proposed b/out. what price would you give to stand alone. I never did get to buy in, so got lucky.
still interested. now not so sure whether to stick with this stock or go for BLT[my original plan]
Alex

have bought a few at 1559 on the basis that the downside risk is significantly less than the potential reward

cant believe lack of reaction to this today!

Not in, but what a drop ?, incredible !.

Bought the falling knife at 1450 and already 1410! Lots of stop losses hit no doubt only small position of 100 shares

Don't want to sound too negative but a few more pounds might be shaved off this yet !.

Aussie dollar has been hit where it hurts as well ! 10 is a possibility but Rio is a total psycho share to trade and 4-5 in a day standard procedure

I have put a limit order in for 1950 as 20 was such a stubborn nut for it to crack. I imagine some hedge funds will be reliving VW again today!

I assume there will be immediate broker downgrades which will compound the situation. Interesting to see that negative sentiment is always worse than positive. RIO down 40%, BLT up 15%.

and blt is at much reduced price so % is much easier to rise

read last night that usa will be paying till 2040 at least for their debts

Cynic, you are a lucky boy buying at 1559p! I bet you had a few more grey hairs when it reached 1405 ? Now in profit, glad to see.

not really .... had i not been ouit of the office, might have bought a few more, but am happy enough for the moment ...... have provisionally targetted an exit price of about 1975 for no other real reason than that 2000 may prove a psychological stumbling block

decided to take a small profit at 1649 instead of risking a loss, which could easily happen if NY falls tonight as is beginning to look very much on the cards

Good call. Closed at 1550p. Will be interesting to see where it goes tomorrow.

i have a funny feeling that it will even be below this level, but merely in reaction to NY which i also suspect will be down ..... if that is the case, i shall be tempted to dabble again

Looks like it closed at slightly above our 430 close in New York, still got to deal with Asx, have to admit selling out for 120 points today! Damn day traders!

Meanwhile, Rio Tinto, which saw its share price savaged after BHP withdrew its offer, has had its rating raised by ING from hold to buy in the wake of the share price collapse.

ING now has a price target of 2000p, down from 2200p previously, and remains concerned about Rios $39bn debt pile, which the miner is not reducing as fast as it hoped, due to difficulties securing what it considers fair value for the assets it is seeking to offload.

ING points out that Rio needs to refinance by next October around $9bn of money borrowed to acquire Alcan.
Re-loaded today at 15 for bed and breakfast trade

bed and breakfast? ...... cuddly blonde + eggs and bacon??

I wish...flog it in the open though !

the blonde?

Rio, lol!

Down again....what a market !.

ABN profit downgrade of 36% and 39billion debt, seems to be doing an RBS wonder if Fred Godwin is on the board !

Rio Tinto response to press speculation





TIDMRIO

RNS Number : 6004M
Rio Tinto PLC
01 February 2009

Rio Tinto response to press speculation

2 February 2009

Rio Tinto notes the recent press speculation regarding discussions with
Chinalco, an existing shareholder.

As previously announced, the Boards of Rio Tinto are continuing to consider a
range of options. In this regard, Rio Tinto confirms that it has held
discussions with Chinalco regarding Chinalco acquiring minority interests in
various operating businesses of the Rio Tinto group and also investing in
convertible instruments.

There can be no certainty that a transaction will ultimately take place and any
possible transaction would be conditional upon approval by the shareholders of
Rio Tinto and all necessary government and regulatory authorities.

A further announcement will be made as and when appropriate.

About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto
Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.

For further information, please contact:

+-----------------------------------------------+------------------------------------------+
| Media Relations, London | Media Relations, Australia |
| Christina Mills | Ian Head |
| Office: +44 (0) 20 7781 1154 | Office: +61 (0) 3 9283 3620 |
| Mobile: +44 (0) 7825 275 605 | Mobile: +61 (0) 408 360 101 |
| | |
| Nick Cobban | Amanda Buckley |
| Office: +44 (0) 20 7781 1138 | Office: +61 (0) 3 9283 3627 |
| Mobile: +44 (0) 7920 041 003 | Mobile: +61 (0) 419 801 349 |
| | |
| Media Relations, US and South America | Media Relations, Canada |
| Tony Shaffer | Stefano Bertolli |
| Office: +1 202 393 0266 | Office:: +1 (0) 514 848 8151 |
| Mobile: +1 202 256 3667 | Mobile: +1 (0) 514 915 1800 |
+-----------------------------------------------+------------------------------------------+
| | |
+-----------------------------------------------+------------------------------------------+
| Investor Relations, London | Investor Relations, Australia |
| Nigel Jones | Dave Skinner |
| Office: +44 (0) 20 7753 2401 | Office: +61 (0) 3 9283 3628 |
| Mobile: +44 (0) 7917 227 365 | Mobile: +61 (0) 408 335 309 |
| | |
| David Ovington | Simon Ellinor |
| Office: +44 (0) 20 7753 2326 | Office: +61 (0) 7 3867 1607 |
| Mobile: +44 (0) 7920 010 978 | Mobile: +61 (0) 439 102 811 |
| Investor Relations, North America | |
| Jason Combes | |
| Office: +1 (0) 801 685 4535 | |
| Mobile: +1 (0) 801 558 2645 | |
| | |
+-----------------------------------------------+------------------------------------------+
| Email: questions@riotinto.com | |
+-----------------------------------------------+------------------------------------------+
| Websites: www.riotinto.com |
+-----------------------------------------------+------------------------------------------+

This information is provided by RNS
The company news service from the London Stock Exchange
END

Rio Tinto notes press speculation

4 June 2009
"Rio Tinto notes press speculation. Rio Tinto is pursuing a range of options, some of
which are at an advanced stage, for maximising shareholder value and improving the
Group's capital structure.
A further announcement will be made in due course."
- - - - - - - - - - - - - - - - - - - - - - - - - -
"Rio Tinto dominated late trading as its deal with Chinese giant Chinalco looked all but dead in the water as the mining giant confirmed it is considering its options.

A rights issue to raise up to $15bn could be announced as soon as tomorrow according to reports in Australia. Rio shares slumped by 7% on the news and dragged other miners down with it.

The Australian newspaper also reported that Rio Tinto will, instead, look to form a joint venture with rival BHP Billiton, which last year abandoned a bid for Rio Tinto, with the two mining titans combining their iron ore interests."

a modest punt in RIO could reap profit even if a rights issue is on the cards ..... any such issue will for sure be priced attractively, and if no rights issue but say a JV with BHP, then again, it can't be bad

Business Financial Newswire
Aluminum Corporation of China (Chinalco) is disappointed at Rio Tinto's decision to terminate the co-operation agreement signed in February.

Chinalco president Mr Xiong said: "In recent weeks Chinalco has worked hard to respond constructively and engage with Rio Tinto to make appropriate amendments to the transaction terms announced in February to better reflect the changed market background and feedback from shareholders and regulators.

"As a result, we are very disappointed with this outcome.

"We continue to believe our proposal presented an outstanding value-creating opportunity for all Rio Tinto shareholders and would have provided a strong platform for a long term strategic partnership between the two companies.

"Chinalco will continue to explore opportunities to advance its strategic objectives and in the meantime will monitor developments at Rio Tinto as the company's current largest single shareholder.

"We note the announcement of the joint venture in the Pilbara between Rio Tinto and BHP Billiton and will continue to monitor developments in relation to this project."

"Rio Tinto shares soared as it scrapped its controversial $19.5bn refinancing deal with Chinese firm Chinalco and instead launched a $15.2bn rights issue and a merger of its West Australia iron ore assets with those of bitter rival BHP Billiton.

Institutional investors angry at the Chinalco agreement welcomed the decision, though it raises questions on the future of chief executive Tom Albanese, who was a strong backer of the Chinalco plan.

Terms of the rights are 21 New Rio Tinto plc Shares for every 40 existing shares at 1,400 pence per share, a 48% discount, and 21 New Rio Tinto Limited Shares offered for every 40 existing shares at A$28.29 each.

As part of the iron ore deal, BHP Billiton will also pay Rio $5.8bn to equalise the value of the assets being placed intothe venture. It will now run on a 50:50 basis.

Rio Tinto will also pay Chinalco an agreed break fee of $195m because of the termination of the agreement.

The group also announced its results for the three months to March with pre-tax profit slumping to $2,433m from $4,169m before on gross sales that fell to $9,538m from $13,236m."

UPDATE:Steelmakers Say Rio-BHP Iron Ore JV Should Be Blocked





(Adds background)

LONDON -(Dow Jones)- Steelmakers Friday called on relevant competition authorities to "seriously examine" BHP Billiton Ltd. (BHP) and Rio Tinto PLC's (RTP) proposed iron ore joint venture, saying it should be blocked even in its revised form.

"We are again calling on competition authorities to seriously examine the obvious implications for future pricing regimes and the competitive environment for iron ore," Ian Christmas, director general of the World Steel Association said on behalf of steel producers worldwide. The association's members represent around 85% of the world's annual steel production.

"At present we cannot see how this JV could be in the public interest and thus it should not be allowed to proceed," he said.

BHP and Rio Tinto Friday announced plans to create a 50-50 joint venture that would generate $10 billion in synergies by operating the pair's adajacent mines in the Pilbara region of Western Australia as a single operation, streamlining rail haulage, and optimizing future growth.

The joint venture is structured differently from last year's proposed merger of Rio Tinto and BHP's entire businesses. Whereas the merger would have led to the creation of a single iron ore business, under the terms of the joint venture agreement, Rio and BHP will keep their marketing divisions independent and separate from each other and the joint venture, thereby limiting the possiblity for price collusion.

Steelmakers, who rely on iron ore to make steel, are concerned that the joint venture would conentrate too much iron ore production within the hands of a single entity. Rio Tinto and BHP together accounted for 33% of the world's 2007 sea-borne iron ore trade, according to the latest figures from the association. The top three producers, including Brazil's Vale SA (VALE), account for 69.2% of the world's seaborne iron ore trade.

BHP Chief Executive Marius Kloppers said he expected the 50/50 joint venture to be notifiable to the European Union but added that the deal should present less anti-trust issues than last year's proposed merge.

"Firstly, the scope is very different. It excludes mines such as Samarco or (the Rio project) Simandou. It is also truncated in completeness of business scope," Kloppers said during an analyst call.

Under the terms of the agreement, Rio and BHP will set up a separate marketing body that will share no pricing knowledge with its owners.

Company Web site: http://www.worldsteel.org

Down 20% this morning. Presumably something to do with the rights issue?

Bought some at 2270 though possibly better to have waited for 20, or 10, or 5 we shall see...

does anyone think that the RIO will have trouble raising the money through the 21-40 offer?

I got the impression that shareholders were very pleased that the Chinalco deal was scrapped, so presumably they realised that the other option now was to go cap in hand to shareholders. I imagine the institutional investors will be happy to scoop up the rights which are not taken up by the private lot.

Possibly a bit premature, Falco. Currently 2172p & still nudging down.

Agreed

Ditched it, rio trades always seem to go pear shaped for me!

Been there, done that! Was possibly worth averaging down as likely to be a bounce???

RIO always pretty scary to trade as it can often zip up ior down by 200 or more.
anyway, currently looking pretty chirpy on the back of iron ore prices on the rise.
if final dma (25) can be firmly breached, then potential plenty of upside

for a similar reason, now look at POG which has already made a breakout

RIO now looking very nice indeed ....... as i mentioned on another thread, RIO make a very interesting if scary stock to trade, provided you stay nimble and awake ..... i would hazard a guess that 2800 or even 3000 are the next resistances, though i doubt whether i shall be foolhardy enough to stay in that long, at least with my current complete holding ...... a decent profit is a decent profit, but only when banked!

In answer to your point on the SOLA thread, the RIO/BLT/Chinalco/Alcan merger/takeover/joint venture rumour still worries me where this stock is concerned & also their huge debt pile. But as you say, probably worth a short term flutter

to my mind, RIO are a bit like the black market sardines ..... they're for trading, not eating!

I was talking to a golfing pal last week, who made a bomb during the Dotcom boom and is now retired prior to reaching the age of 50. He mentioned that Rio and other premium mining stocks tend to remain within Bollinger Bands. As you can see from the chart RIO is pushing the upper limit and is also facing the 200 MA resistance level. Wonder if tomorrow will be a 'Trader's' down day?

did not see that, but as a precaution, sold 50% this afternoon at a good profit ..... also sold 30% of my TLW holding again to lock in a good profit

Ah, that's why you have me to do your TA for you Ricardo!

just shows that my old woman's intuition was reasonably founded! .... felt that there was a decent profit to be had, and all too easy to find it has disappeared.

interesting about the bolli bands .... i checked RIO going back over 5 years, and it is indeed true .... however, as i am not sure how these bands work, it may be almost self-fullfilling

followed my own advice and treated this as a trading stock, so have now sold balance and made the bank manager happy ..... anyway, am off to bahrain (shall think of you Peter, in that scorching heat!) for a couple of days tomorrow, so shall not be able to monitor too easily

Am thinking of going to the F1 G Prix at Sakhir next year, Cynic. Any tips on where to stay?

i'm staying with a friend of mine in Bahrain, but your best bet is to go via the internet ..... tripadvisor isn't a bad site to start with, but it's nearly all american input ..... having done that, check the specific hotel site ...... be prepared to have your wallet emptied, for that part of the world is horrendously expensive in the tourist areas, dubai being the classic

Harry
I spent about 1 year working in Bahrain, most of the hotels are very similar in quality and amenities. If you want to push the boat out, stay at the Ritz Carlton :)

surely you cheated and had us poor taxpayers footing your bill - lol!

more seriously, other than the fact that prices will assuredly be inflated for the event, are there also reasonably and good places to stay and eat in bahrain?

The better quality hotels all offer much the same thing, Gulf hotel, The Diplomat etc. Best restaurant area is close to the Gulf Hotel, probably a choice of ten or so in close proximity. Can't remember all the names but Bamboo, Mezzeluna to name two. Food is actually reasonably priced, it's the alcohol that doubles the bill! Most of the hotels have restaurants, think the Gulf has five, of which the Thai is recommended and the Lebanese with belly dancer a good night out!

Harry put your tongue back in.....lol

it'll get badly sunburnt in bahrain at the moment, that's for sure!
must confess that i fail to see what is so exciting about F1 for there is so little over-taking.
on the other hand, motor cycle racing is really exciting to watch, at least on the box ..... is suspect it's equally dull trackside as you only see a fleeting few seconds of action

I used to work for Team Lotus (JPS) many years ago, so F1 is a bit of a hobby for me. I enjoy the travel & the circuit atmosphere & try & go to one meeting each year.
Unless I strike it particularly rich over the next few months, The Ritz is probably out of my budget, but I am more than happy to rough it with one of the local girls if necessary!

Nod nod wink wink ;)))))

local girls don't fuck, and stay well clear of the asian semi-pros who may will give you a leaving present!

Thats from a man who knows.......;))

fortunately not from experience - lol!

Well, that turned out to be a good trading tip, RIO down 80 odd points today.
Coincidence of Bollinger band and 200MA was always going to be a tough hurdle.
Mind you, easy to say after the event :)

very happy to have banked that profit!

glad to be out with nice profit ...... may buy back in at 2400 - see chart

for the brave and nimble ...... sp has just fallen to 2375 where it touches on 25 dma ..... trade for the bounce, though as i said, it's for the brave and nimble (or the quick and the dead!) as RIO tends to be at the best of times

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/6003057/Rio-Tinto-shares-slide-on-China-spy-claims.html

Seems like my little Bollinger Band tip was a pretty good one (not that I can take any credit for it). Now down 248 points since posting, good as trading the DJ or a similar instruement

at the upper level indeed so, but judging entry is not quite so obvious
imo this rumpus with china is just a bit of sabre rattling and manoeuvring for some political end

22 might be worth looking at.
You need to study some other indicators in conjunction with the SP action Ricardo (or do you want me to do that for you as well?) LoL :-)

peter - you should be trading these yourself if you are not ..... you called correctly yet again at 2200 ..... managed to catch the knife at 2227 with some trepidation

Trepidation long since gone, stop at entry I hope Ricardo.
In answer to your question, No I'm not, but anything to help Guv (tugs forelock).

i'll certainly be out at top of boll bands

Just be careful this git isnt forming a mini head and shoulders, failure to get through 2500 or thereabouts may precipitate a fall back to at least 2200. Needs to make higher highs not lower lows. Dyor

i sold 65% of holding and am back in the money though not by much

Thought you bought in at 2219 old boy?

that was the last batch (2227) ..... regret had also bought in higher, but no probs

Did I read somewhere that RIO's results are due this week? Seem to recall profits would be halved? Not entirely sure to be honest.

Can't say I like the look of the chart at the moment as a head and shoulders pattern seem to be in the process of formation. Left shoulder at 20, neck and head formed, right shoulder at 20? We'll see.

at least my position here is b/e, but agree that sp is not behaving very well, so may cut tomorrow

From the Mail on Sunday

Rio Tinto is expected to reveal a halving of underlying profits from 3.3m to 1.6bn on Thursday.

Not sure what to make of that comment?

pth
they say chart/pattern recognition is an art and in the eye of the beholder. for the life of me i cant see a h&s within the range of prices you outline. sure i can see a potential "lesser one" but only potential, maybe it will develop into a "bigger one" a sort of fractals or wheels within wheels etc.caveat now you have mentioned it i suppose i can invisage it, but it aint obvious. LoL.thanks for bringing it to my attention.for it to "confirm" i would think the left shoulder at 20 needs to be broken fairly conclusively, followed by either a major move down , or alternatively a bounce back to the shoulder before making its major move down. this bounce may or not happen .
what of the mean time?
however before all this can happen lots of other stuff needs to happen.this stock has lots of technical support levels at varying degrees above 20 suggesting it wont happen, unless of course they all surrender. all just my opinion as always.dyor
what with results due this week i guess we wont have long to wait. hopefully.
to sum up , i dont see a h&s but then im wrong more often than i am right
regards to you
jkd

HARARE, Oct 6 (Reuters) - "Zimbabwean President Robert Mugabe opens a session of parliament on Tuesday which will debate amendments to the mining law. Mugabe told a mining conference last month the government would soon pass a law to address concerns raised by an earlier draft that sought to give locals at least 51 percent of foreign-owned mining operations.

MUROWA - Resource company Rio Tinto owns 78 percent of Murowa mine, the country's largest gold mine. Murowa produced 260,000 carats last year but company head Niels Kristensen told Reuters last month that Zimbabwe could produce six times its current output if there was certainty in the mining sector. ((Compiled by MacDonald Dzirutwe) (macdonald.dzirutwe@reuters.com; +263 4 799 112) Keywords: ZIMBABWE MINING/"

this has been a good play over the last week or so - i bought back in on 24/9 - but i think 30.00 may prove quite a stiff hurdle, assuming we get that far

sp now challenging 30.00 ...... this could be quite a substantial hurdle as chart indicates, but with the market charging, am inclined to stay put for the moment

discretion proved the better part of greed so have banked a very nice profit at 2987 - sp seems disinclined to stay above 30.00

cynic your lucky, I sold out yesterday afternoon at 2915 thinking they wouldn't go much higher. Still took a decent profit though, so I can't moan too much.

i had set a personal target of +/-30.00 which looked about right to me ..... to be honest, i treat RIO very much as a stock to trade, often quite short term, as it is so very volatile

30.00 has built up a nuisance resistance over the last few months ...... perhaps this time it will break through and stay through ..... highs are of course 2.5x this

Out of interest are you back in these cynic?

after today's insults from you, do you really expect me to answer that??!!
have been back in since 14th october and topped up this morning

cheers, big money now though.

so buy fewer of them! ..... don't forget that RIO regularly moves 1-2 in the course of a day and gthe spread is rarely more than 2/4p

are you selling now cynic or is there more to come??

i sold half yesterday .... ditto POG ..... but then i don't think i mentioned that i had doubled up both within the last week

nice one, looks as if both are having a rest for now, may join you in rio at the bottom if it comes low enough, hadn't noticed the chart movement as always thought it out of my range of dealing. live and learn BB.

all a bit hairy scary for the last couple of days, but the chart below shows why there looks to be pretty good support at 31.00 ...... or is it trying trying to break downwards? .... should that happen, then 29.75 (50 dma) should be the next good support level

Took a gamble and bought some at 30.98, also back in lonmin and aal. think gold will be back in favour soon.

30 looks like the next sideways support level and as a heavy hitter on the FTSE100, which is looking decidely weak, I wouldn't be overly surprised to see 29 at trendline support :-)

THANKS.....lol

gold gets hit, so RIO gets whacked, though not a gold miner ..... gold goes up, and RIO pretty much gets ignored, because it's not a gold miner!

that chart in the header says it all for me, dont know.
one day i will.(think i will know that is) one day i look forward to making a few bob on this. as always dyor.
regards
jkd

chart below shows current level is half of high but are regularly sort of place to be

3300 has proved someting of a stumbling block in the recent past, so while accepting that prices at this time of year are even more volatile and nonsensical than usual, it would be encouraging indeed if this new break upwards can be maintained into the new year

PS - i can't make head or tail of the previous post either!

due to seasonal oddities, i will cautiously say that the resistance at 3300 has now been decisively broken ...... from a total amateur's chart point of view, 4000 looks to be the next serious resistance.

Peter is much more sophisticated with charts than i, so it would be useful to hear his comment

3600 was looking a bit of a resistance, but that has been shattered this afternoon

missed out big time here,... ggggrrrrrrrr!!

as sp can easily move 1 either way, you have to think of RIO as a trading stock, so the criteria are slightly different

or in this one's case 3-4 at a time

i meant "a day" .... i actually bought back a slice during the afternoon, and even that is now showing a tasty profit .... have to keep reminding myself not to get too greedy

Because Rio had a rights issue, 21 for every 40, dilution equates to a price well above 50 currently

confess i hadn't realised that, but just emphasises what a strong company RIO is then

They have doubled from 18 when the RI went through, though look very much at the top of the channel currently to my myopic vision

talk of possible 50 sp making really sick now, lol hope it takes a rest soon.

for sure they will, and as i mentioned they are very volatile, so to be treated (imo) as a trading stock

BB - i don't think you've missed the boat at all ..... you just have to work out your entry and exit points and be prepared for a volatile ride ..... it is of course a very "heavy" stock, but fortunately in CFDs at least, the margin low.

for myself, i got my timing reasonably ok, though i sold some arguably too early, and sold some more yesterday, though i still hold sufficient - i confess to having been very greedy and being even more fortunate not to get burned.

it took a while for sp to break through 3600, but it has now done and looks to have consolidated above that level - i.e. 3600 should now offer some support ..... meanwhile, RBS has tipped this as one of their commodity stocks for 2010, and certainly the chart shows 4000 to be the next level before resistance.

It's the 10 lurches down which worry me. Prefer BLT though argueably less volatile & therefore less interesting.

RIO = blue
VED = red
BLT = green

Looks like we should be trading VED then, with the greater price swings (or ENRC)?

Broker note from Nomura (Paul Cliff):
"Investment Conclusion
We advise clients to buy the current dip in mining equities. Our top picks remain Rio Tinto (Buy, TP 43) and Anglo American (Buy, TP 35). The current correction in mining equities is in-line with our view in early December that fears over tighter monetary policy in China, potential US$ strength and/or rolling-over of OECD leading economic indicators would produce a better entry point in early 2010. The key catalyst for the current correction is the fear of draconian monetary tightening in China and its impact on metals demand. However, we believe such fear is misplaced and we expect Chinese demand for industrial metals to continue to surprise on the upside through 2010. More importantly, history suggests that the mining sector actually outperforms through tightening cycles. The current correction in mining equities reminds us of the short-lived correction at the beginning of China's tightening cycle at the end of 2004.
Summary
Fears of draconian tightening measures in China are misplaced. We expect further tightening measures in China to be mild and wellpaced. Nomura's China economist - Mingchun Sun, expects to see another 50bp Reserve Requirement Ratio (RRR) hike in 2Q10; a raising of the benchmark interest rate by 27bp per quarter in 1Q, 2Q and 3Q; and the resumption of CNY/USD appreciation by around March. By the end of 1Q10 we would expect the market's attention to return to strong and sustainable Chinese metals demand and CNY/USD appreciation with its associated positive impact on metals prices via steeper cost curves.

Our analysis shows that miners consistently outperform through initial phases of monetary tightening, either in China or the US. This proved to be the case through tightening cycles in China through the last decade and the four major tightening cycles in the US over the past two decades.
We advise clients to stick to bulk commodity exposure, mainly iron ore and coking coal. We estimate that iron ore contract prices are likely to rise by 40-50% y-o-y in 2010 with a rapidly rising probability of 2010 coking coal contracts at $200+ (2009 at $129/t). Although copper has slipped from top spot in our order of commodity preferences, we think the risk of a significant short-term correction has been overplayed. Copper remains our preferred base metal exposure and we advise against switching into aluminum exposure.

Although we expect mining equities to remain choppy through 1Q10 due to the expected short-term rise in Chinese CPI inflation and likely peak in OECD leading economic indicators (see our December note for a more detailed discussion of Nomura's Leading Indicators (NOLI) we would buy the sector now."

not kidding when they say "choppy"

Final summary paragraph from SocGen broker note out this morning:
"Miners should be back for good. Miners offer more straightforward exposure to China and the developing world and hence have been hit hard by fears of monetary tightening in China. We maintain our overall positive view on the demand outlook. We have however performed a stress test analysis on our mining coverage. It confirms our preference in the mining complex for Xstrata (TP 1,550p vs 1,500p) and Rio Tinto (TP 4,000p vs 3,900p). After the recent selloff we move Anglo American to Buy (vs Hold) with a TP of 3,000p (vs 2,900p)."

strong BUY from Sunday Times - biz section; back page

cynic don't look good form here ....Bearish head @ shoulders patten emerging if nick line is broken 3036 we could see 2500......then you have a good buying opp

would like a tick up of 2 my self..

Post Edited: On reflection, overly patronising.
My own record on RIO is rubbish, so I'll keep quiet on this one :-)

Tense times in Chinese iron ore price talks

Underlying EBIDTA -36%
SP will probably go up then!

Dividend down 60%.

And opens, up 100p!!

Ahhhh, sweet smell of profit coming back..

watch that 3300 level ...

Testing the 33 mark but can't quite hold it at mo.

have sold half for that reason

170 pt turnaround here Ricardo, hope you sold t'other half!

reasonably happy to hold those thanks peter, but sure glad i ducked first thing ..... with hindsight should prob have sold all, but market opened strong and certainly RIO has promise ..... have taken some other cash off the table too - see my comment on FTSE thread

Actually although the market appeared to open strongly, the FTSE Futs had barely moved from the close last night.

I was short EUR/USD and FTSE this morning, no positions open now, apart from a dog called PANR which might have potential for the longer term!! Also shorted Aviva for a quick +4 profit.

one day i'll learn to listen to you cynic..went off to work thinking there might be a bit more to come by 11.00am, now look at it......emu

more ostrich than emu

in fact, young emu, after an earlier plunge, RIO is actually performing pretty well in a bad market and is more or less back to opening level .... stay with 'em

emu ..... rio making another effort at 3300 .... it's already up about 70 at 3285, so may pause for breath before true assault

in your view, is the week going to be weak, hold steady or some gains to be made??
Please tell Sir, by the way it's Bristol way...:))

Back to 36 off a double bottom??

Would be good to see that theory (T/A) work. ENRC chart also doing the same.

BB - volatile is i think the most likely, and remain that way for a little while ..... i go down to b-on-a quite regularly and actually need to get my act together to take a bicycle frame down to bristol for repairs - so you could s=twist my arm if you were desperate


PTH - would like to think so, and have just topped up modestly, but 3300 needs a decisive break before next upward surge

i see the gold price has been back in the 1100's and rio ticked up above 33 are we going to see 34's ????

how the f* do you expect me to know????
i'll be more interested at this juncture to see if it can hold above 3300

Cynic....chill, only asking the sodding question.....take another vallium. lol

so you got the f'ing answer - hoho!

come on cynic should be dancing on your dictionary.....broken through 33

i know .... almost posted here earlier to that effect, for your benefit.
very happy that i bought a few more yesterday

Better do another dictionary dance cyners, might see 34+ today if we're lucky..

it's already (been) there

bloody dance harder then!!!!

RIO goes ex-divi on 24th feb '10.

missed significantly better price yesterday, but have banked an adequate profit here this morning ..... i shall now watch again

Back in the blue now with 34+

sold out tooo early cynic...34.33 at mo.

a profit's a profit .... but bought some back at 3408

edit..34.46. what is the dealing charge for you cynic??

gold up at 1118$

think brokers have these 40

.

back again to 34.20 lol

only commission to pay - 29.82 on 350 shares, so whatever % that is
also, as i deal on L2, no enhanced spread or similar and of course no stamp duty

only commission to pay - 29.82 on 350 shares, so whatever % that is
also, as i deal on L2, no enhanced spread or similar and of course no stamp duty

i thought 3600 was going to prove a stubborn resistance, so i top-sliced just below, not least because i was a bit o'weighthere ..... as it happens, sp surged almost straight through, so it'll be interesting to see if it can be maintained

sold out friday...... mistake

did you make a profit? ..... if so, not a mistake at all, and arguably not if you cut losses ..... hindsight's great

yes with profit but more is frustratingly better....

just looked the time of your post.....get a life cyners, men in white coats will be calling...:))

i'm in dubai at thye mo so 4 hours ahead of you guys

New article, click HERE

Miners braced for plunge in earnings as Australia draws up fresh tax grab


Some of the biggest companies listed in London face soaring tax demands after Australia said that it would press ahead with plans to further tap the profits of miners.

A new Resource Super Profits Tax also known as the Henry Tax, after the Treasury Secretary Ken Henry will force BHP Billiton, Rio Tinto, Xstrata and others to hand over 40 per cent of profits made on their Australian operations from July 2012.

Demand for iron and coal from India, China and other parts of Asia has helped the Australian economy to ride out the global downturn in better shape than any other advanced economy. However, the Australian Government led by Kevin Rudd, the Prime Minister, argues that the royalties paid by miners to state administrations have not kept pace with companies profits. Ministers claim that over the past five years taxpayers have been short-changed to the tune of A$35 billion (21.2 billion) by the mining industry.

The industry expressed its disappointment at the proposed measures yesterday and warned that they would make investment in Australia far less attractive and ultimately would damage rather than bolster the economy. Marius Kloppers, BHPs chief executive, said: If implemented, these proposals seriously threaten Australias competitiveness, jeopardise future investments and will adversely impact the future wealth and standard of living of all Australians.

Industry experts estimated that the new tax scheme could lead to those companies earnings being slashed. Bank of America Merrill Lynch said that the earnings of BHP, with 51 per cent of its assets in Australia, would be pared by 19 per cent. Earnings of Rio, the worlds second-largest iron ore exporter with about a third of its assets in Australia, would fall by 30 per cent.

Shares in miners were marked sharply lower towards the end of last week in anticipation of the new plans. David Cassidy, chief strategist at UBS, the Swiss bank, expected them to fall still further after the news. He also cautioned that the new tax may stymie mergers in the mining sector and could threaten to derail the A$3.7 billion bid by Peabody Energy, an American coalminer, for Macarthur Coal, an Australian resource company.

The Minerals Council of Australia, a trade body, attacked the proposals as an unprecedented double tax, which would make the countrys mining industry the most heavily taxed in the world. It said that the sector made up 8 per cent of the economy but accounted for 18 per cent of all company tax in Australia, paying A$25 billion.

Mitch Hooke, chief executive of the MCA, said: There is real risk that many of these taxation gains that the Government is banking on may prove illusory if the secondary round impacts are a deterrent to investment.

However, Mr Rudd said: Companies will not pay the tax until after they have provided shareholders with the normal return on capital investments and only then on any additional profit.

Mr Rudd, who is seeking re-election this year, has earmarked the funds raised from the resource rent tax to deliver a pensions boost for all Australians and across-the-board business tax cuts.

Treasuryman

Ken Henry, appointed Treasury Secretary in 2001 by Australias former Liberal government, became the go-to man for Kevin Rudds Labor administration in the financial crisis. The 52-year-old economist, who has drawn flak for alleged political bias, is seen as the architect of the Governments A$42 billion (25 billion) stimulus, designed to mitigate any economic slump. Reportedly he advised: Go early, go hard and go households. In 2008, he was asked to conduct a root-and-branch review of tax

Seems to be recovering from tax sting... in profit today

Broker note today from UBS:
"Australian Labor Party replaced Rudd with Gillard as PM Today the ruling Australian Labor Party replaced Kevin Rudd as its leader and Prime Minister, with Julia Gillard (former Deputy Prime Minister).

Gillard opens door for a period of negotiation on RSPT Following todays announcement, Gillard renewed the Labor Partys support for a mining tax, but has called for a new period of discussion. Importantly, she has said the government must not only consult but also negotiate, suggesting some compromise could eventually be forthcoming. As an act of good-faith, the ALP has withdrawn their advertising campaign, and asked the miners to do the same. In response, BHP also announced it was suspending its advertising campaign.

We still believe the ALP will look to implement a mining tax. We believe it remains highly likely that a mining tax will be introduced. However, following today, it seems almost assured that a diluted version of the initial version of the RSPT will eventuate. However, given the proposed new negotiation, the resolution of details may now be further in the future opening up a longer period of uncertainty for the miners

Our prior NPV impacts represent the worst case scenario for the miners.
We currently estimate a 18% impact to Rio; 15% impact to BHP; 7% for Xstrata from the tax. We consider this the worst case scenario and see potential upside from here. Stocks impacted: Rio Tinto (Key Call in Europe,
Buy, PT 4235p, A$109), BHP Billiton (Buy, PT 2330p/A$53), Xstrata (Neutral, PT 1100p), Anglo American (Buy, PT 3150p). Expect a short term bounce in the miners"

Bounced off of 40 quid twice today.

5 year chart is quite interesting .... 4000 could be a bit of a resistance

Its through it - to short or not to short hmmmm.

i dabble in RIO from time to time, but it can be very scary as it can fly up/down by 100/200 in a trice

there's a swathe of announcements today, all of which look good to me .... sp took its customary drop "on the news" so have had a little dabble after a long time away

Blue Chip Bulletin: Rio Tinto faces cyclone disruption

Blue Chip Bulletin: Rio Tinto faces cyclone disruption http://www.whatinvestment.co.uk/trading/share-dealing/uk-companies/1603548/blue-chip-bulletin-rio-tinto-faces-cyclone-disruption.thtml

Australia mining tax clears hurdle, after much debate

The Australian government's plan to impose a 30% tax on big mining companies has cleared a major hurdle, passing through parliament's lower house.

It will go to the upper senate early next year, but is expected to pass.

The government said the tax was a way to distribute wealth more evenly from Australia's resources boom.

It will go into effect in July 2012, and will apply to mining giants such as Rio Tinto and BHP Billiton.

.

Just 9 billion then!

.

mnamreh - 17 Jan 2013 08:40 - 267 of 267 That's TANKER'S age adjusted IQ.

What a coincidence.

Sounds like they were duped or blind (advisers need their bonuses too). Bit like the Autonomy/HP goings-on only with someone doing the decent thing.

Maybe clearing the decks for a clean start for new FY.

.

I missed that - obviously too slow!

Albanese will remain on the company payroll until July, but won't receive a performance bonus for 2012 or 2013. He also forfeits his 2013 long-term share award.

quite right too, and there's a bundle of other companies - e.g. uk banks, bbc etc - who should take note and act similarly when the chief honcho or similar cocks up

The Sunday Telegraph


Mining giant Rio Tinto posted its first ever full-year loss after writing down 14.4 billion US dollars (£9.2 billion) of its assets following an acquisition spree.

The mammoth writedowns led to last month's departure of Tom Albanese, Rio's chief executive since 2007, who carried the can for the ill-fated acquisitions of aluminium group Alcan and a coal business in Mozambique.


Impairment charges, mainly relating to the two deals, meant Rio last week recorded losses of three billion US dollars (£1.9 billion).


New boss Sam Walsh pledged an "unrelenting focus" on improving shareholder returns, driven by cost savings of more than five billion US dollars (£3.2 billion) by the end of next year and greater discipline on capital spending.


Mr Walsh, who used to run the company's iron ore operations, said Rio's strategy of operating large, long-life, low-cost mines in the most favourable industry sectors was the right one.


Rio's shares suffered last year as commodity prices slumped.
The company made 90% of its net earnings last year from iron ore operations and its exposure to the steel-making ingredient will further increase when the group's 290 million-tonne expansion in the Pilbara region of Western Australia comes on stream during the fourth quarter.


However, prices are buoyant and Rio is a low-cost producer.
Shares have recently risen amid the wider market rally, but at 3733.5p there is more upside to come and investors are advised to buy.


Read more: http://www.thisismoney.co.uk/money/investing/article-2280016/Sunday-newspaper-share-tips-Greencoat--Rio-Tinto.html#ixzz2LC1c0fth
Follow us: @MailOnline on Twitter | DailyMail on Facebook

keep an eye on this quality heavyweight
it'll certainly be a beneficiary of any sustained demand for hard commodities, thought it can be a bit of a scary ride

Jefferies note today:
"Impressive operating results: Rio’s full year 2013 underlying EPS increased 10%, from $5.01 in 2012 to $5.53 in 2013, and was significantly ahead of consensus. Rio’s full year underlying EBITDA increased from $19.2bn in 2012 to almost $21.5bn in 2013, and the company’s cash flow from operations increased from $16.5bn to $20.1bn, up 22% y/y. Rio is clearly delivering operationally and is recapturing its pre-Alcan position as arguably the highest quality mining company in the world. We expect further earnings growth for Rio in the years ahead as the company’s organic volume growth and unit cost reductions more than offset the headwind of a declining iron ore price. On our estimates, Rio’s EPS will increase from $5.53 in 2013 to $6.55 in 2016 even as the benchmark iron ore fines spot price declines from $135 to $90 per tonne over this period. Note that the company’s underlying EPS increased from $2.29 in 1H13 to $3.24 in 2H13 even though the iron ore fines price fell from $137/t on average in 1H to $134/t in 2H.
Huge capex reduction with further to go: Rio’s reported 2013 capex of $12.9bn was 26% below the company’s 2012 capex spend of $17.5bn. Management continues to guide to 2014 capex of $11bn and 2015 capex of $8bn. This capex reduction combined with further earnings growth should lead to strong growth in Rio’s free cash flow. We expect Rio’s free cash flow yield to increase to approximately 13% by 2016.
Deleveraging in progress: The combination of stronger-than-expected operating cash flow and a significant decline in capex resulted in substantial deleveraging for Rio as the company’s net debt fell from $22.1bn at 30 June 2013 to $18.1bn at 31 December. While debt reduction continues to be a priority for Rio, the company now has one of the strongest balance sheets in the sector, with net debt/LTM EBITDA of 0.86x and net debt/ forward EBITDA of just 0.76x. Our understanding is that Rio is targeting a net debt level of approximately $15bn, which the company should reach in early 2015.
Dividends for now, dividends + buybacks for 2015: As we expected, Rio announced a 15% increase in its full year dividend, from $1.67 in 2012 to $1.92 in 2013. This dividend increase was in line with our forecast, but our forecast was the top of the consensus range. We expect further dividend growth from Rio in the years ahead, and we expect the company to announce a $3-5bn share buyback programme when it reports full year 2014 results next February as its deleveraging process should be nearly complete by then.
Rio continues to be our top pick: In light of its strong balance sheet, significant organic volume growth, ongoing unit cost reductions, bottom of the cost curve iron ore business, conservative management, low operating risk, low geopolitical risk, and discount equity valuation (trading at 9.1x 2014E earnings and 5.3x 2014E EBITDA versus the sector averages of 11.2x and 6.0x, respectively), Rio continues to be our top pick in the sector."

Finally some good news and new recent highs. Encouraging Jefferies note. Divi surprised most and bodes well for the future.

Going great guns today - and Deutsche out with comment about possible buyback and target price of 4650p

(Reuters) - Rio Tinto (RIO.AX) rejected a merger approach from smaller rival Glencore Plc (GLEN.L) to create a $160 billion (99.74 billion pounds) mining and trading giant in August just as the price of its most profitable product, iron ore, slid towards a five-year low.

The miner said on Tuesday Glencore had contacted it about a potential merger in July, adding that it turned Glencore down in August and there had been no further contact between the companies on a deal.

A merger would have created the world's biggest miner, supplanting BHP Billiton (BHP.AX).

"The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto's shareholders," Rio Tinto said in a statement to the Australian stock exchange.

given RIO's immediate and outright rejection of any merger, i am very surprised to see the surge in sp being sustained

despite my own support for this stock about a year ago, i am currently staying well away from any hard commodity producers ..... that said, there will certainly come (another) time, when the cycle will turn once more

I, too, think now may not be the right time to chase miners. I think when the
time comes, BLT may be the one to give the lead.

Some comments here about the RIO story.

More

.

StockMarketWire.com
Mining titan Rio Tinto has booked FY underlying earnings of $6.53bn, up 78% from $3.67bn. Underlying earnings totalled $9.31bn, down 9% from $10.22bn. Its ordinary dividend per share was 215 cents, up 12% from 192 cents a year ago.

Looking into 2015, Rio said it would retain a tight capital discipline with a focus on cash generation and sustainable returns. It anticipated further cash cost improvements of $750m to be realised 2015, and said capex was expected to decline to less than $7.0bn in 2015 and remain at around $7.0bn in 2016 and 2017.

CEO Sam Walsh said the company had delivered on its commitment to materially hike cash returns to shareholders, which it had delivered via the improved dividend and a proposed $2.0bn share buy-back.

"These represent a total cash return to shareholders, in respect of 2014, of almost $6.0 billion," the company said.

"Our continued financial and operating discipline enabled us to offset much of the impact of lower commodity prices in 2014," Walsh said in a statement.

"By increasing volumes and reducing costs, we achieved underlying earnings of $9.3 billion and we were able to maintain our EBITDA margin2 at 39 per cent. Free cash flow was assisted by a further reduction in capital expenditure3 and a successful programme to release working capital. As a consequence, we have reduced net debt4 by $5.6 billion to $12.5 billion.

"I would like to thank our 62,000 colleagues for their contribution to these excellent results. Decisive early action throughout the Group delivered the strong balance sheet, which enables us to announce today's additional material cash return to shareholders.

"With lower commodity prices and uncertain global economic trends, the operating environment remains tough. However, in these conditions Rio Tinto's qualities and competitive advantages deliver superior value.

"Our combination of world-class assets, disciplined capital allocation, balance sheet strength, operating and commercial excellence, and a culture of safety and integrity gives me confidence in our ability to continue to generate sustainable returns for our shareholders."

Revenues and earnings:
- Consolidated sales revenues of $47.7 billion, as a $5.4 billion (pre-tax) decline in pricing was partially offset by $3.0 billion from higher volumes.

- EBITDA margin at 39 per cent, unchanged from 2013, with volume gains and cost improvements offsetting the impact of lower prices.

- Achieved underlying earnings of $9.3 billion, nine per cent lower than 2013 despite the $4.1 billion (post-tax) impact of lower prices.

- Underlying earnings per share were 503.4 US cents.

- Net earnings of $6.5 billion reflect non-cash exchange rate losses of $1.9 billion, a $0.4 billion charge following the repeal of the Minerals Resource Rent Tax (MRRT) and other charges of $0.5 billion. An impairment charge of $1.2 billion mainly related to the Kitimat project as reported at the half year was mostly offset by a reversal of $1.0 billion in the second half of 2014 related to an uplift in carrying value for the Pacific Aluminium business.

Production:
- Set production records for iron ore and Hunter Valley thermal coal, and delivered a strong operational performance in bauxite, copper and aluminium.

CitiBank summary:
"RIO Downgrade to Neutral — RIO’s net debt rises ~US$1b in 2015, before completion of remaining US$1.4b on-market buyback. As with BHP, the key question is whether a yield of greater than 5% is enough to offset iron ore price headwind and lack of cash flow generation. We downgrade RIO to Neutral, previously Buy."

StockMarketWire.com
Rio Tinto is preparing its first shipments of metal from its Kitimat aluminium smelter, Canada, following an extensive modernisation of the facility.

The modernisation of the aluminium smelter will increase production capacity by 48 per cent and result in Kitimat becoming one of the lowest cost smelters in the world. Rio is now focused on safely ramping up towards its annual production rate of 420,000 tonnes.

The modernised smelter, which was delivered in line with the revised schedule and budget, is powered exclusively by Rio's wholly owned hydro power facility and uses the company's proprietary AP40 smelting technology which will effectively halve the smelter's overall emissions.

Credit Suisse note:
"RIO TINTO (NEUTRAL, TP £25): Target price lowered to £25 from £28. It is tempting to be relatively positive on the outlook for RIO given its strong balance sheet, dividend yield (6%), on-going buyback program, well regarded management team and an enviable iron ore business. However looking ahead the commodity mix remains a concern with the two largest businesses, iron ore and aluminium, both continuing to exhibit supply characteristics that have the potential to overwhelm demand. We remain bearish on the outlook for both iron ore ($45/t in 2016 and 2017) and aluminium prices, and this contributes to the high 2016 PE (23x). With relatively strong but declining earnings profile, little chance of a dividend cut and a real possibility of extending the buyback program in 2016 (coal asset sale would help, book value $3bn) we see Rio as a defensive option within the mining space. Catalyst: Possible sale of coal business, continuing pressure on iron ore prices, capex approvals (bauxite) in Q4. We set our target price at a PE of 20x 2017 earnings and 6.5% dividend yield. On our 2016 earnings, Rio generates $2.5bn of FCF and has a dividend commitment $3.9bn for a near $1.5bn increase in net debt assuming no further asset sales."

Was only looking at RIO and BLT at the weekend thinking at multi-year lows got to be thinking about adding here. Sharp rise today but suspect when China is back next week some negative sentiment will return. Can't believe it's all over.

What is positive sentiment returns from China.
Things are portrayed too negatively in the west.

Still oversupply, so more likely lower short term prices in my opinion. But good idea to start acquiring for the longer term.

Such a high yielder here but will the divi go just like Glencore? I'd like to buy both RIO/BLT but not convinced this is the bottom.

Nice gains today. Also bought some AIGI industrial metals as at multi year lows. Did buy RIO yesterday fortunately.

StockMarketWire.com
Rio Tinto has issued strong Q3 production results. It cited efficient output, rigorous cost control and sound allocation of capital.

Global iron ore shipments totalled 91.3 Mt, up 17% on the year, with global iron ore production at 86.1 Mt, up 12%. Bauxite output was 11,287 kt, up 4%, and aluminium production was 830 kt,m up 1%.

However, mined copper production was 115 kt, down 24% on the year. Hard-coking coal output was 1856 kt, up 5%, while semi-soft and thermal coal was at 5546 kt, down 8%. Titanium dioxide slag output was 243 kt, down 34%.

CEO Sam Walsh commented on the company's production stance:

"This approach is ensuring that our tier one assets generate substantial free cash flow even during a challenging economic environment.

"Our expanded Pilbara infrastructure is in place, and the Iron Ore Product Group is successfully commissioning and testing the system, reflected in the increased iron ore shipments to our customers during the period.

"Our cash generated from operations will enable us to deliver strong returns to shareholders through the cycle and our balance sheet will be further strengthened by recent divestment activity."

Investec raise to buy.

Credit Suisse today reaffirms its neutral investment rating on Rio Tinto PLC (LON:RIO) and cut its price target to 2100p (from 2400p).

StockMarketWire.com
Rio Tinto said global iron ore shipments totalled 336.6 million tonnes in 2015, marginally below its guidance of 340 MT but up 11% on 2014. At 327.6 MT, global iron ore output was also up 11% on 2014.

"In 2015, we delivered efficient production, meeting our targets across all of our major products, while rigorously controlling our cost base," said CEO Sam Walsh in a statement.

"We will continue to focus on disciplined management of costs and capital to maximise cash flow generation throughout 2016."

Meantime, semi-soft and thermal coal production was overall flat at 22,285 kt. Output of bauxite, aluminium and hard coking coal was up. However, mined copper production fell 16% to 504.4 kt, while titanium dioxide slag tumbled 25% to 1089 kt.

StockMarketWire.com
Rio Tinto has swung to a FY pretax loss of USD726m, from a profit of USD9.55bn a year earlier. Consolidated sales revenue was USD34.83bn, from USD47.66bn. It maintained its FY dividend at 215p a share.

CEO Sam Walsh described the performance as "strong" against a "highly challenging" environment.

"We continued to take decisive action to preserve cash through further cost reductions, lower capital expenditure and the release of working capital. This focus on cash resulted in operating cash flows of $9.4 billion," he said in an earnings statement.

"At the same time, we have significantly strengthened our balance sheet and finished 2015 with net debt of $13.8 billion, which is $700 million better than the $14.5 billion pro-forma position at the end of 2014.

"The continued deterioration in the macro environment has generated widespread market uncertainty. We are embarking on a new round of proactive measures to cut our operating costs by a further $1 billion in 2016 followed by an additional goal of $1 billion in 2017.

"We are also reducing our capital expenditure to $4 billion in 2016 and $5 billion in 2017, an overall reduction of $3 billion compared with our previous guidance.

"These significant actions provide us with the confidence that we remain robustly positioned to maintain both balance sheet strength and deliver shareholder returns through the cycle."

BIG PICTURE
"The slowdown in emerging markets limited global growth to around 3 per cent in 2015. The impact on commodity demand was much stronger, led by a further deterioration in key metals-intensive sectors in China.

"In response, high-cost marginal supply is seen exiting across most markets. This is a slow process. Without a turnaround in demand it is difficult to see these supply withdrawals having strong positive price impacts in the short term.

"The macro-economic consensus points to a moderate improvement in global growth in 2016, but volatility in financial and oil markets is a strong sign that macroeconomic risks abound, with geopolitical concerns also not far in the background.

"Longer term, demand prospects remain positive and we expect this will support a recovery from the current cyclical low phase."

Looks like 2016 dividends will be much lower ( =Like half previous Years !), so I expect the Market will reduce the sp from current £22 to meet the expectations of the Co. which probably sees the next year will be much the same as last, with general falls in hard commodity pricing.
EDIT (9May2016) sp~£20

Deutsche Bank today reaffirms its buy investment rating on Rio Tinto PLC (LON:RIO) and cut its price target to 2800p (from 3000p).

Rio Tinto will strengthen its organisational structure to continue to drive performance under its new chief executive Jean-Sébastien Jacques.

From 2 July 2016, Rio Tinto's product group structure will be adjusted to better align the Group's assets with the business strategy to help drive further efficiencies and optimise performance. The Group's world-class assets will be firmly at the centre of the business and will be supported by efficient and agile global functions.

Jean-Sébastien Jacques said "In the face of testing times for the industry, Rio Tinto is performing remarkably well. Our ambition is to deliver superior performance day-in and day-out so that we create value for our shareholders and communities now and over the long term.

"Our strategy, commitment to balance sheet strength and focus on shareholder returns will not change; but we are strengthening our structure and delivery by placing our assets at the heart of the business to drive improved performance.

"I am pleased to unveil our new executive team which represents seven nationalities and is as diverse as it is experienced. Each new team member has more than 20 years' experience in the resources sector, which complements the deep expertise of the existing executive team.

"We will work together with all of our employees around the world to build an even stronger company, well positioned for delivering returns and building growth."

Rio Tinto's organisational structure will include four product groups - Aluminium, Copper & Diamonds, Energy & Minerals and Iron Ore. These groups will be complemented by a newly shaped Growth & Innovation group, which will focus on future assets and technical support.

Under the new structure:
· Aluminium will retain its focus on safety, cash and value creation from its high-quality bauxite, alumina and aluminium businesses. Alfredo Barrios will remain as chief executive, based in Montreal.

· Iron Ore will be exclusively focused on our world-class iron ore operations in Western Australia. Chris Salisbury, currently acting Copper & Coal chief executive, will become Iron Ore chief executive based in Perth.

· Copper & Diamonds will combine our two marketing-led businesses into a single product group, which helps us maximise our technical underground mining expertise. Arnaud Soirat will join the Executive Committee as Copper & Diamonds chief executive. Arnaud, currently Aluminium Primary Metal president and chief executive officer, with more than 24 years of industry experience across three continents, will be based in London.

· Energy & Minerals re-shapes Alan Davies' current portfolio, bringing together Rio Tinto's coal, uranium, salt, borates and titanium dioxide businesses, as well as the Iron Ore Company of Canada. Alan, currently Diamonds & Minerals chief executive, remains based in London.

· Growth & Innovation will provide strategic leadership and technical expertise for the end-to-end delivery and management of growth from exploration to projects. Stephen McIntosh, currently acting Technology & Innovation Group executive, will take up the role of Growth & Innovation Group executive, based in Brisbane.

In addition, reflecting the Group's increased focus on health and safety, accountability for safety as a discrete unit will sit with an Executive Committee member for the first time.

Goldman Sachs today upgrades its investment rating on Rio Tinto PLC (LON:RIO) to neutral (from sell) and raised its price target to 1900p (from 1330p).

Credit Suisse today reaffirms its neutral investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 2300p (from 2100p).

StockMarketWire.com
Rio Tinto has delivered robust operational performance in Q2.

"We continue to focus on value and maximising cash flow from our assets, through both commercial and operational excellence while maintaining capital discipline," said CEO J-S Jacques.

"This will ensure that Rio Tinto is well-positioned to generate compelling and consistent returns for our shareholders."

HIGHLIGHTS:
* Second quarter Pilbara iron ore sales achieved a run-rate of close to 330 million tonnes per annum (100 per cent basis) in line with annual guidance. Sales exceeded production in the quarter, partially unwinding the inventory build in the first quarter.

* Bauxite production was nine per cent higher than the first half of 2015. This enabled a five per cent increase in third party sales over the first half of 2015.

* First half aluminium production was ten per cent higher than the same period in 2015, with the modernised and expanded Kitimat smelter delivering its first full quarter at nameplate capacity.

* Mined copper was in line with the first half of 2015 as strong performances at both Rio Tinto Kennecott and Oyu Tolgoi, as well as a contribution from Grasberg, offset a weaker performance from Escondida.

* On 6 May 2016, Rio Tinto and its partners, the Government of Mongolia and Turquoise Hill Resources, announced the next stage in the development of Oyu Tolgoi. Following the approval of the underground project, over $4 billion of project financing has been drawn down.

* On 21 June 2016, Rio Tinto announced changes to its organisational structure. The Group continues to be organised into four product groups: Aluminium, Copper & Diamonds, Energy & Minerals (including Iron Ore Company of Canada) and Iron Ore, complemented by a newly-shaped Growth & Innovation group, which will focus on future assets and technical support.

HARRYCAT - do you have a view on the copper miner [ATYM] - this was highlighted in IC a few months ago - it seems they bought the Rio-Mine in Spain (DYOR). . . . just treading-water until the copper Spot-price rises, I'm guessing, -but 1/20th cheaper than RIO stocks.

ATYM (EMED) not one I have followed at all. Seems they are trying to re-commission the mine near Seville in Spain, which I have actually passed recently. A huge terrassed open cast mine with vast areas of water in the middle. Can't really comment on whether it will be viable or not.

Deutsche Bank today reaffirms its buy investment rating on Rio Tinto PLC (LON:RIO) and cut its price target to 3160p (from 3175p).

Jefferies International today reaffirms its buy investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 2800p (from 2600p).

StockMarketWire.com
Rio Tinto has delivered strong third-quarter production, underpinned by improving operational performance across its Tier 1 portfolio.

"Output from our iron ore and bauxite assets reflects the drive for productivity and operational excellence," said CEO J-S Jacques.

"With a continued focus on value, we will seek further productivity improvements across the business.

"Our rigorous attention to cash generation, coupled with a disciplined allocation of capital remains our key focus in delivering shareholder value."

HIGHLIGHTS:
- Pilbara iron ore production (100 per cent basis), saw a run-rate of 330 million tonnes a year. Shipments were reduced by port and rail maintenance during the quarter and annual shipment guidance is revised to between 325 and 330 million tonnes for 2016.

- Quarterly production records at both Weipa and Gove led to nine month bauxite production of 35.6 million tonnes, ten per cent higher than the same period in 2015.

- Kitimat delivered its second consecutive quarter at nameplate capacity, giving rise to an 11 per cent increase in year to date aluminium production.

- Mined copper production for the first nine months of 2016 was four per cent higher than the same period in 2015, despite 18 per cent lower copper production at Escondida, primarily due to lower grades. Rio Tinto Kennecott achieved increased production from mining an area of higher grades, whilst continuing its focus on de-weighting to access ore from the east wall of Bingham Canyon.

- On 5 August, the Group completed the sale of its Mount Pleasant thermal coal assets for $221 million plus royalties.

Macquarie today reaffirms its outperform investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 3400p (from 3300p).

Jefferies International today (28/11/16) reaffirms its buy investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 3600p (from 3300p).

Credit Suisse today (07/12/16) upgrades its investment rating on Rio Tinto PLC (LON:RIO) to outperform (from neutral) and raised its price target to 3600p (from 2750p).

StockMarketWire.com
Rio Tinto has delivered a strong operational performance in 2016, underpinned by its drive for efficiency and maximising cash flow, says CEO J-S Jacques in a Q4 production update.

"Our disciplined approach remains in place in 2017, with the continued focus on productivity, cost reduction and commercial excellence. This will ensure that we continue to deliver value for our shareholders," he added.

HIGHLIGHTS:
- Pilbara iron ore shipments of 327.6 million tonnes (100 per cent basis) were in line with guidance and three per cent higher than 2015.

- Record bauxite production of 47.7 million tonnes exceeded full year guidance of 47 million tonnes, whilst third party shipments increased to 29.3 million tonnes.

- Aluminium production was ten per cent higher than 2015, with record annual production at ten smelters, notably at the modernised and expanded Kitimat smelter, which has produced at nameplate capacity since April 2016.

- Mined copper production was four per cent higher than 2015 at 523 thousand tonnes. This was below full year guidance, with no metal share delivered from Grasberg and lower than expected production at Kennecott.

- Rio Tinto's share of hard coking coal production was slightly above the top end of the guidance range due to strong operational performance, while semi-soft coking and thermal coal production of 21.4 million tonnes was in line.

- Titanium dioxide slag production continued to be aligned with market demand with a four per cent reduction on 2015.

- Production and shipments guidance for 2017 remains unchanged from the update given at our London investor seminar on 6 December 2016.

- On 23 November 2016, Rio Tinto announced it had reached an agreement to sell its aluminium assets at Lochaber, Scotland for a consideration totalling $410 million. The sale was finalised on 16 December 2016.

StockMarketWire.com
Rio Tinto has swung to FY net earnings of $4.6bn, from a prior year net loss of $866m. Its ordinary dividend per share was 170 cents, down 21% from 215 cents in the prior same period.

It also unveiled a share buy-back of $0.5bn over the period March 1 to Dec. 31, 2017.

The company said the results showed it had kept its commitment to maximise cash and productivity from its world-class assets, delivering $3.6bn in shareholder returns while maintaining a robust balance sheet.

"At the same time, we strengthened the portfolio and advanced our high-value growth projects as we look to the future," said CEO J-S Jacques.

He added that Rio Tinto entered 2017 in good shape.

"Our team will deliver $5bn of extra free cash flow over the next five years from our productivity programme," he said in a statement.

"Our value over volume approach, coupled with a robust balance sheet and world-class assets, places us in a strong position to deliver superior shareholder returns through the cycle."

FINANCIAL HIGHLIGHTS
Rio Tinto said it generated strong operating cash flow of $8.5bn, from down 10% from $9.4bn, and underlying earnings of $5.1bn, up 12% from $4.5bn.

It achieved $1.6bn of pre-tax sustainable operating cash cost improvements, and also invested in three major growth projects in bauxite, copper and iron ore.

Rio added that it optimised its portfolio with disposals of $1.3bn, either announced or completed in 2016, and up to $2.45bn announced so far in 2017.

It had strengthened its balance sheet further with net debt reduced to $9.6bn.

GUIDANCE
Rio confirmed operating cash cost improvements (including exploration and evaluation savings) of $2.0bn (pre-tax) over 2016 and 2017, in line with previous guidance.

It expected an additional free cash flow of $5.0bn by the end of 2021 from productivity improvements.

Capital expenditure was expected to be about $5.0bn in 2017 and about $5.5bn in each of 2018 and 2019. Each year included roughly $2.0bn of sustaining capex.

Production guidance is unchanged from the Fourth Quarter Operations Review.

RIO
the share has performed very well indeed over the last 12 months
the market clearly likes the results too, even though the divi has been cut


ANTO + AAL
these two have also performed very well of late - i particularly like ANTO though the brave may plump for KAZ instead

i've tried to do a performance comparison of these 3 shares, but the MAM sitre is currently playing silly buggers, so further comment in due course

herebelow ......

KAZ has outstripped all by miles, followed by AAL

RIO = blue
ANTO = red
AAL = black
KAZ = green

RIO clattered down during the day finishing -57 after +97, all on the back of a copper strike at a BLT mine in chile in which RIO have a stake

must surely be worth a further look in the morning
meanwhile, the likes of ANTO and KAZ should benefit

Deutsche Bank today reaffirms its buy investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 4000p (from 3770p).

Haitong Securities today reaffirms its neutral investment rating on Rio Tinto PLC (LON:RIO) and raised its price target to 3220p (from 3070p).

bought some this morning at 3334 as fall looks well overdone

RIO
just stalling a bit at 3600 which looks to me like a minor resistance
with that in mind, have banked the profit on a few more, just in case

sure glad i bailed out yesterday

latest today ......

RIO
closing in a messy heap .... currently down 191p = 5.3%
AAL following though to a lesser degree ...... down 38p = 2.9%


not really sure why unless it's a late follow-through from yesterday's report re chinese consumption of steel

Rio went ex-divi on thurs, which may be part of the reason, though seems all miners are being hit at the mo. Possibly just profit taking after a very good run?

how much was the RIO divi?
the stock continues to be hammered and it's down a further 118 as i write

there was a negative report on iron ore prices the other day, which i'll try to find and post here

here you are ...... i posted this on 22nd

RIO and other base metal miners
the following explains the weakness in recent days, and in some ways supports what i have long been saying about chinese gdp

have just sold my RIO trading position for a decent profit, despite today's tumble ..... AAL is looking pretty sick so i'll stay with it



China's surging steel, iron ore inventories at odds with price gains:

LAUNCESTON, Australia, Feb 22 (Reuters) – Something is not quite adding up in China's iron and steel markets, with the reasons for the current rally in prices for both commodities jarring uncomfortably with actual data.

Iron ore futures on the Dalian Commodity Exchange on Tuesday hit the highest since the contract was launched in 2013, reaching an intraday peak of 741.5 yuan ($108) a tonne, ending 3.2 percent up on the day, taking the gain since the beginning of 2016 to 258 percent.

The simple explanation is that iron ore is merely tracking gains in steel rebar futures, the main Chinese benchmark traded on the Shanghai Futures Exchange.

Steel futures closed on Tuesday at 3,589 yuan a tonne, having earlier reached their highest level since February 2014. Their gain since the start of 2016 stands at a fraction over 100 percent.

The main reasons cited for the rally in steel are strong growth in demand because of Chinese infrastructure spending and fears over supply, given Beijing's plans to cut excess capacity and enforce stricter pollution controls.

While it's fair to say demand for steel has been boosted by increased spending, and that steel capacity has been cut, there is little evidence that this is creating any shortage of the alloy.

Production is still strong, with China's crude steel output reaching 67.2 million tonnes in January, up 7.4 percent from the same month a year earlier, the World Steel Association said on Tuesday. ...

Production for 2016 was 808.4 million tonnes, up 1.2 percent on the prior year, confounding expectations at the start of last year that output would decline as the industry was forced to rationalise capacity.

Some 45 million tonnes of excess capacity was shut in 2016, part of a plan to shutter as much as 150 million tonnes by 2020.

But it's clear that shutting excess capacity has had zero impact on steel mills' ability to increase production.

In fact, it may have the opposite effect, as the capacity that has been closed was older, less efficient and generally loss-making, meaning the mills currently operating are more profitable and thus incentivised to boost output.

Certainly, there appears to be no shortage of steel in China, with rebar inventories rising to 8.397 million tonnes in the week to Feb. 17, the highest for almost two years and more than double the recent low of 3.508 million recorded on Nov. 18 last year.

It's much the same story with iron ore, with inventories surging to 127.5 million tonnes in the week ended Feb. 17, the most since at least 2004, according to data compiler SteelHome.

Inventories To Prompt Correction?
What has happened in recent months is that China's output of steel, and its imports of iron ore, have been robust on the back of the rise in steel prices.

Steel production has been incentivised by the solid profits being made by steel mills, and this has led to strong gains in iron ore imports, with January's 92 million tonnes being the second highest on record.

The question is how long can the current situation be sustained?

It certainly doesn't seem logical that prices can continue to rally when inventories are reaching uncomfortably high levels.

At some point the volume of steel and iron ore sitting at Chinese ports and warehouses will overwhelm even the most optimistic traders, but picking that point is far from an exact science.

In the past, peaks in inventory cycles have been matched by falling prices, but the last five years are tricky given the market was also suffering from persistent oversupply in iron ore and steel, whereas now it's more fundamentally balanced.

Certainly, Andrew Mackenzie, chief executive of BHP Billiton , is cautious on iron ore, telling reporters on Tuesday that the world's No.3 producer of the steelmaking ingredient sees risks to the downside in the short term from moderating Chinese steel demand growth, high port inventories and incremental low cost supply. ...

So far, the paper markets for iron ore and steel have been happy to forego a cautious approach to the outlook in 2017, but optimism in the face of contradictory data may well lead to a sharp reality check.

Divi was 100.56p

cripes .... even so, sp has dropped 200+ even taking that out

Liberum Capital today reaffirms its sell investment rating on Rio Tinto PLC (LON:RIO) and set its price target at 2450p.

Macquarie today (28/03/17) reaffirms its outperform investment rating on Rio Tinto PLC (LON:RIO) and set its price target at 4200p.

Liberum Capital today (20/04/17) reaffirms its sell investment rating on Rio Tinto PLC (LON:RIO) and set its price target at 2400p.

JP Morgan Cazenove today (02/05/17) reaffirms its overweight investment rating on Rio Tinto PLC (LON:RIO) and cut its price target to 4150p (from 4200p).

Rio Tinto announces cash generation of $6.3 billion and cash returns to shareholders of $3.0 billion

Rio Tinto chief executive J-S Jacques said "Today we have announced total cash returns to shareholders of $3 billion. By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders.

"These are strong results: operating cash flow was $6.3 billion and we met our $2 billion cash cost reduction target six months early. We are now shifting gear to focus on the untapped value from our productivity programme and continue to strengthen our portfolio to build higher returns for the future. We announced the sale of our thermal coal business in Australia for $2.7 billion and are making good progress on our compelling growth projects - Oyu Tolgoi, Amrun and Silvergrass."

First half 2017 highlights
- Generated operating cash flow of $6.3 billion, EBITDA1 of $9.0 billion and EBITDA margin2 of 45 per cent.
- Delivered underlying earnings of $3.9 billion and net earnings of $3.3 billion.
- Achieved $2.1 billion of pre-tax sustainable operating cash cost improvements3 in 2016 and 2017 first half, meeting the target six months ahead of schedule.
- Strengthening the portfolio with all three growth projects on track and a $2.7 billion disposal announced in 2017 first half.
- Reduced net debt by $2.0 billion to $7.6 billion, with gross debt4 lowered by $2.5 billion.
- Returning cash to shareholders of $3.0 billion with respect to 2017 first half:
§ Declared interim dividend of 110 US cents per share, equivalent to $2.0 billion.
§ An increased share buy-back of $1.0 billion in Rio Tinto plc shares by the end of 2017.
§ In total represents 75 per cent of 2017 first half underlying earnings.

http://www.moneyam.com/action/news/showArticle?id=5611278

Rio Tinto was slapped with a £27.4m fine by the City watchdog for failings in its financial reporting process relating to the $3.7bn purchase of mining assets in Mozambique, an issue that US regulators have now begun to investigate. The Financial Conduct Authority said Rio Tinto misled investors by failing to carry out an impairment test that would have resulted in a material impairment being made to its 2012 half year results, which it did not remedy until in January 2013 when it wrote off roughly 80% of the value of the investment.