|
Rio Tinto PLC faced calls from an activist shareholder to drop its listing in London and choose Sydney as primary listing, as it hosted an investor seminar on Wednesday. The London-based diversified mining company released 2025 production and capital expenditure guidance, as it set out a plan to invest ‘for a stronger, more diversified and growing portfolio’. Rio Tinto hosts an investor seminar in London on Wednesday. ‘We are executing our strategy of delivering a stronger, more diversified, and growing business, underpinned by our belief in the demand for materials which are essential for the global energy transition. With improved performance we can afford both growth and our decarbonisation, and continue our dividend policy and practice while preserving a strong balance sheet,’ Chief Executive Jakob Stausholm said in a statement ahead of the event. At the seminar, ‘executives will detail progress made in 2024 and outline their ambition for a period of sustained growth over three time horizons until 2033’. Rio said it has an expected compound annual growth rate of around 3% across that stretch of time, without specifying whether that refers to profit, revenue or production. Iron ore, aluminium and copper will be at the heart of ‘shaping Rio Tinto’s portfolio for the future’, it said, as will lithium. For 2025, Rio Tinto expects Pilbara iron ore shipments between 323 million and 338 million tonnes, in line with what it expects for 2024. Copper output of between 780,000 and 850,000 tonnes is predicted, compared to Rio’s 660,000-to-720,000 forecast range for 2024. Aluminium production between 57 million and 59 million tonnes is predicted for 2025. For 2024, its outlook stands at 53 million to 56 million. Rio Tinto predicts capital expenditure of around $11.0 billion for next year, a step up from $9.5 billion in 2024. Also on Wednesday, the miner said it has signed a deal for joint-venture at the Winu copper-gold project, located in Western Australia. It is set to team with Sumitomo Metal Mining, which will pay Rio $399 million for a 30% equity share of the project. Separately, activist investor Palliser Capital called on Rio to drop its ‘outdated’ dual listing structure across London and Sydney, PA reported. Palliser has a stake of around £197 million in Rio, around 0.2% of the value of Rio Tinto’s market capitalisation of £85.61 billion. Palliser said Rio should follow rival BHP Group Ltd, which moved its primary listing to Sydney in 2022. Rio shares were down 1.0% at 4,971.86 pence each on Wednesday morning in London. They had closed 0.9% higher at A$120.08 each in Sydney. The stock is down 8.7% in London over the past 12 months. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
