This article
was first published by Seeking Alpha on March 20, 2015
By Sarfaraz
A. Khan
Business news, analyst views and market commentary by Sarfaraz A. Khan.
Showing posts with label RIO. Show all posts
Showing posts with label RIO. Show all posts
Thursday, March 26, 2015
Thursday, January 29, 2015
Despite Higher Property Sales Volume, China's Number One Problem Isn't Going Anywhere
This article was first published by Seeking Alpha on January 14, 2015
By Sarfaraz A. Khan. Research Asst. Iffat Zehra
China has been struggling to fix its sluggish economic growth rate. As per PwC's estimates, last year, the country's economy grew by 7.2% -- which looks great when compared against the U.S. as well as some of the developed European countries - for China, this growth rate is, in fact, the slowest since 1990. The sluggish growth is due, in part, to the soft demand from the property sector which has been dealing with excess supply.
Monday, October 28, 2013
Rio Tinto: A Low-Cost Iron Ore Giant Eyeing Uptake In Production
By Sarfaraz A. Khan and Gohar Yousuf
The world’s second biggest mining company and one of the biggest iron ore producers Rio Tinto (RIO) has recently posted record production result for its third quarter due to an increase in the production and shipments of iron ore, particularly in Western Australia. The company has reaffirmed its annual iron-ore production guidance at 265 million tons.
Rio Tinto has increased its iron ore production by 2% year-over-year to 68.3 million tons while global iron-ore shipments rose 4% year over year to 68 million tons. This is due to the record production of 64.3 million tons from its Australian Pilbara operations. The business is also one of the lowest cost iron ore producers, so the increase in production should help it to deliver better results for the third quarter. The details of Rio Tinto’s third quarter production are shown in the table below.
The world’s second biggest mining company and one of the biggest iron ore producers Rio Tinto (RIO) has recently posted record production result for its third quarter due to an increase in the production and shipments of iron ore, particularly in Western Australia. The company has reaffirmed its annual iron-ore production guidance at 265 million tons.
Rio Tinto has increased its iron ore production by 2% year-over-year to 68.3 million tons while global iron-ore shipments rose 4% year over year to 68 million tons. This is due to the record production of 64.3 million tons from its Australian Pilbara operations. The business is also one of the lowest cost iron ore producers, so the increase in production should help it to deliver better results for the third quarter. The details of Rio Tinto’s third quarter production are shown in the table below.
Previously, for the six months ending in June
2013, Rio Tinto’s net profit dropped by 71% to $1.72 billion from same period
of 2012 while revenue was $27 billion. The company gets most of its revenues
from iron ore, followed by aluminum and copper.
(figure 1)
The company has been suffering due to the lower
commodity prices, higher tax rate and the fall in demand at its biggest market,
China. However, the company’s aggressive cost-saving measures were able to
offset some of the decline in profits.
Cost Reductions
Rio Tinto has planned to reduce its operating cost by $5 billion by …. Read full article with images at GuruFocus
Cost Reductions
Rio Tinto has planned to reduce its operating cost by $5 billion by …. Read full article with images at GuruFocus
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