The Rio Tinto Ltd (ASX: RIO) share price is up after the ASX mining share increased its guidance expectations.
Rio Tinto is one of the world’s biggest iron ore miners, so changes in the company’s expectations about production and shipments can have positive (or negative) impacts on the company.
2023 June production
Rio Tinto said that its shipments for the quarter was 79.1mt, which was down 1% year on year and down 4% compared to the 2023 first quarter. Production for the latest quarter was 81.3mt, up 3% year on year and up 2% quarter on quarter.
The ASX mining share said that its Gudai-Darri operations achieved its expected production capacity during the quarter. However, shipments suffered from the planned major maintenance at the Dampier port and a train derailment.
Bauxite production of 13.5mt was down 5% year on year, aluminium production of 814kt was up 11% year on year and mined copper was down 1% year on year to 145kt.
Rio Tinto said that the ramp-up of the Oyu Tolgoi underground mine progressed “ahead of plan” and it’s on track to more than triple its copper production by the end of the decade.
Shipment guidance
The ASX mining share revealed that full year shipments are now expected to be in the “upper half” of the original 320mt to 335mt guidance range thanks to “continued operational improvements across the Pilbara system, and the implementation of the safe production system”.
Management commentary
The Rio Tinto CEO Jakob Stausholm said:
We continued to take disciplined measures to grow in the materials the world needs for the energy transition, also with investments to expand our low carbon aluminium production and underground copper production at Kennecott.
We are taking practical steps and making investments to decarbonise, being the first to convert an open pit mine to renewable diesel at our Boron operations, signing a memorandum of understanding with Baowu to explore decarbonisation of the steel value chain and delivering first production from our ground-breaking BlueSmelting demonstration plant at Sorel-Tracy in Quebec in July.”
Final thoughts on the Rio Tinto share price
The ASX mining share has risen in recent weeks, so it’s not as attractive as it was before. I’d be happy if I were an existing Rio Tinto shareholder, but I think a better price could come along. If I wanted to invest and try to beat the market, I’d be patient and wait for a price below $105.
