The Rio Tinto Ltd (ASX: RIO) share price is down more than 1% after the miner released its 2024 third quarter update.
The miner is best known for producing iron ore, but it’s also involved in copper, aluminium, bauxite, titanium dioxide and more.
Rio Tinto 2024 Q3
Rio Tinto reported its production numbers to the market for the three months to September 2024.
It revealed iron ore production was 84.1 million tonnes (mt), up 1% year on year and up 6% quarter on quarter.
Mined copper production came to 168kt, down 1% year on year and down 2% quarter on quarter.
Aluminium production was 809kt for the quarter, down 2% year on year and down 2% quarter on quarter.
Bauxite quarterly production was 15.1mt, up 8% year on year and up 3% year on year.
Rio Tinto explained that, regarding its iron ore operations, productivity gains continue to offset ore depletion. The roll-out of the Safe Production System delivered “consistent production” at its iron ore business and a “step change” from its Australian bauxite mines.
The company also noted the first production from the African Simandou high-grade iron ore project next year and the first lithium from the Rincon starter plant is expected by the end of this year. The ramp-up of copper production continues at the Oyu Tolgoi underground mine.
Lithium acquisition
The business highlighted the recent Arcadium Lithium CDI (ASX: LTM) acquisition. The Rio Tinto CEO Jakob Stausholm said:
We announced the acquisition of Arcadium Lithium, bringing a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition. This is aligned with our strategy and our disciplined capital allocation framework, increasing our exposure to a high-growth, attractive market at the right point in the cycle.
Decarbonisation progress
Rio Tinto continues to look to decarbonise its operations. Stausholm said:
The decarbonisation of our business remains a priority and is progressing well. We took another important step in securing a long-term future for the Boyne Smelter, announcing a partnership with the Queensland Government to support investment in renewable energy projects.
Final thoughts on the Rio Tinto share price
Rio Tinto shares have jumped 13% since early September 2024. I wouldn’t call it a buy today because I only want to buy when there’s a lot of pessimism about the commodity sector.
It’s excellent at what it does, but it relies on a good commodity price, so I’d rather buy at a lower valuation with a bigger margin of safety (and larger long-term dividend yield).
Meaning, there are other ASX dividend shares I’d rather buy today.
