marktime1231
22 Feb 2019
Happy times Despite being sure of good news to come the terrific increase over the last month to a price higher than I was expecting in the short term has tempted me to sell my RIO punt today too. Might park this in IUKD which is heavy on RIO and is currently yielding 6.3% with a quarterly payday next month.
marktime1231
06 Feb 2019
Happy times Or not, for some reason I had been expecting RIO results tomorrow but it is actually due to be announced 27 Feb. I have mis-read this somewhere, where are my specs
marktime1231
01 Feb 2019
Happy times My first punt on Rio last week at 37.xx has been a rather lucky one. Actually I bought it in my income portfolio as one to keep rather than for a quick gain, had my eye on this for some time waiting for an entry point. Wishing I had dived in deeper actually. What tipped it was the good report on Copper production at times when the price has been firmer, and the promise to hand over the $500M proceeds of selling a smelter in Dunkirk in dividends (or a buyback ?). Meanwhile Copper has hit a bottom and hopefully started to revive, then Iron ore spiked on yet another dreadful Vale dam disaster in Minas Gerais. If Copper does hold a recovery in price the shares might hit £44 if there is the dividend progress I am hoping for. And now I am in I will trade the cycles to build a long term stake for the income. Copper the new oil?
Richygm
21 Sep 2018
Share buy-back A waste of time and money. May help managers by increasing earning per share, though.
Hydrogen_Economy
06 Aug 2018
Resistance RIO has been in heading down since it peaked over 4500 in June. I sold most into the rise but still have a rump holding. The rise since 2016 suggests SP is approaching a support line around 3800. Tempted to add a few as we get near but will wait for evidence the the up trend is intact before significant buys, the signs out of China and the trade disputes are not a good background. H2
red fox
16 Apr 2018
Impact of US sanctions From Hargreaves Lansdown 13 April 2018[link] News) - Global mining group Rio Tinto said on Friday that it is reviewing arrangements with Russian companies impacted by US sanctions.The arrangements impacted include Rusal's 20% interest in Rio's Queensland Alumina in Australia, including associated supply and offtake arrangements, bauxite sales to Rusal's refinery in Ireland and offtake contracts for alumina used at Rio Tinto's smelters in France and Iceland.Russian aluminium producer Rusal, which had $7.5bn net debt at the end of 2017, has been hit particularly hard by the sanctions and will receive short term liquidity from the Russian state according to the Kremlin.In a statement Rio Tinto said: "As a result of the imposition of these sanctions, Rio Tinto is in the process of declaring force majeure on certain contracts and is working with its customers to minimise any disruption in supplies."The sanctions, imposed on a number of Russian individuals and companies, were passed by the US Treasury department on 6 April in response to "malign activity" such as alleged meddling in the 2016 US Presidential election.So far, 17 Russian government officials were affected as were seven of Russia's richest men and their companies, including Oleg Deripaska and his company Rusal.The sanctions prohibit Americans from doing business with the companies, and people of other nationalities could face sanctions themselves if they are found to have facilitated transactions.Rio Tinto said it is committed to fully complying with the sanctions.The news follows yesterdays revelations that two former Prime Ministers of Mongolia have been arrested in connection with an investigation into corruption and misuse of power in mining deals with Rio Tinto.Chimediin Saikhanbileg and Sanjaagiin Bayar will be held in a detainment centre for 30 days after being detained on Wednesday in relation to their handling of two agreements related to the massive Oyu Tolgoi gold-copper mine.
shovelier
07 Apr 2018
Re: End of copper? On a slightly pedantic note, “copper” coins in the UK haven’t been made of copper for several years now as the value of the metal became more than the face value of the coins. They are now electroplated steel. Personally I find that they are now just a nuisance but they are still associated with the perceived need to price items at 99 pence (formely £19/6d or £19/11d ) so as to ensure that the sale is rung up on the cash register and the customer given the change. This was partly a move to counter pilfering by shop workers.
Hydrogen Economy
27 Mar 2018
RNS Sale of Kestrel mine for $2.25 billion Rio had indicated intention to sale thermal coal assets but keep high grade coking coal, Kestrel produced 83% coking coal in 17. Price is 6.6 x EBITDA and 8.7 x PTP which I guess is not bad for coal assets and presumably RIO have higher return investment options.H2 Rio Tinto has entered into a binding agreement with a consortium comprising private equity manager EMR Capital (EMR) and PT Adaro Energy Tbk (Adaro), an Indonesian listed coal company, for the sale of its entire 80 per cent interest in the Kestrel underground coal mine in Queensland, Australia, for $2.25 billion.Rio Tinto chief executive J-S Jacques said "The sale of Kestrel, together with the announced divestments of Hail Creek and our undeveloped coal projects, delivers exceptional value to our shareholders and will leave our portfolio stronger and more focused on delivering the highest returns through targeted allocation of capital. About the Asset*The Kestrel mine is located in the Bowen Basin, 40km north-east of Emerald in central Queensland, Australia. Kestrel employs longwall mining to produce high quality coking and thermal coal products for export markets. In 2017 the Kestrel mine produced 5.1 million tonnes of saleable coal, comprising 4.25 million tonnes of hard coking coal and 0.84 million tonnes of thermal coal. At 31 December 2017, Rio Tinto reported marketable reserves for Kestrel of 146 million tonnes and mineral resources of 241 million tonnes.In 2017 Kestrel generated EBITDA of $341 million and profit before tax of $258 million, being Rio Tinto's attributable share. Rio Tinto's share of gross assets at 31 December 2017 was $1,441 million.
trueblog
20 Mar 2018
Re: Talk Talk I’m afraid I’m not an oracle on the charts, just reading the fundamentalsNevertheless, the IO selling appears to be abating. The return of construction activity seems a little delayed by the weather hence rebar inventories are high but this should change. House prices have cooled a bit.There is evidence that some low grade supplies are being cut due to the wide discount which will help Rio in the long term.Short term it’s all about the seasonal fluctuations in iOP but long term it’s fundamentally about growth in China and Asia as a wholeThis video gives you some sense of how broad the Chinese vision for the region is[link] remains a fantastically well run company with high margins, a real competitive advantage due to its scale and low costs, and good prospects for growth as more copper is required for EV’s etc.All please DYORTB
cakeslicer
19 Mar 2018
Re: Talk Talk Thanks for your insight, Trueblog.Does this look like a correction to you with Rio? Lot of talk about stockpiles reaching record levels but this seems to be with the low grade iron and high grade seems to be in play and very much in demand.200Day moving average at 3622 so seems to be supported here. If goes through this then not sure where the next level is. What do you think?
trueblog
16 Mar 2018
Re: Talk Talk Well, it's been a rough and tumble couple of months hasn't it?The IO price seems to be slowly recovering (notwithstanding Barclays bearish forecast of $50). The port inventories rear their head again as they always do, but seem to be largely irrelevant as the grade mix is has been well documented. Steel rebar stocks are however historically high and this presumably reflects the ramp up in production yet construction activity has not yet turned up due to continuing bad weather. It should start to rise over the next couple of weeks I think and the relative strength in the sp probably reflects the market starting to price this in. We have the 'Goldilocks' economy and 'synchronised global growth', and against this the spectre of a 'bond yield inversion'. The fact is that we are nearing the end of a historically long bull market and yet corporate growth is still strong. It WILL turn but when is anyone's guess! (mine is 18/12 btw but WTFDIK!)I still have a (very) significant holding in Rio as I believe that China, and the emerging markets (esp India ) together with the Belt and Road initiative represent the future of world GDP growth, and irrespective of what the mad man in he oval office tweets, supply and demand will dictate all eventually. What I have learned over the years is that investing on the basis of fundamentals and ignoring any short term noise (news) is the only sensible strategy.Interestingly Trump is far less secure than Li now (leader for life) and so the balance of power has shifted. If Trump loses the mid terms he could be starring at impeachment. He may become more strident in response, but the Chinese can take the long view, a luxury not afforded to Trump.As always IMHO and DYORATBTB
Lupo di mare
13 Mar 2018
End of copper? Relax, folks, coins only It'd get my vote."The Treasury could be paving the way for the end of 1p and 2p coins as it seeks views on the future of cash.It is inviting comments on the mix of coins in circulation as consumers move to non-cash payments such as contactless and digital spending.Ministers say there are no current plans to scrap them.But the consultation hints at the growing cost of handling these coins. It also questions the validity of the £50 note."From an economic perspective, having large numbers of denominations that are not in demand, saved by the public, or in long-term storage at cash processors rather than used in circulation does not contribute to an efficient or cost effective cash cycle," the Treasury consultation document says.International guideMany countries - including Canada, the home of the current Bank of England governor Mark Carney - have ditched their low denomination coins.The document points to surveys that suggest six in 10 of UK 1p and 2p coins are only used once before being saved in a jar or discarded.In one in 12 of these cases, the coins are thrown in the bin.Previously, the government and the Royal Mint have needed to produce more than 500 million 1p and 2p coins each year to replace those falling out of circulation.However, the coins are now being used less often and being held in greater numbers by coin processing businesses, as consumers move to non-cash payments.
trueblog
05 Mar 2018
Talk Talk [link] to be a very heavy handed negotiating ployAny odds on the tarrifs not going through and some fudge over NAAFTA?
vekta
02 Mar 2018
Re: Trump tarrif Hmmm! More cbeap chinese steel to dump on the rest of the world and the associated loss of jobs. Have to choose: protect your industries or your economy - tough call?
vekta
02 Mar 2018
Re: Trump tarrif Hmmm! More cbeap chinese steel to dump on the rest of the world and the associated loss of jobs. Have to choose: protect your industries or your economy - tough call?
