Rio Tinto Ltd [ASX:RIO] released their second quarter production report today.
The company shipped 86.7 million tonnes during the second quarter. This was a 19% rise from the previous quarter and a 1% increase from the same period last year.
Here are the results:
Source: Rio Tinto
Rio’s Chief Executive Jean-Sebastien Jacques had this to say about them:
‘We delivered a strong performance, particularly in iron ore and bauxite, demonstrating the underlying resilience of our business and ability to adapt in difficult conditions. Our iron ore assets are performing well in a strong pricing environment and we are on track to meet our 2020 iron ore guidance. Despite various COVID-19 related challenges, all our assets have continued to operate.’
Demand from China rising
China was mostly in lockdown for the first quarter battling the epidemic but their demand for iron ore imports is rising.
And so has the price of iron ore after the pandemic halted some of Vale’s iron ore operations in Brazil and had to revise down their production guidelines. You can read more on this here.
But markets weren’t impressed
At time of writing, shares for RIO are trading slightly lower today after the announcement as results came below expectations.
This follows after Rio Tinto said their expansion at their Oyu Tolgoi mine in Mongolia would take longer and be more expensive than they had anticipated. Go here if you’re interested in reading more.
Rio Tinto is also in the eye of the storm after it came to light that the company blew up a 46,000-year-old shelter to expand an iron ore mine.
And there are still concerns more lockdowns could crimp China’s demand.
So far though, higher iron ore prices has been pushing the Australian dollar higher against major currencies.
But how will the Aussie dollar move next?
Check out Rum Rebellion Editor Greg Canavan’s latest report, ‘Will the Aussie Dollar Enjoy a Post-Pandemic Resurgence?’ where he tackles this question.