The Rio Tinto Limited (ASX: RIO) share price has climbed 1.77% after releasing its Q1 2019 quarterly production results this morning.
What was in Rio's quarterly update?
The company's Pilbara iron ore shipments came in at 69.1 million tonnes (mt) for the quarter, 14% lower YoY and 21% lower QoQ while its Pilbara iron ore production was down 9% YoY and 12% QoQ.
Bauxite was a big winner for the Aussie miner, climbing 1% YoY and 8% QoQ to 12,763 kilotonnes (kt) while the company's Aluminium, Mined copper and IOC iron ore pellets and concentrate were all higher YoY but down on the previous quarter.
The company cited weather disruptions in March and a fire at Cape Lambert A in January as key reasons for the lower Pilbara production levels, and also lowered FY19 guidance to 333mt – 343mt (down from 338mt – 350mt).
This reduction reflects a slower-than-expected ramp-up and ongoing disruption to shipments by weather and other factors.
Yesterday, the company announced it had committed $302 million ($166 million Rio Tinto share) of additional expenditure to advance its Resolution Copper project in Arizona, USA.
Is Rio Tinto in the buy zone?
Rio and fellow blue-chip miners including BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Ltd (ASX: FMG) have performed strongly so far this year in what has been a key sector for the S&P/ASX200 Index (ASX: XJO).
The Rio Tinto share price has rocketed 33.7% higher in 2019 as global commodities prices have rebounded strongly and boosted the company's half-year earnings higher.
I think there is potential for Rio to continue to climb and I'm a big fan of the company's strong earnings per share (EPS) amongst its ASX200 peers, with the stock trading on a P/E ratio of just 9.3x earnings.
For those who like stable dividends, Rio might just represent the best of both worlds in terms of growth and income over the next 12-18 months, provided commodities prices continue to receive support.
For those who want to look for growth outside of the Metals and Mining sector, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.
