Rio Tinto share price higher despite mixed Q3 update

This mining giant's shares are on the move on Tuesday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Rio Tinto's shares are rising today despite a soft quarterly update
  • The mining giant missed consensus estimates on most commodities
  • However, it has left the majority of its full year guidance unchanged

The Rio Tinto Limited (ASX: RIO) share price is on the move on Tuesday morning.

At the time of writing, the mining giant's shares are up 0.5% to $94.71.

This follows the release of the miner's third quarter update.

A female worker in a hard hat smiles in an oil field.

Image source: Getty Images

How did Rio Tinto perform during the third quarter?

For the three months ended 30 September, Rio Tinto reported iron ore production of 84.3Mt and iron ore shipments of 82.9Mt. While the latter was up 4% quarter on quarter, it was still a touch short of expectations. The consensus estimate was for iron ore shipments of 84.5Mt.

Also falling a touch short of expectations was its aluminium production of 759kt. This was up 4% but short of consensus estimates of 776kt.

Unfortunately, it was the same for alumina production and bauxite production. The former came in 1% lower at 1,838kt, which was well-below consensus estimates of 1,982kt. Whereas the latter was down 3% to 13.7Mt, which missed the consensus estimate of 14.1Mt.

Rounding things out, mined copper rose 9% to 138kt, titanium dioxide slag was up 6% to 310kt, and iron ore pellets production rose 7% to 2.8Mt.

Management commentary

Rio Tinto's chief executive, Jakob Stausholm, appeared to be pleased with the quarter. He said:

Delivering the full potential of our assets remains a priority: production improved versus the prior quarter across most of our sites, particularly where we have implemented the Rio Tinto Safe Production System (RTSPS).

The chief executive notes that the company has also been busy working on future projects, such as a potential lithium mine. He explained:

We progressed our excel in development objective, commissioning some major projects and advancing the next tranche of Pilbara mines, agreeing to enter a joint venture with Baowu to develop Western Range and modernising the joint venture covering the Rhodes Ridge project in the East Pilbara, unlocking a pathway to develop this significant, high quality resource.

We also approved growth capital for underground mining at Kennecott, early works funding at Rincon Lithium and continue to progress Oyu Tolgoi. Our proposal to take Turquoise Hill Resources private has unanimous support of the Turquoise Hill Board who have recommended shareholders vote in favour of the transaction.

We continue to deliver our strategy with decarbonisation at its centre. Last week we announced a partnership with the Government of Canada to invest up to C$737 million over eight years to decarbonise our Rio Tinto Fer et Titane operations in Québec, and to position the business as a centre of excellence for critical minerals processing.

Outlook

Despite the softer than expected production, Rio Tinto has left the majority of its FY 2022 production guidance unchanged, which may be supporting the Rio Tinto share price this morning.

However, it now expects iron ore shipments at the bottom end of its guidance range of 320Mt to 335Mt. Positively, its iron ore cost guidance of US$19.5-US$21.0 per tonne remains unchanged despite this.

The only real change to guidance has seen Rio Tinto reduce its refined copper production guidance to 190kt to 220kt from 230kt to 290kt. This has led to its copper C1 unit cost guidance in 2022 being revised 20 US cents higher to the range of 150 to 170 US cents per pound.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man wearing a suit holds his arms aloft, attached to a large lithium battery with green charging symbols on it.
Materials Shares

Is the PLS Group share price a buy in August?

Is this lithium miner a good buy?

Read more »

Two miners standing together with a smile on their faces.
Materials Shares

Fortescue posts record FY26 shipments and eyes green future

Total iron ore shipments of 52.7 Mt in Q4 contributed to record shipments of 201.3Mt in FY 2026.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Materials Shares

Capstone Copper posts record Q2 2026 earnings and maintains full-year outlook

This copper miner revealed adjusted EBITDA at a record of US$354 million.

Read more »

A man in a hard hat and high visibility vest speaks on his mobile phone in front of a digging machine with a heavy dump truck vehicle also visible in the background.
Materials Shares

IperionX grows titanium powder capacity and critical minerals platform in June quarter

IperionX grew titanium production capacity and advanced its Titan-Atlas resources, bolstered by strong government and customer support.

Read more »

Man sitting in front of a laptop and analysing an earnings report.
Materials Shares

Champion Iron share price in focus after net loss as DRPF ramps up and Rana Gruber acquisition completes

This iron ore miner posted a loss for the first quarter.

Read more »

A woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

Pilbara Minerals posts record sales and robust growth guidance

This lithium miner finished the financial year with a strong operational performance.

Read more »

Two brokers analysing stocks.
Materials Shares

Vulcan Energy Resources quarterly update: Lionheart milestone reached

Momentum is building for the lithium developer's Lionheart Project.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Earnings Results

Rio Tinto posts strong H1 2026 earnings, boosts dividend as copper and lithium shine

Shareholders will be receiving a much larger interim dividend compared to last year.

Read more »