Rio Tinto Ltd (ASX: RIO) shares are on the move on Tuesday.
In morning trade, the mining giant's shares are up over 2.5% to $128.38.
This follows the release of the company's third quarter update before the market open.
Rio Tinto shares higher on update
For the three months ended 30 September, Rio Tinto delivered a solid performance across its portfolio.
For example, Pilbara iron ore shipments increased 6% quarter on quarter to 84.3Mt. This represents its second highest third-quarter shipments since 2019.
Elsewhere, Bauxite, Alumina, and Aluminium production all increased modestly from the second quarter.
Copper production fell 11% quarter on quarter to 204kt for the three months. Though, it is worth noting that it was still up 9% from the same period last year. Management notes that Oyu Tolgoi is ramping up successfully and its Kennecott mine performed as expected during the quarter, while major planned maintenance at the concentrator and smelter commenced successfully.
Commenting on its performance, Rio Tinto's new chief executive, Simon Trott, said:
We continue to strengthen performance from our assets, setting back-to-back quarterly production records in our bauxite business and at Oyu Tolgoi – where the underground ramp-up remains on track to boost copper output by more than 50% this year.
We are focused on delivering a strong finish to the year from the Pilbara. Our growth projects are also progressing at pace – at Simandou, we started loading first ore at the mine for movement down the rail and to the port in October.
Outlook
The good news is that Rio Tinto is positioned to meet its guidance for production and costs in FY 2025.
Management notes that total copper production is on track to achieve the higher end of its full year guidance. This is being driven by the strong ramp-up at Oyu Tolgoi.
Unfortunately, Pilbara shipments are expected to be at the lower end of its guidance. This is because of 13Mt of cyclone impacts in the first quarter. Management advised that it is on track to recover about half of this impact. Furthermore, a strong fourth quarter performance is required as the system remains tightly balanced and has limited ability to mitigate further losses.
Rio Tinto has upgraded its Bauxite guidance range from 57Mt-59Mt (higher end) to 59Mt-61Mt. This reflects consistently higher utilisation rates, particularly at Weipa where Amrun has continued to exceed nameplate capacity.
Trott said:
We are on track to meet production guidance for 2025, with an upwards revision to bauxite this quarter, and are well positioned to deliver compelling mid-term production growth. We will continue to deliver further shareholder value through operational excellence, simplification and discipline on performance and capital investment.
