Rio Tinto shares charge higher on strong FY25 update

The mining giant delivered on its production guidance in 2025.

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Rio Tinto Ltd (ASX: RIO) shares are pushing higher on Wednesday morning.

At the time of writing, the mining giant's shares are up 1% to $147.77.

This follows the release of its fourth quarter and full year production update before the market update.

Rio Tinto shares rise on production update

For the fourth quarter of FY 2025, Rio Tinto reported Pilbara iron ore shipments of 91.3Mt and record iron ore production of 89.7Mt. This reflects a 7% and 4% increase, respectively, over the prior corresponding period.

This meant that Rio Tinto's Pilbara iron ore shipments totalled 326.2Mt in FY 2025, which was down 1% year on year but in line with its guidance for the lower end of the range of 323Mt to 338Mt.

Rio Tinto's copper operations had a positive final quarter. Production was up 5% to 240kt, which brought its full year production to 883kt. This represents an 11% increase on last year's production and was ahead of its guidance range of 860kt to 875kt. Management advised that this was driven by the strong ramp-up of Oyu Tolgoi.

Elsewhere, bauxite production was up 6% in FY 2025 to 62.4Mt, alumina production rose 4% to 7.6Mt, and aluminium production increased 3% to 3.38Mt. These were all in line with their respective guidance ranges. Rio Tinto also achieved record quarterly lithium production from its operating assets in Argentina.

The company's chief executive, Simon Trott, was rightfully pleased with the final quarter and full year. He commented:

Our operations delivered exceptional production performance, both on a quarter-on-quarter and full year basis, as we leverage our strong foundation of operating excellence and project delivery across our portfolio. We achieved record quarterly iron ore production in the Pilbara, with a strong recovery from the extreme weather interruptions earlier in the year. At Simandou, we celebrated the major milestone of first shipment from the port; a testament to our ability to deliver major growth projects.

Record copper production continues following delivery of our Oyu Tolgoi underground project, another demonstration of our unique and diverse project capabilities. A step change in bauxite production through the year once again highlights the ongoing maturation of our operational excellence. In lithium, we achieved production growth from our operations and in-flight projects as planned in 2025, as we build out our high-quality portfolio with discipline. Implementation of our stronger, sharper, simpler way of working continues, and is delivering results and creating value.

FY 2026 guidance

All guidance for FY 2026 is unchanged from its capital markets day presentation.

It continues to forecast total iron ore sales of 343Mt to 366Mt, copper production of 800kt to 870kt, aluminium production of 3.25Mt to 3.45Mt, and lithium production of 61kt to 64kt.

Unit cost performance for FY 2025 and guidance for FY 2026 will be provided next month when its results are released.

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.

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