Rio Tinto Ltd (ASX: RIO) shares are rising on Tuesday morning.
At the time of writing, the mining giant's shares are up 1% to $174.27.
This follows the release of the miner's quarterly update before the market open.
This gain leaves the Rio Tinto share price within touching distance of its record high.
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Rio Tinto shares rise on Q1 update
For the three months ended 31 March, Rio Tinto reported Pilbara iron ore sales of 72.4Mt, which was up 2% on the prior corresponding period. It notes that Tropical Cyclones Mitchell (in February) and Narelle (in March) impacted shipments by approximately 8Mt.
As a result, management has reaffirmed its FY 2026 guidance of 323Mt to 338Mt. However, it is still tracking below this guidance range when adjusting for delayed shipments.
The copper business was more positive. It reported a 9% increase in production to 229kt, which means it is tracking ahead of its guidance range of 800kt to 870kt in FY 2026.
Elsewhere, aluminium production increased 1% to 0.84Mt, alumina production lifted 6% to 2Mt, bauxite production dropped 11% to 13.3Mt, and lithium production was 12.7kt. All production guidance for these commodities has been reaffirmed for FY 2026.
Cost guidance unchanged
Rio Tinto revealed that the war in the Middle East has had a limited impact on its operations.
The mining giant advised that it consumes ~1.6 billion litres of diesel annually, with around two-thirds in the Pilbara. However, despite higher diesel prices steepening the cost curve, it notes that its cost position is resilient, underpinned by scale and global supply-chain leverage.
As a result, management has retained its cost guidance for FY 2026. It continues to forecast Pilbara iron ore unit cash costs of US$23.5 to US$25 per wet metric tonne, and copper C1 net unit costs of US$65 to US$75 per pound.
Management commentary
Commenting on the quarter, Rio Tinto's chief executive, Simon Trott, said:
Operating excellence drove 9% YoY copper equivalent production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned and our integrated aluminium business, again, delivered a strong performance. Our Pilbara iron ore mines performed strongly, while shipments were impacted by two cyclones in the quarter. We achieved the historic land exchange at Resolution Copper, with our project team focused on unlocking the next phase of one of the world's largest untapped copper deposits.
The unmatchable mix and scale of our portfolio has ensured growth and supply chain resilience against changing operating conditions as we continue to closely monitor the evolving situation in the Middle East. Our stronger, sharper, simpler way of working is enabling us to move at pace to achieve productivity benefits across the business. The first $650m of annualised benefits is now fully implemented, as promised, with substantially more underway.
