RIO - Rio Tinto

[Garpal Gumnut]

There is quite an interesting article from my good friend Michael Pascoe in this morning's The New Daily, a newspaper which I believe is owned by Industry Super Funds who cream millions from the superannuation savings of unsuspecting skulls who watch escalator advertisements on the televisions.

It summarises the tax shenanigans of RIO TINTO one of my core investments, damning them in succinct and reasonable prose. Were I principled I'd sell them. In fact I may do, as the divi has fallen.

It is particularly damning of the professionals assisting them.

https://thenewdaily.com.au/finance/...um=email&utm_campaign=Morning News - 20220803

gg

 

[rcw1]

Good evening
Been reported today (05/09/22) Rio Tinto chief executive Jakob Stausholm and chief commercial officer Alf Barrios have held a video meeting with senior management of China's state-owned China Mineral Resources Group. China Mineral was set up by the Chinese regime in August to buy and administer the supply of mineral resources to the country.

Chinese authorities have in the past expressed a desire to control iron ore pricing having been frustrated by soaring prices throughout the past two years. Rio Tinto says it looked forward to working with China Mineral to "deepen comprehensive cooperation" in various fields and achieve "win-win" development. “We fully understand the establishment of a safe, sustainable and given the importance of the supply chain in supporting China's economic growth, Rio Tinto will continue to strive to be a trusted partner in China," Mr Barrios says in a statement posted in Mandarin on Rio Tinto's Chinese website.

Ha ha ha ha ha ha

Kind regards
rcw1

 

[rcw1]

Good afternoon
Been reported Rio Tinto has entered into a binding agreement to acquire all of the remaining shares of Turquoise Hill Resources Ltd it dues not own at $43 per share.

Rio Tinto and Turquoise Hill enter into definitive arrangement agreement for Rio Tinto to acquire full ownership of Turquoise Hill

Rio Tinto has entered into a binding agreement (the “Arrangement Agreement”) to acquire all of the remaining shares of Turquoise Hill Resources Ltd (T

www.businesswire.com

Kind regards
rcw1

 

[rcw1]

Good morning
Been reported today
Rio Tinto has approved a new $US2bn ($3bn) iron ore project in Western Australia with joint venture partner China's biggest state-owned steelmaker, Baowu.

The deal will see Rio take a 54 per cent stake in the Western Range iron ore project in WA's Pilbara with Baowu to own the 46 per cent balance, meaning the Australian resources giant will stump up $US1.3bn of the overall cost.

The 25 million tonne capacity will help sustain production of the Pilbara iron ore blend from Rio's existing Paraburdoo mining hub with construction to start in early 2023 and first production due in 2025.

The building phase will create 1600 jobs with 800 permanent roles filled by existing works moving over from other sites in the Paraburdoo hub.

The pact will also see Rio and Baowu enter into an iron ore sales agreement at market prices covering up to 126.5 million tonnes of iron ore over approximately 13 years, representing Baowu’s 46 per cent interest in an expected 275 million tonnes of production from Western Range through the joint venture.

Approval from Australian shareholders will be required given Baowu has common ownership through the Chinese government with Chinalco, Rio's biggest shareholder with a 11.3 per cent stake.

A general meeting will be held on October 25 to sign off on the deal.

Rio share of the capital costs are already included in capital expenditure guidance of around $US9-10bn for each of 2023 and 2024.

 

[rcw1]

Good morning
Couple of RIO announcements today.

Of note:
Rio Tinto has confirmed the rich Rhodes Ridge iron ore deposit is on its development horizon.

Rio’s PIlbara operations shipped 69.5 million tonnes of iron ore in the quarter, up 4 per cent on the June period. But Rio said the impact of the derailment on the line from its new Gudai-Darri mine meant its full year exports would come in towards the bottom end of its 320 to 335 million tonne range.

Rhodes Ridge is half owned by the billionaire Wright family, and was at the centre of more than a decade’s worth of legal battles between Wright Prospecting and Gina Rinehart’s Hancock Prospecting over its ownership.

The deposit is one of the richest undeveloped iron ore projects in the world, containing 5.8 billion tonnes of iron ore at an average grade of 62.3 per cent iron.

Have a very nice day, today

Kind regards
Rcw1

 

[divs4ever]

As a holder does it matter to you too much whether that cash sits in your bank account or theirs? Once they give it to you the share price will go down by the same amount anyway.

( i do not hold RIO , but have in the past )

HELL , YES !! there are only a few companies i hold ( in the current scenario ) i would trust to use the cash more wisely than me , without first explaining what they plan to do with that retained cash

a persistent trend in the corporate world is share buy-bucks to prop up a soft share-price , or maybe some extra virtue-signal directors to the board .

 

[Dona Ferentes]

It wasn't Market Sensitive, but the long-term implications are strong, for RIO .... as long as iron ore demand keeps up.

“Slowing global demand poses downside risks to China’s strong exports, while consumers remain cautious of the property market,” the RIO quarterly said.

Rio Tinto (50 per cent) and Wright Prospecting Pty Ltd (50 per cent) have agreed to modernise the joint venture covering the Rhodes Ridge project in the East Pilbara in Western Australia, home to one of the world’s largest and highest quality undeveloped iron ore deposits.

The binding joint venture updates an existing agreement between the two parties dating back to 1972 and now provides a pathway for the development of the Rhodes Ridge deposits utilising Rio Tinto’s rail, port and power infrastructure.

The participants have commenced an Order of Magnitude study, conducted by Rio Tinto, which will consider the development of an operation before the end of the decade with initial plant capacity of up to 40 million tonnes annually, subject to the receipt of relevant approvals.

Rhodes Ridge contains 5.8 billion tonnes of high grade Mineral Resources at an average grade of 62.3% Fe. The project’s total resource, 6.7 billion tonnes at an average grade of 61.6% Fe, represents approximately one-third of Rio Tinto’s existing Resource base in the Pilbara. A resource drilling program is currently underway to support future project studies.

..... The 6 billion tonnes of the highest quality iron ore that make up the Rhodes Ridge deposit is concentrated over just 60 kilometres – and located near existing rail, port and renewable power infrastructure. Scoping and planning work will now begin, with a view to achieving the first production by the end of the decade.

 

[InsvestoBoy]

a persistent trend in the corporate world is share buy-bucks to prop up a soft share-price , or maybe some extra virtue-signal directors to the board .

Outside of Australia, dividends are often the subject of double taxation, first corp tax on profits and then again income tax on dividends.

Buybacks are a natural consequence of that taxation regime. Nothing to do with propping up share price or virtue signalling.

 

[divs4ever]

Outside of Australia, dividends are often the subject of double taxation, first corp tax on profits and then again income tax on dividends.

Buybacks are a natural consequence of that taxation regime. Nothing to do with propping up share price or virtue signalling.

so how would you interpret the proposed tax in US of unrealized capital gains ( which if successfully introduced is liable to be adopted by other distressed governments in a modified form )

i guess our opinions differ on virtue-signalling

cheers

 

[InsvestoBoy]

so how would you interpret the proposed tax in US of unrealized capital gains ( which if successfully introduced is liable to be adopted by other distressed governments in a modified form )

I'm not really in favour of the approach, but it's only for households with a net worth of $100M or more. The top 1% of US household networth is $10M. So we are talking about the top 1% of the top 1%. Like I said, not in favour, but frankly if you have more than $100M in net worth in a society that looks like a 3rd world country for huge chunks of the population, you're going to be vulnerable to a bit of redistribution.

I'm gonna guess you haven't bothered to read anything about the actual meat of the proposal at all.

i guess our opinions differ on virtue-signalling

cheers

You can have an opinion that the sky is purple but it's still wrong. Share buybacks have nothing to do with virtue signalling.

 

[divs4ever]

You can have an opinion that the sky is purple but it's still wrong. Share buybacks have nothing to do with virtue signalling.

they were meant to be read as independent concepts , joined by the idea neither in my opinion an efficient use of shareholder capital

colour vision , might be another path you might choose not to go down ( at least with me )

I'm not really in favour of the approach, but it's only for households with a net worth of $100M or more.

i see it as a preemptive attempt to get permission to include the middle class ( at a later date )

Paul Keating would have called it 'bracket-creep ' ( as a best case scenario )

 

[rcw1]

Good afternoon
Been reported Rio Tinto has entered into a binding agreement to acquire all of the remaining shares of Turquoise Hill Resources Ltd it dues not own at $43 per share.

Rio Tinto and Turquoise Hill enter into definitive arrangement agreement for Rio Tinto to acquire full ownership of Turquoise Hill

Rio Tinto has entered into a binding agreement (the “Arrangement Agreement”) to acquire all of the remaining shares of Turquoise Hill Resources Ltd (T

www.businesswire.com

Kind regards
rcw1

Good morning
Announcement today

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02592808-5OUIHO8PDIDJHPIHPSNKA43QGG/pdf?access_token=0007JeKgtzLm3CRL6VP8EE0fCPBY

Rio Tinto has secured more support for its 'best and final' $C43 ($49) per share deal to take over Mongolian copper mine Oyu Tolgoi's owner Turquoise Hill Resources.

Announced today it had agreements with certain funds and other entities related to Pentwater Capital Management and SailingStone Capital Partners - previously opposed the deal.

A meeting to vote on Rio buying the approximately 49 per cent stake in Turquoise Hill that it does not own has been postponed to November 8.

Rio Tinto has agreed to increase the dissent condition under the arrangement agreement from 12.5 per cent to 17.5 per cent of Turquoise Hill shares issued and outstanding.

The parties have also agreed that the dissent proceedings with the securityholders and certain other claims shall be conducted by arbitration, and the securityholders shall be paid C$34.40 of the consideration following the completion of the arrangement, with the remaining consideration payable following the final determination of the arbitration.

Holding

Have a very nice day today.
Kind regards
rcw1

 

[Garpal Gumnut]

I've backed RIO in the 2023 comp.

A solid company until recently but a bit dodgy of late.

It should be $200 by years end, after it falters a bit and BHP finally lobs a takeover bid nobody can refuse.

gg

 

[Sean K]

I've never thought of investing in the Red River. Not sure why. Maybe because I just didn't think it was Australian, which is probably a pretty dumb reason. Not sure how profit went down 40% last FY. They also seem to have made some collossel investment mistakes over the past 15 years or so. Almost as bad as the Victorian government paying $1b to not build a road. Actually, they have really done much worse.

Future prediction - a BHP, RIO and Glencore merger. LOL.

 

[farmerge]

I've never thought of investing in the Red River. Not sure why. Maybe because I just didn't think it was Australian, which is probably a pretty dumb reason. Not sure how profit went down 40% last FY. They also seem to have made some collossel investment mistakes over the past 15 years or so. Almost as bad as the Victorian government paying $1b to not build a road. Actually, they have really done much worse.

Future prediction - a BHP, RIO and Glencore merger. LOL.

View attachment 153427

Only wish I had bought into Rio years ago. Eldest son who works for Rio and lives in Tom Price is laughing all the way to the bank. Gets his bonus shares every six months. He was in his early days with them trying to convince me to free up some coin and get on board.

 

[Dona Ferentes]

I've never thought of investing in the Red River. Not sure why. Maybe because I just didn't think it was Australian, which is probably a pretty dumb reason..

Run from London, but with a sizeable and the most profitable exposure in Australia due to acquisitions.... CRA and Norths the most beneficial (to local detriment).
A 'colonial mentality' still seems to persist. And too many high risk plays where governance is questionable. .

Future prediction - a BHP, RIO and Glencore merger. LOL.

Variations on that theme have been worked in years past.

 

[Sean K]

Run from London, but with a sizeable and the most profitable exposure in Australia due to acquisitions.... CRA and Norths the most beneficial (to local detriment).
A 'colonial mentality' still seems to persist. And too many high risk plays where governance is questionable. .


Variations on that theme have been worked in years past.

I owned North at one point with the sole expectation it was going to be taken over. Ka'ching. I think BHP and RIO tried to merge at some point didn't they? And, it got blocked because it'd be anti-competitive or something. Imagine the weight and synergies of a combined operation. Maybe just too big.

 

[Garpal Gumnut]

I owned North at one point with the sole expectation it was going to be taken over. Ka'ching. I think BHP and RIO tried to merge at some point didn't they? And, it got blocked because it'd be anti-competitive or something. Imagine the weight and synergies of a combined operation. Maybe just too big.

BHP made a t/o bid from memory.

And I would not be surprised if another t/o bid for RIO occurs from BHP.

I agree totally with @Dona Ferentes above re the chappies in London, a Colonial mentality and poor governance. I hold many of both.



gg

 

[DrBourse]

Tues 7.50am 2/5/23…… Ran my slide rule over RIO recently, bit of a downward trend for 2023 so far – I won’t include my ‘page nrs’ in this post as they are mainly for the Beginners, and, IMO, Beginners should not play with the likes of RIO…..

RIO’s TA is a mixed bag so far for 2023, very uninspiring to the average punter, But the Vultures may take a keen interest if this slide continues towards the RIO Half Yearly Report in June 2023 - Some Tweezer Tops – a Double Top - Lower High’s and Lower Low’s – Linear Regression is trading sideways – Candles show that sellers have been in control for the past 7 days – they all suggest that I keep my powder dry for the time being…. $90.00 approx looks good atm – ST Inds are all in Range Trading or O’Sold Territory and are continuing to fall.

RIO’s FA has also declined since their 2021 EOFY – IV is in the Range of $114.26 to $126.29,so RIO is Fairly Valued at present - I reckon there may be some T/O Action if RIO hits the $90.00 area….

Remember my analysis suits MY Trading Needs – SO DYOR……
Cheers…
DrB.

 

[farmerge]

Tues 7.50am 2/5/23…… Ran my slide rule over RIO recently, bit of a downward trend for 2023 so far – I won’t include my ‘page nrs’ in this post as they are mainly for the Beginners, and, IMO, Beginners should not play with the likes of RIO…..

RIO’s TA is a mixed bag so far for 2023, very uninspiring to the average punter, But the Vultures may take a keen interest if this slide continues towards the RIO Half Yearly Report in June 2023 - Some Tweezer Tops – a Double Top - Lower High’s and Lower Low’s – Linear Regression is trading sideways – Candles show that sellers have been in control for the past 7 days – they all suggest that I keep my powder dry for the time being…. $90.00 approx looks good atm – ST Inds are all in Range Trading or O’Sold Territory and are continuing to fall.
View attachment 156511
View attachment 156514
View attachment 156515

RIO’s FA has also declined since their 2021 EOFY – IV is in the Range of $114.26 to $126.29,so RIO is Fairly Valued at present - I reckon there may be some T/O Action if RIO hits the $90.00 area….
View attachment 156517

Remember my analysis suits MY Trading Needs – SO DYOR……
Cheers…
DrB.

Eldest son works for Rio based in Tom Price. As part of his salary sacrifice he gets a number of shares a couple of times a year. He would love the lower SP as it means more shares. After 20 years up there is sitting on a King's ransome with the number he holds, and not needing the dividend re-invests that back into more to bolster his buldging holding