Shares in Rio Tinto edged higher after it revealed a solid quarterly and half-year performance for its key Pilbara iron ore business.
The shares ended up 0.6% on Friday at $104.14 after telling the market in its June quarterly production report that it had exported 86.7 million tonnes of iron ore from its Pilbara mines in the three months to June 30, compared to 85.4 million tonnes a year earlier.
That was up 1% from the second quarter of 2019 but more importantly, it surged 19% from the first quarter of this year.
That helped shipments for the six months to June to rise 3% from the same period in 2019 to $159.6 million tonnes. production for the half-year rose 3% to 161 million tonnes.
Rio achieved higher production in the June quarter came despite the impact of COVID-19 related operational controls from March onwards.
Another positive was the price Rio Tinto commanded for its iron ore. It revealed a Pilbara iron ore FOB average realised price of $US86.5 per dry tonne in the second quarter and $US85.4 per dry tonne for the half. That was little changed from $US85.30 a dry tonne for the first half of 2019.
CEO Jean-Sebastien Jacques said Rio remained on course to meet its full-year iron ore export targets.
“Our iron ore assets are performing well in a strong pricing environment and we are on track to meet our 2020 iron ore guidance,” he said.
“Despite various COVID-19 related challenges, all our assets have continued to operate, with our first priority to protect the health and safety of all our employees and communities.”
Also doing well for Rio were its bauxite and iron ore pellets operations. Bauxite production rose 9% higher for the quarter at 14.6 million tonnes (+8% for the half) and iron ore pellets production was up 9% for the quarter to 2.8 million tonnes (+6% for the half).
Aluminium, copper, and titanium dioxide production were weaker during the quarter and half. For the first half, aluminium production was down 2%, copper production fell 5%, and titanium dioxide production reduced by 7%.
