Rio Tinto finished 2020 in line with its guidance and ahead of UBS’s estimates with total iron ore shipments at 330.6mt. The miner’s 2021 guidance is in line with the market but implies less than 1% copper equivalent growth, observes UBS.
The step-up to 360mtpa of iron ore production is likely to be nearing with Gudai-Darri progressing to its targeted 2022 ramp-up. UBS expects the feasibility report for Jadar deposit by end-2021 with best case project start-up in 2025.
A final dividend of US$3.70 per share is forecast.
The Neutral rating and target price of $115 are unchanged.
Sector: Materials.
Target price is $115.00.Current Price is $119.63. Difference: ($4.63) – (brackets indicate current price is over target). If RIO meets the UBS target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
