Rio Tinto

Ticker RIO

Today's data summary

Market closed
% change
+2.57%
Price Pence
4209.50
Change
+105.50
As of 20:30 12 Oct 2019
Market cap. Pound sterling
53,165.03 million
As of 20:30 12 Oct 2019

Latest updates

Mining stocks fall

dam
EPA

Miners are the biggest fallers in the FTSE 100 so far today.

Rio Tinto, BHP Billiton and Anglo American are all off 3% or more.

Reuters links this to plans by Brazilian miner Vale to partially resume processing operations at Vargem Grande complex.

Production had fallen - forcing prices higher - after the collapse of the Brumadinho dam in January, which killed at least 248 people.

Reuters notes that a number of brokers are pointing to an increase in iron ore supply in the future.

Earlier this month a judge in Brazil ordered Vale to pay compensation for all damages

FTSE winners and losers

A mine
Getty Images

Iron ore miner Rio Tinto is leading the way in the FTSE 100 so far this morning. Shares in the oil giant are up 1.2% at 4,834.75.

The only other two shares up more than 1% are Antofagasta - up 1.28% at 870.80 - and EasyJet, which has bounced back 1.08% to 898.10 after yesterday's slide.

Tui is leading the losers, the travel company is down 2.81% at 720.20.

Also dropping more than 2% are Evraz - down 2.31% at 693.10 - and Carnival, which has fallen 2.12% to 3,972.

Rio hit by cyclone

mining
Getty Images

Rio Tinto, the world's second largest iron ore miner, said its business faced several challenges at the start of this year, particularly from tropical cyclones.

It reported a 14% fall in quarterly iron ore shipments and cut its estimates for shipments in 2019 because of a tropical cyclone which hit its export terminal in Western Australia last month.

Rio Tinto to pay $4bn special dividend

A Rio Tinto mine
Getty Images

Rio Tinto has posted a jump in annual profit thanks to strong commodity prices, and plans to pay a special dividend.

Underlying earnings rose to $8.81bn (£6.6bn) for the 12 months to 31 December, from $8.63bn a year earlier.

The Anglo-Australian mining giant said it would pay a $4bn special dividend.

FTSE slips on weak Chinese data

Trader
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The London market is back at 7,000 after China's manufacturing sector reported its weakest growth in two years on Friday morning.

As world leaders gather in Argentina for the G20 summit, the FTSE 100 slipped 0.8% as shares in miners such as Rio Tinto, Anglo American and Antofagasta slumped.

Connor Campbell of Spreadex says a slowdown in China’s manufacturing sector is not that surprising given the country’s trade war with the US.

"That puts even more pressure on President Xi Jinping to try and move in the right direction with [Donald] Trump in Buenos Aires, something that seems like a huge ask given the latter’s bellicose rhetoric this week."

Eurozone indices have moved in the same direction, with Germany's DAX and the French CAC both down 0.6%.

Rio Tinto offloads uranium stake

Cranes at a Rio Tinto mine
Getty Images

Mining giant Rio Tinto will sell its entire stake in Rössing Uranium to China National Uranium Corp for $106.5m (£83.1m).

Chief executive J-S Jacques said the sale demonstrates the firm's push to focus on "core assets which deliver sector leading returns".

The news did little to help the stock in Sydney trading. Rio Tinto shares were down around 3.5% in afternoon trading, as weaker metals prices hit the mining sector.

Miners lift FTSE 100

Miner
Rio Tinto

A sharp fall in the pound against the dollar - now down 0.95% at $1.2852 - means the FTSE 100 is on the up on Monday morning.

The blue chip index is up 0.70% at 7,155.12, led mainly by mining groups. Rio Tinto is the biggest gainer, up 3.84% at £39.97.

British American Tobacco has trimmed its share price fall to 8.34% to £30.37 on the threat of a ban on menthol cigarette in the US. However, it continues to lead the FTSE 100 fallers.

The FTSE 250 is down 0.16% at 19,075.77.

Rio Tinto and partners invest $1.6bn in iron ore projects

Mining equipment at work at an iron ore mine in the Pilbara region
Getty

Rio Tinto and its Japanese joint venture partners will spend around $1.6bn (£1.2bn) on two iron ore projects in Western Australia.

The investment, made with Mitsui & Co and Nippon Steel & Sumitomo Metal, will help sustain production capacity at the projects in the mineral-rich Pilbara region.

It comes as the British-Australian mining firm sells off its coal assets and turns to focus on core commodities, including iron-ore.

FTSE 100 drops on commodity price falls

The FTSE 100, the blue chip stock index, has reversed earlier gains and is now trading down 0.77% at 7,553.35.

Connor Campbell, financial analyst at Spreadex, says: "The FTSE was crushed under the weight of its sizeable commodity stocks on Wednesday, plunging towards 7,550 as chaos spread throughout the sector.

Trucks loading copper ore
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"With Brent Crude falling under $72 per barrel after slipping 1%, gold sliding to $1,192 an ounce and copper sinking around 2.5% to hit a fresh 13 month low, the FTSE’s oil and mining firms were not in a good way.

"BP and Shell both slipped 0.7%, the likes of Rio Tinto, Anglo American and Antofagasta were down anywhere between 2.5% and 4%, and Fresnillo shed 5.5%.

"All this led to the UK index itself dropping 70 points, testing intraday lows last seen at the start of the month."

FTSE slides; Next extends fall

London Stock Exchange
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The FTSE 100 is down 1% at 7,665.93.

Next's shares have extended earlier falls and are now down 6.7% at £55.37.

The retailer is followed by the mining group Rio Tinto, whose share price is down 4% at £40.25.

Rio Tinto reported underlying profits up 12% over the interim period but at $4.42bn, income was below forecasts of $4.53bn.

Packaging specialist Smurfit Kappa led the FTSE 100 risers, up 2.1% at £31.99 after reporting strong first half results.

The FTSE 250 is down 0.35% at 20,805.11.