Rio Tinto's Iron Ore Still Leading the Way

Higher-than-expected fourth-quarter 2011 iron ore and coal production offset lacklustre base metals at Rio Tinto

Mark Taylor 19 January, 2012 | 2:21PM
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Our fiscal 2011 earnings forecast for Rio Tinto (RIO) is steady, with higher-than-expected fourth-quarter 2011 iron ore and coal production offsetting lacklustre base metals. Fourth-quarter iron ore volumes came in 3% ahead of third-quarter 2011, while coal production was 6% higher. The iron ore division accounts for 46% of our Rio Tinto valuation and more than two thirds of fiscal 2011 earnings. Coal is small in comparison at less than 10% of valuation and 5% of earnings. Our fiscal 2012 group earnings forecast is also steady. Iron ore contributes a reduced 54% of forecast fiscal 2012 earnings as improved

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Rio Tinto PLC4,592.50 GBP0.00Rating

About Author

Mark Taylor  is an equity analyst at Morningstar.