Latest news with #OyuTolgoi
Yahoo
3 days ago
- Business
- Yahoo
Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds
-- Shares in Rio Tinto (NYSE:RIO) fell 2% in U.S. premarket trading Tuesday after Jefferies lowered its rating on the mining giant to Hold from Buy, citing a more balanced risk/reward profile amid a series of emerging headwinds. The brokerage cut its price targets across listings, with the Rio Plc target lowered from 5,700p to 4,600p and the Rio Ltd target from A$147 to A$115. 'We do not believe that Rio (or BHP) is 'broken'. We just consider the risk/reward tradeoff to be more balanced following recent developments,' analysts led by Christopher LaFemina. One of the key concerns is the uncertainty surrounding the company's strategic direction following the announcement that CEO Jakob Stausholm will step down later this year. The analysts noted that potential successors—including Simon Trott, Jérôme Pécresse, and Bold Baatar—bring different implications for future strategy, including M&A potential. 'Until the new CEO is announced, the strategic direction of Rio will be a risk,' the analysts noted. Jefferies also flags growing concerns around Rio's lithium investments. While seen as countercyclical, these projects carry risks of 'rising capital intensity and potentially low returns' if demand fails to meet Rio's expectations. As spending increases, near-term free cash flow (FCF) could be negatively affected without a corresponding boost in earnings, the analysts said. The team is also cautious on iron ore, which accounts for over 70% of Rio's net present value. The analysts expect the price to ease in the near term, citing trade tensions between the U.S. and China, structural steel capacity cuts in China, and seasonal weakness. 'We model $90/t in 3Q vs current spot of $95/t,' they wrote, with a long-term forecast in the $80–90/t range. 'A lower iron ore price is negative for Rio,' the analysts added. As for the political landscape, Jefferies points out that U.S. tariffs on Canadian aluminum, a key production region for Rio, could reduce profitability despite potential gains in regional pricing. Meanwhile, political developments in Mongolia may complicate operations at the Oyu Tolgoi project, though Jefferies' base case assumes no major disruption. In the mining sector, Jefferies now favors Glencore (OTC:GLNCY), Anglo American (JO:AGLJ), and Vale SA ADR (NYSE:VALE) over Rio Tinto and BHP Group Ltd (ASX:BHP), citing better positioning with respect to capital allocation and geopolitical exposure. Related articles Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds Music majors weigh AI licensing deals with generative startups, WSJ reports TSX closes higher, remains resilient despite trade tensions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
AU Financial Review
5 days ago
- Business
- AU Financial Review
Rio Tinto finds its mega-mine stuck between two Mongolian strongmen
Ulaanbaatar | Inside Mongolia's cavernous parliament, politicians huddle in clusters, rushing between benches and locked-door meetings. A historic confidence vote looms over Prime Minister Oyun-Erdene Luvsannamsrai, whose grip on power is slipping amid corruption allegations and a populist backlash – sending tremors through the country's most important foreign investment: the vast Oyu Tolgoi copper mine run by Rio Tinto. The ASX-listed giant has already weathered two decades of turbulence in Mongolia. But the current political crisis – compounded by allegations levelled at the company and a fractured government – threatens to derail its most ambitious expansion, a multibillion-dollar underground mine that would make Oyu Tolgoi one of the world's five biggest copper producers.
AU Financial Review
25-05-2025
- Business
- AU Financial Review
Mongolia accuses Rio Tinto of bribery in explosive secret lawsuit
Rio Tinto has been accused of being involved in political bribery relating to its Oyu Tolgoi copper mine in a secret lawsuit that reveals the toxic relationship between the resources giant and the Mongolian government. Rio and officials in Ulaanbaatar have squabbled for almost two decades over how to share Oyu Tolgoi's wealth, and the company's departing chief executive, Jakob Stausholm, has spent close to $8.5 billion on buying out minority shareholders and waiving government debts to resolve the tension.
Reuters
23-05-2025
- Business
- Reuters
Rio CEO exit hands successor strategic quandaries
LONDON, May 22 (Reuters Breakingviews) - Rio Tinto (RIO.L), opens new tab, ( opens new tab Chief Executive Jakob Stausholm is handing over more baggage than freedom. In a surprise announcement on Thursday, the $107 billion miner said its Danish CEO would step down after just over four years in the role. While he leaves behind a less scandal-prone and complex company, his successor will still have to grapple with several unresolved constraints. Stausholm took the reins in January 2021, steadying the ship after the Juukan Gorge scandal in Australia toppled predecessor Jean-Sébastien Jacques. In 2022, he resolved, opens new tab a long-running dispute with the Mongolian government over copper mine Oyu Tolgoi. Rio's London-listed shares have delivered a total return of 30% under his watch. The next CEO will still have work to do. JPMorgan reckons Rio shares could be worth as much as 95% more than the current price, if valued in line with its sum of the parts calculation. And around 70% of the group's EBITDA in 2024 came from iron ore, underscoring the need to diversify. Stausholm's chosen future green-metal solution was lithium, unlike peers BHP ( opens new tab, which targeted more scarce metals like copper. It's a risky bet. Lithium prices have slumped due to abundant reserves and cheap Chinese supply, with prices down 13% year-to-date, per Morgan Stanley. Despite those doubts, Rio pushed ahead: in October it paid $6.7 billion for Arcadium Lithium, equivalent to a toppy 90% premium, and this month it took a stake, opens new tab in a yet-to-develop Chilean lithium mine. These were all cash deals, highlighting another constraint: Rio's dual listing structure, with stock issued by both British and Australian entities, can make share-based acquisitions more complex. Activist fund Palliser Capital recently proposed scrapping it, although the motion was defeated in a shareholder vote. The new CEO, then, will already face some tough choices. Lithium remains a modest contributor, expected to account for just 6.5% of group EBITDA by 2034, per Visible Alpha. Yet sticking with the strategy, while managing the rigidity of a dual listing, could make it harder for the next chief executive to pursue major deals. They will be taking over at a time when a number of potential targets are easier to swallow: Teck Resources ( opens new tab and Anglo American (AAL.L), opens new tab are now worth $18 billion and $38 billion, with their shares down 34% and 20% respectively since last May. There are some good candidates for the top job, whether internal contenders like Chief Commercial Officer Bold Baatar or iron ore boss Simon Trott, or external executives such as Newmont's (NEM.N), opens new tab CEO Tom Palmer, a Rio alum, or even Jonathan Price of Teck. Whoever prevails will find there are few easy seams to mine. Follow @karenkkwok, opens new tab on X
Globe and Mail
15-05-2025
- Business
- Globe and Mail
Horizon Copper Highlights Additional High-Grade Drill Results from the Hugo North Extension
VANCOUVER, BC , May 15, 2025 /CNW/ - Horizon Copper Corp. (TSXV: HCU) (OTCQX: HNCUF) ("Horizon Copper", "Horizon", or the "Company") is pleased to highlight the latest analytical results released by Entrée Resources Ltd. ("Entrée") from drilling completed in 2022–2024 on the Hugo North Extension ("HNE") at the Oyu Tolgoi mine in Mongolia . The latest drilling results from the HNE deposit were recently made available by Entrée's joint venture partner Oyu Tolgoi LLC ("OTLLC") and are a continuation from the previously announced drilling results reported by Entrée in February 2024 and February 2025 . These latest results include one surface diamond drill hole and five underground diamond drill holes completed during 2024 on the Shivee Tolgoi mining licence, as well as one underground drill hole from the 2022 program. The surface drill hole was collared on the Entrée/Oyu Tolgoi Joint Venture Property (the "JV Property") and the underground drill holes were all collared from existing infrastructure on the Oyu Tolgoi mining licence. Each of the six diamond drill holes with newly reported assay results were drilled at moderate dips toward the north or northeast, targeting mineralization within the potential Lift 2 block cave or area immediately to the east. Several drill holes reported in this recent release and previous news releases have continued up to 200 metres vertically below the base of the potential Lift 2 block cave and remained in strong copper and gold mineralization. Erfan Kazemi , Horizon's President & CEO, commented, "The drilling results at Hugo North Extension continue to be some of the most impressive seen on copper projects around the world and add to the growing list of remarkable assays that have been released over the last 12 months on the project. In particular, the latest results highlight the long-term potential at Hugo North Extension Lift 2. As Entrée's largest shareholder, Horizon continues to be encouraged by the robust and long-life cash flows that this asset represents and the long-term value that our interest in Entrée will bring to Horizon shareholders." HNE Underground Drill Holes UGD871: 197 metres grading 1.07% copper and 0.38 grams per tonne ("g/t") gold from 358 metres, including 89 metres grading 1.33% copper and 0.44 g/t gold; UGD873A: 279 metres grading 1.12% copper and 0.16 g/t gold from 360 metres; and UGD876: 169.3 metres grading 2.72% copper and 0.82 g/t gold from 224.7 metres, including 112 metres grading 3.33% copper and 0.81 g/t gold. HNE Surface Drill Hole UGD189B: 552 metres grading 2.30% copper and 1.45 g/t gold from 1,226 metres, including 260 metres grading 3.29% copper and 2.08 g/t gold. In April 2025 , Rio Tinto Group, the operator of Oyu Tolgoi, announced that Lift 1 underground mine ramp-up remains on track. The Lift 1 underground mine plan incorporates the development of three panels (Panels 0, 1, and 2) and the HNE deposit on the JV Property is located in the northern portion of Panel 1. Underground development work for Panel 1 on the JV Property began in October 2024 , and as of April 30, 2025 , OTLLC had completed approximately 152 metres of lateral development. Based on the current development schedule, underground production on the JV Property is expected in 2027. For more information and full drill results, visit Entrée's website at and refer to the press release dated May 14, 2025 . Horizon Copper has exposure to the Hugo North Extension and Heruga deposit of the Oyu Tolgoi copper mine through its 24% equity ownership of Entrée. Qualified Person Imola Götz ( is a Qualified Person as defined by Canadian National Instrument 43-101. Ms. Götz has reviewed and approved the scientific and technical information in this news release. About Horizon Copper Horizon Copper is a premier copper company holding a portfolio of unparalleled copper assets including a 1.66% net profits interest on the Antamina copper mine, exposure to the Oyu Tolgoi copper mine through a 24% equity ownership in Entrée Resources Ltd., and a 30% interest in the copper-gold Hod Maden project. Horizon plans to actively grow its portfolio of assets with a focus on copper projects. Cautionary Note Regarding Forward-Looking Information This press release contains forward-looking information within the meaning of Canadian securities laws. Although Horizon believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by Horizon is not a guarantee of future results or performance and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the expected capital expenditures, including exploration and development activity; the future price and demand of gold, copper, and other metals. The forward-looking statements contained in this press release are made as of the date of this press release. Horizon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The securities referred to in this press release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. The Company assumes no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in Horizon's Annual Information Form for the year ended December 31, 2024 , filed under the Company's profile on SEDAR+ ( as well as subsequent filings that can also be found under the Company's profile. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
