Latest news with #Simandou
Bloomberg
01-08-2025
- Business
- Bloomberg
Winning Consortium Vows Responsible Mining at Guinea's Simandou
Winning Consortium Simandou, one of the companies developing the world's biggest untapped iron ore deposit in Guinea, has said that it is working closely with authorities and communities to address environmental concerns linked with the project. The commitment follows studies by Advocates for Community Alternatives, a non-governmental organization, which revealed that construction of the Simandou project was linked with water and soil pollution.
Yahoo
01-08-2025
- Business
- Yahoo
Rio Tinto Group (RIO) Announces Financial Results for First Half of 2025
Rio Tinto Group (NYSE:RIO) is included in our list of the . Copyright: tomas1111 / 123RF Stock Photo Despite a 13% decline in iron ore prices, Rio Tinto Group (NYSE:RIO) announced strong financial results for the first half of 2025 on July 30, 2025. Net profit decreased by 22% to $4.5 billion, while underlying EBITDA was down 5% to $11.5 billion. Strong performances from the copper and aluminum divisions, as well as a recovery in Pilbara operations after the Q1 cyclones, helped to support the results. Production rose 6% annually, with considerable increases in shipments of copper and bauxite, especially from Oyu Tolgoi. Rio Tinto Group (NYSE:RIO) announced a $2.4 billion dividend while maintaining its 50% payout ratio. Important projects were also advanced by Rio Tinto, such as the Simandou iron ore project, which is scheduled to export for the first time in November 2025, and significant advancements in the lithium industry, which were exemplified by the $6.7 billion purchase of Arcadium Lithium. Rio Tinto Group (NYSE:RIO) is well-positioned for long-term growth due to its strategic investments and varied portfolio. Rio Tinto stressed effective cash flow management and reiterated its output guidance for the future. Operating through its Iron Ore, Aluminum, Copper, and Minerals segments, Rio Tinto Group (NYSE:RIO) is a global mining company. It is included in our list of cheap solid state battery stocks. While we acknowledge the potential of RIO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Yahoo
01-08-2025
- Business
- Yahoo
2 cheap momentum shares to consider in an ISA in August
Let's get straight to the point. I think investors should consider these cheap shares to buy next month and here's why. Rising again Iron ore miners like Rio Tinto (LSE:RIO) have recently risen sharply in value. This is thanks to improving demand signals for the steelmaking ingredient, and more specifically from within China. The Asian country's position as major manufacturing hub sees it consume around three-quarters of the world's iron ore. Economic data from there has been patchier of late, with factory activity slumping at its fastest pace for two-and-a-half years in May amid US tariff uncertainty. Trade policy uncertainty remains a threat. But signs of progress between the US and other trading nations (including China) in recent weeks suggests things could be looking brighter. This is critical for Rio Tinto, which sources 70% of earnings from the metal. Producers of high-grade iron ore like Rio also stand to gain from China's plans to improve the emissions and efficiency of its steel mills. Iron throne Encouragingly, the FTSE 100 firm's focusing increasingly on assets with higher-ore grades to capitalise on this decarbonisation theme and boost long-term growth. Its Simandou project in Guinea, for instance, has an average Fe content of 65-68%, well above the industry benchmark of 62%. This is considered one of the largest untapped sources of high-grade iron ore on the planet. Trends like decarbonisation, the growing digital economy, rising defence spending, and ongoing urbanisation all bode well for industrial commodities demand. And thanks to its sheer scale — it has roughly 65 projects spread across 35 countries — Rio's well-placed to seize this opportunity. I don't believe these long-term opportunities are baked into Rio Tinto's low share price. At £47.38 per share, it trades on a forward price-to-earnings (P/E) ratio of 9.9 times. Combined with a 5.7% dividend yield for 2025, I think it's a 5.7% great value share to consider. Gold star Hochschild Mining's (LSE:HOC) another dirt cheap commodities producer that's attracted my attention. Powered by buoyant gold and silver prices, I'm confident it can continue rising as macroeconomic and geopolitical uncertainty lingers. Analysts at JP Morgan believe bullion will reach $3,675 per ounce by the end of 2025, up from $3,418 currently. And analysts tip it to breach $4,000 by the end of next spring. Buying precious metal stocks like Hochschild offers excellent long term potential too. As a safe-haven asset, they provide investors' portfolios with added steel to withstand any economic, political and social crises. I like this FTSE 250 operator because of its strong production profile. Its low-cost Mara Rosa gold mine started up in early 2024, and construction's set to begin at the Monte Do Carmo project later this year. Profits could disappoint if safe-haven demand for gold recedes. But I think this is baked into its low forward P/E ratio of 10.2 times. It also trades on a sub-1 price-to-earnings growth (PEG) ratio, of 0.1, at today's price of 289p. The post 2 cheap momentum shares to consider in an ISA in August appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool JPMorgan Chase is an advertising partner of Motley Fool Money. Royston Wild has positions in Rio Tinto Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
24-07-2025
- Business
- Yahoo
Exclusive-Rio Tinto weighs sale of titanium business, sources say
By Clara Denina, Ernest Scheyder and Melanie Burton (Reuters) -Rio Tinto is considering a possible sale of its titanium unit due to weak prices and low returns, three sources said, just as incoming CEO Simon Trott will weigh up a restructuring of the world's second-largest miner when he takes over next month. Titanium, used to make paints, cosmetics and food colouring, is also a vital ingredient in jet engine parts, missile casings, rocket components, submarines and naval vessels because of its strength, corrosion resistance and lightweight properties. China, the world's biggest producer and consumer of titanium dioxide, has expanded its production to capture over half the global market over the past decade, according to data from the U.S. Geological Survey. China wields significant pricing power, which has knock-on effects for Western miners, including on margins. Against this backdrop, Rio Tinto has been evaluating whether the titanium business still has a place in its portfolio. How to exit it could be one of Trott's first decisions, the three sources familiar with matter said. Rio Tinto declined to comment. Rio would not be the first to exit titanium. Bowing to investor pressure, DuPont in 2013 said it would spin off its own titanium dioxide business. In the company's portfolio, titanium falls under the Minerals business, headed by Sinead Kaufman. This division also includes borates, used in cleaning products, as well as the Iron Ore Company of Canada, diamonds, and the Jadar lithium project in Serbia. The Minerals division reported an underlying EBITDA of $1.1 billion in 2024, 24% lower than in 2023, the company's financial report shows. Iron and titanium operations in South Africa and Canada accounted for more than half. Trott, who takes over as the company's CEO on August 25, has headed the iron ore division since 2021. There is an acknowledgement at the company that internal costs, such as staffing, are excessive, sources have told Reuters, so cost-cutting is expected. "There's going to be a middle management clean out," said one of the sources, who was not authorised to speak publicly. Part of Trott's pitch and vision for Rio includes a focus on streamlining the structure of the company's core businesses iron ore, copper, lithium and aluminium, the sources said. Australia and possibly Canada's iron ore operations, and the upcoming Simandou project in Guinea are likely to be grouped together, as well as the recently acquired U.S. lithium company Arcadium and its other lithium projects and investments, they added. Rio is scheduled to release its half-year results on July 30. 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
Zawya
01-07-2025
- Business
- Zawya
Guinea Economic Update: Domestic Resource Mobilization and Management for Inclusive and Sustainable Development
The second edition of the Guinea Economic Update offers an in-depth analysis of the country's evolving macroeconomic position and examines how Guinea can increase domestic resource mobilization and management to achieve its development goals. The report, ' Domestic Resource Mobilization and Management for Inclusive and Sustainable Development, ' presents a dual focus: an evaluation of macroeconomic developments and outlook, and an examination of Guinea's potential to enhance and manage domestic revenues, particularly in light of the expected windfall from the Simandou iron ore project. The first part of the report highlights Guinea's ongoing and anticipated economic growth, with GDP growth reaching 5.7% in 2024, projected at 6.5% in 2025, and averaging 10% in 2026–27, driven by expanding mining activity. However, the report underscores that recent growth has not significantly reduced poverty, which remains high at 52%, due to limited job creation in the non-mining sectors. ' In recent years, Guinea has achieved robust growth, primarily fueled by the mining industry and agriculture. Yet, the key challenge remains in transforming growth into employment opportunities for Guineans,' said Marilyne Youbi, World Bank Group Economist and Lead Author of the report. The report points to a widening fiscal deficit — 4.8% of GDP in 2024 and rising public debt, driven by infrastructure investment and still-limited revenue mobilization. Tax revenues remain low at 13.1% percent of GDP, significantly below regional targets, constraining the government's ability to invest in essential services such as health, education, and infrastructure. The second part of the report presents an analysis of Guinea's domestic resource mobilization and management landscape. It argues that increasing and better managing public revenues, especially from the mining sector, is essential for fiscal sustainability, economic diversification, and improved social outcomes. The report calls for stronger tax policy enforcement consistent with the Tax and Mining Codes, and it highlights key reform areas including enhancing tax audit capabilities, improving the integrity of the taxpayer database, ensuring timely filing and payment of taxes, and deepening digitalization of revenue administration. It also calls for reforms to strengthen management of public expenditures and public investments programs. ' This report underscores the urgency of implementing reforms to make growth more inclusive and resilient,' said Issa Diaw, World Bank Group Country Manager for Guinea. ' With the Simandou iron ore project poised to transform the economy, Guinea has a narrow window to ensure that the benefits of growth are widely shared.' As Guinea enters a potentially transformative phase in its development, the report calls for a renewed policy focus on debt sustainability, macroeconomic stability, as well as investments in human and physical capital. Download the Guinea Economic Update in English. Distributed by APO Group on behalf of The World Bank Group.
