Rio Tinto’s share price (ASX: RIO) gained 3.56% today, bringing the stock close to neutral on a year-to-date basis, following the resumption of shipments from one of its key facilities in Western Australia. This development was positively received by the market, with the inclusion of the stock in Goldman Sachs’ European Conviction List another notable boon to on the day. The announcement comes after shipments from the East Intercourse Island (EII) port facility were halted due to severe weather conditions earlier this year.
The EII port, an essential part of Rio Tinto’s operations, had been significantly affected by record rainfall in January owing to Tropical Cyclone Sean. The cyclone led to the flooding of the railcar dumper on January 20, thereby impacting the port’s shipment capabilities. Despite these setbacks, EII managed to ship 45 million tonnes of Rio’s iron ore shipments in 2024.
The impact of weather disturbances was not limited to the EII facility. Operations at Rio Tinto’s Dampier and Cape Lambert ports were also hampered by several cyclones, namely Tropical Cyclones Tahlia, Vince, and Zelia. These weather events resulted in a projected total loss of approximately 13 million tonnes for the fiscal year 2025.
Notwithstanding these challenges, Rio Tinto has maintained its guidance for the Pilbara iron ore shipments, which is projected to be between 323 to 338 million tonnes in 2025. This steady guidance reflects confidence in their production and recovery capabilities. An update regarding operations and projections is expected to be provided in the company’s first-quarter operations review on April 16.
Back to the Goldman Sachs inclusion, and supporting commentary relating to ‘solid production growth in 2025’ contrasting with other miners a notable reason for the addition. The preference was made clear as Glencore was removed from the same list during the firm’s monthly update.
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