RIO TINTO

Analysis of Rio Tinto share price

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Investing in the commodities market can also be undertaken through the stock markets. You can for example buy Rio Tinto shares online and this we will examine here in more detail with some explanations and important data such as its real time price and a historical technical analysis.

Elements that can influence the price of this asset:

Analysis N°1

Firstly we note of course the growth in the industrial requirements for aluminium, notably concerning its use in building construction. This metal is actually being increasingly used to replace iron and is therefore experiencing a rising demand over recent years.

Analysis N°2

The investments achieved by Rio Tinto in order to strengthen its position in emerging markets are also an important issue that should be taken into account.  

Analysis N°3

It is also important to follow the activity diversification endeavours of Rio Tinto through partnerships with other companies as well as the creation of joint ventures.

Analysis N°4

The changes in regulations in terms of security and the environment in the countries where Rio Tinto excavates its mines is another element that can exercise a major influence on the movements in the share price of this asset as it will impact the productivity of this group.   

Analysis N°5

To conclude, it is of course equally important to follow the basic commodities market carefully as the price of minerals is subject to a strong volatility and this of course will impact the profitability of the Rio Tinto company.

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General presentation of Rio Tinto

The English group Rio Tinto is one of the principal specialists in the research, exploration and mining of iron, aluminium, copper, coal, industrial minerals and diamonds in the world. It achieves the largest part of its turnover from iron.

The principal activities of Rio Tinto take place in Australia, the United States, Canada, Latin America and South Africa.  

The group became renowned as the fourth largest mining group in the world in 2009 with a capital of around 34 billion and was positioned 263rd in the 2008 list of the largest companies in the world.

The company also owns a number of mines and base metal factories in Canada with QIT Fer et Titane that works the world’s largest Ilmenite deposit as well as in Labrador, with a 59% shareholding in IOC, the largest iron mine in the country, and a 60% shareholding in the Akdov diamond mine in the North Western territories.

In 2013 Rio Tinto enlarged its range of equipment with a train supplied by the Qiqihar Railway Rolling Stone Co. Ltd., it was manufactured by a Chinese train company and is believed to take the largest charge capacity in the world; it can transport up to 155 tons per wagon, the maximum charge per axle is 44 tons, which means a total capacity charge for the train of 30,000 to 50,000 tons.

The price of Rio Tinto shares is currently quoted in the foreign section of the Euronext Paris stock market and is integrated into the calculation of the FTSE 100 stock market Index.

Analysis of Rio Tinto share price
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The major competitors of Rio Tinto

Let's take a moment to find out who are the main competitors facing the Rio Tinto Group in its industry with a presentation of its most important competitors.

Aluminium Corporation of China

This company is the largest in the sector in China. It was created in 2001 by the merger of several companies. It is also the largest company in this sector worldwide in terms of turnover.

Alcoa

Another competitor to Rio Tinto is Alcoa, which is an American company and the third largest aluminium producer in the world, based in Pittsburgh, USA. The group operates in 43 countries around the world and employs 127,000 people.

Rusal

The Rusal Group is a Russian company specialising in the production of aluminium, which was established in 2000. Rusal is also one of the leading aluminium producers in the world. It is an international company with Russian capital and management.

Kazatomprom

This company is a Kazakhstan mining company that was established in 1997 and is 100% state-owned. The group currently employs over 26,000 people. It is one of the world's leaders in the exploration, production and sale of uranium in the world with over 25% of the world market share.

Cameco

The Cameco group is also a direct competitor of Rio Tinto. This Canadian company is also listed on the S&P/TSX 60 stock index and is one of the largest uranium producers in the world with a market share of 16% and almost 200,000 tonnes of reserves.

Orano

Finally, the Orano Group, formerly known as Areva, is a French multinational company active in the nuclear fuel business from upstream to downstream. It was created in 2001 by the merger of three French companies operating in the nuclear sector.


The major partners of Rio Tinto

Let us now look at the principal partners of the Rio Tinto Company with some of the major collaborations it has implemented over recent decades.

Chinalco

In 2010 the Rio Tinto Group and the Chinese company Chinalco collaborated in the creation of a joint venture with the objection of exploring for undeveloped mineral deposits in China. Rio Tinto owns 49% of this joint company which has undertaken some large projects over the years since its formation.

Norisk Nickel

In 2015 the Russian company Norilsk Nickel, specialised in non-iron metals, signed an agreement with Rio Tinto for the creation of a joint company responsible for the geological prospection and development of Russian natural resources. This joint company is owned as follows; 51% by the Russian company and 49% by Rio Tinto.  

Arvida

Finally, in 2016, Rio Tinto invested several million dollars in its partnership with the Arvida Centre of Research and Development and the UQAC Aluminium University Campus.

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The factors in favour of a rise in the Rio Tinto share price:

The best way to anticipate future basic trends of the Rio Tinto share price and take position over the long term on its rise or fall is to understand how this company manages its development and growth and will do so in the coming years. To do this correctly you need to take into account the strengths and weaknesses of this group. This is what you can learn about here with us. We shall start by examining the major advantages of this Italian group and its shares on the stock market.

The initial advantage currently held by the Rio Tinto group concerns its coveted position in its activity sector. It should be remembered here that this Italian group is actually the leader in the sector of copper and aluminium mineral extraction worldwide. It is therefore in a strong position compared with its competitors in this sector and does not face any particular difficulties in gaining new parts of the market. But that is not all! Recently Rio Tinto has also become one of the largest groups worldwide in the sectors of iron and diamond extraction. 

The Rio Tinto group actually continues unceasingly to try and increase its profitability and this of course particularly requires a high level of control over production costs and their productive efficacy. To ensure this Rio Tinto have heavily invested in equipment and currently possess the most technologically advanced mineral extraction tools.

The workforce possessed by the Rio Tinto group is of course another of its major advantages. In fact this company with its diverse activities that it practises throughout the world is responsible for around 70,000 employees. This major workforce reflects the success of the group and permits it among other things to respond in a more effective manner to a possible rise in demand. This adaptability to market requirements reassures its potential clients against the more limited abilities of its competitors. 

The presence of Rio Tinto on the international scene is of course another advantage of this group. In fact, this brand is well known throughout the world and Rio Tinto exports its minerals to all the continents using a long term expansion strategy that has proved to be highly effective.

The factors in favour of a drop in the Rio Tinto share price:

Of course, the future of the Rio Tinto company does not simply rely on these advantages that we have cited above. This Italian group does of course have certain disadvantages that you should understand and take into account before taking position particularly over the medium or long term. We now offer you the opportunity to learn about these weak points that can negatively influence the share price of this company or slow down a rising trend. Here therefore are the current major weak points of this company.

Firstly, the financial situation of the Rio Tinto group could not be said to be highly stable and therefore not reassuring for its investors. The debt level of this group in fact remains quite high and may be considered as a setback to some of its growth possibilities due to a lack of capital for future investments or for the research and development of new wells. This debt needs to be rapidly absorbed to ensure that investors regain absolute trust in this asset and it must pursue strategies that lead to a rise in the asset price over the long term.  

Another major weak point of Rio Tinto concerns the intervention of the Italian government in its activities which has resulted in a certain lack of efficacy in its operations. This lack of efficiency is currently a major cause of anxiety for this company as well as its shareholders and investors.

Even though the disadvantages of this company may be only two it is still important to consider them before trading in this asset if you wish to minimise your risks. These two weak points could exert a significant influence on the share price of this asset on the stock market. 

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Qui sont les principaux actionnaires privés de Rio Tinto ?

Le groupe Rio Tinto voit son capital réparti entre différents grands actionnaires individuels dont Aluminium Corporation of China avec 14.5%, BlackRock Investment Management avec 6.24%, The Vanguard Group avec 2.46%, Capital Research & Management Global Investors avec 2.45%, Capital Research & Management World Investors avec 2.36%, BlackRock Fund Advisors avec 2.18%, Legal & General Investment Management avec 2.06%, Norges Bank Investment Management avec 1.99%, M&G Investment Management avec 1.03% et Aberdeen Asse Investments avec 1.03%

Quelle est la structure de l’entreprise Rio Tinto ?

Le groupe Rio Tinto est une dual listed company ou société à double cotation puisqu’elle est contrôlée par deux entités distinctes soit Rio Tinto Plc qui est inscrite à la Bourse de Londres et fait partie de l’indice FTSE 100 et Rio Tinto Ltd cotée en Australie et intégrant l’indice boursier S&P/ASX 200. Les activités du groupe sont réparties en 5 branches.

Comment connaitre les futures variations de l’action Rio Tinto ?

Pour savoir comment va évoluer le cours de l’action Rio Tinto, il est nécessaire de réaliser plusieurs analyses dont une analyse technique qui se basera sur les graphiques boursiers de cette valeur et une analyse fondamentale qui se basera cette fois sur les actualités du groupe et de son secteur susceptible d’avoir une influence sur ce titre et sin évolution.

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