DJ There Is Value to Be Had in Aussie Iron-Ore Stocks -- Market Talk 2346 GMT - It's time to revisit the valuations of Australian iron-ore stocks following a sharp correction in shares and shifts in Chinese monetary policy, according to Citi. While it will be tough to get a good sense of whether China's economy is turning a corner until Lunar New Year has passed, Citi reckons the chance of a strong post-Lunar New Year recovery in iron-ore demand is rising. "And with the recent share-price corrections, we see value across the Australian iron-ore sector," Citi says. BHP and Fortescue are up 0.3% and 0.7%, respectively. Rio Tinto is down 0.5%.
J
Arizona press reports today that BBB spending package voted by US House does not include special addendum which would explicitly block development of Resolution copper project. It was reported in September that openly anti-mining folks included it in initial text; however, it was thrown out before the voting. This is positive news for Rio leaving the door to copper mine open. It is unlikely that it can move forward under present administration. However,the door is open and next Rep administration can use it.
P
0 risk trade - Long US ADR RIO / Short ASX RIO... Huge disparity, over 10%
c
I added to my position Friday. Might drop more, might not. Iron ore rebounding. Turquoise Hills mess might get some clarity in the next week. Even with the recently depressed ore market it looks as if they should be able to payout dividends of at least $4.5USD without borrowing. Its going to be an interesting next few weeks.
J
FYI. Jadar lithium-borate project will be an underground mine, meaning limited environmental impact and, for sure, any mining project launched in Europe meets very stringent environmental controls. This is common knowledge, lithium is a very critical material and the mine would be big, about 10% world output. It could have very strong positive economic impact on Serbia, which is a small country. Serbian government is supportive to this development, esp. if, besides mining, Rio will make commitments to more lithium processing in the country, making EV batteries. The company recent investment in a lithium battery enterprise confirms this direction. Certainly, every mining project meets opposition from anti-business forces. Actual reasons for this are usually political. The same happens in Serbia, political opposition tries to exploit the issue. Serbia goes to elections next spring. Government also promised to put the project on referendum, which could coincide with the elections. As of now, polls point to the government having around 60% support. Also, tales about Rio inflicting big damage on environment in past projects are just this… tales promoted by anti-mining zealots. It is indicative, btw, that these “protectors of nature” do not complain about mining performed by Chinese or Russians, which produces more damage to environment. They whine about western miners only.
J
Iron ore price regained $100 in Singapore.
J
The company investment in lithium battery enterprise, announced today, is a necessary step to get Jadar project approved. Serbian government said clearly enough that combining lithium mining with local battery production will substantially increase government support. The approval decision is scheduled, tentatively, for 2022.
P
RIO ASX is really outperforming RIO ADL...
s
Why is RIO down here at 52-week low? Strong balance sheet, more cash than debt, consistently profitable (even when iron ore was half the current price), huge free cash flow, $10B+ in profits, big dividend, diverse (not just iron ore) worldwide material portfolio. Post-covid growth coming. Yet, the stock price has declined >30% in 3 months, while US markets at all-time high. Is RIO the best bargain in an otherwise inflated market? What stocks are better value than this?
J
Bought 1/3 position today. Iron ore prices will recover due to hyperinflation.
C
Any insight on the next dividend payment amount and date?
J
Itafos, a fertilizer company, reports that Rio’s Kennecott copper smelter resumed deliveries of sulfuric acid. It means that shutdown of Kennecott facility, started with equipment failure in September, is over now and the smelter likely produces copper again. Alas, Rio folks did not find room/time to make own press release in this regard. They seem to like making releases about decarbonization.
F
Anyone buying here?
J
According to mining media today, the company CEO met with Mongolian Prime Minister this week to discuss solutions of Oyu Tolgoi disputes.
O
Buy anything below 61. Dividend in a couple months price will be at least $65 before exdividen date, as things go. Get in while it’s low
e
Has AUKUS PACT had something to do with the recent RIO share price drop?
J
(RIO) said Tuesday it has made an investment in Inobat Auto, a European-based technology and manufacturing company.
The investment follows a memorandum of understanding the companies signed in May to work together to establish a "cradle-to-cradle" electric vehicle battery value chain in Serbia. The financial terms of the investment were not disclosed.
Rio Tinto has a $2.4 billion Jadar lithium-borates project in Serbia that can produce about 58,000 tons of battery-grade lithium carbonate, according to a statement.
Don't need Iron ore prices to sky rocket
T
Bearish sediment is in full effect. When everyone hates something. Historically the bottom is in or near! The risk reward is starting to favor reward. 4-8% downside risk until major 10 year support and when you calculate in a worst case scenario 70% dividend reduction you still have a healthy yield that pays you to wait! As a contrarian investor RIO, VALE and BHP are all getting very interesting
R
When is this going to turn around? I have way more shares than I wanted by having to average down.
D
The infrastructure bill passed. This stock should be doubling.
2346 GMT - It's time to revisit the valuations of Australian iron-ore
stocks following a sharp correction in shares and shifts in Chinese monetary
policy, according to Citi. While it will be tough to get a good sense of
whether China's economy is turning a corner until Lunar New Year has passed,
Citi reckons the chance of a strong post-Lunar New Year recovery in iron-ore
demand is rising. "And with the recent share-price corrections, we see value
across the Australian iron-ore sector," Citi says. BHP and Fortescue are up
0.3% and 0.7%, respectively. Rio Tinto is down 0.5%.
This is positive news for Rio leaving the door to copper mine open. It is unlikely that it can move forward under present administration. However,the door is open and next Rep administration can use it.
Even with the recently depressed ore market it looks as if they should be able to payout dividends of at least $4.5USD without borrowing. Its going to be an interesting next few weeks.
Certainly, every mining project meets opposition from anti-business forces. Actual reasons for this are usually political. The same happens in Serbia, political opposition tries to exploit the issue. Serbia goes to elections next spring. Government also promised to put the project on referendum, which could coincide with the elections. As of now, polls point to the government having around 60% support.
Also, tales about Rio inflicting big damage on environment in past projects are just this… tales promoted by anti-mining zealots. It is indicative, btw, that these “protectors of nature” do not complain about mining performed by Chinese or Russians, which produces more damage to environment. They whine about western miners only.
The investment follows a memorandum of understanding the companies signed in May to work together to establish a "cradle-to-cradle" electric vehicle battery value chain in Serbia. The financial terms of the investment were not disclosed.
Rio Tinto has a $2.4 billion Jadar lithium-borates project in Serbia that can produce about 58,000 tons of battery-grade lithium carbonate, according to a statement.
Don't need Iron ore prices to sky rocket