Deutsche Bank has today released a note following the first day of Rio Tinto's four day tour of its Pilbara operations. Analysts believe that Rio's ramp-up of shipments to 290Mtpa will occur by May 2014, with 2015 and 2016 sales at 323Mt and 366Mt respectively. Capex numbers on its Stage 2 expansion and mine capex are also projected to be lower with savings of $US5.9 billion in infrastructure and $US4 billion for mine capex. Rio Tinto is also evaluating options for 25Mtpa on brownfield and 60Mtpa on greenfield expansion opportunities. On the Pilbara ramp-up and potential capex and opex savings, Deutsche Bank suggests a buy on valuation for the company. (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise