Rio Tinto names Thompson as next chairman; cuts capex outlook

Rio Tinto names Thompson as next chairman; cuts capex outlook

Rio ended months of speculation by naming Simon Thompson to succeed chairman Jan du Plessis, who will step down after nearly nine years at the helm of the Anglo-Australian mining house. Deutsche Bank upped their price objective on Rio Tinto from GBX 4,300 ($57.59) to GBX 4,500 ($60.27) and gave the company a buy rating in a report on Friday, October 13th.

These projects will build on recent investments in high-quality growth projects - Silvergrass (iron ore in Western Australia), Amrun (bauxite in Queensland) and Oyu Tolgoi (copper and gold in Mongolia) - that will deliver internal rates of return of more than 20%. Backed by the exit from unwanted assets, it has slashed debt and has been buying back shares to return cash to shareholders. The Company operates an iron ore business, supplying the global seaborne iron ore trade. The miner said it was cooperating with authorities in the Guinea investigation and has handed over emails and information to investigators. Advisors Asset Management Inc. lifted its stake in shares of Rio Tinto by 5.6% in the third quarter.

Mr. du Plessis said in March he was stepping down to join British telecommunications firm BT Group PLC, where he became chairman last month. "Our value over volme strategy is working", Chief Executive Jean-Sebastien Jacques told investors at a briefing on Monday.

Macquarie reissued their outperform rating on shares of Rio Tinto (LON:RIO) in a research report released on Friday morning. Thompson, a Briton, has held several high-ranking industry positions during his career, including the above-mentioned Anglo American executive director position, non-executive director and chairman of Tullow Oil, and non-executive director of Newmont (2008-2014), AMEC Foster Wheeler (2009-2014) and Sandvik (2008-2015). Rio Tinto earned a news impact score of 0.13 on Accern's scale.

The company has a number of expansion opportunities being considered to expand the company, including an iron-ore project in Australia's remote Pilbara, aluminum operations in Canada, copper in the US and its Jadar lithium project in Serbia, he said.

While Rio Tinto remains optimistic about China in the medium to long term, there could be a slowdown over the next six months, with a weakening in construction, infrastructure and automotive demand growth during that period.

The company also said that it will deliver additional free cash flow of $1.5 billion a year from 2021, following on from its drive to boost free cash flow by $5 billion over 2017 to 2021. Net profit in the first half of this year jumped to $3.31 billion from $1.71 billion the year before.

Rio also lowers its 2017 capex forecast to less than $4.5B vs. earlier guidance of $5B before rising to $5.5B in 2018 and $6B in each of the following two years.

Related Articles

  • Protests break out as United States , S.Korea begin major air drill

    Protests break out as United States , S.Korea begin major air drill

    President Donald Trump has threatened to "totally destroy" the North if forced to defend the United States or its allies. North Korea's state media said the drill pushes the Korean Peninsula "to the brink of nuclear war".

    Highly Traded Stock: Delta Air Lines, Inc. (DAL)

    It is negative, as 31 investors sold FNF shares while 110 reduced holdings. 90 funds opened positions while 249 raised stakes. The stock has "Buy" rating by Stifel Nicolaus on Wednesday, July 5. (NYSE:FNF) on Thursday, October 19 with "Buy" rating .
    Donald Trump backs US Senate hopeful embroiled in historical allegations

    Donald Trump backs US Senate hopeful embroiled in historical allegations

    Connor Sheets, a reporter for The Birmingham News, tweeted a video of the encounter. Whatever this is, just get it over'.
  • Micromax Canvas Infinity Pro with 5.7-inch screen & dual front cameras

    Micromax Canvas Infinity Pro with 5.7-inch screen & dual front cameras

    Nearly a month ago, we have seen the leaked image of the retail box of the Canvas Infinity Pro revealing few key specifications . The connectivity features of the phone are 4G VoLTE, Wi-Fi 802.11 b/g/n, Bluetooth 4.2, Global Positioning System and USB OTG.
    Four Years Later, DayZ PC Finally Ready to Leave Early Access

    Four Years Later, DayZ PC Finally Ready to Leave Early Access

    Harton also noted one gameplay feature previously included in the developer's roadmap that won't make the cut: animal companions. In addition to a full release, DayZ is headed to console in 2018, Bohemia said.
    NatWest Brentford to Close Permanently

    NatWest Brentford to Close Permanently

    These closures include 62 Royal Bank of Scotland and 197 NatWest branches, both banks being subsidiaries of RBS group. In England and Wales the number of NatWest branches will fall to 655.
  • Former President Barack Obama issues some advice:

    Former President Barack Obama issues some advice: "Think before you tweet"

    Talking about terrorism, he said, "After 26/11 Mumbai attacks, we were as obsessed as India with dismantling the terror network. He had earlier visited in 2010 when Manmohan Singh was the prime minister and in January 2015.
    Un terremoto sacudió Ecuador

    Un terremoto sacudió Ecuador

    No hay pérdidas humanas pero sí se reportaron ingresos a varios hospitales de personas con presión alta. El movimiento de ayer se registró en la misma zona que sufrió en aquel entonces los mayores daños.
    American Airlines Is Banning Smart Luggage Unless It's Got This Feature

    American Airlines Is Banning Smart Luggage Unless It's Got This Feature

    Away's chargers can be removed - but only if a traveler remembers to bring the TSA-approved screwdriver that comes with the bag. This has led the agency to become more restrictive over passengers that attempt to check bags with lithium batteries.
  • Disability Rights Charity Calls For Urgent Action On A National Disability Strategy

    Disability Rights Charity Calls For Urgent Action On A National Disability Strategy

    We cannot ignore the fact that the persons with disabilities which constitute a significant part of the Indian population, are living a very hard and challenging life.
    James Franco To Direct, Star In Shel Silverstein Biopic

    James Franco To Direct, Star In Shel Silverstein Biopic

    James Franco will also star as the Marvel character Jamie Madrox/Multiple Man in a standalone X-Men film in Fox's X-Men universe. The film now does not have a release date, but we will keep everyone updated on new reveals for the film.
    Snow Forecast This Week

    Snow Forecast This Week

    The likelihood of snow will increase in the evening and night as temperatures fall between -2 and +1 degrees. Daytime temperatures will range between 8-11 degrees from today until Wednesday.