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MELBOURNE - Mining giant Rio Tinto ($113.46B market cap) reported back-to-back quarterly production records in its bauxite business and at the Oyu Tolgoi copper mine in Mongolia during the third quarter of 2025, according to a company press release. According to InvestingPro analysis, Rio Tinto is currently trading near its 52-week high, with a healthy P/E ratio of 10.79.
The miner’s copper equivalent production increased 9% year-over-year in Q3, with copper production on track to achieve the higher end of its full-year guidance range of 780 to 850 kilotonnes, driven by the ongoing ramp-up at Oyu Tolgoi. The underground expansion at Oyu Tolgoi remains on schedule to boost copper output by more than 50% this year. With an EBITDA of $18.21B and strong financial health score rated as GOOD by InvestingPro, Rio Tinto demonstrates robust operational performance.
Rio Tinto’s Pilbara iron ore operations achieved their second highest Q3 shipments since 2019, up 6% from the previous quarter at 84.3 million tonnes. The company expects iron ore shipments to finish at the lower end of its 323 to 338 million tonne guidance range for 2025. The company maintains a solid dividend yield of 4.51% and generates annual revenue of $53.73B, making it a prominent player in the global mining sector.
Based on strong performance, particularly at the Amrun site, Rio Tinto upgraded its full-year bauxite production guidance to 59-61 million tonnes from the previous 57-59 million tonnes. Bauxite production for Q3 reached 16.4 million tonnes, up 9% year-over-year.
The company also reported that its Simandou iron ore project in Guinea reached a milestone in October with the first ore being loaded for transport via rail to port.
Rio Tinto Chief Executive Simon Trott noted the company has implemented a new operating model comprising three business units: Iron Ore; Aluminium & Lithium; and Copper. The company has placed its Borates and Iron & Titanium businesses under strategic review.
The announcement also acknowledged a fatal incident at the SimFer mine site, expressing commitment to improving safety across operations.
In other recent news, Rio Tinto has announced several significant developments. The company, alongside its joint venture partners Mitsui and Nippon Steel, will invest $733 million in the West Angelas Sustaining Project in Western Australia’s Pilbara region, with Rio Tinto contributing $389 million. This investment aims to maintain an annual production capacity of 35 million tonnes of iron ore by developing new deposits. Additionally, Rio Tinto has approved a $180 million investment in the Norman Creek access project at its Amrun bauxite mine in Queensland, which includes the construction of key infrastructure.
In terms of analyst activity, JPMorgan has raised its price target for Rio Tinto to GBP61.70, maintaining an Overweight rating, while Morgan Stanley increased its price target to AUD121.00, keeping an Equalweight rating but slightly reducing its fiscal year 2025 earnings per share estimate. Conversely, Deutsche Bank downgraded Rio Tinto from Buy to Hold, adjusting its price target to GBP51.00 due to concerns over iron ore. These recent developments reflect a mix of strategic investments and varied analyst outlooks for Rio Tinto.
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