Join our daily newsletter At The Bell to receive exclusive market insights
An onslaught of four back-to-back cyclones has played havoc with Rio Tinto’s (ASX:RIO) iron ore operations in Western Australia’s Pilbara region, savaging shipments by 13 million tonnes and leaving a $150 million clean-up.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The company chalked up shipping of 70.7 million tonnes of iron ore between January and March, a 17% decrease from the prior quarter and 9% lower than the same period last year.
“Production was affected by extreme weather events, with heavy rainfall and flooding in January and February decimating key infrastructure, including a railcar dumper critical for loading ore onto ships,” CEO Jakob Stausholm said.
The knock-on effect now means full-year production will be a little lower than expected – around the bottom end of Rio’s 323 to 338 million tonne target.
While recovery efforts are underway to make up about half of the lost output, Rio estimates it will cost around $150 million to get operations back up.
More market news
Kowtow: “Biggest day in financial history” on Trump’s tariffs retreat
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
The company also flagged future iron ore guidance may be impacted by delays in approvals for new mining areas and heritage clearances.
At the time of writing, RIO has been $109.80 a share.
Join the discussion: See what HotCopper users are saying about Rio Tinto and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
-1200x645-380x200.jpg)
-1200x645-380x200.jpg)