Rio Tinto Disappoints On Q3 Production, Sets Positive Tone About Organic Growth

The leading global miner Rio Tinto (NYSE:RIO) has missed analysts' estimates, scoring weaker-than-expected third-quarter production across the board. Despite this short-term weakness, the company's $6.7b acquisition of Arcadium Lithium is unlikely to meet criticism, given the long-term potential and cyclicality of that market.

Rio Tinto increased Pilbara's production by 1%, reaching 84.1 million tons of iron ore, as productivity gains helped offset ore depletion. However, Goldman Sachs' analysts expected 86.2.

The firm has maintained its full-year shipping guidance between 323 and 338 million tons, but cash cost units could rise with forecasts in the upper range of $21.75 to $23.50 per ton, citing inflationary pressures.

"We continue to strengthen our operations, with the roll-out of the Safe Production System delivering consistent production at our Pilbara iron ore business,"