{"id":20822,"date":"2020-12-13T13:13:28","date_gmt":"2020-12-13T17:13:28","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=20822"},"modified":"2020-12-13T13:13:30","modified_gmt":"2020-12-13T17:13:30","slug":"shares-of-rio-tinto-group-at-12-year-high","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/shares-of-rio-tinto-group-at-12-year-high\/","title":{"rendered":"Shares of Rio Tinto Group at 12-year high"},"content":{"rendered":"\n

Dear PGM Capital<\/strong> Blog readers,<\/p>\n\n\n\n

In this weekend\u2019s blog edition, we want to discuss with you the facts behind the rise of the shares of Rio Tinto to a fresh 12-year high on Friday, December 11, 2020.<\/p>\n\n\n\n

INTRODUCTION:<\/h3>\n\n\n\n

Rio Tinto Group,\u00a0 an Anglo-Australian\u00a0multinational , is the world\u2019s second largest metals and mining corporation – behind\u00a0BHP –\u00a0producing iron ore, copper, molybdenum, titanium, diamonds, gold and uranium.<\/p>\n\n\n\n

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\u00a0Founded in 1873, the company came into existence when a multinational consortium of investors purchased a mine complex on the\u00a0Rio Tinto, in\u00a0Huelva, Spain, from the Spanish government. Since then, the company has grown through a long series of mergers and acquisitions to place itself among the world leaders in the production of many commodities.<\/p>\n\n\n\n

Rio Tinto has jointed head offices in\u00a0London, UK and\u00a0Melbourne\u00a0Australia.<\/p>\n\n\n\n

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The company is\u00a0dual-listed with trades on both the\u00a0London Stock Exchange, \u2013 under the symbol RIO.L, where it is a component of the\u00a0FTSE 100 Index\u2014\u00a0and the\u00a0Australian Securities Exchange, \u2013 under the symbol RIO.AX, -where it is a component of the\u00a0S&P\/ASX 200\u00a0index. <\/p>\n\n\n\n

Additionally,\u00a0shares of the company are trading on the\u00a0New York Stock Exchange \u2013 under the symbol RIO \u2013 as an American Depository Receipt.<\/p>\n\n\n\n

BROKERS UPGRADE:<\/h3>\n\n\n\n

On Tuesday, September 15, JP Morgan (NYSE: JPM) upgraded the shares of Rio Tinto, to overweight, by stating that, the company’s cash flow is now ring-fenced for dividends; meanwhile, the US investment bank has a bullish view on iron ore. <\/p>\n\n\n\n

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More broadly, JPM has a bullish stance on mining generally and pointed to supportive policies in China.<\/p>\n\n\n\n

PGM CAPITAL ANALYSIS & COMMENTS:<\/h3>\n\n\n\n

As can be seen from the below chart, iron ore prices skyrocketed to above US$150 per metric ton (1000 kg) in the second week of December, a level not seen since February of 2013.<\/p>\n\n\n\n

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Source: https:\/\/tradingeconomics.com\/commodity\/iron-ore<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

The iron ore prices are up 70% this year due to strong demand from China which has initiated a massive infrastructure stimulus to support the post-pandemic recovery.<\/p>\n\n\n\n

Based on the above, shares of the company have surged to a fresh 12-year high of AUD 116.00 per share, as can be seen from the below chart.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Falling interest rates combined with expansion of the balance sheets of the FED and other Central Banks will dilute the purchasing power of world\u2019s major currencies, putting upwards pressure on commodity prices, which will act as tail wind of the shares of Rio Tinto and other mining companies.<\/p>\n\n\n\n

Based on the above, we maintain our BUY rating on the share of the company.<\/p>\n\n\n\n

Disclosure:<\/h4>\n\n\n\n

We own shares of Rio Tinto in our personal portfolio.<\/p>\n\n\n\n

In the rapidly changing world and subsequent turbulence, PGM Capital is at your service as your Professional, Trustworthy and Dedicated, Financial Advisor and Asset Management.<\/p>\n\n\n\n

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Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past Performance Is Not Indicative Of Future Results.<\/p>\n\n\n\n

Yours sincerely,<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"

Dear PGM Capital Blog readers, In this weekend\u2019s blog edition, we want to discuss with you the facts behind the rise of the shares of Rio Tinto to a fresh 12-year high on Friday, December 11, 2020. INTRODUCTION: Rio Tinto Group,\u00a0 an Anglo-Australian\u00a0multinational , is the world\u2019s second largest metals and mining corporation – behind\u00a0BHP –\u00a0producing iron[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":20831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-20822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=20822"}],"version-history":[{"count":41,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20822\/revisions"}],"predecessor-version":[{"id":20870,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20822\/revisions\/20870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/20831"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=20822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=20822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=20822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}