(AOF) – Rio Tinto (-1.06% to 4,967 pence) is among the biggest decliners in the FTSE 100. The Anglo-Australian mining group is under pressure from the global multi-strategy investment company Palliser Capital. The latter sent a letter to Rio Tinto's board asking it to abandon its “obsolete” dual-listing structure in London and Sydney and unify its corporate structure in Australia. Palliser Capital explains that “this structure has resulted in approximately US$50 billion in value destruction for shareholders since its inception.”
This has notably “limited the company's ability to carry out mergers and acquisitions by shares and inefficiently using its Australian franking credits”, specifies Palliser Capital.
“A decade of profitable growth”
In addition to this letter that the mining group received, Rio Tinto organized an investors seminar in London this Wednesday. He provided an update on his investment strategy to develop “a stronger, more diversified and growing portfolio, to ensure the long-term achievement of attractive returns for shareholders”.
Regarding its investment strategy, Jakob Stausholm, CEO of Rio Tinto, says his group is committed to a decade of profitable growth. It anticipates this growth thanks to “the ramp-up of the Oyu Tolgoi underground copper mine, the completion of the Simandou high-grade iron ore project in Guinea and the development of its activities in the lithium field thanks to the proposed acquisition of Arcadium”,
Rio Tinto plans to use its strong balance sheet to unlock and accelerate Arcadium's high-profile projects, in time to meet future demand growth.
Regarding aluminum, the group has stabilized its assets and has a clear path to achieve better returns through growth and decarbonization.
It is also engaged in carbon emissions reduction projects representing more than 3 million tonnes of annual emissions, accelerating its progress towards its goals while investing to achieve the necessary breakthroughs in net zero.
In 2025, its copper production is expected to be between 780,000 and 850,000 tonnes, compared to the range of 660,000 to 720,000 tonnes forecast by Rio Tinto for 2024.
As for aluminum production, it should be between 57 and 59 million tonnes in 2025. For 2024, it should be between 53 and 56 million tonnes.
Rio Tinto forecasts capital expenditure of around US$11 billion for next year, an increase from the US$9.5 billion forecast for 2024.
