Rio Tinto Group (RIO.L) analysis
Rio Tinto Group
Sector:Materials · Mining
Country:United Kingdom
Profile and moat
Rio Tinto sells iron ore, and aluminum and copper apart. They are not the same book. BHP and Vale sell parts of the same trade. It is not among the largest by decree. Pilbara is a place, not a low cost already measured. This report does not describe how the ore is taken out.
China can slow iron. A year of high prices is not normal earnings. An idle mine is a cost. Aluminum does not move with copper.
Cash is the metal sold, minus that cost. The dividend has to fit. It is not a deposit that sets the price alone.
Sustainable Competitive Advantage
"The advantage is the buyer who already takes that metal and the mine already running. They can buy from someone else. The moat narrows if China cuts iron, or if the price falls and copper does not make it up."
Loading the Vaultflake…
Radar axes
—
- Health
- —
- Moat
- —
- Growth
- —
- Value
- —
- Return
- —
Health is the debt of several metals, not of an extraction cost already measured. Quality separates the iron margin from aluminum and from copper. Growth follows tonnes sold, not a year of high prices. P/E is read against that year, not against that peak. Shareholder return is the dividend, checked against cash. Do not read it as the producer that cannot be replaced.
The P/E of a year of high prices is not the earnings if China slows. EV/EBITDA is read with the idle mine inside. Do not use a single-metal miner's multiple as if iron, aluminum and copper were the same book. A dash if the RIO.L cache is cold.
Limits of this report
Not advice on Rio Tinto. Vaultflake does not treat the cost as the lowest and does not describe how the ore is taken out. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.
Questions from this report
What moat does Rio Tinto Group have?
The advantage is the buyer who already takes that metal and the mine already running. They can buy from someone else. The moat narrows if China cuts iron, or if the price falls and copper does not make it up.
How do you read the Rio Tinto Group radar?
Health is the debt of several metals, not of an extraction cost already measured. Quality separates the iron margin from aluminum and from copper. Growth follows tonnes sold, not a year of high prices. P/E is read against that year, not against that peak. Shareholder return is the dividend, checked against cash. Do not read it as the producer that cannot be replaced.
Which multiples matter for Rio Tinto Group?
The P/E of a year of high prices is not the earnings if China slows. EV/EBITDA is read with the idle mine inside. Do not use a single-metal miner's multiple as if iron, aluminum and copper were the same book. A dash if the RIO.L cache is cold.
What does this Rio Tinto Group analysis leave out?
Not advice on Rio Tinto. Vaultflake does not treat the cost as the lowest and does not describe how the ore is taken out. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.
Related reports in Materials · Mining
A free account opens the interactive chart. The Vault assistant is Premium.