Rio Tinto PLC

Palantir
$PLTR (+4,73 %) and RioTinto
$RIO (-0,31 %) announced on Friday the extension of their partnership announced.

"Through our ongoing collaboration with RioTinto, we will continue to advance Pilbara operations in Western Australia.

There, Rio Tinto Rail operators, through Ontology Foundry and AIP, are using innovative technologies to coordinate and optimize train routes and maintenance needs for dozens of unmanned trains operating around the clock on the network."

⛏️ Titans of the deep: Rio, Glencore, BHP, Vale - who will dig up the biggest profits? 💎

Company presentation

Rio Tinto, BHP and Vale are among the three largest iron ore producers in the world, while Glencore plays a key role in global commodity trading as a leading commodity trader and producer.

- Rio Tinto: An Anglo-Australian mining group with dual headquarters in London and Melbourne.

- BHP: Australia's largest industrial group, headquartered in Melbourne.

- Glencore: A Swiss commodities trading and mining company headquartered in Baar.

- Vale: A Brazilian mining group specializing in iron ore.

Historical development

Rio Tinto was founded in 1873 and developed into a global mining giant through the development of deposits in Africa, Australia and Canada. The current structure as a dual company was created in 1995.

BHP goes back to Charles Rasp's silver discovery in Broken Hill in 1883. With the diversification into iron ore, coal and oil and the merger with Billiton in 2001, BHP created one of the world's largest commodity groups.

Glencore, founded in 1974 as Marc Rich + Co AG, grew to become one of the most important commodity traders in the world and went public in 2011.

Vale was founded in 1942 as a state-owned company and privatized in 1997. The company's focus has always been on iron ore production in Brazil.

Business model and core competencies

Rio Tinto focuses on the extraction of iron ore, copper, aluminum and other metals. Efficient production and the operation of large-scale mines are among the company's core competencies.

BHP is active in the iron ore, copper, coal and oil sectors and has a diversified product range and an extensive global presence.

Glencore combines commodity production and trading and controls the entire value chain, from extraction to distribution. This vertical integration is one of the company's greatest strengths.

Vale specializes in iron ore exports, complemented by activities in nickel and copper.

Future prospects and strategic initiatives

- Rio Tinto is increasingly investing in copper, lithium and aluminum, which play a key role in electromobility and renewable energies.

- BHP is focusing on "future-proof" raw materials such as copper and nickel, which are needed for batteries and green technologies.

- Glencore is positioning itself as an important supplier to the battery industry and is investing in cobalt and nickel.

- Vale is increasing its involvement in the nickel business in order to benefit from the growing demand in the electric automotive sector.

Market position and competition

- Rio Tinto, BHP and Vale together control around 70% of the world's seaborne iron ore trade.

- Glencore is a leader in global commodity trading and is one of the largest producers of copper and cobalt.

Competition in this industry is focused on cost efficiency, the development of new resources and positioning in the growing market for metals that are essential for the energy transition.

Total Addressable Market (TAM)

The total addressable market (TAM) of the global mining industry is estimated at over USD 1.5 trillion. This figure is expected to rise further in the coming years, particularly due to the increasing demand for critical raw materials such as battery metals, which are essential for the expansion of green technologies.

Share performance

Mining company share prices are strongly linked to commodity prices, leading to high volatility. Glencore's TR over 5 years is 120%, Rio Tinto's TR is 92%, BHP's TR is 101% and Vale's TR is 116%.

For the development (company figures), a better view and more, check out the free blog: https://topicswithhead.beehiiv.com/p/titanen-der-tiefe-rio-glencore-bhp-vale-wer-gr-bt-den-gr-ten-gewinn-aus

Conclusion

Vale, BHP and Rio Tinto are not significantly different. Although BHP has clearly outperformed in some cycles, it has always subsequently adjusted to the average. Vale could be unfavorable from a regulatory perspective, but the industry is facing challenges anyway, and it's not as if the others are any better, as the mines are not exactly in the cleanest regions.

Looking at the individual stock data, BHP does seem like the best candidate, but I would never bet on just one when it comes to mining companies. Therefore, I would consider a combination of BHP and Rio Tinto, and if you want, you can also include Vale.

Glencore is large and well positioned, but the figures are not really convincing. Even after countless announcements about certain strategies, I don't like the results. The growth is impressive, but when the results deteriorate like this - especially in terms of sales - it doesn't help much. For me, Glencore is more of a trading candidate, as every year you experience a brief decline, then recover and then fall again.

So if you want to position yourself in mining and thus include the anti-cyclicals in your portfolio, it is best to look at BHP and Rio Tinto. In view of China's most important customer, however, you should also be aware that 50% of sales here also come from one country, which no longer seems so abnormal these days.

For myself, I am going with Vale, Rio Tinto and a possible entry into BHP as far as the situation allows. Entry prices for me are 24 euros for BHP, 10 euros for Vale and 60 euros for Rio Tinto and then down in 10-15% jumps.

$RIO (-0,31 %)
$ABHPG
$BHP (+0,95 %)
$VALE3 (+1,45 %)
$GLEN (+0,09 %)

Rio Tinto $RIO (-0,31 %) acquires Arcadium Lithium $LTM (+0,9 %)
for 6.7 billion US dollars.

Mining giant Rio Tinto has entered into a binding agreement to acquire Arcadium Lithium in an all-cash transaction valued at approximately US$6.7 billion, or US$5.85 per share. This acquisition price represents a significant premium of 90% over Arcadium's closing share price on October 4, 2024 and a premium of 39% over the volume weighted average price since Arcadium's inception on January 4, 2024.

The deal will integrate Arcadium's lithium business into Rio Tinto's portfolio, which includes aluminum, copper, high-grade iron ore and now lithium. This positions the company as a global market leader in materials critical to the energy transition. Arcadium Lithium is recognized for its diversified production and processing capabilities, offering a range of lithium products and a robust portfolio of growth projects.

Rio Tinto CEO Jakob Stausholm stated that the acquisition of Arcadium is consistent with Rio Tinto's long-term strategy and will leverage the company's development capabilities and financial strength to realize the full potential of Arcadium's Tier 1 resource base. Stausholm also emphasized the strategic timing of the transaction, which is consistent with market growth and the addition of high-quality assets to Rio Tinto's existing operations.

This strategic move is expected to double Arcadium's current annual lithium production capacity of 75,000 tons of lithium carbonate equivalent by the end of 2028. The combined Rio Tinto and Arcadium assets will form the world's largest lithium resource base, with Rio Tinto becoming a leading lithium producer on a pro forma basis

Completion of the acquisition is expected in mid-2025, subject to Arcadium shareholder approval, Royal Court of Jersey and customary regulatory approvals.

$RIO (-0,31 %)
Lithium takeover in sight ?

Rio Tinto may be on the verge of a landmark acquisition in the field of electric vehicle technology. The company is reportedly in intensive talks to acquire $LTM (+0,9 %) Arcadium Lithium, a major player in lithium mining. The potential deal, which is estimated to be worth between 4 and 6 billion dollars, could make Rio Tinto one of the world's leading producers of this essential raw material for batteries. Negotiations are said to have continued this week in London during an important industry meeting, although the outcome remains uncertain.

The purchase of Arcadium would give Rio Tinto access to lithium mines, processing facilities and deposits on four continents, as well as access to a customer base that includes Tesla, BMW and General Motors.

Position now well up overall and the dividend is also good.

Do you hold stocks like Rio Tinto continuously and let them grow in the savings plan?

Or do you buy as cyclically as possible?

"Constant dripping wears away the stone"

$MA (+1,5 %) unfortunately ran into the KO.

Learning for me: adjust leverage for stocks that like to open with a downgap.

The strategy was right, but unfortunately it doesn't always work.

Still open:

$AIR (-1 %) +55%

$RIO (-0,31 %) +280%

$BATS (+1,55 %) +20%

$CME (+1,55 %) -5%

#auchmaldieverlustezeigen

Who $RIO (-0,31 %) missed it, here is another trade in the commodities sector:

$BHP (+0,95 %) could get interesting at ~36.09 AUD.

Of course, the value can be pulled up by the strength of Rio and run away with it,

Nevertheless, the alarm is set.

Cheers from Vilnius🇱🇹