This report is an updated version of the report published on 04 July 2022 at 8:14 AM GMT+1

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Rio Tinto PLC (LON: RIO) is an FTSE 100 index listed metal and mining company that produces iron ore, aluminium, copper, diamonds, gold, and other minerals. The Company has its footprints in over 36 countries around the globe. RIO has an integrated network of 16 iron ore mines in the Pilbara, Western Australia.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~40.82% of the total shareholdings. Aluminum Corporation of China Ltd holds the maximum number of shares with ~14.54% shareholding, followed by BlackRock Investment Management (UK) Ltd with ~10.17%, as depicted in the chart below: 

1.4 Key Metrics:

The Company’s operating income grew at a CAGR of ~35.7% between FY16 and FY21. Moreover, the current ratio has increased from 1.80x in FY20 to 1.93x during FY21.

Section 2:  Business Updates and Financial Highlights

2.1 Recent Developments

2.2 Financial Highlights (for the year ended 31 December 2021, as on 23 February 2022)

Section 3:  Key Risks and Outlook

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Approach (FY22E) (Illustrative)

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.

Note 3: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 4:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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