Rio Tinto inks deal for low-carbon iron in Canada

  • Rio Tinto (NYSE:RIO), Paul Wurth S.A. and SHS-Stahl-Holding-Saar (SHS) have signed a Memorandum of Understanding to explore the production of a low-carbon steel feedstock.
  • The partnership will explore the viability of transforming iron ore pellets into low-carbon hot briquetted iron (HBI), a low-carbon steel feedstock, using green hydrogen generated from hydro-electricity in Canada.
  • The parties will conduct a feasibility study into the potential development of industrial scale low-carbon iron production in Canada, utilizing the combined expertise of the three partners across the entire steel value chain. The feasibility study is scheduled for completion in late 2021.
  • "This partnership can further help us to reduce our carbon emissions on the basis of this technology, while gaining important experience in using hydrogen in steel production,” said Martin Baues, Board Member for Technology at SHS.

    Rio Tinto fundamentals

    Investors in Rio Tinto can expect a huge dividend payment. Based on the recent analysts' consensus the stock now has one of the highest dividend returns of the English market. For this year the analysts expect a dividend of 663 GBp per share. Thus the dividend yield equals 10.63 percent. The average dividend yield of the mining companies is a low 0.58 percent.

    Historical dividend returns Rio Tinto

    Over the current book year the total revenue from the company in London will be 51.98 billion GBp (consensus estimates). This is hugely more than 2019's revenue of 44.61 billion GBp.

    Historical revenues and results Rio Tinto plus estimates 2020

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    The analysts expect for 2020 a net profit of 15.74 billion GBp. For this year the majority of the analysts, consulted by press agency Thomson Reuters, expects a profit per share of 973 GBp. With this the price/earnings-ratio is 6.41.

    Recent target prices around 6097 GBp

    The latest 3 recommendations for the mining company were provided by JP Morgan, KBC Securities and Berenberg.

    Rio Tinto 's market value equals around 7793.28 billion . The Rio Tinto stock was the past 12 months quite volatile. Since last February the stock is even 59 percent higher. This year the stock price moved between 2954 and 6553 GBp.

    Historical stock prices Rio Tinto past 10 years

    stock riotinto

    Click here for dividend Rio Tinto. At 13.35 the stock trades 0.82 percent higher at 6235 GBp.

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