{"id":51131,"date":"2014-05-19T02:48:52","date_gmt":"2014-05-19T06:48:52","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=51131"},"modified":"2014-05-19T06:04:21","modified_gmt":"2014-05-19T10:04:21","slug":"why-the-rio-tinto-share-price-fell-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/19\/why-the-rio-tinto-share-price-fell-today\/","title":{"rendered":"Why the Rio Tinto Share Price Fell Today"},"content":{"rendered":"<p>By <a href=\"http:\/\/ift.tt\/10cDh0v\" target=\"_blank\"><u>MoneyMorning.com.au<\/u><\/a><\/p>\n<h2>What Happened to the Rio Tinto Share Price?<\/h2>\n<p>\nShares of <b>Rio Tinto [ASX:RIO]<\/b> dropped by 2.99% on Monday, closing at $60.10. This is the lowest price it\u2019s been since 3<sup>rd <\/sup>September 2013.\n<\/p>\n<h2>Why did this Happen to the Rio Tinto Share Price?<\/h2>\n<p>\nRio Tinto Ltd is the world\u2019s third largest miner. It\u2019s known for its high quality and large scale iron ore operations, located in the Pilbara region of Western Australia.<\/p>\n<p>In terms of scale and size, Rio produces around 23% of the world\u2019s total iron ore traded by sea (seaborne market).<\/p>\n<p>RIO enjoys a high profit margin, boasting an average cost of roughly AU$46 per tonne. This is the lowest cost for any miner in the world.<\/p>\n<p>Nonetheless, Rio is still seen as a play on the iron ore price. The iron ore price has fallen over 26% for the year, and now sits at US$102.80 per tonne.<br \/>\nAs such, Rio has seen its share price weaken from above $71 in February to just over $60 today.\n<\/p>\n<h2>What now for Rio Tinto?<\/h2>\n<p><Br><br \/>\nRIO has recently reached its long-term ore production goal of 290 million tonnes per year. It\u2019s now focussed on its 360 expansion plan, aiming to mine 360 million tonnes of iron ore per year.<\/p>\n<p>Furthermore, the company has been committed to paying down debt and further strengthen its balance sheet. Since 2013, net debt has been reduced by US$4 billion to roughly $US18 million today.<\/p>\n<p>The company is also on track to slash its capital expenditure to US$8 billion by 2015; this would be nearly halve its 2012 level.<\/p>\n<p>Fundamentally, Rio Tinto is fast becoming an extremely shareholder friendly company.<\/p>\n<p>Nonetheless, if iron ore continues to fall, the share price could see itself slipping into the high $50\u2019s shortly.<\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/ift.tt\/1qOnB6x\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/Nk9u5P\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/ift.tt\/1qOnBUa\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/1qOnBUc\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/ift.tt\/1sJFijo\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/1qOnBUe\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/ift.tt\/1sJFijq\" height=\"1\" width=\"1\" \/><br \/>\nBy <a href=\"http:\/\/ift.tt\/10cDh0v\" target=\"_blank\"><u>MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By MoneyMorning.com.au What Happened to the Rio Tinto Share Price? Shares of Rio Tinto [ASX:RIO] dropped by 2.99% on Monday, closing at $60.10. This is the lowest price it\u2019s been since 3rd September 2013. Why did this Happen to the Rio Tinto Share Price? Rio Tinto Ltd is the world\u2019s third largest miner. It\u2019s known &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/19\/why-the-rio-tinto-share-price-fell-today\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Why the Rio Tinto Share Price Fell Today&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-51131","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/51131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=51131"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/51131\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=51131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=51131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=51131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}