Rio Tinto copper production jumps, iron ore disappoints

There was a 32% increase in mined copper production of 159,700 tonnes during the three months to 30 September compared with the third quarter last year, which brings year-to-date output to 455,800 tonnes, up roughly 38%.

Copper mining benefitted from the mining higher grade areas but production profile is expected to face "increased variation in grade" in coming months, though grade increases are seen beginning to come through in late 2020 to offset this impact over the longer term.

Overall 2018 copper output was guided to being at the "upper end" of the previously published range of 510-610,000 tonnes, with refined copper production expected to be 225-265,000 tonnes.

Iron ore production was down 5% quarter-on-quarter but year-to-date output of 251.2mt approximately 4% higher than in 2017.

Chief executive Jean-Sébastien Jacques said it was a "consistent" operational performance, with strong production from the copper assets, strategic progress with the full exit from coal, the announcement of $3.2bn of further share buy-backs and the agreement to exit Grasberg for $3.5bn.

"We continue to pursue all opportunities to improve productivity and drive enhanced cash flow generation. This, combined with the disciplined allocation of capital, will ensure we continue to deliver superior returns to our shareholders in the short, medium and long-term."

Rio shares dropped a few pennies to 3,734p on Tuesday.

Analyst at RBC Capital Markets said in general seemed a "fairly muted" quarter as the key iron ore division was 4% below its production forecast owing to safety stoppages and planned maintenance.

"The lower quality Robe River production was the main offset. AutoHaul continues to tie in with 45% of train trips automated and the end of the quarter. Importantly, production guidance has been maintained at the top end of the range which implies a strong, but not impossible, 89.3mt Q4 is required to meet the 340mt target."