Investing in the commodities market can also be undertaken through the stock markets. You can for example buy Rio Tinto shares online and this we will examine here in more detail with some explanations and important data such as its real time price and a historical technical analysis.
About the Rio Tinto group:
The English group Rio Tinto is one of the principal specialists in the research, exploration and mining of iron, aluminium, copper, coal, industrial minerals and diamonds in the world. It achieves the largest part of its turnover from iron.
Rio Tinto achieved the largest part of its profits in China and Asia and also in the United States. Then there are the European markets, Canada and Australia.
The economic weight of Rio Tinto in this sector:
The principal activities of Rio Tinto take place in Australia, the United States, Canada, Latin America and South Africa.
The group became renowned as the fourth largest mining group in the world in 2009 with a capital of around 34 billion and was positioned 263rd in the 2008 list of the largest companies in the world.
The company also owns a number of mines and base metal factories in Canada with QIT Fer et Titane that works the world’s largest Ilmenite deposit as well as in Labrador, with a 59% shareholding in IOC, the largest iron mine in the country, and a 60% shareholding in the Akdov diamond mine in the North Western territories.
In 2013 Rio Tinto enlarged its range of equipment with a train supplied by the Qiqihar Railway Rolling Stone Co. Ltd., it was manufactured by a Chinese train company and is believed to take the largest charge capacity in the world; it can transport up to 155 tons per wagon, the maximum charge per axle is 44 tons, which means a total capacity charge for the train of 30,000 to 50,000 tons.
The major competitors of Rio Tinto:
The Rio Tinto Group is a mining business mainly specialised in aluminium but also in full development in the uranium sector. It is therefore important to possess detailed information on this company’s major competitors in these two industry sectors.
Relating to aluminium, Rio Tinto is classified as the fifth largest business worldwide behind Rusa, Alcoa, the Aluminium Corporation of China, and China Power Investment. It lies above Norsk Hydro, the China Hongqiao Group, Shandong Weigiao Aluminium & Power, Shandong Xinfa and Dubal.
Concerning uranium, Rio Tinto is classified ninth in the worldwide listing, behind the following companies; Kazatomprom, Cameco, AtomRedMetZoloto, Uranium One, Areva, BHP Biliton, the National Chinese Nuclear Company and the China General Nuclear Power Corporation, Paladin Energy, and the Combined Minerals and Metals of Navoi.
The major partners of Rio Tinto:
Let us now look at the principal partners of the Rio Tinto Company with some of the major collaborations it has implemented over recent decades.
- In 2010 the Rio Tinto Group and the Chinese company Chinalco collaborated in the creation of a joint venture with the objection of exploring for undeveloped mineral deposits in China. Rio Tinto owns 49% of this joint company which has undertaken some large projects over the years since its formation.
- In 2015 the Russian company Norilsk Nickel, specialised in non-iron metals, signed an agreement with Rio Tinto for the creation of a joint company responsible for the geological prospection and development of Russian natural resources. This joint company is owned as follows; 51% by the Russian company and 49% by Rio Tinto.
- Finally, in 2016, Rio Tinto invested several million dollars in its partnership with the Arvida Centre of Research and Development and the UQAC Aluminium University Campus.
Analysis of the Rio Tinto share price:
The price of Rio Tinto shares is currently quoted in the foreign section of the Euronext Paris stock market and is integrated into the calculation of the FTSE 100 stock market Index.
During the last ten years, the share price of Rio Tinto has experienced a high volatility with a peak in May 2008 of GB £6,969 before a drop to GB £1,049 in December of the same year. Between October 2010 and August 2011 it crossed the GB £4,000 barrier before stabilising just below it.
Important stock market information relating to Rio Tinto shares:
To conclude this article here is some general but necessary information you should know relating to Rio Tinto shares that will enable you to better understand the place occupied by this company on the international markets:
- In 2017, the Rio Tinto Company attained a total stock market capital of around GB £5,885,919.43 million.
- The number of shares issued by the Rio Tinto company for the same period and currently in circulation on the stock markets is around 1,374,800,000.
- The share price of Rio Tinto is actually quoted in the foreign section of the Euronext Paris stock market in France.
- The Rio Tinto company share price is also included in the British National stock market Index, the FTSE 100, which includes the 100 largest British companies in terms of stock market capital.
- The shareholdings of Rio Tinto are composed as follows: 13.10% the Shining Prospect Company, 8.38% by the BlackRock American investment fund, and 4.02% by the Capital Group Companies. The remainder of this company’s share assets are floating; held by private individual and institutional investors.
The advantages and strengths of Rio Tinto shares as a stock market asset:
The best way to anticipate future basic trends of the Rio Tinto share price and take position over the long term on its rise or fall is to understand how this company manages its development and growth and will do so in the coming years. To do this correctly you need to take into account the strengths and weaknesses of this group. This is what you can learn about here with us. We shall start by examining the major advantages of this Italian group and its shares on the stock market.
The initial advantage currently held by the Rio Tinto group concerns its coveted position in its activity sector. It should be remembered here that this Italian group is actually the leader in the sector of copper and aluminium mineral extraction worldwide. It is therefore in a strong position compared with its competitors in this sector and does not face any particular difficulties in gaining new parts of the market. But that is not all! Recently Rio Tinto has also become one of the largest groups worldwide in the sectors of iron and diamond extraction.
The Rio Tinto group actually continues unceasingly to try and increase its profitability and this of course particularly requires a high level of control over production costs and their productive efficacy. To ensure this Rio Tinto have heavily invested in equipment and currently possess the most technologically advanced mineral extraction tools.
The workforce possessed by the Rio Tinto group is of course another of its major advantages. In fact this company with its diverse activities that it practises throughout the world is responsible for around 70,000 employees. This major workforce reflects the success of the group and permits it among other things to respond in a more effective manner to a possible rise in demand. This adaptability to market requirements reassures its potential clients against the more limited abilities of its competitors.
The presence of Rio Tinto on the international scene is of course another advantage of this group. In fact, this brand is well known throughout the world and Rio Tinto exports its minerals to all the continents using a long term expansion strategy that has proved to be highly effective.
The disadvantages and weak points of Rio Tinto shares as a stock market asset:
Of course, the future of the Rio Tinto company does not simply rely on these advantages that we have cited above. This Italian group does of course have certain disadvantages that you should understand and take into account before taking position particularly over the medium or long term. We now offer you the opportunity to learn about these weak points that can negatively influence the share price of this company or slow down a rising trend. Here therefore are the current major weak points of this company.
Firstly, the financial situation of the Rio Tinto group could not be said to be highly stable and therefore not reassuring for its investors. The debt level of this group in fact remains quite high and may be considered as a setback to some of its growth possibilities due to a lack of capital for future investments or for the research and development of new wells. This debt needs to be rapidly absorbed to ensure that investors regain absolute trust in this asset and it must pursue strategies that lead to a rise in the asset price over the long term.
Another major weak point of Rio Tinto concerns the intervention of the Italian government in its activities which has resulted in a certain lack of efficacy in its operations. This lack of efficiency is currently a major cause of anxiety for this company as well as its shareholders and investors.
Even though the disadvantages of this company may be only two it is still important to consider them before trading in this asset if you wish to minimise your risks. These two weak points could exert a significant influence on the share price of this asset on the stock market.