(MENAFN- ProactiveInvestors - Australia) Mining heavyweight Rio Tinto PLC (LON:RIO, ASX:RIO) has cut full-year iron ore and copper production guidance.
Rio Tinto's expectations for iron ore shipments from its Pilbara assets in 2016 have been revised to between 325 and 330 million tonnes from 'around 330 million tonnes', subject to weather conditions, the group revealed in a third quarter production output.
2017 production guidance remains at between 330 and 340 million tonnes, subject to final productivity and capital expenditure plans.
Mined copper production guidance for the current year has been trimmed to between 535k and 565k tonnes from 545k to 595k tonnes previously.
The third quarter saw Pilbara iron ore production rise 2% from a year earlier to 83.2mln tonnes. Mined copper from the group's assets worldwide was up 16% year-on-year (YoY) to 133.3k tonnes.
The group's bauxite production rose 10% to 12,422k tonnes, with the Weipa and Gove assets setting quarterly production records.
Aluminium production rose 11% year-on-year to 924k tonnes, with the Kitmat facility achieving its second consecutive quarter of nameplate capacity.
"We have delivered strong quarterly production, underpinned by improving operational performance across our Tier 1 portfolio. Output from our iron ore and bauxite assets reflects the drive for productivity and operational excellence,' said J-S Jacques, Rio Tinto's chief executive.
'With a continued focus on value, we will seek further productivity improvements across the business. Our rigorous attention to cash generation, coupled with a disciplined allocation of capital remains our key focus in delivering shareholder value," he added.
Resources specialist VSA Capital Research agreed with Jacques that it was a strong set of production results, though iron ore shipments were down 5% YoY and down 3% quarter-on-quarter (QoQ) as a result of rail maintenance.
'This is likely to [have an] impact [on] 4Q 2016 also, as shipment guidance has been reduced for iron ore to 325-330mnt for the full year. Met coal production was up strongly, 17% YoY and 21% QoQ to 2.18mnt, due to out-performance at the Kestrel mine,' VSA noted.
'Thermal coal production was down 2% YoY and up 4% QoQ to 5.4mnt due to planned mine sequencing at Hunter Valley,' the broker added.
Shore Capital, however, said the numbers were slightly disappointing.
'Mined copper was a big disappointment (due primarily to low grades at Escondida),' said Shore's Yuen Low.
The shares were up 0.9% at 2,646p in a falling market, though most of the mining heavyweights were firmer in early deals.
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