Best copper stocks and ETFs to watch in 2021
British company Rio Tinto is one of the largest metal mining companies in the world, with commodities like copper, iron ore, uranium, gold and even diamonds among its biggest products. Also from the 1800s, Rio Tinto is a company listed on the LSE.
Copper ore production at Rio Tinto suffered disruption due to the Covid-19 pandemic, with copper production figures mined for 2021 (Q2) at 115,500 tonnes, 13% lower than in Q2 2020.6 Production was also somewhat affected by an anticipated downturn at the company’s Kennecott operations in May 2021. However, the affected ore was largely recoverable, causing only temporary disruption.
Rio Tinto also co-owns the Oyu Tolgoi mine in Mongolia, which is expected to be one of the world’s largest copper mines by 2030. The mine is still under development, with Rio Tinto in talks with the Mongolian government to speed it up and bring the mine into service by 2022. Once Oyu Tolgoi is completed, this is expected to significantly increase Rio Tinto’s copper production levels.
Rio Tinto’s overall results showed a significant rebound from the initial pandemic disruptions of 2020. Net generation of cash from operating activities nearly tripled in 2021, from $ 5.63 million in the second quarter of 2020 to $ 13 million. , $ 66 million in the second quarter of 2021. Underlying EBITDA increased from $ 9.64 billion in the second quarter of 2020 to $ 21.03 billion in the second quarter of 2021.7
Rio Tinto’s latest dividend was generous, at $ 5.61 per share.7