Rio Tinto downgrades its annual copper guidance
The company expects to have the smelter fully operational in two months
Stocks impacted: Rio Tinto (RIO)
The U.K.-based miner has cut its refined copper guidance for the year, citing technical issues over a smelter at its Kennecott mine near Salt Lake City, Utah. Refined copper output for the year through December was now expected at between 135k and 175k tonnes, down from previous guidance of 165k and 205k tonnes. Kennecott mine in Utah had experienced delays to the restart of a smelter due to unexpected issues that appeared following planned maintenance. The company expects to have the smelter fully operational in two months. Its local team is working with customers to limit disruptions. As a reminder, late last month, Rio Tinto declared a substantial dividend despite the impact of COVID-19. Despite its EBITDA dropping by 6% this half year, the company is paying a dividend of $1.55 per share, a 3% increase on 2019 first half. The miner’s stocks dipped marginally following the release of the updated guidance, shedding 0.30% on the day.
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