Since reaching highs of over £65 a share in May 2021, mining giant Rio Tinto has seen its share price drop by nearly 30% after a rapid slump in iron ore prices, project delays and environmental concerns. Chinese industrial demand has fallen substantially after more stringent measures on steelmakers were imposed by the government. A slowdown in the construction sector has also impacted demand for iron ore, and prices have halved in recent months. Despite the unfavourable pricing environment for iron ore, Rio Tinto has managed to generate over $50 billion in free cash flow over the past 5 years, return substantial dividends to shareholders and currently qualifies for 12 guru screens on Stockopedia. Does the easing of iron ore prices really change the investment case for a diversified mining heavyweight such as Rio Tinto? Profile What are the company's principal business activities, how does it generate its revenues? Rio Tinto is a mining company, engaged in the extraction and processing of raw materials that are crucial to society. Operating in 35 countries across the globe, Rio Tinto’s mining activities can be divided into four primary product groups: Aluminium, Copper,...
