Rio Tinto (RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products.
Given RIO’s reputation as a high quality business with consistent earnings growth, it is widely considered as one of the blue chip stocks in the Australian share market.
Recent news reports have suggested that RIO is preparing to walk away from its proposed $120 billion iron-ore JV with BHP.
RIO’s improved fortunes, regulatory hurdles, and speculation that BHP’s $5.8 billion equalisation payment wasn’t sufficient, were given as the main reasons for the deal cancellation.
However, RIO strongly denied the claims, stating that although the JV was recently discussed, the report went too far in claiming the deal was dead.
RIO has been one of the hot stocks in recent months, climbing over 35% since reaching a low of $58.86 on 21 May, 2010.
Get access to daily stock analysis and recommendations with a free trial.