Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) witnessed a nearly 3% surge in its share price fueled by growing optimism surrounding China, a key market for the mining giant.
With iron ore constituting over 80% of Rio’s underlying operating earnings, the company anticipates a rebound in prices as demand from China, its primary consumer, shows signs of recovery.
Reaffirming its earlier projections, Rio Tinto expects iron ore shipments to range between 323 million and 338 million tons in 2024, aligning closely with its record annual output figures. The company’s medium-term guidance for iron ore shipments remains steady at 345 million to 360 million tons annually. 
Despite encountering production declines across all metals in the first quarter, Rio Tinto remained steadfast in its outlook. Factors such as weather disruptions at ports and reduced output from select Pilbara mines in Western Australia led to an 11% decline in iron ore production compared to the previous quarter, totaling 78 million tonnes. Similarly, copper and aluminum production saw decreases, albeit less pronounced, as operations at the Oyu Tolgoi mine in Mongolia commenced its underground ramp-up and recycler Matalco’s production improved.
Notably, aluminum volumes approached record levels, prompting optimism among analysts such as Jefferies, who observed a corresponding uptick in the metal’s price.
On Wednesday, Rio Tinto shares climbed by 169p to reach 5,410p, reflecting investor confidence in the company’s resilience amidst production challenges and its positive outlook on China’s recovery.
