19th Jun 2019 13:07
(Alliance News) - Rio Tinto PLC on Wednesday said it will lower its iron ore shipment guidance for Pilbara operations due to a higher than expected proportion of certain lower grade products.
London-listed shares in Rio Tinto were down 4.1% at 4,681.00 pence each in afternoon trade, making the stock the worst performer in the FTSE 100.
The miner said it is currently experiencing operational challenges, particularly in the Greater Brockman hub in Pilbara, Western Australia, which is resulting in an increased proportion of certain lower grade products. As a result of the mining challenges, the company has reviewed mine plans leading to a revision to its Pilbara guidance.
Rio Tino now expects 2019 Pilbara shipments between 320 million tonnes and 330 million tonnes, versus previous guidance of between 333 million to 343 million. The company also expects to revise its unit cost guidance in its second quarter operations review, scheduled for July 16.
The company sold around 1.5 million tonnes of lower grade products in the first quarter and expects to make additional sales during 2019.
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