Rio Tinto (RIO) has flown under the radar in recent months as BHP (BHP) and Anglo American (AAL) failed to hash out a merger deal. But the diversified major has plenty to offer investors, and may avoid the consolidation caper that could still come this year thanks to the strength of its existing portfolio.
Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
- Bright outlook for dividends
- Copper production opportunities
- Decarbonisation of steel driving demand
Bear points
- Ploughing money into Simandou mine
- Hold-ups at US copper project
This is because much of the hard work has been done: its copper assets are growing, high-grade iron ore assets in Guinea can be sold directly into the growing low-carbon steelmaking industry, and aluminium is set to become more important as the energy transition fuels demand.