Rio Tinto will need to boost iron ore shipments during the final three months of 2015, after its September quarter fell slightly short of analyst expectations.
Rio shipped 91.3 million tonnes from its operations in Canada and Australia during the September quarter, and will need to lift that to about 95 million tonnes if it is to achieve its already reduced 2015 target of 340 million tonnes.
Rio shipped 85.55 million tonnes from the Pilbara during the quarter, including tonnes owned by joint venture partners like Gina Rinehart's Hancock Prospecting, which was 16 per cent more than in the previous year.
The company shipped 4.2 million tonnes more than it actually produced in the three months through September, and is working its way through stockpiles built up in previous years.
That tactic is helping the miner to keep costs low, but Rio acknowledged that it could not last forever.
"Inventories built up during the infrastructure expansion stage are expected to be largely utilised by early 2016," the company noted in the results statement.
Iron ore prices were surprisingly stable during the September quarter, but fell by $1.38 on Thursday night to be fetching $US53.74 per tonne on Friday morning.
Rio maintained its full-year forecasts for copper, aluminium, thermal coal, coking coal, uranium and bauxite.
Rio chief executive Sam Walsh said Rio's assets were of sufficient quality to be generating strong cashflows despite the weak commodity prices.
"We continue to deliver efficient production, rigorous cost control and sound allocation of capital," he said.
"Our cash generated from operations will enable us to deliver strong returns to shareholders through the cycle and our balance sheet will be further strengthened by recent divestment activity."
Morgans analyst Adrian Prendergast said there was "nothing of concern or suprise" in the result.
Source: http://www.smh.com.au/