Shares in focus: Economic turmoil may hobble Rio Tinto

Mining giant Rio Tinto has a number of new projects on the go. But its profits are vulnerable to any volatility in the commoditities markets. So, is now the time to buy shares in Rio Tinto? Phil Oakley reports.

What is Rio Tinto?

Rio Tinto is one of the world's largest mining companies. Its operations are split into five main product groups: aluminium, copper, diamonds and minerals, energy (coal and uranium) and iron ore. Although the company has operations in Europe, South America and Africa, most of its assets are in Australia and North America. Profits are dominated by its iron-ore operations, which accounted for two-thirds of net earnings in 2010.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.