Rio Tinto on watch after downgrading Pilbara iron ore shipments guidance

The Rio Tinto Limited (ASX:RIO) share price will be on watch on Tuesday after downgrading its iron ore shipments guidance from the Pilbara…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Tuesday.

This morning the mining giant provided the market with an update on the impact of Tropical Cyclone Damien on its iron ore operations in the Pilbara.

What did Rio Tinto announce?

According to the release, Rio Tinto's iron ore operations in the Pilbara region of Western Australia are progressively resuming following the passing of Tropical Cyclone Damien.

The cyclone has negatively impacted Rio Tinto by causing infrastructure damage across its entire Pilbara network. This includes impact to infrastructure such as access roads, electrical and communications infrastructure, and employee accommodation.

Management warned that all of Rio Tinto's mine sites experienced some form of disruption and will take time to return to normal operations.

Iron ore shipments guidance downgrade.

As a result of the disruption that its operations have faced, Rio Tinto has been forced to downgrade its Pilbara shipments for 2020.

Management now expects Pilbara shipments to be in the range of 324 million tonnes and 334 million tonnes (100 per cent basis) this year. This compares to its previous guidance of between 330 million tonnes and 343 million tonnes. Which represents a 2% downgrade on the low end of its guidance range and a 2.6% downgrade at the high end of its range.

The company advised that it is working with its customers to minimise any disruption in supply. But it reiterated that safety remains its top priority as it ramps up operations and undertakes the necessary remediation work.

This news could give the Fortescue Metals Group Limited (ASX: FMG) share price a boost on Tuesday. Given how tight supply and demand have been over the last 12 months, any supply disruptions could be supportive of higher iron ore prices in the coming months.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Three smiling corporate people examine a model of a new building complex.
Share Market News

Pexa affirms 2025 guidance but issues warning on costs

Let's see what the property technology company has announced today.

Read more »

A man sitting at his desktop computer leans forward onto his elbows and yawns while he rubs his eyes as though he is very tired.
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Happy woman holding white house model in hand and pointing to it with a pen.
Share Market News

Domain shareholders rejoice after CoStar snaps it up for a large premium

It's a good week to be a Domain shareholder.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

A decent start to the week is expected for Aussie investors.

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptop
Broker Notes

These ASX 200 stocks could rise 30% to 40%

Analysts are tipping these shares to go to the moon. Let's find out why.

Read more »

A man and woman dance back to back as they cook in kitchen.
Share Market News

ASX 200 'safe-haven' shares delivered divergent performances last week

ASX 200 utilities shares lifted while healthcare shares tanked last week.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A businessman hugs his computer and smiles.
Opinions

2 ASX 300 shares I plan to own forever

Both of these businesses have good ultra-long-term outlooks.

Read more »