Rio Tinto Ltd (ASX: RIO) shares have been strong performers over the past 12 months.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant have gained 9.60% since this time last year, closing yesterday trading for $132.55. And that's not including the $6.54 per share in fully franked dividends Rio Tinto has delivered over the past year.
For some context, the ASX 200 is up 5.31% in 12 months.
The miner has come under some pressure in 2024 amid slumping iron ore prices as steel demand in China remains subdued amid the nation's struggling property markets.
Fortunately, Rio Tinto shares also garner significant revenue from aluminium and copper. Both metals have enjoyed increased demand and rising prices this year.
Demand growth for copper has outpaced supply growth as the red metal is crucial in the world's decarbonisation efforts. Copper also has been getting an unexpected boost from the rapid rise of AI. That's because the AI revolution will require massive new data centres, involving plenty of copper.
All up the copper price has gained almost 11% year to date, currently trading for US$9,458 per tonne.
Rio Tinto shares have already enjoyed some tailwinds from the red metal as the miner said it is working to ramp up copper production at its Oyu Tolgoi mine in Mongolia.
In its full-year results, the ASX 200 miner announced:
Our Copper C1 unit costs are expected to decrease in 2024, primarily driven by higher volumes at Oyu Tolgoi as the underground continues to ramp up and at Kennecott, where refined copper volumes are expected to increase following the planned smelter rebuild in 2023.
With some 13% of Rio Tinto's revenue expected to come from copper this year, and potentially more in the years ahead, we turn to the "game-changing" technology Rio Tinto is employing to advance its exploration activities.
Image source: Getty Images
Rio Tinto shares go high-tech
The ASX 200 miner isn't planning any drill holes on Mars.
At least, not yet.
But as The Australian Financial Review reports, Rio Tinto shares could get a boost from the same technology NASA scientists used to analyse rocks on our neighbouring planet.
Namely, laser-induced breakdown spectroscopy, or LIBS.
According to the miner, LIBS could drastically improve exploration efficiency and slash the time needed to uncover new copper and lithium deposits.
Rather than geologists combing through data from drill core samples, with an average of 75 days to get the assays from those samples back, Rio Tinto said LIBS can reveal the mineralogy and chemistry in just 60 minutes.
Rio Tinto's head of exploration Dave Andrews said, "That is a major game changer for exploration and that's something that we're deploying around the world now."
According to Rio Tinto:
LIBS can detect even the lightest elements on the periodic table, including lithium, an element key in our energy transition. It also allows us to more accurately estimate the carbon capture potential of a rock, unlocking even greater possibilities in our projects.
With the help of LIBS, Rio Tinto shares could well gain further exposure to copper. The ASX 200 miner is expected to spend around $200 million on copper exploration this year.
Rio Tinto releases its quarterly update this Wednesday.
