Rio Tinto Shares Rise 0.47 as 493rd in Trading Volume Amid Zacks Sell Rating and $425M Chile Lithium Investment

Rio Tinto (RIO) closed 0.47% higher on July 31, 2025, with a trading volume of $290 million, a 42.57% decline from the previous day, ranking 493rd in market activity. The stock faced a bearish rating shift as Zacks downgraded its recommendation to 'Sell' following a 1.5% monthly drop in consensus earnings per share estimates to $6.01. This adjustment coincided with a $425 million investment in Chile’s Salares Altoandinos lithium project, securing a 51% stake through proprietary DLE technology. Meanwhile, first-half net earnings fell 22% to $4.53 billion, pressured by declining commodity prices, rising capital spending, and $321 million in tariff costs linked to U.S. aluminum duties. Despite these challenges, the company maintained its 2025 guidance, emphasizing strategic focus on copper and lithium amid market demand shifts.

Recent operational updates highlighted a 13% year-over-year rise in copper-equivalent output and record bauxite production, underscoring resilience in core commodities. However, net cash from operations dipped 1.9% to $6.92 billion, while free cash flow plummeted 31% to $1.96 billion due to elevated capital expenditures. The company’s net debt surged to $14.6 billion, reflecting increased investment in growth projects. CEO Jakob Stausholm reiterated confidence in maintaining a 50% interim dividend payout of $2.4 billion, citing disciplined capital allocation and a robust project pipeline. While lithium and copper remain central to long-term growth, near-term earnings pressures and regulatory headwinds from tariffs continue to weigh on investor sentiment.

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