Rio Tinto gains as Jefferies flags stronger productivity gains

Rio Tinto

05/08/2026 01:59

Updates
** Shares of Rio Tinto RIO.AX rise as much as 2.4% to A$176.49, their highest level since June 23
** Jefferies says RIO is tracking well ahead of its initial target of $650 million in annualised productivity benefits, and now aims to reach $1.8 billion by end-2026
** Says operational improvements and restoring Rio's position as a tier-one operator have been key priorities under CEO Simon Trott, with progress so far encouraging
** "Large-scale M&A seems unlikely for now, as paying a significant premium in a strong environment increases the risk of value destruction" - Jefferies
** In February, Rio Tinto walked away from takeover talks with Glencore, ending months of negotiations over a tie-up that would have created the world's largest mining company, with a market value exceeding $200 billion
** Possibility of future acquisitions remains, particularly during a downturn, but a deal involving Glencore is now unlikely - Jefferies
** Brokerage views Rio's risk-reward profile as balanced at current levels
** On ASX, RIO shares up more than 20% YTD

(Reporting by Rajasik Mukherjee in Bengaluru)
((Rajasik.Mukherjee@thomsonreuters.com))