Take a look at Rio Tinto

Take a look at Rio Tinto Wednesday, February 11, 2009

Posted by ei-forum in EU Traded Stocks.
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logo_rio_ Rio Tinto (RIO.L) is an international mining group, combining Rio Tinto plc and Rio Tinto Limited. The Company’s principal product and global support groups are Iron Ore, Energy, Industrial Minerals, Aluminum, Copper, Diamonds, Exploration and Technology.

Rio Tinto has an extremely high quality range of assets and once up and running, these assets are low cost and long life deals. Like most miners, they have been suffering with the extreme correction in commodity prices but – at this stage of the cycle – all the fundamentals look great and as opposed to other miners, we like the fact that the management at Rio seems to always be striving to improve cost efficiencies, scale and reduce their debt burden, whilst being fairly open and communicative with the investment community. We feel that the key issue at this stage is the focus on reduction of debt. Furthermore, another reason to keep any eye on this company is the proposed deal with Chinalco.

Our readers know that we feel that the commodity boom is far from being over. Prices will pick up again and when investing in this kind of company, it is important to be countercyclical and enter at the bottom of the cycle.

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