• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 23 hours Daniel Yergin Book is a Reality Check on Energy
  • 2 days Permian in for Prosperous and Bright Future
  • 1 day Famine, Economic Collapse of China on the Horizon?
  • 1 day Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 37 mins US after 4 more years of Trump?
  • 2 days Gepthermal fracking: how to confuse a greenie
  • 2 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 2 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 4 mins Why NG falling n crude up?
  • 2 hours Something wicked this way comes
  • 46 mins The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 23 hours Open letter from Politico about US-russian relations
  • 3 days Surviving without coal is a challenge!!
Hated Energy Stocks May Be About To Rebound

Hated Energy Stocks May Be About To Rebound

Energy stocks are remarkably cheap…

Wall Street’s Big Coronavirus Mistake

Wall Street’s Big Coronavirus Mistake

The coronavirus has wreaked havoc…

Will U.S. Elections Impact The Gold Rally?

Will U.S. Elections Impact The Gold Rally?

Gold prices have soared this…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Rio Tinto (RTP) is Firing on all 16 Cylinders

I managed to catch an interesting interview on TV the other day with Tom Albanese of Rio Tinto (RTP), the planet’s second largest producer of iron ore. It is one of the companies at the nexus of the global economy which I have long been following, and is at the sweets spot of several global macroeconomic trends at once.

There is a two tier global economy today, with the Asian powerhouses delivering classic “V” shaped recoveries, while the US and Europe lag behind in the dust. China has managed its tightening well, as there is no sign of a bubble in the main economy, and has reached the “Goldilocks” point in the supply/demand equation. It is moving “from strength to strength.”

For RTP, the net net has been to drive iron ore prices higher to the point where steel companies are moaning about resource costs. Most RTP mines are running at full capacity, and the way to further riches for the company is through further expansion of vast open pit mines in Australia’s Pilbara region.

RTP is also the world’s fourth largest diamond miner, which thanks to a 92% jump in demand from China, is also enjoying boom times. It’s amazing how the simple adoption of a western custom, presenting a bride with a wedding ring, can have such global implications for international trade.

RTP is also the world’s top producer of bauxite, no 2 in alumina, no. 3 in uranium, no. 5 on copper, and no. 13 in gold. Its value has been further bolstered by a relentlessly appreciating Australian dollar long chronicled in this letter.

The only risk that Albanese sees to the whole scenario would be measures that restrained international trade, for whatever reason. So far there has been a lot of blustery talk on the matter, but no action. I have always believed that this is a company that is in a dozen right places at the right time, and that despite a 500% move off the bottom over the past 18 month, should be bought on any substantial dips.

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News