Rio Tinto Group $RIO Resurrection Cross

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Rio Tinto $RIO stock is about to form a Resurrection Cross during the week of January 3, 2023, to kick off the new year. Rinto Tinto $RIO stock is in a technical strong uptrend.

RIO Tinto stock chart on December 31 2022 with Resurrection Cross chart pattern
RIO Tinto stock chart on December 31 2022 with Resurrection Cross chart pattern of 50 day moving average (blue line) poised to cross above the 200 day moving average (red line)

China’s Softening of Zero COVID Rules Could Benefit Rio Tinto $RIO Stock

In light of the collateral economic harm and ensuing civil unrest, the Chinese have changed their minds about COVID restrictions.

News of a rescue package for struggling Chinese developers to relieve their liquidity pressures and resurrect home sales has further boosted sentiments. The leaders of China are likely to plan additional stimulus measures while they meet behind closed doors at the annual Central Economic Work Conference, despite the rapid spread of COVID-19 caused by the abrupt relaxation of restrictions.

This is encouraging for Rio Tinto Group. Through its four segments, the company is engaged in the discovery and production of the materials that are the foundation of the Chinese economy: Iron Ore; Aluminum; Copper; and Minerals.

Rio Tinto completes acquisition of Turquoise Hill

Rio Tinto successfully completed its acquisition of Turquoise Hill Resources on December 16, 2022 for a price of about $3 billion, streamlining its ownership of the renowned Oyu Tolgoi mine in Mongolia, greatly enhancing Rio Tinto’s copper portfolio, and demonstrating its long-term dedication to the project and the country.

Rio Tinto currently owns a direct 66 percent stake in the Oyu Tolgoi project, with the Mongolian government’s Erdenes Oyu Tolgoi holding the remaining 34 percent. The deal was finalized after receiving the Yukon court’s blessing in Canada and receiving the support of the majority of the minority shareholders in TRQ.

Rio Tinto Chief Executive Jakob Stausholm said “Oyu Tolgoi is an outstanding asset with incredible people that will deliver significant long-term value for Rio Tinto and Mongolia.

“I would like to acknowledge the Turquoise Hill Board and management, under the leadership of Peter Gillin and Steve Thibeault, for their considerable effort and support over the years, working in partnership with Rio Tinto and the Government of Mongolia in developing Oyu Tolgoi into a world-class mine. I would like to offer my best wishes to each of them for the future.”

Rio Tinto Copper Chief Executive Bold Baatar said “This acquisition further strengthens our copper portfolio, as part of our strategy to grow in materials the world needs for achieving net zero and delivering long-term value for our shareholders. We now have a simpler and more efficient ownership and governance structure, with our partner the Government of Mongolia, as we proceed together towards sustainable production from the underground mine.”

Grade My Trade: DVN, NOC, BX & RIO

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