Rio Tinto’s 2020 shipment outlook for Alumina to improve by 0.2 million tonnes

Rio Tinto expects its 2020 shipment outlook for Alumina to improve by 0.2 million tonnes to between 13.8 to 13.9 million tonnes on improved production levels.

In the fourth quarter of 2020, the company expects lower sequential quarterly results primarily from higher energy costs and a change in the mix of customer shipments in the Alumina segment.

Rio Tinto’s alumina production in the third quarter of 2020 was 7% higher than the same period of 2019 on higher production at both Pacific refineries, considering a planned major shutdown at Yarwun during the quarter. Alumina production stood at 1.954 million tonnes in Q3.

The 2020 shipment outlook for Bauxite and Aluminum remain unchanged from the prior full-year estimates. Total annual bauxite shipments are expected to range between 48.0 and 49.0 million dry tonnes. Aluminium shipments are expected to be between 2.9 and 3.0 million tonnes.

In the Bauxite segment, the company expects flat sequential quarterly results in the fourth quarter of 2020.

“In the Aluminum segment, the Company expects a sequential decline with anticipated higher power costs in Europe, a full quarter of Section 232 tariffs, and higher maintenance and seasonal labor costs, partially offset by the positive impact of the Intalco curtailment for a full quarter,” Rio Tinto said.

“The fourth quarter 2020 operational tax expense is expected to be significantly lower than 3Q and approximate $25 million based on recent pricing,” Rio Tinto said.

“The COVID-19 pandemic is ongoing, and its magnitude and duration continue to be unknown. The uncertainty around its future impact on the Company’s business, financial condition, operating results, and cash flows could cause actual results to differ from this outlook.”