RIO – Rio Tinto plc Information and Vote Guidance 2023
ShareSoc introduced this new added value voting information service for Full Members only in 2021, providing background information on leading companies and AGM vote guidance. Initially, we are piloting this for FTSE30 companies, plus a few others in the FTSE100. We have decided to continue the pilot in 2023 and are looking at ways to […]
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Section 1.8 of the excellent and very detailed Minerva report highlights the many questions about the governance of Rio and the outstanding law suits. However, in my opinion, the change of executives, the recognition of the problems with the sacred Aboriginal grounds in Oz, and the £12bn profits with a market cap only £93bn and very little debt, may suggest this out of favour company is worth buying or at least investigating.
I hope that ShareSoc will be organising a seminar or webinar with Rio for RETAIL investors to better understand the investment proposition and to question management.
Historically, Rio has been less open and transparent than BHP and they could learn from their competition in this respect.
£10 invested in 2004 would be worth £54 today – 5 1/2 times as much. A five bagger! But also note that Rio share price has dropped 75% and 50% from its previous highs in two occasions in the past 20 years. However it has little debt at present and seems better positioned for the future. WIth a P/E ratio of about 7 by my sums (market cap £87 bn and net profit of £12 bn), or 9 if you look at Stocko, this seems a share worthy of investigation.
Some ESG funds may have divested from Rio, however it is working hard on the ESG front and the world economy does need its products. The ESG conundrum is well exemplified with this stock.