15.10.2014 - Rio Tinto has increased its production
The second largest company in the world on the production of iron ore, Rio Tinto said about the growth of iron ore production by 5% in the third quarter of this year. At the moment, the company is trying to conquer bigger part of the market due to lower cost of iron ore mining than its competitors. The company's strategy is aimed at increased production despite a decline in the price, has led to a drop in prices of iron ore to multi-year lows, and decreased by 40%. The company has maintained production forecast of 295 million tons of iron ore this year. Despite the decline in iron ore prices, we recommend to accumulate positions in shares of the company in the medium term, with the expectation of growth by 60-90% in 1-2 years.