Shares in Perth-based mining services company Monadelphous have dropped to a four-year low as broking analysts cut their ratings on the stock in the wake of news of a $493 million damages suit from Rio Tinto.
Shares in Perth-based engineering company Monadelphous Group dropped more than 10% on Monday after news broke that it was being sued by Rio Tinto over a fire at one of Rio's iron ore export terminals at Cape Lambert in the Pilbara.
Rio Tinto reported Q2 iron ore shipments slightly of 86.7Mt, slightly below UBS forecasts. However, mined copper exceeded forecasts due to record throughput at Escondida. Aluminum and Alumina production were 1.2% below the broker forecast.
Rio Tinto will wind down its NZ aluminium smelter business following the conclusion of the strategic review because it is no longer viable because of the aluminium price and energy costs. The wind-down is expected to be completed in August 2021.
Government action in South Africa has led to Rio Tinto shutting down operations and developments there for three weeks. Quebec has called mining and smelting essential, but only at minimum rates. The broker has adjusted accordingly and also adjusted for commodity price and forex movements.