2. Rio Tinto (RIO) is a global metal and mining player, especially aluminum, copper, coal and iron ore. The company has operations in more than 50 countries with bulk production coming from Australia and North America.
Australian coal, iron ore, uranium and alumina operations were affected by extreme weather conditions in the March quarter; however, higher prices during this period provided support. Global iron ore production fell 3% year-on-year to 42 million tonnes during the quarter. Besides, coal, uranium, and bauxite production also dwindled. Australian hard coking coal declined 12% year-over-year, while alumina production reduced by 4% in the March quarter.
On the operational front, Tom Albanese, Rio's CEO commented, "We have successfully gained control of Riversdale Mining Limited and plan to accelerate the development of these significant tier one coking coal assets." The stock is trading at 6.9 times its 2011 earnings and has potential upside of 50%, according to analysts.
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