Rio Tinto (RIO, Financial) is collaborating with AMG Metals & Materials on a potential sustainable aluminum venture in India. The companies have signed a memorandum of understanding to explore the feasibility of establishing an integrated low-carbon aluminum project. This initiative aims to leverage renewable energy sources for its operations.
AMG M&M, backed by founders of Greenko and AM Green, and Rio Tinto are considering the possibility of constructing a primary aluminum smelter with a capacity of up to one million tons annually, alongside two million tons per year of alumina production. The proposed project would utilize renewable energy sources such as wind and solar, supplemented by pumped hydro storage.
The initial phase under consideration involves a 500,000-ton annual capacity aluminum smelter at a strategically beneficial location in India. As part of the feasibility study, AMG M&M plans to collaborate with Greenko to develop a stable renewable energy solution, while Rio Tinto will explore commercial options for alumina supply.
Additionally, the study will investigate various smelting technologies to identify the most cost-efficient approach for the project. This partnership aims to harness India's renewable energy potential, furthering the production of low-carbon aluminum.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Rio Tinto PLC (RIO, Financial) is $80.03 with a high estimate of $94.00 and a low estimate of $72.13. The average target implies an upside of 40.00% from the current price of $57.16. More detailed estimate data can be found on the Rio Tinto PLC (RIO) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Rio Tinto PLC's (RIO, Financial) average brokerage recommendation is currently 1.4, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rio Tinto PLC (RIO, Financial) in one year is $61.45, suggesting a upside of 7.51% from the current price of $57.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rio Tinto PLC (RIO) Summary page.
