RIO

Rio Tinto Group has delivered a strong 5 year share price gain, yet the current valuation picture is mixed as a Discounted Cash Flow (DCF) estimate points to a premium while market multiples suggest the stock may still be on the cheap side. For investors looking at Rio Tinto today, the split between the intrinsic value estimate and the multiple based read is the key issue to understand. Over the past 5 years, Rio Tinto Group shares are up about 101.6%, which puts more focus on whether the current price already reflects much of the good news. On the upside, Rio Tinto's involvement in areas like critical minerals and battery related projects such as the ElectraLith lithium refining pilot can support expectations for future cash flows. At the same time, exposure to geopolitical and trade risks, highlighted by its links to China and broader tariff concerns, may weigh on how much investors are willing to pay for those cash flows. The Discounted Cash Flow (DCF) estimate currently screens the stock as overvalued by about 39.3%, yet earnings and asset based multiples screen it as undervalued, and the overall value score of 3 out of 6 points to a mixed picture rather than a clear bargain or clear overpricing. For investors, the debate is whether Rio Tinto Group's recent share price strength already prices in its cash flow potential or whether the multiple based view hints at remaining value that the market has not fully recognised. Spot opportunities beyond Rio Tinto Group by scanning a curated list of companies with strong cash flows and balance sheets using the 10 high quality undervalued stocks. The Discounted Cash Flow (DCF) approach used here projects what Rio Tinto Group might generate in free cash over time and then discounts those cash flows back to today. The model uses a 2 Stage Free Cash Flow to Equity framework and starts from the latest twelve-month free cash flow of about US$7.4b, then assumes cash flows grow and eventually follow a more modest path. Based on these assumptions, the DCF model arrives at an intrinsic value of about £54.40 per share. Compared with the current share price, that implies Rio Tinto appears around 39.3% overvalued on a pure cash flow basis. The focus on critical minerals and projects such as the ElectraLith lithium refining pilot may help explain why the market is willing to pay more than this intrinsic estimate. Recent comments from Rio Tinto chair Dominic Barton on treating geopolitical risk as a core business concern may also help explain why investors are pricing in additional uncertainty beyond the cash flow forecast. Overall, this discounted cash flow analysis indicates that Rio Tinto Group currently appears overvalued relative to its modelled cash generation. Our Discounted Cash Flow (DCF) analysis suggests Rio Tinto Group may be overvalued by 39.3%. Discover 10 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Rio Tinto Group. The P/E ratio is a useful lens for Rio Tinto Group because earnings remain a key anchor for how investors weigh its cash generation against the share price. Rio Tinto currently trades on a P/E of about 13.7x, compared with a Metals and Mining industry average near 14.9x and a broader peer group closer to 28.6x. The more tailored fair P/E ratio for Rio Tinto, which factors in its size, sector, margins and risk profile, is around 21.1x. That level is materially above the current 13.7x level. This points to the market assigning a discount relative to what this framework suggests investors might typically pay for these earnings. On the P/E multiple, Rio Tinto Group stock currently screens as undervalued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take this valuation puzzle around Rio Tinto Group and turn it into clear scenarios that spell out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price, and they live on Simply Wall St's Community page. Each Narrative links a specific fair value to a defined set of potential catalysts and risks, allowing you to track over time which version of Rio Tinto Group's story is actually unfolding. Community views on Rio Tinto Group are split, with one camp seeing meaningful upside and another calling the stock roughly fairly priced at current levels. Bull case: 17% undervalued Read the full Bull Case to see why Rio Tinto Group could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Rio Tinto Group could be overvalued Do you think there's more to the story for Rio Tinto Group? Head over to our Community to see what others are saying! Rio Tinto Group sits in a genuine valuation tug of war. The Discounted Cash Flow (DCF) work leans overvalued, which reflects concerns about heavy investment needs and the timing of future cash generation. The market multiple view points to undervalued, which leans more on earnings resilience, sector sentiment and how peers are priced. With the broader checks coming through as mixed, the key question is whether Rio Tinto can convert its project pipeline into reliable, capital efficient cash flows that justify a higher multiple. Otherwise the current discount may be a fair response to geopolitical and commodity risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RIO.L. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Metallurgical Test Work Indicates Potential to Double Gold Recoveries TORONTO, ON / ACCESS Newswire / August 19, 2026 / Wolfden Resources Corporation (WLF.V) ("Wolfden" or the "Company") is pleased to announce that it has completed proof of concept metallurgical testing on its wholly owned Canoe Landing volcanic massive sulphide deposit in central New Brunswick (see Figure 1) where the current potential in-situ precious metal value accounts for more than 50% of the total in-situ value. Given that standard flotation processing is expected to deliver reasonably high copper, lead zinc and silver recoveries, the work focused on how to best increase the gold recoveries from the ore which typically averages about 1.0 g/t Au. The results of that test work indicate that gold recoveries can be increased from 32 to 60 percent via Bio-oxidation and thereby the potential to significantly impact the economics of this large VMS deposit. The deposit was first discovered by Rio Tinto in the 1960's and drilled by Noranda in the 1980's and represents one of the largest un-developed polymetallic mineral deposits in the Bathurst mining camp. Like most VMS deposits in the Bathurst camp, there was little attention paid to recovering the precious metals due to lower metal prices and the higher costs associated with improving those recoveries. However, at current and forecast precious metal prices and using modern mineral processing techniques, the Company's focus has been to ascertain if the project has the potential to be economically developed in one of the most supportive mining jurisdictions in North America. (See additional mineral resource estimate information below) The Company worked with the Research and Productivity Council of New Brunswick (RPC), an independent laboratory facility, on a program to largely focus on increasing precious metal recoveries using a post flotation treatment metallurgical process flow sheet. Wolfden provided RPC with 40kg of historical drill core samples that were assayed and composited to create a representative average grade of the deposit. Samples went through mill standardization, open circuit rougher testing followed by pyrite concentrate oxidation and leaching using various methods over a period of 8 months. The flotation test work resulted in 4 concentrates produced: Copper, Lead, Zinc, and Pyrite. The pyrite concentrate containing 32.8% of the total gold, was then exposed to bio-oxidation to break down the pyrite and expose the gold grains for subsequent cyanide leaching and recovery. This work was compared to base case results as well as roasting oxidation. The resulting total process Au recovery is shown in the following table. Table 1. Gold Recovery % - comparisons of the treatment methods including no treatment The test work demonstrates that Bio-oxidation post flotation treatment of a pyrite concentrate at Canoe Landing supports increased gold recoveries and net revenues for a potential mining operation. "We consider the results to be very positive and warrants the collection of drilled-fresh core samples for further metallurgical testing. This would include verification of the base metal flotation circuit as well as confirmation and improvement of the post flotation treatment for precious metals." Stated Jeremy Ouellette, Wolfden's Vice President of Project Development. "Our goal with this first round of testing was to identify which methods may provide improved precious metal recoveries. We would like to thank RPC and the particularly the support of Genome Atlantic in these efforts." Table 2 below lists the current potential unoptimized metallurgical recoveries using flotation followed by bio-oxidation. These preliminary results indicate the potential to yield a recoverable metal value of $216 tonne using the current spot prices of $ 6.51/lb copper, $1.73/lb zinc, $0.84/lb lead, $4,375.60/oz gold and $64.58/oz silver. The value includes estimated mining dilution and recoveries, but does not include any capital requirements, operating or smelting costs. Described another way, the bio-oxidation method has the potential to add an approximate additional $36/tonne in revenue at the above metal prices. These process results are preliminary and there remains further upside through more detailed optimization studies for all of the contained metals. Table 2. Estimated Unoptimized Metallurgical Recoveries Bio-oxidation Methodology: The bio-oxidation process is initiated by culturing microorganisms naturally present on the ore surface and/or in run-of-mine water. The use of site-specific microorganisms is advantageous, as these organisms are already adapted to the prevailing mineralogical, chemical, and environmental conditions. These microbes promote the oxidation of sulphide minerals to ferric iron, sulfate, and elemental sulfur, either directly at the mineral surface or indirectly via ferric iron as a strong oxidant. The overall result is extensive sulphide destruction without the need for high temperatures or pressures. Once bio-oxidation is complete, the residue can then be treated using conventional gold recovery methods. Cyanide leaching of bio-oxidized material typically results in substantially higher gold recoveries compared to untreated feed. Relative to roasting or pressure oxidation, bio-oxidation offers lower energy requirements and reduced gaseous emissions, making it a technically and environmentally favorable pre-treatment for refractory gold ores. Next Steps Wolfden intends on designing a subsequent sample collection and testing program that can be used to confirm both the flotation circuit and precious metals recoveries. Future testing will focus on further increasing all metal recoveries by using fresh (unoxidized) drill core and more focused circuit chemistry using open circuit cleaner testing and closed circuit testing. Results from flotation are expected to improve the pyrite circuit gold recovery as well as minimize the mass split to the pyrite concentrate resulting in reduced capital and operating cost of the post flotation treatment circuit. In addition to further optimizing the bio-oxidation and leaching circuit, Wolfden intends on testing other technologies such as Albion and to further optimize roasting to ensure the best post-flotation treatment process is selected for future programs. About Wolfden Wolfden is a North American exploration and development company focused on high-margin metallic mineral deposits including precious, base, and critical metals that represent significant development projects with the potential to produce domestic supply of strategic metals. For further information please contact Ron Little, President & CEO at (807) 624-1136. The information in this news release has been reviewed and approved by Ron Little, P.Eng., President and CEO, and Jeremy Ouellette, VP Project Development, who are Qualified Persons under National Instrument 43-101. Notes for Mineral Resource Estimate effective February 15, 2026 Canoe Landing: Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. The Mineral Resource Estimate was based on 3-year trailing average metal prices of $2,714/oz Gold, $22.59 /oz Silver, $1.33 /lb Zinc, $0.98 /lb Lead, $4.18 /lb Copper and an exchange rate of 1.36. The estimate accounts for the following metals recovered and payable respectively; Gold 35%, 95%; Silver 53%, 95%; Zinc 85%, 75%; Lead 63%, 75%; Copper 85%, 75%. The resource estimate utilized 70 drill hole intersections that span a strike length of approximately 1 kilometre, and down to a depth 850 metres with an average true thickness of 7 metres. Indicated resources are estimated from 0 to 30 metres from a drill hole intercepts and Inferred resources from 30 to 150 metres. The deposit remains open at depth and in part along strike where expansion and infill diamond drilling has the potential to further upgrade and expand the mineral resource. Cautionary Statement Regarding Forward-Looking Information This press release contains forward-looking information (within the meaning of applicable Canadian securities legislation) that involves various risks and uncertainties regarding future events, including the potential for projects to be domestic sources of ethically produced base and critical metals for the expansion of renewable energy in North America. Such forward-looking information includes statements based on current expectations involving a number of risks and uncertainties and such forward-looking statements are not guarantees of future performance of the Company, and include, without limitation, metal price assumptions, cash flow forecasts, permitting, land transactions, community and other regulatory approvals, and the timing and completion of exploration programs in the USA and Canada, and the respective drilling and other technical results. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information in this news release, including without limitation, the following risks and uncertainties: (i) risks inherent in the mining industry; (ii) regulatory and environmental risks; (iii) results of exploration activities and development of mineral properties; (iv) risks relating to the estimation of mineral resources; (v) stock market volatility and capital market fluctuations; and (vi) general market and industry conditions. Actual results and future events could differ materially from those anticipated in such information. This forward-looking information is based on estimates and opinions of management on the date hereof and is expressly qualified by this notice. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada at www.sedar.com. The Company assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by applicable law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Figure 1. The Canoe Landing Deposit and past producing mines in the Bathurst Mining Camp of New Brunswick Figure 2. Canoe Landing Deposit Cross Section and Long Section SOURCE: Wolfden Resources Corp. View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated revenues increased 14% year-over-year to $144 million, driven by higher product prices and volumes in Brazil. Adjusted EBITDA of nearly $18 million was generated, with a resilient 12.4% margin despite rising raw material costs. Conda's annual turnaround was completed on time and on budget, maintaining peak utilization and comparable fertilizer volumes. Arias increased fertilizer production by 62% year-over-year and exceeded internal expectations. A mutually beneficial amendment to the long-term sulfuric acid contract with Rio Tinto was reached, shifting pricing to the Tampa Index and providing more certainty, which had an immediate positive impact on results. Adjusted EBITDA margin decreased by about 50 basis points sequentially due to continuing increases in raw material costs, particularly sulfur. Sulfuric acid sales at Arias were limited by the availability of sulfur purchases due to ongoing market dislocations. Global supply chain disruptions from the conflict in Iran are expected to negatively affect operating margins through the end of the year. Sulfur prices remain at record levels, with spot prices above $1,000 per ton in key regions, and no significant relief is expected until the Strait of Hormuz can be regularly transited. High fertilizer prices are causing demand destruction as farmers delay applications, and raw material costs are forecast to stay elevated, limiting margin recovery. Warning! GuruFocus has detected 4 Warning Signs with ITFS. Is ITFS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide details on the amendment to the long-term sulfuric acid contract with Rio Tinto and its impact on recent results and future expectations?A: David Delaney, CEO, explained that the amendment, effective in May, changed the pricing basis for Conda's sulfuric acid purchases from the Vancouver Sulfur Index to the Tampa Index, and includes provisions to shield both parties from extreme commodity price fluctuations. This change had an immediate positive impact on financial results as the Tampa Index was below the Vancouver Index throughout the second quarter. The new terms provide more price certainty, enabling both companies to run operations at maximum rates, optimize fixed cost absorption, and ultimately improve operating margins. This agreement underscores the long-standing partnership between Itafos and Rio Tinto, ensuring a stable domestic supply of a critical raw material for U.S. farmers. Q: What is the outlook for sulfur prices, and can we expect any relief soon?A: David Delaney, CEO, stated that sulfur prices remain at record levels due to global supply disruptions, primarily from the conflict in Iran and the closure of the Strait of Hormuz, which previously handled about 45% of global sulfur trade. While spot prices appear to have plateaued, they remain elevated, with Vancouver spot prices at $1,100 per ton and prices in the Middle East, China, and Brazil all above $1,000 per ton. Additional supply constraints include China's elimination of sulfuric acid exports and Russia's extended suspension of sulfur exports. Itafos expects to continue operating at full levels due to its supply contracts and location, but a meaningful price decline is unlikely until vessels can regularly transit the Strait of Hormuz. Q: What are your expectations for phosphate fertilizer prices over the next few months?A: David Delaney, CEO, indicated that phosphate fertilizer prices are expected to remain high due to ongoing supply availability issues. Global export supply has fallen, with China's P205 export restrictions and production shut-ins from major producers like OCP and Mosaic removing significant volumes from the market. The forecast calls for MAP NOLA prices to remain above $800 per short ton through the end of the year and into 2027. However, high raw material costs are likely to persist, meaning prices may not be high enough to meaningfully move operating margins back to historical levels. Demand destruction from farmers delaying applications is occurring, but this strategy will become harder to execute as planting seasons approach. Q: Are you seeing any relief for domestic farmers who have faced a rough few years?A: David Delaney, CEO, noted that crop prices have started to move in the right direction, providing some relief for farmers. Corn futures have approached $5 per bushel, wheat is nearing $7, and soybeans are around $12, with combined prices rising about 10% in July and 17% since the start of the year. This is supported by poor global weather conditions, including a potential super El Nino, drought in Europe, and uneven U.S. weather. Additionally, the U.S. House of Representatives passed a $12 billion farmer aid package, which could bring total federal farm packages to over $56 billion in 2026 if passed by the Senate, potentially adding upside to USDA estimates for net cash farm income. Q: How did Itafos perform operationally during the second quarter despite the challenging environment?A: David Delaney, CEO, highlighted that Itafos delivered a resilient operational performance. At Conda, the annual turnaround was completed on time and on budget, and the plant produced comparable fertilizer volumes year-over-year despite industry-wide supply chain issues. At Arias, fertilizer production increased by 62% year-over-year, and the team exceeded internal expectations. Although sulfuric acid sales were limited by sulfur availability, the company opportunistically stepped into an undersupplied market to generate higher revenues and EBITDA. This was accomplished while the sulfuric acid plant was down for about 45 days for a turnaround. The company also maintained high safety standards, with a total recordable incident rate (TRIFR) of 0.53. Q: What were the key financial highlights for the second quarter of 2026?A: David Delaney, CEO, reported consolidated revenues of $144 million, a 14% increase compared to the same period last year, driven by higher product prices and higher fertilizer and sulfuric acid prices and volumes in Brazil. The company generated adjusted EBITDA of just under $18 million, representing an adjusted EBITDA margin of 12.4%. While this margin decreased by about 50 basis points sequentially, it was considered resilient given the continuing increases in raw material costs, particularly for sulfur. Q: How is the ongoing conflict in Iran affecting Itafos's operations and outlook?A: David Delaney, CEO, stated that global supply chains for phosphate, sulfur, ammonia, and other commodities continue to be disrupted by the conflict in Iran. This is expected to negatively affect operating margins, most likely through the end of the year. The company is focused on controlling what it can, leveraging its well-established relationships with key customers and suppliers to efficiently run its business. Despite the near-term headwinds, Delaney expressed confidence in the long-term opportunities in the industry and Itafos's ability to prosper moving forward. Q: Can you elaborate on the production shut-ins across the industry and their impact on global supply?A: David Delaney, CEO, detailed that production shut-ins have been widespread. China, which exported over 5 million tons of DAP and MAP in 2025, has largely been removed from the equation this year due to export restrictions and high sulfur prices. OCP shut in production during the quarter, with Argus estimating their export volumes will decline by about 20% in 2026, removing about 1.4 million tons from global trade. Production shut-ins have also been announced by Mosaic in the U.S. and Brazil, and by producers in Russia and South Africa. Saudi Arabia has tried to fill the gap but faces higher transportation costs, adding further pressure to global prices. Q: What is the company's strategy for managing the high cost environment?A: David Delaney, CEO, emphasized that Itafos is focused on controlling the things it can control. The company's ability to operate its plants efficiently and maximize fertilizer production has been demonstrated in this challenging environment. The amended contract with Rio Tinto provides more certainty for a significant portion of its sulfuric acid needs. Itafos also continues to leverage its strong relationships with suppliers and customers to navigate the market dislocations. The company remains confident in its ability to deliver vital products to the domestic and global agriculture industry despite the difficult operating environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Hyperscalers are racing to build AI data centers and expand power capacity. U.S. data-center power demand is forecast to increase from 31 GW in 2025 to 66 GW by 2027, and data center electricity consumption is expected to increase four times from today’s level by 2035. Goldman Sachs projects hyperscaler spending on AI infrastructure to reach $765 billion in 2026 and soar past $1 trillion in 2027. The AI infrastructure buildout is fueling additional demand for industrial metals, such as copper, aluminum, steel, and lithium. Longer term, supply constraints could become increasingly important, with the IEA expecting copper and lithium supply deficits to persist through 2035. Rio Tinto plc (NYSE:RIO) is benefiting from the strong prices and surging demand for these metals. This has helped drive a sharp improvement in the company’s earnings and cash flow, along with shareholder returns. Rio Tinto plc (NYSE:RIO) released its 2026 half-year results on July 29. Its underlying earnings rose 43% to $6.9 billion, supported by strong metal prices. Copper, aluminum, and lithium businesses contributed 57% of the company’s EBITDA. In addition to the favorable commodity market conditions, Rio Tinto also reaped benefits from its operational efficiency program built around cost-cutting and divestments. This program launched last year and delivered $870 million in savings during the first half. That, combined with the $3.6 billion benefit from stronger commodity prices, helped push Rio Tinto’s free cash flow through the roof. The miner's free cash flow increased 75% to $3.8 billion. This led the company to increase its interim dividend 43% to $3.4 billion. For Rio Tinto, the AI infrastructure buildout could offer an additional source of demand for its products beyond the traditional construction markets. A lot of copper is being used to expand power grids, and aluminum is seeing more use in power infrastructure and data center components such as server racks. More steel is going into data center buildings and transmission towers, while lithium is used in battery energy storage systems. Both Rio Tinto plc (NYSE:RIO) and BHP Group Ltd (NYSE:BHP) are well positioned to benefit from AI-fueled demand for copper and other metals. But Rio Tinto compares favorably with rival BHP Group on several metrics. Rio Tinto stock currently offers a discounted valuation at a forward PE ratio of 11.57x, compared to BHP’s 16.56x. Rio also offers a higher dividend yield of 4.85% against BHP’s 3.04%. However, both companies generate strong cash flow. Rio's latest results showed strong momentum in free cash flow during the first half of 2026. Hedge fund investors are showing confidence in Rio Tinto’s stock. Hedge fund holders in the stock increased to 40 in Q1 from 38 the prior quarter. BHP Group Ltd (NYSE:BHP)’s hedge ownership also modestly increased in the same period but remained lower at 31 from 29. Several hedge funds increased their stakes in Rio Tinto. Renaissance Technologies increased its position by 418%, Quantinno Capital raised it by 33%, and Bridgewater Associates boosted it by 1,108%. Bearish sentiment is limited across Rio Tinto and BHP Group. Rio’s short interest ratio stood at 0.74% as of July 15, down from 0.82 at the end of June. BHP Group Ltd (NYSE:BHP)’s short interest also edged lower in the same period to 0.62% from 0.71%. The rapidly rising AI infrastructure capex is creating a new source of long-term demand for industrial metals. Rio is well-positioned to benefit from this demand as its exposure to copper, aluminum, and lithium grows and the iron ore operation remains resilient. Additionally, the company’s efficiency program is contributing to margin expansion and supporting stronger free cash flow. However, commodity-price volatility, execution challenges at major projects, and China’s softer steel demand are some of the issues that could affect Rio adversely. That said, Rio’s strong free cash flow generation, solid dividend yield, and hedge fund interest strengthen its long-term investment case. While we acknowledge the potential of RIO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Should You Buy Lockheed Martin After Its Strong Q2 Earnings Rally? and AI-Fueled Demand Signals a Bigger Opportunity for Bloom Energy (BE) Investors. Disclosure: None. Follow Insider Monkey on Google News.

Albemarle Corporation ALB is slated to report second-quarter 2026 results after the closing bell on Aug. 5. ALB is likely to have benefited from its cost and productivity actions and higher volumes in its Energy Storage unit in the second quarter.The Zacks Consensus Estimate for second-quarter earnings has been revised upward over the past 60 days. The consensus estimate for earnings is pegged at $3.35 per share, suggesting a 2,945.5% year-over-year rise. The Zacks Consensus Estimate for second-quarter revenues is currently $1.59 billion, indicating a roughly 19.2% increase from the year-ago quarter. Image Source: Zacks Investment Research ALB beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 74.5%, on average. Image Source: Zacks Investment Research Our proven model predicts an earnings beat for ALB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. ALB has an Earnings ESP of +2.21% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. ALB is expected to have gained from higher lithium volumes in the June quarter. Healthy customer demand, capacity expansion and plant productivity improvements are expected to have supported volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities. The consensus estimate for Energy Storage sales for the second quarter is pegged at $1,192 million, suggesting a 66% year-over-year growth.Cost-saving, pricing and productivity initiatives are also expected to have aided ALB’s performance in the second quarter, supporting margins. Efforts to drive operating efficiency and improve the utilization of raw materials are likely to aid the company’s results.Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements in 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered.While the Specialties segment faces challenges from the ongoing volatility in petrochemicals and oil & gas markets due to geopolitical tensions, higher bromine prices as well as benefits of cost and productivity actions, are expected to have supported results in the quarter to be reported.Falling lithium market prices are weighing on ALB stock. Lithium prices have pulled back amid slowing demand for electric vehicles (EVs) in China, an inventory glut and prospects of increased supply from mine restarts and capacity additions. EV orders have slowed in China, the world’s biggest lithium consumer, while demand in energy storage systems remains healthy. Some impacts of the price retreat are expected to reflect on the company’s performance in the June quarter. ALB’s shares are down 16.1% year to date, underperforming the Zacks Chemical - Diversified industry’s 17.6% increase and the S&P 500’s rise of 9.5%. Its peers Sociedad Quimica y Minera de Chile S.A. SQM and Rio Tinto Group RIO have lost 2.6% and gained 19.8%, respectively, over the same period. Image Source: Zacks Investment Research ALB is currently trading at a forward price-to-sales ratio of 2.17, above the industry. It is trading at a discount to Sociedad Quimica and a premium to Rio Tinto. Albemarle currently has a Value Score of C. Sociedad Quimica and Rio Tinto have a Value Score of B and A, respectively. Image Source: Zacks Investment Research Albemarle is well-positioned to capitalize on the substantial growth opportunity in the battery-grade lithium market, supported by the global transition toward EVs. The market for lithium batteries and energy storage remains strong, especially for EVs, offering significant opportunities for the company to develop innovative products and expand capacity. The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity.ALB also remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. However, the pullback in lithium prices casts a pall on its prospects. Albemarle is gaining from higher lithium volumes driven by project ramp-ups, as well as initiatives to expand global lithium conversion capacity and enhance productivity. The company is well-placed to gain from long-term growth in the battery-grade lithium market.  Rising earnings estimates and a strong growth outlook are other positives. However, retreating lithium prices could dampen its prospects. Its stretched valuation also might not offer an attractive entry point at this time. Investors who already own ALB shares may consider maintaining their positions while awaiting greater visibility following the company’s upcoming earnings release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB) : Free Stock Analysis Report Rio Tinto PLC (RIO) : Free Stock Analysis Report Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Rio Tinto PLC? Here are five stocks we like better. Rio Tinto’s first-half results showed strong cash flow, higher earnings and a larger interim dividend. Copper, aluminum and lithium are becoming more important to the company as AI infrastructure, electrification and grid demand grow. Iron ore remains a major cash generator, but investors still need to watch commodity prices, currency pressure and geopolitical risks. Rio Tinto (NYSE: RIO) just delivered a first-half report with numbers that back up a broader thesis rooted in a major shift. Physical assets are entering a multi-year period of outperformance. Higher bond yields, oil supply anxieties, and an artificial intelligence (AI) infrastructure buildout are converging. Rio Tinto sits at the intersection of all three trends. Rio Tinto posted EBITDA of $14.8 billion, up 28% year-over-year. Free cash flow nearly doubled, jumping 75% to $3.8 billion. Underlying earnings rose 43% to $6.9 billion. The board responded with a $3.4 billion interim dividend, up 43% from a year ago. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now However, the bigger story is the why. That goes back to the broader thesis that hard assets are at the beginning of a multi-year bull cycle. Copper, aluminum, and lithium now generate more than half of Rio Tinto's EBITDA. That mix gives investors direct exposure to electrification, grid buildout, and AI-driven power demand. Meanwhile, iron ore keeps the balance sheet steady through this transition. Copper EBITDA surged 84% to $5.7 billion, driven by the ramp-up at the company’s Oyu Tolgoi project and a 39% jump in average realized copper prices. Aluminum and lithium combined rose 38% to $3.3 billion. Iron ore stayed roughly flat at $6.8 billion, still the largest single contributor. → MarketBeat Week in Review – 07/27- 07/31 Here’s why that balance matters. Copper is needed in the AI and electrification trade. Iron ore is a steady cash generator. Together, they reduce Rio Tinto's dependence on any single commodity cycle. That level of diversification is rare among pure-play miners. Management also flagged accelerating productivity gains. The company banked $870 million in savings during H1, targeting a $1.8 billion annualized run-rate by year-end. Lower unit costs mean margins can hold even if commodity prices soften later in the cycle. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Despite the strong quarter, RIO shares have pulled back from 2026 highs near $110. The stock now trades around $96, still well above its 200-day moving average near $89. It's also about 9% below its consensus price target of $105.50. That gap between fundamentals and price action is worth watching. The daily chart shows a bullish MACD crossover forming in recent sessions, with the MACD line at 0.88 crossing above the signal line at -1.01. That's typically an early momentum signal. Shares are also up nearly 3% on the earnings reaction, suggesting the market is still digesting just how strong this quarter was. The disconnect may reflect broader sentiment toward miners, not Rio Tinto specifically. Investors have spent much of 2026 rotating toward technology and away from commodities. That rotation looks increasingly mistaken given the factors driving demand for copper, aluminum, and lithium. Three forces are converging to favor hard assets over the next several years. Higher bond yields raise the cost of capital for speculative growth stories. Oil supply disruptions, including the Middle East tensions cited in this report, raise energy input costs across the board. Rio Tinto's diesel costs alone rose by $0.8 per ton year-over-year due to higher oil prices. At the same time, AI infrastructure buildout requires enormous quantities of copper and aluminum. Data centers need grid capacity, transmission lines, and backup power, all copper-intensive. Rio Tinto's guidance indicates copper production will grow to 800,000 to 870,000 tons for the full-year 2026. This isn't a story about one commodity. It's about physical inputs becoming the bottleneck for the next phase of economic growth. Companies that own the mines, not just the technology layer, may capture outsized value. Not every signal is favorable. Iron ore prices dipped modestly through the first half, and IOC production in Canada fell 22% year-over-year. The Oyu Tolgoi tax dispute with Mongolia, totaling $443 million paid under protest, adds geopolitical risk to the copper growth story. Currency headwinds were also present in the results. A weaker U.S. dollar against the Australian and Canadian dollars reduced underlying EBITDA by $700 million. If the dollar continues weakening, that pressure could persist. Investors should weigh these risks against the productivity and diversification tailwinds. Rio Tinto's first-half results showed what a well-diversified physical-asset business can deliver in a favorable pricing environment. Free cash flow up 75%, dividends up 43%, and copper EBITDA nearly doubling all support the underlying thesis. Hard assets are becoming harder to ignore. For investors building portfolios around the next several years of higher rates, energy uncertainty, and AI infrastructure spending, Rio Tinto offers direct, diversified exposure. The stock's pullback from 2026 highs, despite improving fundamentals, may represent an entry point rather than a warning sign. The article "Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Rio Tinto Group (LSE:RIO) has drawn fresh attention after reporting half year 2026 earnings, with sales of US$31.0b and net income of US$6.7b, along with higher basic and diluted earnings per share. See our latest analysis for Rio Tinto Group. The earnings update slots into a solid year for Rio Tinto Group, with the share price at £69.77 and a year to date share price return of 16.56%, while the 1 year total shareholder return of 59.96% points to strong longer term momentum despite weaker 3 month share price performance. If you want to see how other miners are trading around similar themes of copper and critical minerals, it is worth scanning the 8 top copper producer stocks Rio Tinto Group appears to be a robust miner, with copper and critical minerals becoming a bigger part of the story. After such a strong 1-year return, the key question now is whether the stock price already reflects that strength. Rio Tinto Group’s most followed valuation narrative places fair value at £77.68, which sits above the recent £69.77 close and frames the current 1 year share price run in a different light. Read the complete narrative. Want to see what sits behind that battery metals story for Rio Tinto Group? The narrative focuses on measured revenue growth, firmer margins, and a future earnings multiple that many investors might not expect at first glance. Result: Fair Value of £77.68 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Rio Tinto Group’s story could shift quickly if weaker iron ore and lithium pricing persists, or if higher leverage and project execution issues strain the balance sheet. Find out about the key risks to this Rio Tinto Group narrative. There is also a discounted cash flow view to consider. On this measure, Rio Tinto Group at £69.77 is trading above an estimated future cash flow value of £53.11, which suggests the stock may be expensive rather than 10.2% undervalued. Which set of assumptions do you find more realistic? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Rio Tinto Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 8 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The mix of positives and concerns around Rio Tinto Group may feel finely balanced right now, so it makes sense to move quickly, check the underlying data yourself, and weigh it up against your own expectations before sentiment shifts again, including the 3 key rewards and 1 important warning sign. If Rio Tinto Group has sharpened your interest in commodities and quality balance sheets, do not stop here. Broader opportunities across sectors could suit your goals even better. Spot potential turnaround opportunities early by reviewing 46 elite penny stocks with strong financials that already show stronger financial underpinnings than many investors expect. Focus on quality at a sensible price by scanning the 8 high quality undervalued stocks that combine solid fundamentals with room for rerating. Prioritise resilience and capital preservation by assessing the 7 resilient stocks with low risk scores that score well on financial strength and volatility. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RIO.L. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Solis Minerals Ltd (TSX-V:SLMN, ASX:SLM, OTCQB:SLMFF, FRA:08WA) has strengthened its South American energy metals portfolio during the June 2026 quarter, acquiring a district-scale Brazilian lithium project, securing permits for two Peruvian copper programs and raising A$6 million to fund drilling. The company moved rapidly to advance the Brazil Lithium Project in the Araçuaí–Salinas Lithium Valley, where drilling began after quarter-end at the Mandacaru target. Solis also ended the quarter with A$6.6 million in cash, providing funding to test its priority lithium and copper targets. During the quarter, Solis acquired 100% of Rio Tinto’s Brazil Lithium Project for US$500,000 and a 1.75% net smelter return royalty. The package covers about 93,000 hectares in Minas Gerais and includes the Mandacaru and Campo Grande targets, both of which have strong surface lithium mineralisation and well-defined geochemical and structural signatures. Previous Rio Tinto exploration identified significant geochemical anomalies and weathered pegmatites containing spodumene pseudomorphs in float samples. The project is adjacent to tenure held by PLS Group Ltd (ASX:PLS) in the Araçuaí–Salinas Lithium Valley, an emerging hard-rock lithium district. Araçuaí–Salinas Lithium Valley in Minas Gerais, Brazil. Following the end of the quarter, Solis began a 10-hole, 2,000-metre diamond drilling program at Mandacaru. The program is testing a coherent lithium pegmatite system extending across an interpreted 800-metre corridor. Targets were selected by combining surface mapping, soil and rock-chip geochemistry, auger drilling, structural interpretation and high-resolution drone imagery. The presence of lithium-caesium-tantalum pathfinder anomalies, particularly elevated caesium values, is considered significant because it may indicate advanced magmatic fractionation associated with spodumene-bearing pegmatite systems. Drilling is designed to determine the continuity and geometry of the pegmatites and test for spodumene mineralisation at depth. Rio Tinto’s former senior geologist, who supported the identification of Mandacaru and Campo Grande, also joined Solis’ field team as a consultant during the exploration and drill-planning phase. Mandacaru target, RT soil samples and auger locations. Solis also secured all necessary approvals to drill the Cinto and Cucho copper projects in Peru. At the 100%-owned Cinto project, approvals cover 11 drill pads for a planned program of about 2,500 metres. Drilling is expected to begin during the September quarter of 2026 and will test copper targets defined by coincident surface geochemistry, magnetic data and induced polarisation anomalies. The initial holes will focus on priority geophysical and geochemical targets, with the option to expand the campaign if early results are encouraging. Cucho, where Solis can earn up to 100% ownership, is a more advanced porphyry-style copper prospect. Historical drilling has confirmed copper mineralisation from surface, while several geophysical and geochemical targets remain untested. The company is continuing to refine the Cucho drilling sequence using historical information, recent fieldwork and geophysical interpretation. Planned drill program at the Cinto Copper Project, Peru. Solis raised A$6 million before costs through the issue of about 63.2 million shares at A$0.095 each to institutional and sophisticated investors. PLS participated on a pro-rata basis to maintain its 5.1% interest and remain Solis’ largest shareholder. Funds will be directed toward drilling at the Brazil Lithium Project and Cinto, regional exploration and working capital. The company reported exploration and evaluation expenditure of A$577,000 during the quarter and estimated funding for about 4.6 quarters based on its June operating cash outflows. Solis will continue the Mandacaru drilling program and assess the resulting geological and assay information to determine follow-up work across the broader Brazil Lithium Project. The company also plans to begin drilling at Cinto during the September quarter and will continue refining the exploration strategy for Cucho. Solis Minerals is an exploration company focused on lithium, copper and other energy metals opportunities in South America. Its portfolio includes the district-scale Brazil Lithium Project in Minas Gerais and the Cinto and Cucho copper projects in Peru. The company is led by a team with experience across exploration, project development and transactions in the South American mining sector.