Rio Tinto's New CEO Targets Cost Cuts, Asset Sales in Streamlining Push -- Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil is down 0.1% to $62.59 a barrel.

-- European benchmark gas is down 3.1% to 27.32 euros a megawatt-hour.

-- Gold futures are flat at $4,234.50 a troy ounce.

-- LME three-month copper futures are down 0.2% to $11,426 a metric ton.

TOP STORY:

Rio Tinto's New CEO Targets Cost Cuts, Asset Sales in Streamlining Push

Rio Tinto's new chief executive officer said he would cut costs and sell assets in a bid to simplify the business.

Simon Trott, who took the helm of the Anglo-Australian miner in August, used the investor day on Thursday to set out how a simplified business would help achieve his goal of making Rio Tinto the "most valued" metals and mining business.

The plan involves delivering up to $10 billion in cash proceeds from the sale of assets and cutting roles as part of its restructuring.

OTHER STORIES:

Rio Tinto's Bacterial Nuton Venture Produces Its First Copper

Rio Tinto said its Nuton subsidiary, which uses bacteria and acid to extract copper from deposits that are otherwise uneconomical to mine, has produced its first batch of metal in the desert east of Tucson, Ariz.

The Anglo-Australian miner expects to produce about 30,000 metric tons of ready-to-use copper cathode over the next four years at Gunnison Copper's recently restarted Johnson Camp mine.

Rio has been developing the Nuton technology for more than 30 years. Work began 18 months ago at Johnson Camp, the first of several mines in the Americas where Rio has deals to deploy its microbial technology to strip copper from abundant but low-grade primary sulfide ores that might otherwise be considered waste.

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U.K. Approves $37 Billion in Funding for Energy Grid

U.K. energy-markets regulator Ofgem approved 28 billion pounds ($37.39 billion) in funding for the country's grid via a price-control framework, a move it says will lessen volatility in customers' power bills.

"Energy network companies have been given the green light for multibillion-pound funding to strengthen the stability, security and resilience of our energy networks," Ofgem said Thursday.

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Trump Administration Lowers Fuel-Economy Rules for Carmakers

President Trump on Wednesday said he plans to roll back federal fuel-economy rules for passenger vehicles, his latest move to relieve the U.S. auto industry from mandates to build cleaner, more-fuel efficient cars.

The administration's move comes months after Congress and the Trump administration this summer essentially nullified the mandates-known as Corporate Average Fuel Economy rules, or CAFE-by eliminating fines for violating them.

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Chinese Mining Stocks Rise as Copper Futures Surge to Record

Shares of Chinese mining companies rose Thursday after copper prices hit a record high overnight amid mounting supply concerns.

Zijin Mining Group's Hong Kong stock climbed as much as 4.45% to 34.24 Hong Kong dollars, equivalent to US$4.40, in early trading before paring gains to about 2.0%. Its Shanghai-listed shares were 3.0% higher at midday.

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Orla Mining Initiates 1.5 Cent Quarterly Dividend

Orla Mining initiated a 1.5 cent per share quarterly dividend, equal to 6 cents per year.

The board's decision to start paying a dividend is based on the company's financial strength, confidence in its long-term growth strategy, and a commitment to returning capital to shareholders, Orla said Wednesday.

MARKET TALKS:

European Gas Prices Drop as Sentiment Remains Bearish -- Market Talk

1444 GMT - European natural-gas prices drop more than 2.5% on prospects of ample LNG supply this winter. The benchmark Dutch TTF contract is down 2.8% at 27.41 euros a megawatt hour in afternoon trading and has fallen more than 15% on the month. According to DNB analysts, current short positioning exceeds levels seen both during the pandemic and in February last year, when prices briefly dropped below 23 euros a megawatt hour. While EU storage levels sit below the five-year average, investors remain confident that rising U.S. LNG exports and soft demand in Asia will keep the European market well-supplied throughout the heating season. ([e-mail])

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Grains Mixed as Export Sales Land Within Expectations -- Market Talk

0938 ET - CBOT grain futures are mixed after the USDA reported export sales covering the week ended Oct. 30. The USDA says that corn sales in the 2025/26 and 2026/27 marketing years totaled 1.97 million metric tons, while 1.25 million tons of soybeans and 515,900 tons of wheat were sold. The date of this report is around the time President Trump and Chinese President Xi met and reached a tentative agreement in which China would resume buying U.S. soybean exports, totaling 12 million metric tons. About half of that has been sold and shipping has started, says Doug Bergman of RCM Alternatives in a note. CBOT soybeans are up 0.4%, while corn rises 0.2% and wheat falls 0.5%. ([e-mail])

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Oil Futures Rise Amid Geopolitical Concerns

0901 ET - Oil futures edge higher as yesterday's surprising increase in U.S. crude inventory is offset by geopolitical threats to global supply. Ritterbusch analysts write that oil prices could keep rising in coming days due to "the possibility of renewed drone attacks on Russian oil refineries, pipelines, shadow tankers, etc." The firm says the war "could drag on well into next year in demanding enough risk premium to offset," potential supply increases. WTI futures rise nearly 1% to $59.39 a barrel. ([e-mail]; @ptrevisani)

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Copper Slips After Record Surge on Supply Fears -- Market Talk

0947 GMT - Copper slips in early trading after hitting a fresh record, with futures on the London Metal Exchange down 0.5% to $11,395.50 a metric ton. Prices reached an intraday high of $11,529 a ton earlier in the session, driven by concerns over global supply shortages and mining disruptions. "Data from the London Metal Exchange showed a spike in orders to withdraw copper from its warehouses in Asia," ANZ analysts say. "This comes amid concerns that the U.S. will announce levies on refined copper in 2026." Meanwhile, Ivanhoe Mines earlier this week trimmed its production outlook for the Kamoa-Kakula operation in the Democratic Republic of Congo, while Glencore cut its production target for next year. In contrast, Rio Tinto on Thursday raised its 2025 production forecast, citing accelerating developments at its Oyu Tolgoi mine in Mongolia. ([e-mail])

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Rio Tinto's New CEO Has Bold Ambitions -- Market Talk

0934 GMT - Rio Tinto's updated strategy contains some bold ambitions, Hargreaves Lansdown's Matt Britzman writes. CEO Simon Trott took the helm of the Anglo-Australian miner in August. If these new goals are achieved, it should put the mining giant on a firmer footing, the analyst adds. Cost cutting measures and diversification could help grow underlying cash profit by up to 50% by the end of the decade, he says. However, getting there won't be easy, especially with underwhelming near-term guidance, Britzman says. Rio Tinto's London shares trade flat at 5,504 pence. ([e-mail])

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Gold Miners Fall as Yellow Metal Slips -- Market Talk

0917 GMT - London and Johannesburg listed gold miners fall in morning trade as gold prices slide. Investors are looking ahead to the Federal Reserve's policy path. They will be looking for clues from U.S. weekly jobless data and the PCE index due later this week. Gold futures in New York are down 0.3% at $4,218.30 a troy ounce. In London, Endeavour Mining and Fresnillo both fall around 2.6%, while Hochschild Mining drops 1.2%. In Johannesburg, Sibanye-Stillwater drops 4% while Harmony Gold falls nearly 3%. ([e-mail])

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Oil Rises on Russia-Ukraine Concerns

0902 GMT - Oil prices rise on concerns over stalled talks to end the war in Ukraine and persistent attacks against Russian energy infrastructure. "The recent surge in incidents could alter shipowners' risk appetite," says Matt Wright from Kpler. "If attacks continue, tankers loading in the Black Sea will demand higher freight rates, especially as non-Russian routes have seen rates climb sharply following the growth in Middle East crude output." Crude futures continue to be stuck in a narrow trading range, with further gains capped by prospects of an oversupplied market next year. In early trading, Brent crude rises 0.6% to $63.03 a barrel, while WTI gains 0.7% to $59.39 a barrel. ([e-mail])

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Gold Slips on Profit-Taking, With Focus on Upcoming U.S. Data -- Market Talk

0849 GMT - Gold prices slip in early trading as investors book profit after Wednesday's gains and await more cues on the Federal Reserve's policy path. Futures in New York are down 0.3% to $4,220.90 a troy ounce, while spot gold slips 0.1% to $4,203.12 an ounce. "We expect Chair Powell will signal a cautious meeting-by-meeting approach to future rate cuts, to balance concerns about softness in hiring against elevated inflation and inflation uncertainty," Brian Martin and Tom Kenny from ANZ say. Focus is now on U.S. weekly jobless data and the PCE index due later this week. ([e-mail])

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Rio Tinto Throttles Back Lithium Projects -- Market Talk

0854 GMT - Rio Tinto has throttled back lithium expectations to only existing lithium projects--a move that was widely expected by investors, RBC Capital Markets analysts write. It has delivered $650 million in annualized productivity savings and is targeting more. The market was expecting cost savings to be set out but wasn't expecting much excitement, the analysts add. The updated strategy is more conservative then peer Glencore, which promised a Mt. Everest of copper production on Wednesday, the analysts add. Rio Tinto's London shares trade down 0.4% at 5,484 pence.([e-mail])

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Silver Prices Could Stay Elevated in 2026 -- Market Talk

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12-04-25 1039ET