Mining in 2023: Steady as It Goes
DBRS Morningstar's 2023 outlook for the credit profiles of the mining issuers in its rating universe remains neutral. Although benchmark iron ore, copper, aluminum, and metallurgical coal prices (based on Bloomberg consensus price forecasts as of January 4, 2023) are all expected to decline compared with 2022, prices are still expected to remain above historic norms. As a result, issuers' forecast operating cash flow and EBITDA are expected to be strong, which, combined with low debt levels, should result in the financial risk profiles of mining issuers largely remaining in the AA category over the next two years, or very robust relative to their underlying business risk assessments.
Rio Tinto is engaged in finding, mining and processing mineral resources. Co. has four product groups: iron ore, which supplies the global seaborne iron ore trade; aluminium, which includes bauxite mines, alumina refineries, and aluminium smelters; Copper and Diamonds, which has managed operations in Australia, Canada, Mongolia and the U.S., and non-managed operations in Chile and Indonesia, with by-product including gold, silver, molybdenum and others such as sulphuric acid, rhenium, and lead carbonate; and Energy and Minerals, which comprises mining, refining and marketing operations across borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium sectors.
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