• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

October 12, 2010 - Rio Tinto (RTP) is Firing on all 16 Cylinders

Diary

Featured Trades: (RTP), (IRON ORE), (DIAMONDS)


2) Rio Tinto (RTP) is Firing on all 16 Cylinders. I managed to catch an interesting interview on TV the other day with Tom Albanese of Rio Tinto (RTP), the planet's second largest producer of iron ore. It is one of the companies at the nexus of the global economy which I have long been following, and is at the sweets spot of several global macroeconomic trends at once.

There is a two tier global economy today, with the Asian powerhouses delivering classic 'V' shaped recoveries, while the US and Europe lag behind in the dust. China has managed its tightening well, as there is no sign of a bubble in the main economy, and has reached the 'Goldilocks' point in the supply/demand equation. It is moving 'from strength to strength.'

For RTP, the net net has been to drive iron ore prices higher to the point where steel companies are moaning about resource costs. Most RTP mines are running at full capacity, and the way to further riches for the company is through further expansion of vast open pit mines in Australia's Pilbara region.

RTP is also the world's fourth largest diamond miner, which thanks to a 92% jump in demand from China, is also enjoying boom times. It's amazing how the simple adoption of a western custom, presenting a bride with a wedding ring, can have such global implications for international trade (click here for 'Diamonds are Still an Investor's Best Friend').

RTP is also the world's top producer of bauxite, no 2 in alumina, no. 3 in uranium, no. 5 on copper, and no. 13 in gold. Its value has been further bolstered by a relentlessly appreciating Australian dollar long chronicled in this letter (click here for 'Australian Dollar Holders Make a Killing').

The only risk that Albanese sees to the whole scenario would be measures that restrained international trade, for whatever reason. So far there has been a lot of blustery talk on the matter, but no action. I have always believed that this is a company that is in a dozen right places at the right time, and that despite a 500% move off the bottom over the past 18 month, should be bought on any substantial dips.

RTP12.png


Pilbara.jpg


AustraliaPatty1.jpg

Want to Race for Pink Slips in the Pilbara?

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2010-10-12 01:50:502010-10-12 01:50:50October 12, 2010 - Rio Tinto (RTP) is Firing on all 16 Cylinders

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: October 12, 2010 - The Big Hedge Fund Killing in September Link to: October 12, 2010 - The Big Hedge Fund Killing in September October 12, 2010 - The Big Hedge Fund Killing in September Link to: The Mad Hedge Fund Trader Interviews Marc Chandler of Brown Brothers Harriman Link to: The Mad Hedge Fund Trader Interviews Marc Chandler of Brown Brothers Harriman The Mad Hedge Fund Trader Interviews Marc Chandler of Brown Brothers Harrim...
Scroll to top