Rio Tinto share price leaping to new highs
Rio Tinto has climbed to a new all-time high by afternoon trade on Wednesday but the key question for investors is whether it will be able to sustain it.
Rio Tinto Limited (ASX: RIO)
has risen more than 7% over the past week and touched an all-time high of $164.85 by afternoon trade on Wednesday.
This surge was mainly due to the fact that the company on 5 February confirmed that it had no intention to bid for Glencore plc as it could not reach terms that would deliver value for shareholders.
On 30 January 2026, Rio Tinto agreed with Aluminum Corporation of China Limited (Chalco) and Votorantim to form a joint venture to acquire Votorantim’s controlling stake in Companhia Brasileira de Aluminio (CBA) in Brazil.
Under the structure, Rio Tinto will hold 33% while Chalco will hold 67% which supports its plan to expand low-carbon aluminium output and strengthen its presence in sustainable aluminium markets.
In its fourth quarter 2025 operations update, the company reported 8% year-on-year growth in copper equivalent production which was supported by progress at the Oyu Tolgoi underground mine.
Copper production rose 11% year-on-year in 2025 and exceeded the top end of guidance which positioned Rio Tinto as a key beneficiary of electrification and energy transition demand.
Pilbara iron ore operations delivered record quarterly production as shipments recovered from earlier weather disruptions and full-year guidance was met across all major product groups.
Lithium’s contribution to overall profile has grown with record quarterly output in Argentina while strong cash generation and balance sheet discipline continued to support shareholder returns and long-term project funding.
Major growth projects such as Simandou, Oyu Tolgoi and multiple lithium expansions remain on track and are expected to support volume and earnings growth over the medium term.
Rio Tinto has consistently distributed fully franked dividends on a semi-annual basis in the past decade. The company has a current annual dividend yield of 3.60% and trades on a P/E ratio of 18.55 which appears reasonable given its diversified commodity mix, strong margins and long-life assets.
With a market capitalisation of about $61 billion and a 37% share price rise over the past 12 months, management is focused on operational discipline, cost control and long-term value creation.
(Source: Company Announcements)
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