Mixed opinion among shareholders for Rio Tinto buyback
Source: Xinhua   2017-01-19 15:29:33

SYDNEY, Jan. 19 (Xinhua) -- With Rio Tinto's share prices at a 22-month high, commodity prices soaring and a freeing up of the company's debt obligations, Australian market analysts believe next month could signal the beginning of share buybacks.

"Among its Australian peers we view Rio as being the strongest candidate for a potential dividend increase or share buyback surprise when it releases its full year result," Macquarie market analyst Hayden Bairstow said in a note to investors.

Opinion remains divided. Australian Foundation Investment Company's (Rio Tinto's seventh largest investor) Managing Director Ross Baker told the Australian Financial Review that his company was not opposed to the concept of share buybacks, but he was unsure they were the best option at this time.

"We are not convinced that Rio shares at current prices represent compelling value as a buy given that they've risen more than 50 percent from their low a year ago," he said.

"If they do buy back shares they should do it when the price is low and they represent an attractive investment, rather than when the share price is high."

Other investors view the option of buybacks as more positive. Tribeca Investment Partners global natural resources fund manager Ben Cleary told the Australian Financial Review that Rio will have to buy back stock and other capital management initiatives because it would be safer than trying to make further investments after failed acquisitions of Alcan and Riverside Mining.

At 16:00 (AEDS) Rio Tinto's share prices were trading at 63.46 Australian dollars, up 0.51 percent.

Editor: ying
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Mixed opinion among shareholders for Rio Tinto buyback

Source: Xinhua 2017-01-19 15:29:33
[Editor: huaxia]

SYDNEY, Jan. 19 (Xinhua) -- With Rio Tinto's share prices at a 22-month high, commodity prices soaring and a freeing up of the company's debt obligations, Australian market analysts believe next month could signal the beginning of share buybacks.

"Among its Australian peers we view Rio as being the strongest candidate for a potential dividend increase or share buyback surprise when it releases its full year result," Macquarie market analyst Hayden Bairstow said in a note to investors.

Opinion remains divided. Australian Foundation Investment Company's (Rio Tinto's seventh largest investor) Managing Director Ross Baker told the Australian Financial Review that his company was not opposed to the concept of share buybacks, but he was unsure they were the best option at this time.

"We are not convinced that Rio shares at current prices represent compelling value as a buy given that they've risen more than 50 percent from their low a year ago," he said.

"If they do buy back shares they should do it when the price is low and they represent an attractive investment, rather than when the share price is high."

Other investors view the option of buybacks as more positive. Tribeca Investment Partners global natural resources fund manager Ben Cleary told the Australian Financial Review that Rio will have to buy back stock and other capital management initiatives because it would be safer than trying to make further investments after failed acquisitions of Alcan and Riverside Mining.

At 16:00 (AEDS) Rio Tinto's share prices were trading at 63.46 Australian dollars, up 0.51 percent.

[Editor: huaxia]
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