Rio Tinto stock gains on Aurukun bauxite deal and strong copper earnings
Published on 09/08/2026 at 12:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Rio Tinto Group stock (ISIN GB0007188757) is trading close to its recent highs after the Anglo Australian miner agreed to acquire the Aurukun bauxite project in Queensland and reported a sharp jump in first half 2026 copper earnings, while market data show the shares around 7,593 GBX in London as of September 7, 2026.
Aurukun bauxite acquisition shapes growth story
On September 8, 2026, Rio Tinto announced that it has agreed to acquire the Aurukun Bauxite Project in Western Cape York, Queensland from a joint venture between Glencore and Mitsubishi Development, adding another long term bauxite resource to its portfolio of aluminum raw materials.GuruFocus According to a market note, the deal still requires approvals from the Queensland Government and other Australian authorities, underscoring that regulatory risk remains a key factor for investors following the transaction.GuruFocus
Separate coverage of the same transaction highlights that Rio Tinto plans to acquire the Aurukun project from partners including Glencore, reinforcing its strategy to secure high quality bauxite deposits to feed alumina refineries and smelters.Placera For shareholders, the deal signals management confidence in long term demand for aluminum and reinforces the group’s diversification beyond iron ore, even though the short term earnings impact will depend on the timing of development and capital spending.
Copper earnings surge in first half 2026
Beyond the Aurukun deal, recent earnings data underline how Rio Tinto’s copper operations have become a major profit driver in 2026. In the first half of 2026, Rio Tinto’s copper business posted an 84 percent year on year increase in underlying EBITDA, reaching USD 5.7 billion, while group free cash flow surged by 325 percent over the same period.Futunn news This marks a clear shift in the earnings mix, as the company’s largest profit driver, its iron ore unit, saw underlying EBITDA decline by 1 percent year on year in the period.Futunn news
Analysts note that non ferrous metals including copper, aluminum and lithium now account for more than half of Rio Tinto’s earnings before interest, taxes, depreciation and amortization in the latest reporting period, compared with a historically higher share from iron ore.Futunn news For investors, the quantified jump in copper EBITDA and free cash flow provides a concrete reason why Rio Tinto is positioning itself as a beneficiary of stronger copper fundamentals, including demand linked to grid investment and electrification, even as iron ore markets face more subdued momentum.
Valuation looks stretched despite dividend yield
At the current price level, valuation indicators paint a more cautious picture. One fundamental screen as of September 8, 2026 estimates Rio Tinto’s intrinsic GF Value at USD 75.55 per share, compared with a current market price around USD 103.27, implying that the stock is approximately 36.7 percent overvalued based on this model.GuruFocus The same analysis shows a trailing price to earnings ratio of 13.83 times, above the 5 year median of 9.01 times, indicating that investors are paying a premium versus the company’s historical valuation range.GuruFocus
Income oriented investors will note that Rio Tinto offers a dividend yield near 4.5 percent with a payout ratio around 54 percent on recent figures, but dividend growth has declined by 20.3 percent over the last three years, raising questions about the sustainability of future distribution increases if commodity markets turn less supportive.GuruFocus analysis The combination of elevated valuation metrics and slowing dividend growth is an important counterweight to the strong operational momentum in copper and the strategic appeal of the Aurukun bauxite acquisition.
Product spotlight: Western Range iron ore project
One representative project in Rio Tinto’s portfolio is the Western Range iron ore mine in Western Australia, which the company opened together with China’s Baowu in June 2025 and which underpins long term iron ore supply commitments to Asian steelmakers.Motley Fool Australia While iron ore EBITDA declined by 1 percent year on year in the first half of 2026, Western Range remains a key asset for Rio Tinto’s strategy to keep unit costs competitive and to maintain high quality Pilbara blend volumes for customers, even as the earnings center of gravity gradually shifts toward copper and other non ferrous metals.Futunn news
Rio Tinto stock price near recent highs
Market data for Rio Tinto’s primary listing on the London Stock Exchange show that the shares closed at approximately 7,642 GBX on September 7, 2026, with a marginal daily gain of 0.01 percent and a year to date performance around 27.49 percent, placing the current price close to the upper end of the recent trading range.MarketScreener A real time estimate from Cboe Europe on September 8, 2026 shows Rio Tinto trading near 7,593 GBX, down around 0.6 percent on the day but still up roughly 27 percent versus the start of the year, illustrating that the stock remains well supported despite minor intraday consolidation.MarketScreener
In US markets, an American listing reference shows Rio Tinto finishing at around USD 103.27, up 0.42 percent in the latest session tracked, reflecting the translation of the strong London performance into dollar terms.The Rio Times With the current price some 36.7 percent above the GF Value estimate of USD 75.55, the valuation gap versus intrinsic value models is wide, so for investors the key question is whether the sharp growth in copper EBITDA and the strategic Aurukun bauxite acquisition will be enough to justify this premium over time.GuruFocus
Rio Tinto Group stock snapshot
- Company: Rio Tinto Group plc
- ISIN: GB0007188757
- Ticker: RIO
- Trading venue: London Stock Exchange
- Price (as of September 7, 2026, 17:35): 7,642.00 GBX
- Market capitalization: 76.64 billion GBP (as of September 8, 2026)
- Sector / Industry: Materials / Metals and Mining
- Index membership: FTSE 100
