RE: r i o15 Jul 2022 15:05
The continuous price drop is somewhat bemusing.
The fact that RIO has hit negative results in certain areas does not negate the future potential for the company.
One of the biggest up-trends will be the increase in certain elements such as Copper. The future reliance of establishing a more 'renewable' enery infrastructure means Copper is a major player and there are already signs that there will be major shortages over the next 3-10 years or more.
Aluminium is also a major resource for Renewable energy, automotive etc.
Car Panels, Solar Panel frameworks etc all rely on Aluminium. Copper is essential at present for all Electric motors until the development of non-copper-based motors become more developed and commercialised. Even then the new motors rely on Aluminium.
So, all-in-all, commodity prices will rise upward as renewable infrastructures increase and demand outstrips supply (even more).
Personally, I'm not sure if RIO will still drop further but I'm hoping a short-term investment (1-2 years) will be profitable. Especially with decent dividend re-investment.