Rio Tinto (NYSE:RIO) -1.8% premarket after cutting its forecast for 2017 shipments of iron ore by as much as 10M metric tons, after poor weather and an acceleration of its rail maintenance program hurt Q2 shipments.
Rio now expects shipments from Australia of ~330M metric tons for the full year, at the low end of its April guidance of 330M-340M tons.
Q2 Pilbara iron ore shipments totaled 77.7M metric tons, down 6% Y/Y and slightly below analyst expectations, while iron ore production was 79.8M tons, 1% lower than last year.
Rio delivered record quarterly bauxite production of 12.9M tons in Q2, up 7% Y/Y; copper production fell 6% Y/Y due to the strike at the Escondida mine in Chile.
"To meet guidance newly issued production guidance RIO will have to run hard in 2H17, as their annualized 1H run rate is only 93% of iron ore guidance, 83% of copper guidance and 87% of coking coal guidance," Goldman Sachs says.