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Rio Tinto approves $2.6B iron-ore mine investment
- The chart shows Rio Tinto share price movements since mid-September.
- The current share price is 3623p (at time of writing).
- Shares -21.5% from 2018 highs; +3% from 2018 lows; -8.1% year-to-date
- Rio Tinto approves $2.6bn investment at Koodaideri iron ore mine (W. Australia)
- This would be its most high-tech mine yet, aiming for production by late 2021
- 26 Nov: Jefferies says Rio Tinto defensive in downturn, well-placed for upturn
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets
Trading Rio Tinto – An Example
Let’s say you think that Rio Tinto is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 3623p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Rio Tinto shares price rises by 10% following the news. Your profit would be £1,000, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Rio Tinto shares fall back 5% and hits your stop-loss. Your loss would be £500
This is provided for information purposes only. It should not be taken as a recommendation.