Rio Tinto and Sumitomo Metal Mining to Jointly Develop Winu Project

Rio Tinto Group RIO recently announced that it has signed a Term Sheet deal with Sumitomo Metal Mining, a subsidiary of Sumitomo SSUMY, to sell a 30% stake in its Winu copper-gold project and to jointly develop the same. This move aligns with Rio Tinto's goal of finding new methods to deliver value throughout the metals and minerals supply chain.Details on Rio Tinto-Sumitomo Metal Mining DealPer the deal, Sumitomo Metal Mining will pay Rio Tinto $399 million for a 30% equity stake in the Winu project, including $195 million upfront and $204 million in deferred considerations. RIO will continue to develop and operate the project as a managing partner.The Term Sheet deal includes exclusivity obligations to work toward a binding Definitive Agreement, which the companies expect to finalize in the first half of 2025.Rio Tinto has signed another letter of intent with Sumitomo Metal Mining to develop a broader strategic partnership, expected to be formalized in the first half of 2025. Under the broader partnership, the companies aim to explore opportunities for commercial, technical and strategic collaboration across copper, other base metals and lithium.The closing of the transaction is subject to regulatory approvals.RIO & Sumitomo Metal Mining’s Roadmap for the Winu ProjectThe Winu project, located in the Great Sandy Desert region of Western Australia, is a low-risk, long-life copper-gold deposit with a high prospect for expansion. It was discovered by Rio Tinto in 2017.The companies expect a pre-feasibility study for the Winu project with an initial development of processing capacity of up to 10 mtpa to be completed in 2025. RIO will also submit an Environmental Review Document to the EPA's Environmental Impact Assessment procedure in 2025.Rio Tinto Stock’s Price PerformanceIn the past year, shares of Rio Tinto have lost 1.5% compared with the industry’s 3.3% decline.Image Source: Zacks Investment ResearchRIO’s Zacks Rank and Stocks to ConsiderRio Tinto currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the basic materials space are CF Industries Inc. CF and Ingevity Corporation NGVT. While CF sports a Zacks Rank #1 (Strong Buy) at present  NGVT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares gained 20.6% in the last year.Ingevity has an average trailing four-quarter earnings surprise of 95.4%. The Zacks Consensus Estimate for NGVT’s 2024 earnings is pegged at $2.55 per share. Its shares gained 25.7% in the last year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Rio Tinto PLC (RIO): Free Stock Analysis Report Sumitomo Corp. (SSUMY): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks