Rio Tinto Stock Rises After It Signs New Solar, Battery Power Agreements: Retail Sentiment Improves

Shares of Rio Tinto Plc. (RIO) gained over 1% in Wednesday’s after-hours trading session after the company signed new solar and battery power agreements with Edify Energy, lifting retail sentiment.

Rio Tinto has signed two agreements with Edify Energy to increase the electricity supply to the company’s Gladstone aluminum operations in Queensland, Australia.

The terms of the agreement state that Rio will purchase 90% of the power generated by Edify’s Smoky Creek & Guthrie’s Gap Solar Power Stations for 20 years. The renewable energy provider will build, own, and operate the projects, and construction is expected to commence in late 2025 and be completed in 2028.

“For the first time, we have integrated crucial battery storage in our efforts to make the Boyne aluminum smelter globally cost-competitive, as traditional energy sources become more expensive,” said Rio CEO Kellie Parker.

Rio is also reportedly issuing $9 billion in bonds to finance its acquisition of Arcadium Lithium Plc., according to Bloomberg.

While Rio initially used bridge financing to fund its Arcadium acquisition, it will now replace it with long-term debt.

On Stocktwits, retail sentiment around Rio Tinto saw an improvement, entering the ‘neutral’ territory from ‘bearish’ a day ago.

While Rio Tinto’s stock has gained over 3% year-to-date, it has lost nearly 3.8% over the past year.

Data from Koyfin shows that the average price target for Rio Tinto stock is $74.87, implying a 17.6% upside from Wednesday’s closing price.

Of the 18 analyst ratings, there are 13 ‘Buy’ or ‘Strong Buy’ ratings, four ‘Hold,’ and one ‘Sell’ recommendation.

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