JPMorgan upgrades EMEA Metals & Mining stocks, names top picks into Q3 results

Rio Tinto reported a 3% year-on-year increase in global iron ore sales to 90.8 Mt in Q3 2026. Simandou's output reached a 10 Mtpa annualised rate. Full-year guidance remains unchanged. Pilbara shipments rose 2% year-on-year, while IOC's production increased 30% quarter-on-quarter. The company expects first ore through the SimFer port in Q4. Iron ore prices declined in Q3, with the 61% Fe index averaging $97/dmt, down 8% quarter-on-quarter.

Rio Tinto reported a 3% year-on-year increase in global iron ore sales to 90.8 million tons and a 2% rise in production to 89.7 million tons in Q3 2026. Pilbara shipments were 85.7 million tons, while Simandou output surged 273% quarter-on-quarter to 2.5 million tons. The company maintained its 2026 sales guidance of 343-366 million tons.

Rio Tinto has released over $2 billion in capital as part of a $5–10 billion program to focus on core assets like iron ore, copper, and lithium. The funds come from asset sales, partnerships, and infrastructure monetization. The company is also reviewing its borates and iron/titanium businesses for potential divestments. Investors will watch for successful execution and redeployment of proceeds into high-return projects.

Australia's S&P/ASX200 fell 0.43% to 8960.2, tracking a US tech sell-off after higher-than-expected inflation data. Tech and mining sectors dropped over 3% each. BHP and Rio Tinto fell 4% as iron ore prices declined. CommBank rose 2% leading financials higher. Treasury Wine Estates has no plans to list Penfolds separately. Bank of Queensland gained 4.6% on a strong update, while ARB and Droneshield fell.

Workers at BHP's Escondida mine in Chile plan to strike, following a walkout at Antofagasta's Centinela. Copper demand is projected to rise significantly by 2040, but supply may fall short. Chile's copper output dropped 12.8% in August, with potential further disruptions from El Niño. A Chinese ban on sulphuric acid exports could impact Chile's copper production.

BHP's Escondida copper mine supervisors union reached a tentative wage agreement, averting a potential strike. The deal improves benefits and terms, with a vote scheduled for today. If approved, a new collective agreement will be signed. Near-record copper prices have driven worker demands, while producers aim to control costs. Copper futures rose 0.8% to $14,695/ton.