mongolian power struggle, page-6

some broker updates

UBS 18-Sep-12
Rio Tinto's analyst's tour included the iron Ore Company of Canada assets and UBS sees significant value in the project.

Forecasts are unchanged post the visit and UBS retains a Buy rating on the stock.

Buy
Deutsche Bank 17-Sep-12
On a North American tour with Rio Tinto, the broker's latest report back discusses the company's Diamonds and Minerals group, with Deutsche seeing decent near term earnings from a potential pickup in paint consumption in China -good for titanium dioxide- and custom jewellery - good for diamonds.

With the bulk of output from this division directly linked to GDP levels, the broker sees further upside in the case of a global economic recovery, while titanium dioxide revenue and earnings could also increase significantly as legacy contracts roll off and price increases are pushed through. Buy call, price target and forecasts are maintained.

Buy

BA-Merrill Lynch 17-Sep-12
The North American tour has moved on to Diamonds & Minerals, with the company's outlook for Ti02 looking especially good to the broker. BA-ML sees multiple expansion opportunities and even further upside from the completion of the purchase of a further 37% stake in RMB. Further, the broker expects significant earnings upside once current contracts are rolled off.

The company also addressed speculation it is looking to sell its Diamonds business, saying it would only be a seller if a good price can be gotten. The Buy call, price target and forecasts are maintained.

Buy, Medium Risk
JP Morgan 14-Sep-12
As part of a site visit to Rio Tinto's US operations the broker notes the company is rolling off existing TiO2 contracts and with the market price much higher there is potential for a meaningful revenue uplift in coming years.

The Richards Bay Minerals transaction is also viewed as immediately earnings accretive. JP Morgan retains an Overweight rating on Rio Tinto.

Overweight