Analysts at RBC have taken a dim view of Rio Tinto Ltd's (LSE:RIO, ASX:RIO, OTC:RTNTF) intended timeline for bringing its Simandou project online.
RBC trimmed its targets for Rio, warning that the mining major's planned 30-month ramp-up at Simandou is unlikely to be achieved.
In a note, analysts said phyllite rock conditions, two early wet seasons and limited regional operating experience point to a slower path to nameplate capacity.
As a result, It now expects a 48-month ramp. The analysts noted that this would delay significant production volumes into 2029.
The broker is sticking with a neutral 'Sector Perform' whilst the target is clipped to 4,900p, compared to a current price of 5,485p.