Morgan Stanley says Rio Tinto should boost aluminum returns, not volume
Morgan Stanley says Rio Tinto’s aluminum division is high-quality but mixed-return, and that value creation should come from improving returns rather than volume growth via operational and brownfield projects.
The way for Rio Tinto to create more value from its big aluminum business is by improving returns, not volume growth, says Morgan Stanley.
Today, Rio's aluminum division is "a high-quality but mixed-return business," MS says.
The bank sees operational and brownfield projects as "the most practical…