Value Investor: Dark days for Rio

Rio Tinto's strategy of reducing debt and increasing returns to shareholders suggests a lack of investable opportunities and an uncertain outlook. The falling iron ore price is adding to the pressure.

Despite a strong market position, a sustained downward trend in the iron ore price spells revenue and margin pressure for Rio Tinto (ASX: RIO). However, with the share price trading at nine-month lows and at a discount to value, should we consider investing in Rio?


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