MARKET TALK: Rio Tinto Back On The Investment Trail - UBS

18th Jun 2010 01:09

0009 GMT [Dow Jones] UBS says Rio Tinto's (RIO.AU) approval of the US$469 million Eagle nickel and copper mine is a further sign that the miner is spending on growth again after being in cash conservation mode in 2008/09. "While Eagle is a small project, we would look for Rio to increase its capital spend, which will set the platform for future growth," UBS says. Says the Eagle project is a small but robust project with an estimated net present value of about US$99 million. Maintains Buy rating and A$111 target price for Rio, which last traded up 0.5% at A$70.40. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 17, 2010 20:09 ET (00:09 GMT)