Shares of Rio Tinto (ASX:RIO) dipped as much as 2.2% to A$123.080, marking its lowest level since November 14, 2023.

Despite a 12% reduction in the annual underlying profit, which rounded out to $11.8 billion, the figures aligned with LSEG’s estimate of $11.7 billion.

Rio Tinto, the world’s largest iron ore miner, also foresees a rise in production costs at its Pilbara iron ore unit, estimating a hike to between $21.75 and $23.50 per metric ton in 2024, up from $21.50 in 2023.

Despite negative sentiments, Macquarie embraces optimism for 2024, identifying it as a potential ‘inflection year’ for the miner.

Rio Tinto is expected to continue its growth strategy, pushing for project executions and enhancing underlying asset health.

While Macquarie maintains its share price target at A$120, Jefferies has reduced its price target for the company to A$158 from A$160, but maintains a ‘buy’.

As of the latest close, Rio Tinto’s stock is down 7.3% YTD.

Rio Tinto (ASX:RIO) is the world’s largest iron ore mining company.