According to the Goldman Sachs report, Rio Tinto's production and free cash flow will probably grow faster than rival BHP Billiton for the rest of this decade. In addition to valuations, this is also the reason why Goldman Sachs is more optimistic about Rio Tinto shares than BHP Billiton stocks. The bank rated both stocks as a buy. Although the two mining companies have annual capital expenditure of between $10 billion and $11 billion, Rio Tinto's copper equivalent production should increase by about 20% by the end of this century. Goldman Sachs analysts said that BHP Billiton's production is expected to remain basically the same, and most of its major projects have a long time span.

According to the Goldman Sachs report, Rio Tinto's production and free cash flow will probably grow faster than rival BHP Billiton for the rest of this decade. In addition to valuations, this is also the reason why Goldman Sachs is more optimistic about Rio Tinto shares than BHP Billiton stocks. The bank rated both stocks as a buy. Although the two mining companies have annual capital expenditure of between $10 billion and $11 billion, Rio Tinto's copper equivalent production should increase by about 20% by the end of this century. Goldman Sachs analysts said that BHP Billiton's production is expected to remain basically the same, and most of its major projects have a long time span.