Half Year 2024 Rio Tinto PLC Earnings Call Transcript
Key Points
- Rio Tinto PLC (RIO) reported robust underlying earnings of $4.8 billion, a 1% increase year on year.
- Copper equivalent production grew by 2%, with significant contributions from the Oyu Tolgoi underground mine.
- The company is maintaining a strong balance sheet and attractive returns to shareholders, with a 50% dividend payout equating to $2.9 billion.
- Significant progress in decarbonization efforts, including securing competitively priced renewable power for assets and advancing solar projects in partnership with local communities.
- The Simandou project in Guinea received full sanctioning, marking a major milestone for the largest greenfield mining and infrastructure project in the world.
- Challenges at the Kennecott copper mine due to geotechnical issues, impacting production timelines and costs.
- Lower iron ore sales in the first half, which affected the overall earnings despite increased production capacity.
- Higher iron ore unit costs driven by input price escalation and lower volumes, impacting EBITDA by $400 million.
- The market for some minerals, such as TIO2, remains weak, affecting volumes and profitability.
- The global economy is not performing optimally, with construction in major markets being soft and steel demand from the Chinese property sector down by as much as 30% from its peak in 2020.
Hello again to everyone in the room. And now welcome to those online to Rio Tinto's 2024 half-year results presentation. My name is Tom Gallop, and I'm the acting Head of Investor Relations. We'll follow the normal proceedings today. Jacob and Peter will take you through introductory remarks for about 30 minutes, and we'll follow that with Q&A. And with that, Jacob, over to you.
Good morning and thank you, Tom. I also want to thank, Brendan, for a wonderful welcome to country. I acknowledge the Gadigal people of the Eora Nation on whose traditional lands we are gathered today. And I pay my respect to elders past and present. I extend that respect to all indigenous people across the globe. I acknowledge the important role that continues to play within communities and our business. It's great to be in Sydney today. The first time Peter and I have reported our results from Australia, it's an excellent opportunity to highlight the strengths of
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