Half Year 2024 Rio Tinto PLC Earnings Call Transcript
Key Points
- Rio Tinto Ltd (RTNTF) 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.
- Strategic M&A and disciplined investments are driving growth, including the full sanctioning of the Simandou project in Guinea.
- The safe production system has delivered a 10% boost in bauxite production and improved operational performance across multiple sites.
- Iron ore sales were lower in the period, impacting the highest margin business and not yet reflecting increased productive capacity.
- Higher iron ore unit costs were driven by input price escalation and lower volumes, pushing EBITDA down by $400 million.
- The market for TIO2 remains weak, leading to fixed cost inefficiencies and lower volumes.
- Kennecott remains a significant challenge due to geotechnical issues, delaying access to higher-grade ore.
- The global economy is not performing optimally, with construction in major markets being soft and steel demand from the Chinese property sector down by 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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