Rio Tinto Group (NYSE:RIO) Q2 2024 Earnings Conference Call July 30, 2024 9:30 PM ET Company Participants Tom Gallop - Head of Investor Relations Jakob Stausholm - Chief Executive Officer Peter Cunningham - Chief Financial Officer Mark Davies - Chief Technical Officer Conference Call Participants Paul Young - Golden Sachs James Redfern - Bank of America Lyndon Fagan - JPMorgan Rob Stein - Macquarie Glyn Lawcock - Barrenjoey Rahul Anand - Morgan Stanley Tim Gerrard - Janus Henderson Kaan Peker - RBC Lachlan ...

Core Viewpoint - Rio Tinto Group is experiencing a positive operational performance with a focus on production growth and strategic projects, despite facing challenges in certain areas such as copper production and alumina outlook [1][5][6]. Production Results - Pilbara iron ore shipments reached 80.3 million tonnes (Mt), a 2% increase year-over-year, while production was slightly down at 79.5 Mt, a 2% decrease [13]. - Bauxite production was reported at 14.7 Mt, an 8% increase, and mined copper output reached 171,000 tonnes (kt), an 18% increase [13]. - The company faced a train collision in May that impacted Pilbara operations, but no casualties occurred due to the automated nature of the train [5]. 2024 Guidance - Rio Tinto has adjusted its alumina production outlook from 7.6-7.9 Mt to 7.0-7.3 Mt due to gas supply constraints [6]. - The company anticipates top-line sales of $26.4 billion and EBITDA of $11.9 billion for 2024, reflecting a downward revision due to weak iron ore prices and disappointing performance at the Kennecott mine [18]. Strategic Developments - The Simandou facility has received all necessary regulatory approvals, with first production expected in 2025, targeting over 30 million tonnes by 2028 [4]. - The Jadar lithium project in Serbia is nearing government approval, which could provide significant organic growth opportunities for Rio Tinto [4]. Financial Metrics - The updated EBITDA estimate for Rio Tinto is approximately $24 billion, with a valuation of $76 per share based on a 5x EV/EBITDA multiple [8]. - The company currently trades at a 4.5 EV/EBITDA, which is below its five-year historical average [8]. Market Context - Analysts project a top-line sales figure of $27.9 billion and an EBITDA of $12.5 billion, with net debt expected to reach $6.1 billion by the end of the period [7]. - The iron ore price has declined to $108 per tonne due to weak fundamentals in China and elevated port inventories [14].

Rio Tinto (RIO) reported iron ore shipments (on a 100% basis) of 80.3 million tons (Mt) for the second quarter of 2024, which rose 2% year over year, attributed to the drawdown of port stocks. The company's iron ore production dipped 2% to 79.5 Mt as ore depletion offset productivity gains. A train had derailed in mid-May at its Western Australia iron ore operations, which led to six days of lost rail capacity and full stockpiles at some mines, impacting shipment and production numbers for the quarter. Tita ...

Core Viewpoint - Rio Tinto is advancing its position in low-carbon aluminum production by installing carbon-free aluminum smelting cells at its Arvida smelter in Québec, utilizing the ELYSIS technology, which aims to eliminate direct greenhouse gas emissions from aluminum smelting [1][12]. Group 1: ELYSIS Technology and Environmental Impact - The ELYSIS technology is designed to produce aluminum without direct greenhouse gas emissions, generating oxygen as a byproduct and enhancing production efficiency [1][12]. - In Canada, the implementation of ELYSIS technology could potentially reduce greenhouse gas emissions by 6.5 million metric tons, equivalent to removing 1.8 million cars from the roads [3]. - The plant will have an annual production capacity of up to 2,500 tons of commercial-quality aluminum without direct greenhouse gas emissions, with the first production targeted by 2027 [7]. Group 2: Investment and Financial Performance - Rio Tinto has formed a joint venture with Québec's government to design and build a demonstration plant, requiring a total investment of $285 million, with Rio Tinto contributing $179 million [11]. - Over the past year, shares of Rio Tinto have increased by 1.7%, while the industry has seen a decline of 3.1% [4]. - In the first quarter of 2024, Rio Tinto produced 826 kilotons of aluminum, a 5% increase year-over-year, and expects total aluminum production for 2024 to be between 3.2 million tons and 3.4 million tons [13].

As we see on the graph above, this was the case at least until the beginning of 2024, when a handful of large companies within the S&P 500 have caused the index to significantly outperform its equal-weighted counterpart. Therefore, it was extreme concentration in companies, such as Nvidia (NVDA), Microsoft (MSFT) and Amazon Rio Tinto's dividend yield is also the highest within; Rio Tinto - Capex to Depreciation Expense % 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2016 2017 2018 2019 2020 2021 2022 202 ...

Rio Tinto Group (OTCMKTS: OTCPK:RTNTF) is one of the largest mining corporations in the world, with a market capitalization of well over $100 billion USD. The company continues to be susceptible to changes in ore prices. However, it continues to generate strong cash flow with incredibly important assets. That will enable the company to continue generating long-term shareholder returns. Rio Tinto Investor Presentation The company's sales revenue declined by 3%, a $1.6 billion decline, but in a world with hig ...

The deal with Mitsubishi is subject to various closing conditions, including approval from Australia's Foreign Investment Review Board. It is expected to close in the second half of 2024. Following the closure, Mitsubishi will not have any stake in the BSL joint venture. Rio Tinto (73.5%) will have a majority stake in the joint venture and the remaining will be held by YKK Aluminium (9.50%), UACJ Australia (9.29%) and Southern Cross Aluminium (7.71%). Price Performance The facility's activities include manu ...

Throughout the festival, the RIO units were strategically placed across key locations to enhance security coverage. The units operated flawlessly, providing continuous surveillance, monitoring for potential threats, and ensuring rapid response capabilities. The advanced AI technology embedded within the RIO units allowed for real-time analysis of crowd movement, immediate detection of any unusual activities, and swift communication with on-site security personnel law enforcement. Detroit, Michigan, June 10, ...

Rio Tinto (RIO) announced that it will invest $143 million to develop a research and development facility in Western Australia to test the effectiveness of its breakthrough low-carbon ironmaking process, BioIron. BioIron uses raw biomass material produced from agricultural by-products instead of metallurgical coal and is heated using a combination of gas released by the biomass and high-efficiency microwaves powered by renewable energy, which turns the iron ore into metallic iron. This process uses approxim ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Rio Tinto (RIO) . Rio Tinto currently has an average brokerage recommendat ...