REG - Rio Tinto - Stronger, sharper and simpler Rio Tinto

Rio TintoAnnouncement

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RNS Number : 2448K  Rio Tinto PLC  04 December 2025

 

 

Notice to
ASX/LSE

 

Stronger, sharper and simpler Rio Tinto to deliver leading returns

4 December 2025

 

Rio Tinto will today outline its strategy to deliver industry leading returns
by becoming stronger, sharper and simpler, at its 2025 Capital Markets Day.

Chief Executive Simon Trott and members of the executive team will detail how
Rio Tinto will unlock its full potential to become the most valued metals and
mining business through a strategy that starts with having the right assets in
the right markets, supported by a diversified model that delivers
market-leading performance and industry-leading returns.

Three strategic pillars are focused on driving a step change in performance
and returns:

·      Operational excellence: streamlining to three world class
businesses - Iron Ore, Copper and Aluminium & Lithium - with safety first,
a relentless focus on productivity and leveraging best in class ore body
knowledge

·      Project execution: creating new options for organic growth by
delivering projects reliably, efficiently and at scale

·      Capital discipline: continuing to allocate capital with rigor and
maintaining a strong, resilient balance sheet, with leading returns

Value is being delivered through immediate focus areas including:

·      Leading production growth: 7% growth expected in 2025 1  (#_ftn1)
and 3% compound annual production growth outlook to 2030 2  (#_ftn2)
underpinned by the delivery and ramp-up of developments across copper (Oyu
Tolgoi), iron ore (Simandou) and lithium (Arcadium, Rincon).

·      $650 million 3  (#_ftn3) of annualised productivity benefits in
first three months, with significantly more targeted: Includes a simplified
organisation (three product groups, delayered business, accountability
devolved to assets), stronger operational discipline (leveraging productivity
and efficiency practices to eliminate waste), and a sharper focus on the
portfolio (stopping non-core projects, studies and programmes).

·      Opportunistic release of $5-10 billion from existing asset base:
Release cash where third-party funding is lower than cost of capital. Includes
exploring commercial, partnership and ownership options across land,
infrastructure, mining and processing assets. The strategic reviews of Iron
and Titanium, and Borates are advancing as planned, with the next phase
focused on testing the market for these assets.

 

Rio Tinto Chief Executive Simon Trott said: "We are building from a position
of strength for Rio Tinto's next chapter, sharpening and simplifying the
business to deliver leading returns. We will drive performance through
discipline, productivity and unmatched growth to unlock the full potential
of our diversified portfolio of world-class assets.

 

"We are delivering strong early productivity benefits and cost savings with
more to come. Freeing up cash from our asset base where it makes sense will
strengthen the balance sheet and maintain returns, as we invest for the future
with discipline.

 

"Our experienced leadership team is committed to delivering against our
mission to become the most valued metals and mining company - for
shareholders, the people who work with us, our partners and the communities
around us."

Further highlights from today's presentations include:

·      4% 4  (#_ftn4) reduction in unit costs from 2024-2030

·      Mid-term capex guidance 5  (#_ftn5) (2028+) reverting to less
than $10 billion, as we complete  Oyu Tolgoi underground
(copper), Simandou (iron ore) and lithium (predominantly Rincon)
projects and execute replacement projects in the Pilbara (iron ore)
and Amrun (bauxite)

·      In-flight lithium projects will be delivered to reach ~200ktpa
capacity by 2028, with additional capital only committed when supported by
markets and returns

·      EBITDA could rise by as much as 40-50% by 2030 6  (#_ftn6) based
on long-run consensus prices, driven by 20% copper equivalent production
growth, operational excellence and capital discipline

·      Increasing earnings diversification, with a growing contribution
this year from aluminium and copper and mid-term financials increasingly
balanced across our key commodities

·      A strong balance sheet, with a conservative net debt position
providing flexibility through the cycle. Consistent 40-60% shareholder returns
policy  maintained over nine-years

·      Decarbonisation: Competitive decarbonisation pathway to 50%
emissions reduction, with capital estimate to 2030 revised to $1-2 billion
(previously $5-6 billion). This reflects our leveraging of third-party
investment in renewables by energy developers and our financially disciplined
capital allocation principles with the technologies needed to achieve the
hardest net-zero emissions reductions taking time to mature

 

Copper production guidance for 2025 is being upgraded to 860 - 875 kt
(previously 780 - 850 kt) and unit cost guidance revised down to 80 - 100 c/lb
(previously 110 - 130 c/lb).

Bauxite production guidance for 2025 is being upgraded to exceed the previous
guidance of 59 - 61Mt, with aluminium at the upper end of the 3.25 - 3.45Mt
guidance range.

 

IOC production guidance for 2025 is being downgraded to 9.0 - 9.5Mt
(previously 9.7 - 11.4Mt).

2026 production and capital guidance is being released, along with mid-term
capital guidance:

 

 Production guidance                                2025                     2026 7  (#_ftn7)

                                                    (including updates)
 Total iron ore sales guidance 100% Mt 8  (#_ftn8)  --                       343-366
 Pilbara 100% Mt(8)                                 323-338                  323-338

                                                    (lower end)
 Simandou 100% Mt(8)                                --                       5-10
 IOC Mt(8)                                          9.0-9.5                  15-18

                                                    (RT share production,    (100% sales)
                                                    updated range)
 Copper (consolidated) kt                           860-875                  800-870

                                                    (upgraded range)
 Bauxite Mt                                         >61Mt                    58-61

                                                    (exceed guidance)
 Alumina Mt                                         7.4-7.8                  7.6-8.0
 Aluminium Mt                                       3.25-3.45Mt              3.25-3.45

                                                    (upper end)
 Lithium LCE kt                                     --                       61-64

 

   Capex guidance   2025F   2026F         Mid-term

                                          (per year)
 Total Group        ~$11bn  Up to ~$11bn  Up to $10bn 9  (#_ftn9)

 

The presentation slides and the live webcast, which begins at 0800 GMT | 1900
AEDT, can be

accessed at www.riotinto.com/investorseminars
(http://www.riotinto.com/investorseminars) .

 

Forward-looking statements

 

This announcement contains "forward-looking statements" within the meaning of
the US Private Securities Litigation Reform Act of 1995. There are a number of
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements. No
assurances can be given that the forward-looking statements in this
announcement will be realised. Except as otherwise stated herein and as may be
required to comply with applicable law and regulations, Rio Tinto does not
intend to update these forward-looking statements and does not undertake any
obligation to do so.

 

 
 
 
 
 
 
 
 
 
 
 
Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 Media Relations,        Media Relations,               Media Relations,
 United Kingdom          Australia                      Canada

 
 
 

 Matthew Klar            Matt Chambers                  Simon Letendre

 M +44 7796 630 637      M +61 433 525 739              M +1 514 796 4973

 David Outhwaite         Alyesha Anderson               Malika Cherry

M +61 434 868 118

 M +44 7787 597 493
                              M +1 418 592 7293

                       Rachel Pupazzoni

                              Vanessa Damha

                       M +61 438 875 469

                              M +1 514 715 2152

                         Bruce Tobin 

                         M +61 419 103 454
Media Relations,

                              US & Latin America

 

                                                        Jesse Riseborough

                                                        M +1 202 394 9480

 Investor Relations,     Investor Relations,
 United Kingdom          Australia

 
 

 Rachel Arellano         Tom Gallop

M: +44 7584 609 644

                       M +61 439 353 948

 David Ovington

                       Eddie Gan-Och
 M +44 7920 010 978
M +976 95 091 237

 Laura Brooks

 M +44 7826 942 797

 Weiwei Hu

 M +44 7825 907 230

 Rio Tinto plc           Rio Tinto Limited

 
 

 6 St James's Square     Level 43, 120 Collins Street

 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

 

riotinto.com

 1  (#_ftnref1) 2025F copper equivalent production is a forecast based on
mid-point production guidance or top / bottom of the range based on the
guidance section of this presentation.

 2  (#_ftnref2) Ambition for compound annual growth rate (CAGR) for copper
equivalent (CuEq) production based on mid-point production guidance from 2024
to 2030F, removing assets under strategic review from the 2024 baseline to be
on a like-for-like basis and applying the following formula:

CuEq = Rio Tinto's share of production volume / Volume conversion factor x
Product price ($/t) / Copper price ($/t). Prices are based on long-term
consensus prices.

(( 3  (#_ftnref3) )) Productivity benefits are opex savings on an annual run
rate basis. They include actions already realised ($370m) and actions which
will be delivered by end of Q1 2026 ($280m). All figures are on a consolidated
basis.

(( 4  (#_ftnref4) )) Indicative operating cost of sales of our operations, not
intended to be a profit forecast. See footnote 2 above for formula applied to
calculate CuEq volumes. For comparability purposes, Simandou unit cost is not
included until 2030F as the operation ramps up; tariff costs for aluminium
have been removed. Operating costs in 2025 real terms. Compound annual growth
rate (CAGR) from 2024 to 2030F.

(( 5  (#_ftnref5) )) Rio Tinto share of capital represents our net economic
investment in capital projects and is adjusted for third party funding and
proceeds from asset sales. Capital is reflected on the Group's balance sheet
in line with the Group's consolidation principles, hence includes capital
attributable to non-controlling interests. The guidance presented does not
include Rio Tinto's share of the Escondida Growth Program. In 2025 real terms.

 6  (#_ftnref6) % EBITDA contribution based on total operational EBITDA.  See
footnote 2 above for formula applied to calculate CuEq volumes. Ambition for
volume growth for copper equivalent production. Forward looking view of EBITDA
is not a profit forecast. This consolidated measure, presented in nominal
terms, is calculated using long-run consensus prices, volume growth and unit
cost decreases presented, using 2024 as a baseline (of 100%).

 

 7  (#_ftnref7) The strategic reviews of RTIT and Borates are advancing as
planned, with the next phase focused on testing the market for these assets.
As such, we will no longer provide production guidance for RTIT and Borates
while this process is underway.

 8  (#_ftnref8) Wet metric tonne basis.

 9  (#_ftnref9) Subject to ongoing inflationary pressure.

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