Rio Tinto decreases revenue, increases Pilbara production

The world’s second-largest metals and mining corporation Rio Tinto (ASX:RIO) has reported a 10.4% decrease in sales revenue of US$26.6b (A$39.12b) for the six months ending June 30, 2023.

Rio recorded US$11.7b (A$17.21b) in earnings before interest, tax, depreciation and amortisation for the first half of the year, a 25% decrease on the prior corresponding period.

The company says the decline is reflective of the easing iron ore prices.

Rio chief executive Jakob Stausholm said the company is poised for long-term success.

“We have a clear pathway to building an even stronger Rio Tinto and continue to gain momentum in our strategy to set the business up for long-term success,” he said.

“We are making good progress on pursuing our four objectives as we build further momentum in our Pilbara iron ore business, mindful that we need to raise our game across many of our other operations.”

Mined copper production of 290,000t was 1% lower than the first half of 2022, and while Rio benefitted from the continuing ramp-up of the underground mine at Oyu Tolgoi, this was offset by Kennecott’s concentrator operating as reduced rates.

Rio’s Pilbara operations increased production and shipments by 7% to 160.5mt and 161.7mt, respectively.

Further, the ramp-up of Gudai-Darri continued to plan, with the mine reaching nameplate capacity in the second quarter. Record shipments were achieved in the first quarter with the highest first half shipments since 2018.

“We are taking real steps to shape our portfolio for the future, with first sustainable production from Oyu Tolgoi underground, just as we doubled our exposure through the acquisition of Turquoise Hill Resources,” Mt Stausholm said.

“Last week we signed an agreement to form the Matalco aluminium joint venture to enter the exciting and fast-growing aluminium recycling industry in North America.

“And the Simandou iron ore project in Guinea is advancing at pace, with final approvals expected later this year.”