Rio Tinto Group (RIO) Investor Update summary

Strategic growth, portfolio evolution, and market outlook

• Focus on energy transition materials, with significant investments in lithium, copper, and aluminum to align with global decarbonization trends and electrification demand.

• Portfolio review and diversification prioritize high-growth commodities like lithium, leveraging strengths in iron ore, bauxite, and aluminum, and underpinning long-term value creation and cash flow resilience.

• Urbanization and industrialization in the Global South, along with the energy transition, are expected to drive robust demand for key commodities, with lithium demand projected to grow over 6x by 2050.

• Net zero transition requires significant changes in energy systems, with electricity share in final energy to exceed 70% by 2050 and a 9x increase in renewable and nuclear capacity.

• Growth guidance targets a 3% CAGR to 2028, rising to 4% with lithium, and a further 3% in the following five years, underpinned by major projects like Simandou and Oyu Tolgoi.

Operational excellence and project delivery

• Safe Production System (SPS) deployed across 65% of operations, delivering a 5Mt uplift in Pilbara Iron Ore in 2023 and 2024, with another 5Mt targeted for 2025.

• Major projects on track: Simandou targeting 60Mtpa capacity with first ore in late 2025, Oyu Tolgoi ramping up to 500ktpa copper, and new mine developments in the Pilbara progressing.

• Amrun bauxite mine operating above nameplate, with a 9% increase in plant feed rate and record Q2 production.

• Asset management and simplification initiatives have reduced unscheduled losses and improved decision-making speed.

• In-house project and R&D capabilities enable efficient development and application of new technologies, including direct lithium extraction and Elysis for aluminum.

Growth and project pipeline

• Lithium portfolio expanding with Arcadium acquisition (expected close mid-2025), creating a Tier 1 asset base in Argentina with low-quartile production costs and significant resource endowment.

• First lithium achieved at Rincon, targeting 60ktpa capacity pending permits and board approval.

• Copper growth pipeline includes Resolution (USA), Winu (Australia, new JV with Sumitomo), Nuton technology, Nuevo Cobre (Chile), and La Granja (Peru).

• Aluminium growth through AP60 expansion, Matalco JV, and new greenfield project in Kokkola, Finland.

• $10–11bn annual capex guidance mid-term, with strong balance sheet and capacity to absorb lithium developments.