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Revenue: Underlying EBITDA increased 28% to $14.8 billion.

Free Cash Flow: Rose by 75%.

Interim Dividend: Increased by 43% to $3.4 billion.

Productivity Benefits: $870 million banked by end of June, targeting $1.8 billion by year-end.

Copper Equivalent Production: Grew by 3%.

Net Debt: Reduced during the period.

Capital Expenditure: Up to $11 billion in 2026 and 2027.

Commodity Contribution to EBITDA: Copper and aluminum represent almost 60% of EBITDA.

Iron Ore Production: Highest first-half Pilbara production since 2018.

Copper EBITDA Growth: Increased 84%, with free cash flow more than tripling.

Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Rio Tinto Ltd (RTNTF) reported a 75% increase in free cash flow, demonstrating strong financial performance.

The company achieved a 43% higher interim dividend, amounting to $3.4 billion, reflecting its commitment to shareholder returns.

Rio Tinto Ltd (RTNTF) has delivered $870 million in productivity benefits, surpassing its initial target of $650 million.

The company is targeting a year-end run rate of $1.8 billion in productivity improvements, indicating ongoing operational efficiency.

Rio Tinto Ltd (RTNTF) has a strong portfolio with leading exposure to key trends such as electrification, AI, and digital, positioning it well for future growth.

Negative Points

The company reported the loss of two colleagues, highlighting ongoing safety challenges.

There are concerns about the impact of unionization in the Pilbara region, which could affect operations.

The Kennecott operation faced a furnace breach, delaying some metal sales and associated cash flows into 2027.

The company is dealing with a tax dispute in Mongolia, which has reached approximately $900 million.

There are challenges in the IOC production performance due to pit and asset health issues, resulting in reduced volumes.

Q & A Highlights

Q: Can you explain the breakdown of the $1 billion increase in productivity gains from $870 million to $1.8 billion? A: Simon Trott, CEO, explained that the increase involves a mix of operational expenses (OpEx), capital expenses (CapEx), and productivity-related cost reductions. Peter Cunningham, CFO, added that the breakdown includes approximately $530 million in cost savings, with the remainder attributed to volume improvements. The focus is on bottom-up initiatives driven by the business.

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Q: What is the strategy for the aluminum business, and how does it fit into the $5 billion to $10 billion monetization of non-core assets? A: Simon Trott, CEO, stated that Rio Tinto has simplified its business to focus on three product groups and four commodities, including aluminum. The company aims to improve cost positions and performance within its aluminum assets. The strategy involves leveraging the best aluminum assets and exploring ways to strengthen and build on them, particularly given the cap in China.

Q: Can you provide an update on the Resolution Copper project and the next steps? A: Simon Trott, CEO, mentioned that the next step for the Resolution Copper project is drilling out the ore body. The company has rigs on site and will soon intersect the ore body, which will help characterize it and inform development decisions. The focus is on understanding the ore body and making informed decisions about its development path.

Q: How is Rio Tinto addressing the potential impact of unionization in the Pilbara on operations? A: Simon Trott, CEO, emphasized that Rio Tinto operates in accordance with local terms and conditions in all jurisdictions. The focus is on working collaboratively with employees to ensure safe and respectful workplaces. The company aims to maintain strong relationships with employees and communities to mitigate potential impacts.

Q: What are the plans for the Kennecott Copper project beyond 2030, and how is Rio Tinto addressing unpredictability at the asset? A: Simon Trott, CEO, stated that the Kennecott Copper project is progressing well, with plans to extend its life into the 2040s. The company is focused on safety and operational improvements to ensure predictable production. The strategic importance of having a smelter in the US is also highlighted, and Rio Tinto is exploring ways to best monetize this asset.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.