Rio Tinto Plc · LSE:RIO
Rio Tinto — Merger or Acquisition (October 2024)
20 slides from Rio Tinto's merger presentation, Oct 9, 2024
Slide 1: Presentation on acquisition of Arcadium Lithium
Notice to ASX THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL Presentation on acquisition of Arcadium Lithium 9 Octo
Slide 2: Contacts
Notice to ASX 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 Michelle Lee Malika C
Slide 3: Acquisition of Arcadium Lithium
For personal use only Acquisition of Arcadium Lithium Creating a world-class lithium business 9 October 2024
Slide 4: Cautionary statements
Cautionary statements This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (together with their subsidiaries, “Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statements. Important Notices Arcadium Lithium’s
Slide 5: Lithium – an essential material for the energy transition
Lithium – an essential material for the energy transition Lithium batteries harness the properties of critical materials for Electric Vehicles (EVs) and energy storage Al For personal use only Aluminium Aluminium • ~230kg per EV Cu Copper Copper • ~80kg per EV Cu Anode Separator Al Li+ Copper foil L
Slide 6: Lithium – right product, right time
Lithium – right product, right time For personal use only One of the cornerstone materials Highly attractive for the energy transition long-term fundamentals Supply deficit from late 2020’s (kt LCE)1 Product High growth market 6 High quality customer offering Supply Demand Complements our portfolio
Slide 7: Bringing Rio Tinto's scale, development capabilities and financial strength to the Arcadium portfolio
Bringing Rio Tinto’s scale, development capabilities and financial strength to the Arcadium portfolio For personal use only Tier 1 assets Complementary Compelling capabilities economics • Long mine lives • Rio Tinto’s balance sheet • Low cost, large, expandable strength to accelerate • ~130% capacit
Slide 8: Arcadium Lithium: the premier lithium growth business
Arcadium Lithium: the premier lithium growth business1 For personal use only Established vertically integrated producer2 Tier 1 assets with high grades and long mine lives 4 5 3 3 #1 Proven Leader in Lithium Lithium Lithium Hard-rock success long-term Resource in resource lithium production brine hy
Slide 9: Investing in innovation and next generation technology
Investing in innovation and next generation technology Enhancing lithium Developing next generation For personal use only processing capabilities battery applications ILiAD Technologies LIOVIX® • A market leader in DLE production processes • Important technology for the development and commercialisa
Slide 10: Multi-year commercial relationships with global leaders
Multi-year commercial relationships with global leaders For personal use only BMW Group Source: Arcadium Lithium company disclosures. 8 8
Slide 11: Multi-generational asset base with significant production upside
Multi-generational asset base with significant production upside Industry-leading resource endowment… … underpinning a global lithium business of scale For personal use only #1 Resource base1 Targeted lithium capacity2 (ktpa LCE, attributable) 373 +245% + (excluding Rincon) 265 9Mt LCE Reserves 6Mt
Slide 12: Maintaining our disciplined approach to capital allocation
Maintaining our disciplined approach to capital allocation Shareholder returns of 40-60% of underlying earnings on average through the cycle For personal use only 01 Essential capex 02 Ordinary dividends 03 Iterative cycle of… Further cash returns to Compelling growth shareholders Debt management Ar
Slide 13: The transaction
The transaction For personal use only Consideration • US$5.85/sh in cash, total US$6.7 billion1 cash transaction • Unanimously approved by Boards of Rio Tinto and Arcadium Lithium Timing • Jersey scheme of arrangement • Customary approvals and closing conditions • Mid-2025 target completion Rio Tint
Slide 14: Creating the world-leading lithium business
Mt Cattlin Project Australia Creating the world-leading For personal use only lithium business • #1 lithium resource base • Compelling growth pipeline • Enhanced technological and ESG leadership • Diversified by geography and feedstock • Presence across the value chain • Established portfolio of pre
Slide 15: Appendices
For personal use only Appendices
Slide 16: A truly global and integrated asset footprint
A truly global and integrated asset footprint1 Mining – hard-rock Mining – brine Processing facility Jadar Lithium carbonate Rio Tinto development asset Arcadium Lithium development For personal use only Nemaska (50%) asset Arcadium Lithium operating Lithium hydroxide Bromborough asset Specialty pro
Slide 17: Complementary portfolios: Rio Tinto footprint in Canada and Argentina
Complementary portfolios: Rio Tinto has an existing footprint and deep experience in Canada and Argentina ~100 years in Quebec Canada For personal use only Quebec, • Long history of hard-rock development Canada • Constructive relationships with Cree nation Iron Ore Company of Canada • Supply relatio
Slide 18: Arcadium Lithium's assets are well positioned on the cost curve
Arcadium Lithium’s assets are well positioned on the cost curve For personal use only 2035 lithium and copper cost curve1 Lithium cost curve steepness comparable to copper (ratio of 90th percentile to 25th percentile) Galaxy Arcadium Lithium’s brine and Whabouchi integrated hard-rock assets well pos
Slide 19: Supporting statements
Supporting statements Arcadium Lithium Mineral Resources and Mineral Reserves from both Measured and Indicated Resource intervals, making a Peer targeted lithium nameplate capacity comparison data on concentrate. Spodumene grade is stated as 5.2% Li2O. direct comparison between Mineral Resources at
Slide 20: For personal use only
For personal use only