Rio Tinto Plc · LSE:RIO
Rio Tinto — Sydney analyst forum 2011
18 slides from Rio Tinto's conference presentation, Oct 24, 2011
Slide 1: ASX cover letter to Company Announcements Office
120 Collins Street Melbourne 3000 Australia Postal Address: GPO Box 384D Melbourne 3001 Australia T +61 (0) 3 9283 3333 F +61 (0) 3 9283 3707 For personal use only Company Announcements Office Australian Securities Exchange SYDNEY NSW 2000 24 October 2011 Dear Sir, The attached presentation was deli
Slide 2: Tom Albanese, 24 October 2011
For personal use only Tom Albanese 24 October 2011 Benga, Mozambique
Slide 3: Cautionary statement
Cautionary statement For personal use only This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forwar
Slide 4: Introduction
Introduction For personal use only • Volatile macro environment • Long term demand outlook is unchanged • Increasing delays to industry supply response • Exceptional operational and financial performance • Balance sheet is strong • High quality growth programme – Organic projects are progressing wel
Slide 5: Industry cost pressures and equipment constraints will lead to a slower supply response
Industry cost pressures and equipment constraints will lead to a slower supply response For personal use only 2011 Lead time outlook • Equipment lead times are increasing Equipment type 0 1 2 3 (years) • Long term relationships with Grinding mills Draglines suppliers are critical Barges • Reduced ac
Slide 6: Balance sheet is strong
Balance sheet is strong For personal use only Net debt at end of period Gross debt maturity profile (US$bn) (US$bn) 50 70% 5.0 45 4.5 60% 40 4.0 35 50% 3.5 30 3.0 40% 25 2.5 30% 20 2.0 15 20% 1.5 10 1.0 10% 5 0.5 0 0% 0.0 2007 2008 2009 2010 Jun 11 Aug 11 Net debt (lhs) Gearing (rhs) Note: August 20
Slide 7: $27 billion of major capital projects underway
$27 billion of major capital projects underway For personal use only Project timeline(1) % Complete $ Capex(2) Production Dampier Ph 1 $91m +5mtpa Dampier Ph 2 $284m +5mtpa IOCC Ph 1 & 2 $763m +5.3mtpa Hope Downs 4 $2.1bn 15mtpa(4) Pilbara 53 (3) $7.3bn(3) +53mtpa Marandoo $1.1bn 15mtpa(4) Escondida
Slide 8: High quality tier one projects in advanced study
High quality tier one projects in advanced study For personal use only Rio Tinto Total funding of Indicative indicative indicative first Indicative Project Product capex(1) capex production production(1) Nammuldi (Pilbara 283) Iron ore $$ $$ 2013 NA Pilbara 333 Iron ore $$$ $$$ 2015 +50mtpa IOCC Pha
Slide 9: Volume growth will be across the portfolio
Volume growth will be across the portfolio For personal use only Indexed projected production profile • Iron ore business set to grow (Rio Tinto share) substantially over the next 5 years 170% • Alumina expansion at Yarwun 2 will CAGR 160% 9.8% commence production in 2012 150% 8.2% • Copper producti
Slide 10: The iron ore market continues to evolve
The iron ore market continues to evolve For personal use only • Industrial production in China remains robust Platts IODEX and Q-lagged prices (62% Fe, $/dmt, CFR North China) • Shipments are strong and we are selling everything we can produce • 86% of third quarter sales were quarterly lagged • Cur
Slide 11: Streamlining of Aluminium division
Streamlining of Aluminium division For personal use only • Strategic review identified 13 assets for Share of production 2010 YTD disposal (000’s tonnes) Sept 2011 • Pacific Aluminium assets Bauxite Rio Tinto Alcan 25,861 20,641 – Gove bauxite mine & alumina refinery Pacific Aluminium 7,190 5,330 –
Slide 12: Advancing world class copper projects
Advancing world class copper projects For personal use only Oyu Tolgoi • Construction more than 50% complete • Workforce to peak this year at 14,000 • Training programs developing Resolution • $103 million newly approved • Encouraging drill results La Granja • 30,000 meter drilling programme 50% com
Slide 13: Rio Tinto Coal Mozambique: a tier one resource
Rio Tinto Coal Mozambique: a tier one resource For personal use only • 2011 Rio Tinto acquisition of Riversdale • Tier one resource with expansion options; Moatize Basin is a ’50yr+’ opportunity • Strategic objective of 25Mtpa coking coal by 2020 • On-track to commission Benga Stage 1 by year-end •
Slide 14: New exploration initiatives
New exploration initiatives For personal use only • Agreed C$578m all-cash offer for Hathor Exploration • Injection of $10m into Tasman Resources Limited to fund exploration of highly prospective tenements north of Olympic Dam • Binding agreement with Acron to proceed with a joint venture potash exp
Slide 15: Our investment in technology gives us competitive edge
Our investment in technology gives us competitive edge For personal use only Copper NuWaveTM recovery innovation Iron Ore Operations Centre, Perth New tunnel boring system Surface mine automation 14
Slide 16: Our strategic focus will allow us to address the key challenges facing the mining sector
Our strategic focus will allow us to address the key challenges facing the mining sector For personal use only • Commodity supply growth is increasingly dependent on: – Resource nationalism – Competition for skilled labour – New geographies – More challenging ore bodies – Managing greater stakeholde
Slide 17: Executing our strategy
Executing our strategy For personal use only • Delivering exceptional performance from existing assets • Growing established operations • Identifying, acquiring and developing the next generation of tier one orebodies • Leadership in sustainable development • At the forefront of exploration, innovat
Slide 18: Questions & Answers
For personal use only Questions & Answers Bingham Canyon, USA