Rio Tinto Plc · LSE:RIO
Rio Tinto — Non-Deal Roadshow (September 2010)
17 slides from Rio Tinto's roadshow presentation, September 2010
Slide 1: Rio Tinto Copper
Rio Tinto Copper Andrew Harding, Chief Executive Officer September 2010
Slide 2: Cautionary statement
Cautionary statement 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. Forward-looking statements T
Slide 3: It has been a rollercoaster ride for prices
It has been a rollercoaster ride for prices . . . LME copper prices over the past 30 years c/lb 400 300 10 year average 200 30 year average 100 0 1980 1985 1990 1995 2000 2005 2010 Source: Bloomberg, Global Insight 2
Slide 4: First half 2010 results for the copper group
First half 2010 results for the copper group Copper underlying results (US$ billion) 3 2 • Mined copper production was impacted by lower grades at Kennecott Utah Copper and Grasberg 1 • Earnings were boosted by higher molybdenum prices and volumes 0 H1 08 H2 08 H1 09 H2 09 H1 10 Underlying EBITDA Un
Slide 5: Our large, long-life, low-cost asset base is resilient to volatile prices
Our large, long-life, low-cost asset base is resilient to volatile prices Escondida Grasberg Bingham Canyon World’s largest World’s second 1 2 10 World’s tenth largest copper mine largest copper mine copper producer Second quartile net First quartile net unit First quartile net unit 2 1 1 unit cash
Slide 6: Rio Tinto has a strong pipeline of greenfield copper projects
Rio Tinto has a strong pipeline of greenfield copper projects Comparison of undeveloped copper assets 1 Grade Bubble size denotes size of asset (%Cu) (contained Cu) 10.0 Rio Tinto interests Resolution Oyu Tolgoi 1.0 Pebble La Granja 0.1 Reserves & resources (Mt) 100 1,000 10,000 100,000 Note: 1. Cop
Slide 7: We have a first class growth profile
We have a first class growth profile Oyu Tolgoi Resolution La Granja World’s second World’s third largest World’s eighth largest 2 largest undeveloped 3 undeveloped copper 8 undeveloped copper copper resource resource resource • First quartile producer due to • High grade copper deposit significant
Slide 8: We are also exposed to nickel as well as the Pebble project through Northern Dynasty
We are also exposed to nickel as well as the Pebble project through Northern Dynasty Eagle Sulawesi Pebble World’s largest First quartile net unit Top ten nickel laterite 1 10 1 undeveloped copper cash costs resource in Asia resource • Construction approved and commenced • World’s largest gold resou
Slide 9: Overview of the Oyu Tolgoi project
Overview of the Oyu Tolgoi project Oyu Tolgoi is best undeveloped copper-gold project in the world • Oyu Tolgoi will be a top ten copper producer. Large • It will also be a significant gold producer.1 • Resources of 3.3 billion tonnes and a 930 million tonne reserve. Long life • Potential for a > 50
Slide 10: The importance of emerging resource rich economies is tied to increasing demand for copper
The importance of emerging resource rich economies is tied to increasing demand for copper Consumption per capita will increase significantly over the next decade Global population Consumption distribution per capita ($) 30% 30 Global average Copper 2010 2020 20% 20 10% 10 0% 0 0 10 20 30 40 GDP per
Slide 11: Demand is driven by consumption needed to achieve China's phenomenal growth
Demand is driven by consumption needed to achieve China’s phenomenal growth China’s growth potential GDP per capita in China still only 14 per cent of that in the United States. There are only 33 automotive vehicles for every 1,000 people in China compared to 800 in the United States. By 2025, it’s
Slide 12: …while supply has persistently fallen short of forecasts
…while supply has persistently fallen short of forecasts Supply into the market can be constrained by: Existing Project Disruptions Operations Delays Declining grade Delayed approvals Industrial action Extended construction Power / water Lower recovery timelines constraints Slower than forecast Weat
Slide 13: Broader trends emerging in the copper industry
Broader trends emerging in the copper industry Supply from developing countries Mines at greater depth Indicative depth of discoveries 1 • There is a trend towards greater supply from developing countries. Blind • Currently 60% of production comes from Covered the top five copper mining nations – Ch
Slide 14: The market is forecast to remain tight through to 2020
The market is forecast to remain tight through to 2020 New supply is particularly dependant on greenfield projects 28 Mined Probable 5% Copper Highly probable (Mt) Demand CAGR 24 Existing & committed 4% scenarios 2009 3% 20 70% greenfield 16 12 2000 2005 2010 2015 2020 Source: Rio Tinto, Brook Hunt
Slide 15: Why we are a partner of choice
Why we are a partner of choice Our focus on sustainable development • Healthy workplaces Social well-being • Sustainable safety culture • Long-term community benefits • Addressing climate change Environmental stewardship • Protecting biodiversity • Promoting conservation • Socio-economic development
Slide 16: Technology and innovation driving our competitive advantage
Technology and innovation driving our competitive advantage “Rio de Cobre” Technology Alliance The Mine of the Future TM initiative Rio Tinto and CODELCO are pursuing Rio Tinto and its partners are next generation copper mining and developing new equipment and processing technology. systems for unde
Slide 17: A truly global partner
A truly global partner Copper Mines and mining projects Other Rio Tinto Smelters, refineries, power facilities and processing plants remote from mine Europe North America Asia Africa South America Australasia 16