Rio Tinto Plc · LSE:RIO
Rio Tinto — Global Iron Ore & Steel Forecast Conference 2016
10 slides from Rio Tinto's conference presentation, Mar 8, 2016
Slide 1: Delivering value through the cycle
Delivering value through the cycle Michael Gollschewski, managing director Pilbara Mines Global Iron Ore & Steel Forecast Conference 8 March 2016, Hyatt Regency, Perth First iron ore shipment from Dampier August 1966
Slide 2: Cautionary statement
2 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains certain forward-looki
Slide 3: Safety is fundamental to our business
3 Safety is fundamental to our business Iron Ore all injury frequency rate Per 200,000 hours worked 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Wellbeing 450 employees trained as peer supporters
Slide 4: The best iron ore business
4 The best iron ore business Rio Tinto Pilbara Iron Ore Key Achievements in FY15 • Achieved an average FOB EBITDA margin of 69% • Lowest cost producer in the Pilbara over last ten years • Exceptional earnings with EBITDA of 60%, despite • Tier 1 assets; Tier 1 people price falls • System wholly owne
Slide 5: High-cost supply continues to exit the market
5 High-cost supply continues to exit the market Iron ore market balance China domestic production Mt Inner Liaoning 100 Mongolia 100 1,900 National Total 100 Shanxi 50 350 50 32 50 0 0 1,850 5 275 0 -35 300 Hebei 100 1,800 110 250 50 -60 0 1,750 -35 -20 100 Shandong 1,700 50 0 1,650 100 Anhui Southw
Slide 6: Our strategy
6 Our strategy Production at the Maximising Value driven right cost portfolio value investment • Lowest cost producer in • Fully integrated system Pilbara • 20% Productivity increase • World’s largest autonomous • Reduced operating costs and FY15 truck operator working capital • Average rail cycle t
Slide 7: Production at the right cost
7 Production at the right cost Pilbara cash unit cost US$ per tonne • Relentless focus on cash 20.4 18.7 16.2 • H2 2015 cash unit cost of US$13.8/t 13.8 • Pre-tax cash cost improvements were US$428 million in 2015 H1 2014 H2 2014 H1 2015 H2 2015 • Cumulative saving of US$1.1 billion since compared w
Slide 8: Maximising the portfolio value
8 Maximising the portfolio value System optimisation Product options • Consistent quality • Maximise output • Pilbara Blend • Quality specification Improved cycle time from • Understanding customer • Real time data & decisions 42 hours to 35 hours requirements High value initiatives • System-wide •
Slide 9: Value driven investment
9 Value driven investment Autonomous Haul Trucks Performance Nammuldi incremental investment Effective utilisation indexed to all manned sites 5 Mt/a, commenced 2015/2016 5 Mt/a, commencing in 2017 120.0% Access low phosphorous ore for Pilbara Blend RTVis 110.0% Improved utilisation of ore body Impr
Slide 10: Looking forward
10 Looking forward • Safety is fundamental to our business • Our strategy remains clear and consistent • Tier one assets • Operating excellence • Returns to shareholders Cape Lambert ore train
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