Rio Tinto Plc · LSE:RIO
Rio Tinto — Investor Presentation (June 2013)
13 slides from Rio Tinto's investor presentation, June 2013
Slide 1: Rio Tinto Diamonds & Minerals Investor meetings June 2013
Rio Tinto Diamonds & Minerals Investor meetings June 2013
Slide 2: Cautionary statement
2 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
Slide 3: Diamonds & Minerals – attractive assets in attractive industries
3 Diamonds & Minerals – attractive assets in attractive industries Titanium dioxide Minerals Diamonds Salt Simandou • #1 producer of • #2 producer of • #3 rough • #1 exporter of • Largest TiO2 feedstocks refined borates diamond solar salt untapped iron • Mines in South • Tier one mine in producer &
Slide 4: Demand growth strength in later stages of economic development
4 Demand growth strength in later stages of economic development Inflection point not yet reached for many of our products Percentage of saturation level* Titanium dioxide 100 90 Nickel Titanium Dioxide 80 Crude steel 70 Aluminium 60 Copper 50 40 Diamonds 30 Borates 20 10 0 2,000 10,000 18,000 26,00
Slide 5: Complements the Rio Tinto portfolio
5 Complements the Rio Tinto portfolio Global growth forecast comparison to 2017, CAGR, % • Mid to late cycle commodities xx 2012-2030 CAGR with demand surge at a later 5.8 5.8 4.2 4.6 stage in a country’s development • Geographically balanced in demand but highly geared to TiO2 Borates Salt Diamonds
Slide 6: On track to becoming a more material contributor to Rio Tinto performance
6 On track to becoming a more material contributor to Rio Tinto performance Diamonds and Minerals results1, US$ millions • 61% increase in Product Group Operations earnings in 2012 1200 compared to 2011 1000 • TiO2 legacy contracts continue to be replaced with shorter term 800 pricing • Some market
Slide 7: Long term titanium dioxide fundamentals are strong
7 Long term titanium dioxide fundamentals are strong Pigment consumption per capital 1995 – 2011, TiO2 demand development, Million tonnes, pigment pigment consumption per capital (kg), GDP per (LHS), crude steel (RHS) capita (2001 – 2011) 16 2000 4 Approximate population in 2020 shown 1800 14 Steel–
Slide 8: Long term outlook remains strong, despite short-term challenges in high grade feedstock
8 Long term outlook remains strong, despite short-term challenges in high grade feedstock TiO2 contract volumes split 2011 – 2015, ‘000 TiO2 • Replacing long-term price contracts units continues to provide exposure to higher 2500 prices 2000 • Inventory overhang for zircon and TiO2 1500 putting pres
Slide 9: Strategic optionality built into the borates business
9 Strategic optionality built into the borates business Global refined borates demand, Cumulative kmt boric • Supplying high quality products to oxide B2O3 equivalent high demand end users driven by Urbanisation Agriculture Energy Efficiency the need to feed, urbanisation and 1200 energy efficiency
Slide 10: Diamonds are well positioned for profitable growth
10 Diamonds are well positioned for profitable growth Supply is forecast to be flat over the next decade, diamond production (million carats) CAGR • Strong industry fundamentals 200 2010 – 20 0.8% driving price – supply demand 150 imbalance is expected to widen 100 • Argyle underground moving 50 for
Slide 11: Simandou, a tier one iron ore project in a world class province
11 Simandou, a tier one iron ore project in a world class province Progressive delivery of the Simandou project • Largest known undeveloped iron Ile Coastal Plain Mamou Range Eastern Plateau Region Mine ore deposit in the world Kabak Mamou Faranah • 95-100Mtpa progressive mine Conakry development, 6
Slide 12: The project has now reached a critical stage in order to proceed
12 The project has now reached a critical stage in order to proceed • The Simandou Basic Convention and Settlement Agreement establish the principles underpinning this landmark investment • A robust investment framework needs to be put in place on this basis • Its aim will be to provide the Governme
Slide 13: Diamonds and Minerals poised to become a significant contributor to the Group
13 Diamonds and Minerals poised to become a significant contributor to the Group • Entering a new phase of demand growth for commodities • Global shift in wealth and demographic profiles driving demand for our products • Maximising shareholder value through a diverse portfolio of world class, long l