Rio Tinto Plc · LSE:RIO
Rio Tinto — Non-Deal Roadshow (December 2017)
16 slides from Rio Tinto's roadshow presentation, December 2017
Slide 1: Copper & Diamonds
Copper & Diamonds Investor roadshow, December 2017 Arnaud Soirat | chief executive, Copper & Diamonds
Slide 2: Cautionary statements
Cautionary statements 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, including but not limited to a
Slide 3: Supporting statements
Supporting statements Ore Reserves and Mineral Resources (slide 10, 12) Reserve grade for Oyu Tolgoi Underground – Hugo Dummett North and Hugo Dummett North Extension. Probable Ore Reserves for Hugo Dummett North and Hugo Dummett North Extension (499 Mt at 1.66% Cu, 0.35g/t Au) were released to the
Slide 4: Safety is our first priority
Safety is our first priority Continuous improvement in safety Copper AIFR per 200,000 hours worked 1.8 Fatality at Kennecott smelter in October 1.6 Continued focus on injury reduction, fatality and 1.4 catastrophic event prevention 1.2 1 – Embedding Critical Risk Management 0.8 – Process and Undergr
Slide 5: Sector-leading attributes
Sector-leading attributes Robust long-term demand Attractive industry Constrained supply fundamentals Deficit expected towards end of decade Long-life, low-cost, expandable assets Large, high-quality Interest in three of the world’s Tier 1 copper mines resources Productivity & processing optimisatio
Slide 6: Rio Tinto well placed to benefit from copper's attractive long-term fundamentals
Rio Tinto well placed to benefit from copper’s attractive long-term fundamentals Copper supply/demand Market has rebalanced after a number of years of (million tonnes) oversupply Surplus Deficit 25 Small deficit expected this year and next, as mine supply fell year-on year, whilst demand continues t
Slide 7: Strategy to deliver further value
Strategy to deliver further value Maximise value from existing operations Deliver medium-term growth Develop our people and progress long-term options & partnerships Unlock additional value through productivity initiatives ©2017, Rio Tinto, All Rights Reserved 7
Slide 8: Productivity options to continue to deliver cash benefits
Productivity options to continue to deliver cash benefits Partnering Best Practice Data & Technology Automation with Suppliers Effective equipment utilisation Payload optimisation and maintenance optimisation (MTBF) Light- weighting of truck beds Shorter haul times Increase mining rates in South wal
Slide 9: Kennecott – a stronger contributor to cash
Kennecott – a stronger contributor to cash Asset optimisation – Maximise smelter and refinery productivity by blending third-party concentrate South wall push back underpins over a decade of high-quality cash flow Returns to higher grades from 2021 Operational excellence to maximise value – Overall
Slide 10: Oyu Tolgoi - the leading Tier 1 copper project
Oyu Tolgoi - the leading Tier 1 copper project The highest quality, major copper development in the world. Average underground copper grade of 1.66% Cu and 0.35g/t Au1 > 20% IRR $5.3 billion capex, first quartile opex First drawbell production in 2020 Full production ~560kt/a1 2025-2030 Productivity
Slide 11: Non-managed interest in two of the world's best copper mines
Non-managed interest in two of the world’s best copper mines Escondida Grasberg Strong cash flows underpin dividends Contract of Work renegotiation is a priority for the business No additional significant capex required for near future Rio Tinto’s full participation beyond 2021 is likely to be delay
Slide 12: Future optionality for the Copper business
Future optionality for the Copper business Resolution Exploration Indicated and inferred mineral resource of 1,787Mt @ 1.54% Cu1 Continued focus on copper exploration, primarily the Americas Continuing to advance permitting process. Predictable timetable ~60% Rio Tinto exploration spend is focussed
Slide 13: Delivering medium-term growth and progressing long-term options
Delivering medium-term growth and progressing long-term options Supply surplus Supply deficit 2017 2018 2020 2021 2025-2030 Kennecott South push back underpins margin & volume increase Oyu Tolgoi HNL1 development to first production Ramp-up to ave. 560 ktpa copper production1 Escondida LCE & EWS2 ~1
Slide 14: Developing our people and our partnerships
Developing our people and our partnerships Working with our partners to improve safety Strengthening indigenous relationships Consulting with communities Building long-term sustainable relationships at Oyu Tolgoi – 94% local employment – Best in class for water efficiency – 86% of water recycled – 6
Slide 15: Attractive industry fundamentals, sector leading resource and high quality growth options
Attractive industry fundamentals, sector leading resource and high quality growth options Copper & Diamonds Attractive industry fundamentals ~$0.15 billion additional free cash flow per year from 2021 … Sector-leading large, high-quality resources ‒ Mining efficiency improvement ‒ Focusing on proces
Slide 16: 2018 guidance
2018 guidance Copper : 510-610 kt mined copper, 225-265 kt refined copper, Diamonds : 17-20 Mcts diamonds 16