Rio Tinto Plc · LSE:RIO
Rio Tinto — Bank of America Merrill Lynch conference 2014
15 slides from Rio Tinto's conference presentation, May 13, 2014
Slide 1: Delivering greater value for shareholders
13 May 2014 Delivering greater value for shareholders Bank of America Merrill Lynch conference
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: Delivering greater value for shareholders
3 Delivering greater value for shareholders Consistent execution of a clear strategy Transformation underpinned by innovation Strong operational performance Disciplined capital allocation ©2014, Rio Tinto, All Rights Reserved
Slide 4: A consistent strategy with clear priorities
4 A consistent strategy with clear priorities Strategy Invest in and operate long-life, low-cost, expandable operations in the most attractive industry sectors Priorities Improve operating and Deliver financial performance Strengthen the results balance sheet Greater value for shareholders ©2014, Ri
Slide 5: Mine of the Future is delivering results today
5 Mine of the Future™ is delivering results today Pilbara – AP60 aluminium autonomous smelter produces haulage first hot metal system Pilbara – Processing AutoHaulR Excellence Centre Pilbara operations centre ©2014, Rio Tinto, All Rights Reserved
Slide 6: Process Excellence Centre: harnessing Big Data to improve performance
6 Process Excellence Centre: harnessing Big Data to improve performance 2009 2014 Western Australia – Collaboration Integrated global multi the world’s first and Skills leverage commodity Processing largest integrated Iron Excellence Centre Ore operations centre Productivity Value add Exploit Big Da
Slide 7: The Processing Excellence Centre has already realised considerable savings
7 The Processing Excellence Centre has already realised considerable savings • Our team and our business unit partners observed a process variance • Processing Excellence Centre mobilised to develop solutions • Over distance and time, solutions were evolved • Through collaboration, the system was st
Slide 8: Autonomous deployment continues to drive real business value
8 Autonomous deployment continues to drive real business value • Autonomous Haulage System − Current truck fleet of 53, moving to 65 by end of 2014 − >180Mt of material autonomously moved since 2008 − Improved safety, truck cycle times, maintenance and control − Expect 10-15% increase in effective u
Slide 9: Pilbara growth: 290 Mt/a project at full capacity
9 Pilbara growth: 290 Mt/a project at full capacity • Construction completed 4 months ahead of schedule and $400m under budget • Commissioning Cape Lambert B: − First ore on ship four months ahead of schedule − Delivered value in advance of full system re-rate • 290Mt/a system run rate achieved two
Slide 10: Pilbara growth: breakthrough pathway towards 360Mt/a
10 Pilbara growth: breakthrough pathway towards 360Mt/a • Infrastructure expansion to 360Mt/a fully approved and on schedule for completion during H1 2015 • Approved rapid, low-cost pathway to increase mine production capacity by > 60Mt/a from 2014 to 2017 • Key activities - Minor plant modification
Slide 11: We are extending our lead as the Pilbara's lowest cost producer
11 We are extending our lead as the Pilbara’s lowest cost producer Full year cash unit cost • 2013 full year cash unit cost in the US$ per tonne Pilbara was US$20.80/t, 11% lower than 2012 25 • 2013 EBITDA margin 71% 20 • Geographic proximity to key 15 customers 10 • Unfettered access to ports and r
Slide 12: High quality growth options across the portfolio
12 High quality growth options across the portfolio Iron ore: Copper: Pilbara Oyu Tolgoi optimisation phase 2 Copper: Bauxite: La Granja South of the Embley Iron ore: Simandou ©2014, Rio Tinto, All Rights Reserved
Slide 13: Sequencing the best projects in line with our capital allocation priorities
13 Sequencing the best projects in line with our capital allocation priorities 1 Essential sustaining 2 Progressive dividends 3 Iterative cycle of: capex Further cash Compelling returns to growth shareholders Debt reduction ©2014, Rio Tinto, All Rights Reserved
Slide 14: Delivering high quality growth with less capital expenditure
14 Delivering high quality growth with less capital expenditure Expected capital expenditure profile* Rio Tinto copper equivalent production US$ billion 2012 = 100 20 140 CAGR 17.6 26% 120 > 8% 15 100 12.9 >15% <11 80 >20% 10 ~8 60 40 5 20 0 0 2012A 2013A 2014F 2015F 2012A 2013A 2014F 2015F Sustaini
Slide 15: Delivering greater value for shareholders
15 Delivering greater value for shareholders Consistent execution of a clear strategy Transformation underpinned by innovation Strong operational performance Disciplined capital allocation ©2014, Rio Tinto, All Rights Reserved
Rio Tinto — Bank of America Merrill Lynch conference 2014 on 6ix