Rio Tinto Plc · LSE:RIO
Rio Tinto — Merger or Acquisition (October 2024)
26 slides from Rio Tinto's merger presentation, Oct 9, 2024
Slide 1: Schedule 14A Proxy Statement Information
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant ☒ Filed by a Party other than the Registrant ☐ Check the appropriate box: ☐ Preliminary Proxy Stat
Slide 2: Rio Tinto to acquire Arcadium Lithium
Notice to ASX/LSE THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION Rio
Slide 3: Compelling Strategic and Financial Rationale
Notice to ASX/LSE an outstanding business today and we will bring our scale, development capabilities and financial strength to realise the full potential of its Tier 1 portfolio. This is a counter-cyclical expansion aligned with our disciplined capital allocation framework, increasing our exposure
Slide 4: Transaction Details
Notice to ASX/LSE acquisition comes at a time with substantial long-term market and portfolio upside, underpinned by an appealing market structure and established jurisdictions. Transaction Details The Transaction has been unanimously approved by both the Rio Tinto and Arcadium Lithium Boards of Dir
Slide 5: Important Notices
Notice to ASX/LSE processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. They have operations around the world, with facilities and projects in Argentina, Australia, Canada, C
Slide 6: Participants in the Solicitation
Notice to ASX/LSE Participants in the Solicitation Rio Tinto, Arcadium Lithium and certain of their respective directors and officers may be deemed participants in the solicitation of proxies of Arcadium Lithium’s shareholders in connection with the proposed Transaction. Additional information regar
Slide 7: Forward-looking statements
Notice to ASX/LSE respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this announcement shall actually occur. Given these risks and uncertainties, pot
Slide 8: Contacts
Notice to ASX/LSE Contacts Please direct all enquiries to media.enquiries@riotinto.com Media Relations, United Kingdom Matthew Klar M +44 7796 630 637 David Outhwaite M +44 7787 597 493 Media Relations, Australia Matt Chambers M +61 433 525 739 Michelle Lee M +61 458 609 322 Rachel Pupazzoni M +61 4
Slide 9: Acquisition of Arcadium Lithium: Creating a world-class lithium business
Acquisition of Arcadium Lithium Creating a world-class lithium business 9 October 2024
Slide 10: Cautionary statements
2 This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (together with their subsidiaries, “Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statements. Cautionary statements Important Notices This presentation
Slide 11: Lithium – an essential material for the energy transition
3 Lithium – an essential material for the energy transition 1 LCE represents Lithium carbonate equivalent. Based on 75kWh battery and range of battery chemistries (LMFP to NMC111). Lithium batteries harness the properties of critical materials for Electric Vehicles (EVs) and energy storage Al Al Cu
Slide 12: Lithium – right product, right time
4 Lithium – right product, right time 1 Benchmark Mineral Intelligence (BMI) supply and demand forecast as of September 2024 Highly attractive long-term fundamentals Supply deficit from late 2020’s (kt LCE)1 One of the cornerstone materials for the energy transition 0 2 4 6 2023 2030 2035 2040 Suppl
Slide 13: Bringing Rio Tinto's scale, development capabilities and financial strength to Arcadium
5 1 Excludes Mt Cattlin. Data from Arcadium’s Investor Day 2024 guidance. 2 DLE = Direct Lithium Extraction. Bringing Rio Tinto’s scale, development capabilities and financial strength to the Arcadium portfolio • Rio Tinto’s balance sheet strength to accelerate growth pipeline • Proven DLE2 technolo
Slide 14: Arcadium Lithium: the premier lithium growth business
6 Current 2028 2030s Arcadium Lithium: the premier lithium growth business1 Highly attractive portfolio of growth projects Significant capital investment made Consolidated nameplate capacity (kt LCE)3 Proven success in resource expansion 75 1 Source: Arcadium Lithium company disclosures. 2 Includes
Slide 15: Investing in innovation and next generation technology
7 Investing in innovation and next generation technology Enhancing lithium processing capabilities ILiAD Technologies • A market leader in DLE production processes • Potential improvement in efficiency, sustainability and costs Lithium Metal Assets • Targeting safer, lower cost and more sustainable
Slide 16: Multi-year commercial relationships with global leaders
8 Multi-year commercial relationships with global leaders BMW Group 8Source: Arcadium Lithium company disclosures.
Slide 17: Multi-generational asset base with significant production upside
Multi-generational asset base with significant production upside Industry-leading resource endowment… … underpinning a global lithium business of scale Targeted lithium capacity2 (ktpa LCE, attributable) 1 Mineral Reserves and Mineral Resources (exclusive of Mineral Reserves) shown on an attributabl
Slide 18: Maintaining our disciplined approach to capital allocation
Shareholder returns of 40-60% of underlying earnings on average through the cycle 1 Rio Tinto group capital expenditure guidance of up to $10bn in each of 2025 and 2026. Maintaining our disciplined approach to capital allocation 10 Arcadium Lithium’s capital requirements represent ~5% of our group c
Slide 19: The transaction
11 The transaction Sal de Vida Catamarca, Argentina Consideration • US$5.85/sh in cash, total US$6.7 billion1 cash transaction • Unanimously approved by Boards of Rio Tinto and Arcadium Lithium Timing • Jersey scheme of arrangement • Customary approvals and closing conditions • Mid-2025 target compl
Slide 20: Creating the world-leading lithium business
Creating the world-leading lithium business Mt Cattlin Project Australia • #1 lithium resource base • Compelling growth pipeline • Enhanced technological and ESG leadership • Diversified by geography and feedstock • Presence across the value chain • Established portfolio of premier customers 12
Slide 21: Appendices
Appendices
Slide 22: A truly global and integrated asset footprint
14 A truly global and integrated asset footprint1 Fenix Lithium carbonate Lithium chloride Rincon Lithium carbonate Jadar Lithium carbonate Bromborough Specialty products Mt Cattlin Spodumene Nemaska (50%) Lithium hydroxide Galaxy (James Bay) Spodumene Cauchari Lithium carbonate Olaroz (66.5%) Lithi
Slide 23: Complementary portfolios in Canada and Argentina
15 Quebec, Canada Salta, Jujuy and Catamarca Region, Argentina Complementary portfolios: Rio Tinto has an existing footprint and deep experience in Canada and Argentina Rio Tinto Arcadium Lithium assets Roads Mines Smelters, refineries, power facilities and processing plants remote from mine Operati
Slide 24: Arcadium Lithium's assets are well positioned on the cost curve
16 Arcadium Lithium’s assets are well positioned on the cost curve 2035 Copper cost curve Lithium cost curve steepness comparable to copper (ratio of 90th percentile to 25th percentile) Arcadium Lithium’s brine and integrated hard-rock assets well positioned on cost curve, generating high profitabil
Slide 25: Supporting statements: Mineral Resources and Mineral Reserves
17 Supporting statements Arcadium Lithium Mineral Resources and Mineral Reserves Arcadium Lithium’s lithium Mineral Resources referenced on slide 9 are a Lithium Carbonate Equivalent (LCE) estimate based on: 1. the 85.9 Mt of hard-rock lithium Mineral Resources as reported in Arcadium Lithium’s Form
Slide 26: Rio Tinto
RioTinto