Rio Tinto – Half Year Results

Very resilient financial results as we grow and diversify our portfolio 

6% CuEq production uplift YoY, delivering on strategy through focus on our four objectives

Rio Tinto Chief Executive Jakob Stausholm said: “We are delivering very resilient financial results with an improving operational performance helped by our increasingly diversified portfolio. Underlying EBITDA of $11.5 billion and operating cash flow of $6.9 billion, despite a 13% lower iron ore price, demonstrate the growing contribution from our Aluminium and Copper businesses and our Pilbara operations’ strong recovery from the four cyclones in the first quarter. We are reporting underlying earnings of $4.8 billion (after taxes and government royalties of $4.8 billion).

“Our strong cash flow enables us to maintain our practice of a 50% interim payout with a $2.4 billion ordinary dividend, as we continue our disciplined investment in profitable growth while retaining a strong balance sheet.

“We are well positioned to generate value from our best-in-class project execution, together with growing demand for our products, now and over the coming decades. We remain on track to deliver strong mid-term production growth, with solid foundations in place and a diverse pipeline of options for the future.”

1.   Executive Summary

• We’re pleased to have announced Simon Trott as Chief Executive with effect from 25 August 2025.

• Very resilient financials with stable net cash generated from operating activities of $6.9 billion and underlying EBITDA of $11.5 billion, despite a 13% lower iron ore price¹ and the impact of the cyclones in Q1, underpinned by our improving operational performance, diversifying portfolio and a rising contribution from our Aluminium and Copper businesses.

• Profit after tax attributable to owners of Rio Tinto of $4.5 billion (referred to as “net earnings” throughout this release).

• Interim ordinary dividend of $2.4 billion, a 50% payout, in line with our practice.

• Successful delivery of projects: Simandou first shipment accelerated to around November 2025, Western Range iron ore opened on time and on budget and construction commenced at Hope Downs 2 and Brockman Syncline 1 following receipt of all necessary approvals. Arcadium Lithium acquisition closed ahead of schedule in March and we enriched our lithium pipeline through two new agreements in Chile with Codelco and ENAMI².

Six months ended 30 June	2025	2024	Change
Net cash generated from operating activities (US$ millions)	6,924	7,056	(2) %
Purchases of property, plant and equipment and intangible assets (US$ millions)	4,734	4,018	18 %
Free cash flow3 (US$ millions)	1,962	2,843	(31) %
Consolidated sales revenue (US$ millions)	26,873	26,802	–  %
Underlying EBITDA3 (US$ millions)	11,547	12,093	(5) %
Underlying earnings3	4,807	5,750	(16) %
Profit after tax attributable to owners of Rio Tinto (net earnings) (US$ millions)	4,528	5,808	(22) %
Underlying earnings per share (EPS)3 (US cents)	296.0	354.3	(16) %
Ordinary dividend per share (US cents)	148.0	177.0	(16) %
Underlying return on capital employed (ROCE)3	14%	19%
	At 30 June 2025	At 31 December 2024
Net debt3 (US$ millions)	14,597	5,491	166 %

2. Progress against our four objectives

Key achievements in the first half of 2025

Best Operator

Safety: remains our top priority. We are committed to having a safe work environment, preventing catastrophic events and injuries.

• 0.39 All Injury Frequency Rate (AIFR).

• Improving operational performance:
  • The Safe Production System (SPS) rolled out at 36 sites.
  • Bauxite: Record H1 production as Amrun and Gove continue to outperform.
  • Copper: 54% YoY increase in production at Oyu Tolgoi in H1 with SPS building in long-term capability through the underground ramp-up.
  • Iron Ore Pilbara: Strongest Q2 production since 2018; 5Mtpa system capacity uplift from SPS in place, however utilisation restricted for the period affected by the cyclones.

Impeccable ESG

• Decarbonisation: on track to reduce Scope 1 and 2 emissions by 50% by 2030 relative to our 2018 equity emissions baseline¹. Committed to helping our customers and suppliers achieve net zero by 2050.
  • CO₂ emissions: 15.6 Mt CO₂e scope 1 & 2 emissions in H1 2025 equivalent to 14% vs 2018 baseline.
  • Spend: $72 million capital expenditure and $181 million operational expenditure.
  • Pacific Aluminium: we delivered the third tranche of our Gladstone operations energy solution, signing two new agreements to purchase 90% of the solar (600MWac) and battery storage (600MW/ 2,400MWh) capacity to be installed by Edify Energy.
  • Pilbara iron ore: NeoSmelt technology to produce low-emission iron, joined by Woodside Energy and Mitsui Iron Ore Development together with A$19.8 million from Australian Renewable Energy Agency.

• Modern Slavery Statement: published in May, refers an independent Human Rights Impact Assessment in Guinea and details steps taken to address the recommendations. The report highlights our commitment to preventing modern slavery within our operations and supply chains.

Excel in development

We continue to make significant progress:

• Simandou: first shipment accelerated to around November 2025.

• Pilbara: Western Range: officially opened in June, on time and on budget.

• Pilbara: Brockman Syncline 1 & Hope Downs 2: following Traditional Owner support, received all necessary State and Federal Government approvals by June. Commencement of main construction works now enabled.

• Lithium: completed acquisition of Arcadium for $6.7 billion² in March; integration of Rio Tinto Lithium is on track; enriched our lithium pipeline through two new agreements in Chile with Codelco and ENAMI³.

Social licence

We continue to strive to deepen trust and relationships, particularly with Indigenous peoples as we invest in cultural knowledge.

• Puutu Kunti Kurrama and Pinikura (PKKP): co-management agreement signed in May with PKKP, providing the overarching framework for Rio Tinto’s iron ore operations on PKKP Country and formalises how they engage on proposals affecting heritage and social surroundings throughout the mine lifecycle. It will ensure knowledge-sharing and joint design are at the centre of Rio Tinto’s operations on PKKP Country.

• Pilbara Western Range: First project with co-designed Social, Cultural and Heritage Management Plan with the Yinhawangka Traditional Owners.

1.   We have adjusted our 2018 baseline and 2023 emissions to exclude emissions reductions achieved by divesting assets and allow increases associated with acquisitions. In 2023, we restated prior year emissions numbers and our 2018 baseline following an update to our GHG reporting methodology. Further detail on these changes in reporting is available in our Scope 1, 2 and 3 Emissions Calculation Methodology.

2.   This includes $6.3 billion paid to Arcadium’s shareholders, $0.4 billion paid to their convertible loan note holders.

3.   Subject to regulatory approvals and other closing conditions.

3. Guidance

Production (Rio Tinto share, unless otherwise stated)		H1 2025	2025 Guidance	Guidance status
Pilbara iron ore (shipments, 100% basis)	Mt	150.6	323 to 338	Unchanged(at lower end)2
Bauxite	Mt	30.6	57 to 59	Unchanged(at higher end)3
Alumina	Mt	3.7	7.4 to 7.8	Unchanged
Aluminium (primary only)	Mt	1.7	3.25 to 3.45	Unchanged
Copper (consolidated basis)1	kt	438	780 to 850	Unchanged(at higher end)3
Titanium dioxide slag	Mt	0.5	1.0 to 1.2	Unchanged(at lower end)3
Iron Ore Company of Canada (IOC) iron ore pellets & concentrate	Mt	4.8	9.7 to 11.4	Unchanged
Boric oxide equivalent	Mt	0.2	~0.5	Unchanged

Unit Costs

	H1 2025	2025 Guidance
Pilbara iron ore unit cash costs, free on board (FOB) basis – US$ per wet metric tonne	24.3	23.0-24.50
Australian dollar exchange rate	0.63	0.66
Copper C1 net unit costs (includes Kennecott, Oyu Tolgoi and Escondida) – US cents per lb	97	Updated 110-130 (previously 130-150)

Share of capital investment

$bn	H1 2025	2025 Guidance
Growth capital	1.4	~ 3
Sustaining capital	1.7	~ 4
Replacement capital	1.3	~ 3-4
Decarbonisation capital	0.1	~ 0.3
Total Group	4.5	~ 11
Effective tax rate	34.5 %	~33% (previously ~30%)

2025 production guidance maintained¹

• Pilbara shipments are expected to be at the lower end of guidance, due to four cyclones as announced in Q1.
  • Pilbara iron ore guidance remains subject to the timing of approvals for planned mining areas and heritage clearances. The system has limited ability to mitigate further losses from weather if incurred.

• Bauxite production is expected to be at the higher end of guidance range driven by   Amrun exceeding its nameplate capacity in H1.

• Copper production is expected to be at the higher end of guidance due to our continued successful ramp-up of the Oyu Tolgoi underground mine and good performance at Escondida.

• TiO₂ production is expected to be at the lower end of guidance reflecting market demand.

¹ Guidance remains subject to weather impacts

Unit cost guidance

• Pilbara iron ore: we keep guidance unchanged with an average expected weaker Australian dollar. This considers volumes at the lower end of the guidance range and the additional spend of ~A$150 million for cyclone recovery costs, the majority of which is H2 weighted.

• Copper: we update our guidance range from 130-150 c/lb now to 110-130 c/lb due to disciplined cost control, production volumes at the higher end of the full year guidance range and higher than expected gold prices driving net costs down. 

Capital guidance maintained

• Guidance for our share of capital investment is unchanged at ~$11 billion in 2025, which includes our view of the Arcadium lithium capital profile.

Higher effective tax rate in 2025

• ~33% effective tax rate on underlying earnings is expected for 2025 (previously ~30%) driven by the higher effective tax rate in H1, which was due to a higher proportion of profits from higher tax jurisdictions and unrecognised deferred tax assets. The effective tax rate is expected to return to ~30% from 2026.

Exploration and Evaluation expense guided lower

• Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in H1 2025 was $334 million, compared with $487 million in H1 2024. Approximately 33% of the spend was by central exploration, 10% by Minerals (with the majority focusing on lithium), 36% by Copper, 19% by Iron Ore and 2% by Aluminium. Qualifying expenditure on the Rincon project has been capitalised since 1 July 2024, accounting for most of the decrease in expense.

• Exploration and evaluation expense expected to be slightly below the guided $1 billion in 2025.

Closure activities cash spend maintained

• ~$1 billion expected cash spend per year on closure activities in the coming years as we continuously rehabilitate our operations and progress work at Argyle, Energy Resources of Australia (ERA) (under a Management Service Agreement), the Gove alumina refinery and legacy sites.

• Spend will vary from year to year as we execute individual programs of work and optimise investment across the portfolio. All these amounts are fully provided for within our provision for closure costs of $16.5 billion as of 30 June 2025.

4. Price and exchange rate sensitivities

The following sensitivities give the estimated effect on underlying EBITDA, assuming that each price or exchange rate moved in isolation. The relationship between currencies and commodity prices is a complex one; movements in exchange rates can affect movements in commodity prices and vice versa. The exchange rate sensitivities quoted here include the effect on operating costs of movements in exchange rates, but do not include the effect of the revaluation of foreign currency working capital. They should be used with care.

	Average published price/exchange rate for H1 2025	US$ million impact on12 months underlying EBITDA of a 10% change in prices/exchange rates
Aluminium (LME)  – US$ per tonne	2,539	1,549
Copper (LME)  – US cents per pound	428	811
Gold – US$ per troy ounce	3,067	188
Iron ore realised price (FOB basis) – US$ per dry metric tonne	89.7	2,185
Lithium carbonate (spot, $/t CIF China, Japan & Korea)	9,197	51
Australian dollar against the US dollar	0.63	808
Canadian dollar against the US dollar	0.71	340
Oil (Brent) – US per barrel	72	116

5. Market update

Macro:

• Global economy: resilient with continued commodity demand growth, supported by the energy transition. However, geopolitical tensions and trade barriers remain near-term economic risks. The Global South continues to demonstrate robust macroeconomic momentum, driven by resilient domestic demand, expanding trade and strategic investment flows.

• Chinese economy: GDP growth of 5.3% YoY in H1 2025, given robust industrial output and export strength on the back of a competitive manufacturing sector. Retail sales growth was supported by ongoing stimulus measures while the government remains committed to infrastructure investment. However, headwinds such as trade tensions and a soft property market continue to pose challenges.

• US economy: held up given resilient household consumption and private fixed investment. The impact of tariffs is still feeding through to inflation and sentiment. The housing market continues to be weak and building activities have been hampered by elevated mortgage rates, higher construction costs and reduced labour supply.

Commodities:

• Iron ore:
  • Price: Platts 62% Fe CFR iron ore benchmark stable at $101 per dry metric tonne in H1, declined 14% YoY.
  • Demand: China’s crude steel production rose by 1.1% YoY in H1 2025, maintaining its more than one billion tonne annualised run-rate into a sixth consecutive year. Despite trade barriers and uncertainties, China’s steel exports increased by almost 9% YoY to 58Mt in H1, primarily shipped to emerging economies in the Global South.
  • Scrap: China H1 scrap consumption is estimated at 115Mt due to constraints on scrap availability and relatively high scrap prices compared to hot metal costs.
  • Supply: Seaborne supply contracted by 1.4% YoY in H1 as shipments from the major producers declined by 1% YoY, while supply from smaller and more price-sensitive producers contracted by 3% YoY.
  • China’s iron ore inventories at 47 major ports were drawn down by 11Mt during H1 to 145Mt at 30 June.
  • India: crude steel production at 81Mt in H1 2025, 9% up YoY, making it the fastest growing major consumption region. Meanwhile, domestic iron ore production, at 157Mt, grew by 2% in H1.

• Copper:
  • Price: The London Metal Exchange (LME) price increased by 4%, supported by positive demand and a weakening dollar. The Chicago Mercantile Exchange (CME) cash price traded higher than LME on average over H1 2025, reaching a premium of $1,016 per tonne on average in June. This reflected mounting fears of Section 232 tariffs and resulted in cathode being rerouted from the rest of the world into the US.
  • Demand: China experienced strong refined consumption growth in H1 2025, driven by (1) trade-in policies which has stimulated domestic demand for electric vehicles (EV) and consumer durables, (2) the push towards advanced manufacturing (copper-intensive) and (3) front-loading of end-goods exports. Outside of China, copper demand remained broadly stable, though tempered by caution amid growing tariff exposure and macroeconomic uncertainty.
  • Supply: Copper concentrate markets remained tight, as mine supply growth could not keep up with smelter capacity growth. This led to spot treatment and refining charges trading at an all-time low of -$67 per tonne in June. While some smelters outside of China scaled back production, Chinese smelters ramped up refined output, further exacerbating the mine supply strain.

• Aluminium:
  • Price: The LME aluminium price was 8% higher YoY, supported by a modest rise in global production, and firm Chinese demand, while price volatility was driven by global trade tensions and geopolitical risks in the Middle East. Aluminium market premiums rose in the US with the implementation of Section 232 tariffs. The average Australian FOB alumina price fell 47% over H1 on increased availability of alumina. Whilst the Australian HT CBIX CIF China bauxite price fell 34% over H1 on higher imports of Guinean bauxite into China.
  • Demand: Aluminium apparent demand was firmer in H1 compared to market expectations, mainly driven by China.
  • Supply: Global aluminium production rose modestly as China reached its self-imposed capacity cap. Chinese bauxite imports rose 33% YoY to 103Mt in H1 with supply from Guinea surging by 41% YoY to 80Mt over the same period, despite the suspension of mining licenses from some producers.

• Lithium:
  • Price: Lithium carbonate price decreased 34% YoY to $9,197/t in H1 price due to ongoing oversupply.
  • Demand: Lithium demand continues to be solid in H1 2025, with EV sales up 29% YoY mainly driven by China. ~60% of lithium demand is attributable to batteries in EVs in H1 2025. Energy Storage System (ESS) remains the fastest growing segment with global ESS battery production up 106% YoY in H1 2025.
  • Supply: New projects ramp up in China, Australia, Africa and Argentina, of which 70% is hard rock sitting high on the cost curve.

Market index prices

Index prices	Start of H1 (02/01/25)	End of H1 (30/06/25)	% change Start – End H1	H1 2024 average	H1 2025 average	% change YoY
Iron ore ($/dmt CFR China)1	101	94	-7%	117	101	-14%
Iron ore ($/dmt FOB China)2	94	87	-8%	106	92	-13%
Copper (LME spot, c/lb)	394	455	16%	412	428	4%
Aluminium (LME spot, $/t)	2,536	2,593	2%	2,358	2,539	8%
Bauxite CBIX CIF China ($/t)	95	63	-34%	55	77	40%
Alumina ($/t FOB Australia)	672	358	-47%	400	434	9%
Lithium carbonate (spot, $/t CIF China, Japan & Korea)3	10,400	8,100	-22%	13,902	9,197	-34%

Average realised prices achieved for our major commodities

	Units	H1 2025	H1 2024	% change YoY
Pilbara iron ore	FOB, $/wmt	82.5	97.3	-15%
Pilbara iron ore1	FOB, $/dmt	89.7	105.8	-15%
Aluminium2	Metal $/t	3,125	2,746	14%
Copper3	US c/lb	436	419	4%
IOC pellets	FOB $/wmt	130	154	-16%

¹ Assuming 8% moisture.

² Comprised of LME price and product/market premiums. It excludes any tariff-related costs which are within our operating costs ($444/t for US destination sales).

³ Average realised price for all units sold: does not include impact of provisional pricing adjustments, which positively impacted revenues in H1 2025 by $266 million (H1 2024: positive impact of $93 million).