- Underlying EBITDA of $23.9 billion. Net cash generated from
operating activities of $15.2 billion.
- Profit after tax attributable to owners of Rio Tinto (referred
to as "net earnings" throughout this release) of $10.1 billion,
after $0.7 billion of net impairment charges, mainly relating to
our Australian alumina refineries.
- Underlying earnings of $11.8 billion, leading to a full year
ordinary dividend of $7.1 billion, a 60% payout.
Rio Tinto (LSE:RIO) (ASX:RIO):
At year end
2023
2022
Change
Net cash generated from operating
activities (US$ millions)
15,160
16,134
(6)%
Purchases of property, plant and equipment
and intangible assets (US$ millions)
7,086
6,750
5%
Free cash flow¹ (US$ millions)
7,657
9,010
(15)%
Consolidated sales revenue (US$
millions)
54,041
55,554
(3)%
Underlying EBITDA¹ (US$ millions)
23,892
26,272
(9)%
Profit after tax attributable to owners of
Rio Tinto (net earnings)² (US$ millions)
10,058
12,392
(19)%
Underlying earnings per share (EPS)¹, ²
(US cents)
725.0
824.7
(12)%
Ordinary dividend per share (US cents)
435.0
492.0
(12)%
Underlying return on capital employed
(ROCE)¹, ²
20%
25%
Net debt¹ (US$ millions)
4,231
4,188
1%
Rio Tinto Chief Executive Jakob Stausholm said: "The tragic loss
of our four Diavik colleagues and two airline crew members in a
plane crash last month is a devastating reminder of why safety is
and must always be our top priority. We continue to work closely
with the authorities to support their efforts to understand the
full facts of what happened. This tragedy strengthens our resolve
to never be complacent about safety, so that we continue to learn
and improve.
"We are making clear progress as we shape Rio Tinto into a
stronger and even more reliable company. By focusing on our four
objectives, we are building a portfolio that is fit for the future
- including our Oyu Tolgoi underground copper mine in Mongolia and
the Simandou iron ore project in Guinea. We have taken significant
steps over the past month towards our target to halve our global
Scope 1 & 2 carbon emissions this decade with agreements to
contract future renewable wind and solar power for our Gladstone
operations.
"In 2023, we lifted our overall copper equivalent production by
over 3% and delivered resilient financial results, with underlying
EBITDA of $23.9 billion, free cash flow of $7.7 billion and
underlying earnings of $11.8 billion, after taxes and government
royalties of $8.8 billion. Our balance sheet strength enables us to
continue to invest with discipline while also paying an ordinary
dividend of $7.1 billion, a 60% payout.
"We will continue paying attractive dividends and investing in
the long-term strength of our business as we grow in the materials
needed for a decarbonising world."
Resilient financial results, steady improvement in
operational performance
Safety is our top priority. While we had zero fatalities at our
managed operations in 2023, tragically four colleagues and two
airline crew members died in a plane crash while travelling to our
Diavik diamond mine in Canada in January 2024.
Our team is committed to learning how we continuously improve
safety. This remains imperative throughout 2024.
By focusing on our four objectives, and prioritising the health
of our assets, our ore body knowledge and our people, we have
improved our operational performance and delivered resilient
financial results. We have maintained a strong financial position,
which allows us to invest for the future to deliver profitable
growth, while also continuing to pay attractive returns.
As part of our focus on Best Operator, we continue to roll out
the Safe Production System across our business. This is a
multi-year process, which is already delivering real improvements
in our Pilbara iron ore operations, realising a 5 million tonne
production uplift in 2023. We expect to deliver another 5 million
tonne uplift in 2024.
In line with our Excel in Development objective, we advanced a
number of projects, including making significant progress at the
Simandou iron ore project in Guinea, in collaboration with our
joint venture partners. We achieved first sustainable production at
the Oyu Tolgoi copper-gold mine in Mongolia, which remains on track
to ramp up to 500 thousand tonnes3 of copper per year from 2028 to
2036. In our aluminium business, we are investing in a significant
AP60 expansion and gradually closing our Arvida smelter, in
operation since 1926. We also acquired a 50% equity stake in
Matalco from Giampaolo Group for $738 million to become a leader in
recycled aluminium supply in North America. We are making real
progress in shaping our portfolio for the future, with new
technology developments and one of the most exciting exploration
pipelines for many years.
The low-carbon transition continues to be at the heart of our
strategy, aligned with our objective of achieving impeccable ESG
credentials. In 2023, our Scope 1 and 2 emissions were 32.6Mt CO2e
(32.7Mt4 in 2022), 6% below our (restated and adjusted) 2018
baseline of 34.5Mt CO2e4.
We continue to progress our six large carbon abatement programs,
focusing on repowering our Pacific Aluminium operations, renewable
energy, aluminium anodes, alumina process heat, minerals processing
and diesel transition. In 2023, we made significant progress with
our decarbonisation commitments, with two sites fully transitioning
to renewable diesel (Boron is complete and we have announced that
Kennecott will transition in 2024). We also focused on progressing
our other promising new technologies including BlueSmeltingTM,
ElysisTM and NutonTM. Key to achieving our 2030 Scope 1 and 2
decarbonisation target is the repowering of our Gladstone
operations in Queensland: our substantial efforts in 2023 have
resulted in us signing two major renewable Power Purchase
Agreements in early 2024, one for solar and one for wind.
A significant development with respect to potentially reducing
Scope 3 emissions, was the announcement in February 2024 of a new
partnership with BHP and BlueScope to jointly investigate the
development of Australia’s first ironmaking Electric Smelting
Furnace (ESF, also known as Electric Melter) pilot plant. This will
consolidate the work each party has completed to date, leveraging
both BHP’s and Rio Tinto’s deep knowledge of Pilbara iron ores with
BlueScope’s unique operating experience in ESF technology. We also
continued to advance our pioneering BioIronTM technology, which has
the potential to support low CO2 steelmaking and significantly
reduce our Scope 3 emissions. For further detail, please refer to
our 2023 Climate Change Report released today.
Inclusion and diversity are imperative for the sustainable
success of the business. We increased our gender diversity to 24.3%
(from 22.9% in 2022). The increases were distributed across all
levels of the organisation with female senior leaders increasing to
30.1% (from 28.3% in 2022).
The 2023 full year results release is available here
Footnotes
1 This financial performance indicator is a non-IFRS (as defined
below) measure which is reconciled to directly comparable IFRS
financial measures (non-IFRS measures). It is used internally by
management to assess the performance of the business and is
therefore considered relevant to readers of this document. It is
presented here to give more clarity around the underlying business
performance of the Group’s operations. For more information on our
use of non-IFRS financial measures in this report, see the section
entitled “Alternative performance measures” (APMs) and the detailed
reconciliations on pages 40 to 49. Our financial results are
prepared in accordance with IFRS — see page 35 for further
information. Other footnotes are set out in full on page 25.
2 Comparative information has been restated to reflect the
adoption of narrow scope amendments to IAS12 'Income Taxes'.
Other footnotes are set out in full on page 25 of the 2023 full
year results release.
LEI: 213800YOEO5OQ72G2R82 Classification: 3.1 Additional
regulated information required to be disclosed under the laws of a
Member State
This announcement is authorised for release to the market by
Andy Hodges, Rio Tinto’s Group Company Secretary.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220778719/en/
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