Rio Tinto Cuts Copper Cost Forecast on Higher Output
Synopsis
The miner reported stronger copper and iron ore performance in the first half, citing productivity gains and resilient global operations.
Key Highlights
- Rio Tinto posts 3% rise in first-half copper equivalent production year on year.
- The miner also cut full-year copper net cost guidance to 30–50 US cents per pound.
- No change to full-year Pilbara iron ore unit cost guidance.
In the six months, Rio Tinto produced only 442,000 tonnes of copper equivalent, a 3% increase year-on-year.
CEO Simon Trott attributed the result to Rio Tinto’s diversified geographies and complex supply chains, which have sustained operations while geopolitical uncertainty is still affecting prices for oil, copper and other commodities.
Iron Ore Sales Increase
Global iron ore sales at Rio Tinto gained 5% compared to a year ago, while Pilbara (iron ore) sales were up 7% in the second quarter, due to the effectiveness of its productivity improvement program.
Full-year Pilbara iron ore unit cost guidance remains unchanged from the previous quarter at US $23.5 to US $25 per wet metric tonne, with savings due to below production costs partially offset by increased shipping prices.
Copper Cost Guidance Reduced
Rio Tinto cut its full-year copper net cost guidance to 30–50 US cents per pound (previously as low as 65–75 US cents per pound). The lower cost guidance is still a reflection of more upbeat gold pricing and productivity than the company had originally expected.
Source: Capital Brief
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
