Rio Tinto Group (RIO) Investor Update summary

Strategic Growth, Portfolio Evolution, and Market Outlook

• Achieved first lithium production at Rincon and advanced Arcadium acquisition, establishing a leading lithium position and enabling creation of super sites in Argentina with low-quartile production costs.

• Portfolio strategy focuses on commodities critical to the energy transition, including iron ore, bauxite, aluminum, copper, and lithium, with diversification and decarbonisation underpinning long-term value.

• Growth plans target a 3% CAGR to 2028, rising to 4% with lithium, supported by major projects like Simandou and Oyu Tolgoi, and a further 3% trajectory in the following five years.

• Energy transition and urbanisation in the global south drive long-term demand for metals, with lithium demand projected to grow over 6x by 2050 and significant growth in copper and aluminum.

• Net zero transition requires significant changes in energy systems, with electricity share in final energy to exceed 70% by 2050 and a 9x increase in renewable and nuclear capacity.

Operational Excellence and Project Delivery

• Safe Production System (SPS) deployed at 65% of sites, delivering a 5Mt uplift in Pilbara Iron Ore in 2023 and 2024, with another 5Mt targeted for 2025, and driving productivity, safety, and employee engagement.

• Asset management programs have reduced unscheduled losses and improved maintenance, while organizational simplification accelerates decision-making.

• Major projects in execution include a mine per year in the Pilbara, Simandou's first ore in late 2025 targeting 60Mtpa, and Oyu Tolgoi on track for 500ktpa copper production by 2025.

• Amrun bauxite mine operating above nameplate, with a 9% increase in plant feed rate and record Q2 production.

• In-house project and R&D capabilities, including AI-driven exploration and technical centers, support efficient development and innovation.

Growth and Project Pipeline

• Copper growth pipeline includes Resolution (USA), Winu (Australia, new JV with Sumitomo), Nuton technology, Nuevo Cobre (Chile), and La Granja (Peru).

• Aluminium growth through AP60 expansion, Matalco JV, and new greenfield project in Kokkola, Finland.

• $10–11bn annual capex guidance mid-term, with strong balance sheet and capacity to absorb lithium developments.