Mining colossus Rio Tinto Ltd (ASX:RIO) has recorded a 14% rise in profit after tax for the six-month period ending June 30, according to its half yearly report released today.
Profit at the end of the June quarter was $5.8 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) was also up, albeit slightly, by 3% to $12.1 billion for the same period, and net cash rose 1%, leaving Rio with $7.1 billion.
The company said activity at Mongolian Oyu Tolgoi mine was progressing in-line with expectations, noting a 15% rise in mined copper during this period compared to the first half of 2023, with copper production to hit the 500 thousand tonne mark between 2028 and 2036, as a result of ramp-up activities which are continuing.
Rio said targets were also being hit in terms of activity related to construction of the Simandou iron ore project in Guinea, with the company satisfying all conditions for investment in the project – completing regulatory approvals – in July, and completing its investment to co-develop the rail and port infrastructure.
By the end of this year, investors could also expect to see production from the 3,000 tonne per annum lithium carbonate starter plant at RinconBin Argentina.
Rio Tinto Chief Executive Jakob Stausholm said the company was growing in strength, based on ‘disciplined investments’ to boost operations.
“Our overall copper equivalent production is on track to grow by around 2% this year, and our ambition is to deliver around 3% of compound annual growth from 2024 to 2028 from existing operations and projects,” he said.
“We are at an inflection point in our growth, with a step change from our aluminium business and consistent production at our Pilbara iron ore operations.
“We have considerable growth in cash flow from the ramp-up of the underground copper mine at Oyu Tolgoi, and more value to come as our Simandou investment and Rincon lithium project proceed at pace.”
Rio has been trading at $114.66.