News: RIO Rio Tinto Posts HY Underlying Earnings $8,627 Mln

July 27 (Reuters) - Rio Tinto Ltd (RIO) :

• AT HY END, NET CASH OF $291 MILLION
• RIO TINTO 2022 HALF YEAR RESULTS
• HY NET EARNINGS $8,908 MILLION VERSUS $12,313 MILLION
• DECLARES INTERIM DIVIDEND OF 267 US CENTS PER SHARE
• IN 2022, WE EXPECT PILBARA IRON ORE UNIT CASH COSTS TO BE $19.5-21.0 PER TONNE, AT AN AUSTRALIAN DOLLAR EXCHANGE RATE OF 0.71
• IN 2022, WE CONTINUE TO EXPECT COPPER C1 UNIT COSTS TO BE 130 TO 150 US CENTS PER POUND.
• WE EXPECT OUR SHARE OF CAPITAL INVESTMENTOF AROUND $7.5 BILLION (PREVIOUSLY $8.0 BILLION) IN 2022.
• HY UNDERLYING EARNINGS $8,627 MILLION VERSUS $12,166 MILLION
• CONTINUE TO STRENGTHEN OUR PARTNERSHIP WITH MONGOLIAN GOVERNMENT FOLLOWING COMMENCEMENT OF UNDERGROUND MINING AT OYU TOLGOI
• MARKET ENVIRONMENT HAS BECOME MORE CHALLENGING AT END OF INTERIM PERIOD
• IN EACH OF 2023 AND 2024, WE EXPECT OUR SHARE OF CAPITAL INVESTMENT OF $9.0 TO $10.0 BILLION, WHICH INCLUDES AMBITION TO INVEST UP TO $3.0 BILLION IN GROWTH PER YEAR
• ON TRACK TO ACHIEVE OUR GENDER DIVERSITY TARGET
• EXPECTS TOTAL CASH RETURNS TO SHAREHOLDERS OVER LONGER TERM TO BE IN A RANGE OF 40 TO 60% OF UNDERLYING EARNINGS IN AGGREGATE THROUGH CYCLE
• BOARD'S INTENTION TO SUPPLEMENT ORDINARY DIVIDEND WITH ADDITIONAL RETURNS TO SHAREHOLDERS IN PERIODS OF STRONG EARNINGS AND CASH GENERATION.
• EXPECT GUDAI-DARRI TO REACH ITS 43 MILLION TONNE PER YEAR CAPACITY IN 2023
• CURRENTLY EXPERIENCING ELEVATED LEVELS OF UNPLANNED ABSENCES AT OUR PILBARA OPERATIONS DUE TO COVID-19 CASE SPIKES IN WESTERN AUSTRALIA
• IN ADDITION, OUR GUIDANCE INCLUDES AROUND $1.5 BILLION OVER NEXT THREE YEARS ON DECARBONISATION PROJECTS
• EFFECTIVE TAX RATE ON UNDERLYING EARNINGS IS EXPECTED TO BE AROUND 30% IN SECOND HALF OF 2022.
• FUNDING APPROVED BY BOARD FOR FEASIBILITY STUDY FOR JADAR LITHIUM PROJECT IN SERBIA
• SAW A RISE IN LABOUR COSTS GIVEN TIGHT LOCAL MARKETS
• FOLLOWING A SETTLEMENT WITH AUSTRALIAN TAX OFFICE, EXPECT TO PAY A$0.6 BILLION IN SECOND HALF OF 2022 IN RESPECT OF TWELVE HISTORICAL YEARS
• CONTINUE TO INCREASE OUR IRON ORE PORTSIDE SALES IN CHINA, WITH 14.2 MILLION TONNES OF SALES IN FIRST HALF OF 2022
• $2.6 BILLION KOODAIDERI REPLACEMENT IRON ORE MINE IN WESTERN AUSTRALIA IS PROGRESSING, WITH PRODUCTION RAMP-UP EXPECTED TO OCCUR IN EARLY 2022
• IN FIRST HALF OF 2022 APPROXIMATELY 75% OF OUR PORTSIDE SALES WERE EITHER SCREENED OR BLENDED IN CHINESE PORTS
• PILBARA SYSTEM CAPACITY OVER MEDIUM TERM REMAINS BETWEEN 345 AND 360 MILLION TONNES PER YEAR
• OYU TOLGOI OPEN PIT HAS CONTINUED TO OPERATE UNINTERRUPTED DESPITE COVID-19 AND PROXIMITY TO CHINA IN HY
• INVESTING $188 MILLION TO UP PRODUCTION CAPACITY FOR LOW-CARBON, HIGH-VALUE ALUMINIUM BILLETS AT ALMA SMELTER IN LAC-SAINT-JEAN BY 202,000 MT
• OPERATIONS AND GROWTH PROJECTS CONTINUE TO BE IMPACTED BY HIGH UNPLANNED ABSENCES, TIGHT LABOUR MARKETS, RISING INPUT COSTS & SUPPLY CHAIN DISRUPTIONS
• DEADLINE IN FUNDING PLAN FOR TRQ TO CONDUCT INITIAL EQUITY OFFERING OF AT LEAST $650 MILLION EXTENDED FROM END OF AUGUST TO END OF 2022
• OYU TOLGOI FIRST HALF SALES WERE IMPACTED BY COVID-19 TRUCKING RESTRICTIONS WITHIN CHINA, BUT RECOVERED WITH EASING BORDER RESTRICTIONS
• OYU TOLGOI MINE DEVELOPMENT AND PRODUCTION PHASING SUCCESSFULLY ACCELERATED AND EXPECT TO ACCESS MORE GOLD IN SECOND HALF OF 2020
• HAVE COMMITTED TO COMMISSIONING ANOTHER COMPREHENSIVE INDEPENDENT REVIEW OF OUR WORKPLACE CULTURE, WHICH WE EXPECT TO CONDUCT IN 2024
• CONSTRUCTION AT WESTERN TURNER SYNCLINE PHASE 2 PROJECT IS PROGRESSING, WITH FIRST ORE THROUGH CRUSHER EXPECTED IN 2021

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