News: RIO Rio Tinto Posts HY Underlying Earnings Of $5.7 Billion

July 26 (Reuters) - Rio Tinto Ltd (RIO) :

• HY UNDERLYING EARNINGS US$5.7 BILLION VERSUS US$8.63 BILLION REPORTED YEAR AGO
• HY NET EARNINGS US$5,117 MILLION
• INTERIM DIVIDEND OF 177 US CENTS PER SHARE
• HAVE A CLEAR PATHWAY TO BUILDING AN EVEN STRONGER RIO TINTO
• CONTINUE TO GAIN MOMENTUM IN OUR STRATEGY TO SET BUSINESS UP FOR LONG-TERM SUCCESS
• SIMANDOU IRON ORE PROJECT IN GUINEA IS ADVANCING AT PACE, WITH FINAL APPROVALS EXPECTED LATER THIS YEAR
• EFFECTIVE TAX RATE ON UNDERLYING EARNINGS IS EXPECTED TO BE AROUND 30% IN 2023.
• WILL CONTINUE PAYING ATTRACTIVE DIVIDENDS AND INVESTING IN LONG-TERM STRENGTH OF OUR BUSINESS AS WE SUSTAIN AND GROW OUR PORTFOLIO
• IN 2023, WE EXPECT OUR EXPLORATION & EVALUATION EXPENSE (EXCLUDING SIMANDOU) TO BE $1.0 BILLION.
• CAPITAL EXPENDITURE ON DECARBONISATION PROJECTS IN 2023 FIRST HALF WAS $95 MILLION
• IN 2024 AND 2025, OUR SHARE OF CAPITAL INVESTMENT IS EXPECTED TO BE UP TO $10.0 BILLION PER YEAR,
• CONTINUE TO SEE STRONG DEMAND FOR OUR PORTSIDE PRODUCT IN CHINA
• AT THE END OF JUNE, PILBARA INVENTORY LEVELS WERE 5.7 MILLION TONNES
• UNLESS WE USE CARBON OFFSETS, WE DO NOT EXPECT TO ACHIEVE OUR TARGETED 15% REDUCTION IN SCOPE 1&2 EMISSIONS UNTIL AFTER 2025
• NOW EXPECT OYU TOLGOI SHAFTS 3 AND 4 TO BE COMMISSIONED IN THE SECOND HALF OF 2024
• EXPECT TO HAVE MADE FINANCIAL COMMITMENTS TO INDUSTRIAL ABATEMENT PROJECTS REPRESENTING MORE THAN 15% OF GROUP EMISSIONS BY 2025
• OYU TOLGOI OPERATION REMAINS ON TRACK TO RAMP UP TO DELIVER AVERAGE MINED COPPER PRODUCTION OF ABOUT 500KTPA (100% BASIS) BETWEEN 2028 & 2036
• REMAINED FOCUSED ON COST CONTROL, IN PARTICULAR MAINTAINING DISCIPLINE ON FIXED COSTS
• EXPECT TO CONTINUE FUNDING OUR CAPITAL PROGRAMME FROM INTERNAL SOURCES.
• EXPECTS TOTAL CASH RETURNS TO SHAREHOLDERS OVER LONGER TERM TO BE IN A RANGE OF 40% TO 60% OF UNDERLYING EARNINGS
• EXPECT OUR SHARE OF INVESTMENT IN SIMANDOU TO BE AROUND $0.5 BILLION IN H2 2023
• IN 2023 FIRST HALF, 90% OF OUR PORTSIDE SALES WERE EITHER SCREENED OR BLENDED IN CHINESE PORTS