News: RIO Rio Tinto Says Qtrly Pilbara Iron Ore Shipments (100% Basis) 87.3 MT

Jan 17 (Reuters) - Rio Tinto Ltd (RIO) :

• QTRLY PILBARA IRON ORE SHIPMENTS (100% BASIS) 87.3 MT VERSUS 84.1 MT REPORTED LAST YEAR
• QTRLY ALUMINIUM PRODUCTION 783 KT VERSUS 757 KT REPORTED LAST YEAR
• SEES 2023 PILBARA IRON ORE SHIPMENTS 320 TO 335 MT
• QTRLY PILBARA IRON ORE PRODUCTION (100% BASIS) 89.5 MT VERSUS 84.1 MT REPORTED LAST YEAR
• QTRLY MINED COPPER PRODUCTION 131 KT VERSUS 132 KT REPORTED LAST YEAR
• EXPECT GUDAI-DARRI TO REACH ITS NAMEPLATE CAPACITY ON A SUSTAINED BASIS DURING 2023
• OUR 2022 PILBARA IRON ORE UNIT CASH COSTS ARE LIKELY TO END UP SLIGHTLY ABOVE TOP END OF OUR $19.5-21.0 PER TONNE GUIDANCE RANGE
• COMMODITY PRICES FOUND SOME SUPPORT DURING Q4 OF 2022
• CONTINUE TO INVEST IN FUTURE GROWTH, PROGRESSING RINCON LITHIUM PROJECT IN ARGENTINA
• GUIDANCE FOR 2023 PILBARA IRON ORE UNIT CASH COSTS IS UNCHANGED AT $21.0 TO $22.5 PER TONNE
• WORKING WITH OUR PARTNERS TO PROGRESS SIMANDOU PROJECT IN GUINEA
• GUIDANCE FOR 2023 COPPER C1 UNIT COSTS IS UNCHANGED AT 160 TO 180 US CENTS/LB
• GLOBAL SUPPLY CHAIN PRESSURES HAVE ALSO IMPROVED AND FREIGHT RATE PRESSURES HAVE EASED
• RECOVERY AT KITIMAT AND BOYNE SMELTER IS PROGRESSING WITH FULL RAMP-UP EXPECTED TO BE COMPLETED DURING COURSE OF 2023
• BELIEVE THAT JADAR LITHIUM-BORATE PROJECT HAS POTENTIAL TO BE A WORLD- CLASS ASSET
• RUSSIA-UKRAINE WAR CONTINUES TO POSE ENERGY AND FOOD SECURITY RISKS, WHILE FEARS OF RECESSION IN US AND EUROPE REMAIN
• EXPECT GUDAI-DARRI TO REACH ITS NAMEPLATE CAPACITY ON A SUSTAINED BASIS DURING 2023
• FOR JADAR LITHIUM-BORATE PROJECT FOCUSED ON CONSULTATION WITH ALL STAKEHOLDERS TO EXPLORE ALL OPTIONS RELATED TO PROJECT'S FUTURE
• REFINED COPPER PRODUCTION AT KENNECOTT WILL CONTINUE TO BE CHALLENGED DUE TO SMELTER AND REFINERY PERFORMANCE
• SYSTEM INVENTORIES AT END OF DECEMBER ARE HEALTHY INCLUDING STRONG BLASTED STOCKS, MINE AND PORT STOCKS FOR PILBARA
• QTRLY BAUXITE PRODUCTION 13.2 MT VERSUS 13.1 MT REPORTED LAST YEAR
• AT RINCON LITHIUM PROJECT, DEVELOPMENT OF THREE THOUSAND TONNE PER ANNUM LITHIUM CARBONATE STARTER PLANT PROGRESSED
• HIGHER RATES OF INFLATION HAVE INCREASED OUR CLOSURE LIABILITIES WITH AN IMPACT TO UNDERLYING EARNINGS
• END TO COVID CONTROLS IN CHINA IN DECEMBER AND SUBSEQUENT WAVE OF COVID CASES BRING HIGH VOLATILITY IN COMING QUARTER
• EXPLORATION AND EVALUATION EXPENSE IN 2022 WAS $897 MILLION, $171 MILLION (24%) HIGHER THAN 2021
• ANNUAL BUDGET FOR GREENFIELD EXPLORATION REMAINS AROUND $250 MILLION
• SEES INCREASED SHORT-TERM RISKS OF SUPPLY CHAIN DISRUPTIONS AND LABOUR SHORTAGES
• INCREASED CHARGES FOR YEAR OF APPROXIMATELY $1.3 BILLION PRE-TAX WITHIN UNDERLYING EARNINGS COMPARED WITH 2021 DUE TO HIGHER INFLATION
• AT KENNECOTT, UNPLANNED MAINTENANCE WAS REQUIRED IN Q4 OF 2022 IN OUR ANODE FURNACES
• CAPITAL EXPENDITURE TO DECARBONISE OUR ASSETS OF AN ESTIMATED $7.5 BILLION TO 2030 IS BEING PRIORITISED AND PHASED
• QAL ACTIVATION OF STEP-IN PROCESS FOLLOWING SANCTION MEASURES BY AUSTRALIAN GOVERNMENT, CO HAS TAKEN ON 100% OF CAPACITY FOR AS LONG AS STEP-IN CONTINUES
• ALUMINIUM DEMAND GROWTH FROM RENEWABLES AND ELECTRIC VEHICLES (EVS) REMAINS FIRM
• AT OYU TOLGOI, PROJECTED FIRST SUSTAINABLE PRODUCTION FROM PANEL 0 FORWARD TO Q1 OF 2023
• AT KENNECOTT, LIKELY TO RESULT IN WEAK CATHODE PRODUCTION IN Q1 OF 2023
• LONG-TERM OUTLOOK FOR EV MARKET REMAINS FAVOURABLE AS GOVERNMENTS CONTINUE THEIR PUSH FOR EV ADOPTION
• AT OYU TOLGOI, STUDY WORK FOR PANELS 1 AND 2 REMAINS ON TRACK TO BE COMPLETED IN FIRST HALF OF 2023
• CONTINUE TO SUPPORT POTENTIAL DEVELOPMENT OF MULTIPLE NEW WIND & SOLAR POWER PROJECTS THAT CAN START SUPPLYING POWER TO GLADSTONE BY 2030
• US FEDERAL RESERVE EXPECTED TO FURTHER TIGHTEN ALBEIT AT A SLOWER PACE UNTIL INFLATION RATE IS KEPT UNDER CONTROL
• CONSUMERS REMAIN CAUTIOUS OF PROPERTY MARKET IN CHINA
• SLOWING GLOBAL DEMAND POSES DOWNSIDE RISKS TO EXPORTS FOR CHINA