Rio Tinto's copper earnings rose 84 percent, its iron ore earnings fell 1 percent, and iron ore is still the larger of the two
Copper did the work.
Rio Tinto reported underlying EBITDA of $14,826m for the six months to 30 June on Wednesday, up 28 percent from $11,547m. Broken into product groups, the increase has a single centre of gravity. Copper contributed $5.7bn against $3.1bn a year earlier, a rise of 84 percent. Aluminium and Lithium contributed $3.3bn against $2.4bn, up 38 percent. Iron ore contributed $6.8bn against $6.9bn, down 1 percent, and it is still the largest of the three.
Chief executive Simon Trott, quoted in the release, said the half delivered "a 28 per cent increase in underlying EBITDA and a 75 per cent rise in free cash flow", and that copper, aluminium and lithium together now contribute more than half of underlying EBITDA. On the reportable segment total of $15.8bn, those three come to $9.0bn.
The rest of the numbers
Profit after tax attributable to owners was $6,664m, up 47 percent from $4,528m. Underlying earnings were $6,851m, up 43 percent from $4,807m, and underlying earnings per share were 421.4 US cents against 296.0. Consolidated sales revenue was $31,028m, up 15 percent. Underlying return on capital employed was 17 percent against 14 percent.
Net cash generated from operating activities was $9,173m, up 32 percent, against a working capital outflow of $1.6bn. Free cash flow was $3,834m against $2,185m, a rise of 75 percent. That comparison is like for like: Rio Tinto revised the calculation during the period to use its share of capital investment in place of purchases of property, plant and equipment, and restated the prior half on the new basis. Rio Tinto's share of capital investment was $5,037m, up 12 percent, split $1.3bn growth, $1.9bn replacement, $1.8bn sustaining and $0.04bn decarbonisation. Taxes and government royalties were $5.6bn against $4.8bn.
The interim ordinary dividend is $3.4bn, 211.0 US cents a share against 148.0, up 43 percent, struck at a 50 percent interim payout ratio. Net debt was $14,061m at 30 June, against $14,362m at 31 December.
Volumes, and the two deaths
Copper equivalent production rose 3 percent. Within copper, mined production rose 1 percent, with Oyu Tolgoi up 31 percent year on year largely offsetting lower production at Kennecott and Escondida. The Pilbara recorded its highest first-half iron ore production since 2018. Simandou made its first high-grade iron ore sales in April, with mine construction and port infrastructure each more than three quarters complete. In lithium, the segment turned $568m of revenue against $308m, at a realised carbonate equivalent price of $18,960 a tonne against $15,580, and its EBITDA reached $218m against $42m. It remains cash negative, at minus $551m.
The company said it banked $870m of productivity benefits so far this year, reached a $1.3bn annualised run rate in the half, and is targeting $1.8bn by the end of 2026.
Two people died. Rio Tinto said it lost two colleagues in the first half, at Simandou and at Kennecott, and reported an all-injury frequency rate of 0.40 for the period, against 0.37 for the whole of 2025.
