Strong Foundation for Growth, Decarbonisation and Shareholder Returns
Iron Ore
Strong financial result despite challenging conditions
Operating metrics
2021
Average realised price 1, 3
$143.8/t
2020
comparison
+ 45%
2022
guidance
Shipments (100% basis)
321.6Mt
- 3%
320-335Mt
Unit cost², 3
$18.6/t
+ 26%
$19.5-21.0
Financial metrics ($bn)
Gross product sales
39.6
+ 44%
EBITDA
27.6
+46%
Margin (FOB)³
76%
+ 2 pp
Operating cash flow
19.2
+ 45%
Capex
3.9
+ 34%
Sustaining
~1.5
Free cash flow
15.2
+ 48%
Underlying ROCE
100%
+ 26 pp
Production impacted by above average
rainfall in H1, cultural heritage management
and tie-in of growth and replacement mines
Higher volumes of SP10 due to timing of
project completion
Commissioning and ramp-up of growth and
replacement mines impacted by COVID-19:
access to labour and supply chain quality
issues
Kept focus on fixed costs. Higher input
prices including labour, explosives, energy,
stronger AUD, increase in mine work index
and operational readiness costs
Genuine progress made with Traditional
Owner Groups, continue discussions on
agreement making in 2022
1 Dry metric tonne, FOB basis | 2 Unit costs are based on operating costs included in EBITDA and exclude royalties (state and third party), freight, depreciation, tax and interest.
Guidance reflects rising input prices and labour costs, an increased mining work index and higher mine processing plant maintenance, partially offset by the ramp-up of Gudai-Darri
and continued efficiency improvements. Unit costs are stated at an Australian dollar exchange rate of 0.75 and exclude any additional COVID-19 response costs | 3 Pilbara only. All
other figures reflect Pilbara operations, portside trading and Dampier Salt
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