Rio Tinto First Quarter Production Results

Solid performance while growth projects move ahead with pace

Rio Tinto Chief Executive Jakob Stausholm said: “We continued to see strong operational improvement with the Oyu Tolgoi copper mine and our bauxite operations delivering record months for production in March. Production was affected, however, by extreme weather events that impacted our Pilbara iron ore operations.

“We are making excellent progress with our major projects to deliver profitable organic growth. We achieved first iron ore at Western Range in the Pilbara and the Simandou high-grade iron ore project in Guinea remains on track.  After successful completion of the Arcadium acquisition in March, we are advancing to establish a world-class lithium business.

“We will continue to drive progress towards our long-term strategy to deliver profitable growth, attractive shareholder returns and build a stronger, more diversified business.”

Executive Summary

• Production and cost guidance for the year on track, with Pilbara iron ore shipments expected to be at the lower end of guidance due to the losses sustained from extreme weather events in Q1.

• Oyu Tolgoi achieved record copper production in March in line with our underground mine ramp-up plan.

• Bauxite hit record first quarter production and a monthly production record in March.

• World-class lithium business now up and running:
  • Following completion of the Arcadium acquisition in March, we formed Rio Tinto Lithium, combining Arcadium assets and our Rincon project.

• Development of the Simandou high-grade iron ore project, on schedule, proceeding at an impressive pace.

• Pilbara Iron Ore replacement projects progressing as expected:
  • Western Range achieved first ore through the new crushing and conveying circuit, on plan.
  • Brockman Syncline 1 investment approved ($1.8 billion) following receipt of all necessary approvals.

2025 guidance

Production guidance

• 2025 production guidance is unchanged.

• Pilbara iron ore shipments
  • Pilbara iron ore shipments are expected to be at the lower end of guidance due to the losses sustained from the four cyclones in Q1 (as previously announced around 13 million tonnes). Mitigation plans are in place to offset around half of this and will require an additional investment of around A$150 million for rectification works and contracting mining activities. Lower volumes and recovery costs will be offset by a weaker than expected Australian dollar.
  • Pilbara iron ore guidance remains subject to the timing of approvals for planned mining areas and heritage clearances. The system has limited ability to mitigate further losses from weather if incurred.

• Bauxite production
  • Guidance remains subject to weather impacts.

Unit cost guidance

• 2025 unit cost guidance is unchanged, based on current parameters.

Unit costs	2025 guidance
Pilbara iron ore unit cash costs, free on board (FOB) basis – US$ per wet metric tonne	23.0-24.50
Copper C1 net unit costs (includes Kennecott, Oyu Tolgoi and Escondida) – US cents per lb	130-150

Capital guidance

• Guidance for our share of capital investment is unchanged at ~$11 billion in 2025, which includes our initial view of the Arcadium lithium capital profile.

Group financial update

Expenditure on exploration and evaluation

• Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in 2025 was $141 million, compared with $214 million in 2024. Approximately 35% of the spend was by central exploration, 10% by Minerals (with the majority focusing on lithium), 38% by Copper, 16% by Iron Ore and 1% by Aluminium. Qualifying expenditure on the Rincon project has been capitalised since 1 July 2024, accounting for most of the decrease in expense.

Net debt

• Completion of the acquisition of Arcadium on 6 March increased the group’s net debt by approximately $7.6 billion¹. This includes the $6.7 billion acquisition price and the consolidation of Arcadium’s $0.9 billion net debt, which includes a $0.2 billion loan from Rio Tinto to Arcadium Lithium plc in January 2025. The inherited net debt reflected Arcadium’s commitment to develop its expansion projects, in a period of lower lithium prices.

¹ Expected impact, subject to finalisation of acquisition accounting review.

Our markets

Global economy: The global economy started the year positively with continued commodity demand growth and inflation seen to be easing or stabilising across major economies.

There was limited impact on our commodities from the imposition of tariffs in Q1. However, there is an uncertain future impact from tariffs on the commodity markets going forward.

Chinese economy: China has set a similar growth rate as last year, with announced policy support to aid the pivot from exports to domestic consumption. The property sector saw signs of stabilisation through improvements in new home sales and the drawdown of inventory. Compared to the same period last year, there was growth in most other sectors, including infrastructure, consumer durables and manufacturing. 

US economy: The US economy performed solidly in Q1 led by consumer spending and the housing market showing signs of recovery. Going forward, economic activity may be affected by tariffs.

Iron ore

• China’s crude steel production during Q1 was 2% lower compared to a year ago but maintained its annualised run-rate at more than one billion tonnes.

• Iron ore seaborne supply contracted by 3% YoY, and seaborne arrivals into China fell 9% YoY, due to weather impacts in both Australia and Brazil.

• China’s iron ore inventories at 47 major ports were drawn down by 6Mt during the quarter to 150Mt.

Copper

• LME price supported by positive demand environment, while expectations for the production outlook have lowered in the market. Chicago Mercantile Exchange cash price traded above LME price, reflecting tariff risks.

• Copper concentrate markets remain exceptionally tight due to excess smelter capacity. Spot concentrate treatment and refining charges (TCRCs) continue to trade at all-time lows, resulting in production stoppages or curtailed operating rates for some smelters.

Aluminium

• LME quarterly average price supported by low global inventories and modest supply growth, but declined towards the end of the quarter given changes in trade policies.

• Regional price premiums rose in the US by 57% quarter-on-quarter to $725/t with the implementation of tariffs, but fell in Europe.

• Australian FOB alumina price declined given increased global supply.

• Chinese bauxite demand remained firm but spot prices fell on higher Guinean bauxite supply and lower refinery margins.

Lithium

• Lithium demand growth is positive reflecting strong global EV sales in first two months which were up 30% YoY, increasing at similar rates to the corresponding period last year.

Titanium dioxide

• Paint and pigment demand yet to gain momentum, with major downstream customers experiencing a slow start.

Borates

• Borates demand remained stable in Q1, albeit uneven across sectors. Agricultural growth was strong while housing sectors in Europe and China remain subdued. Trade flows are already adjusting in response to tariffs enacted in the US and China.