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Copper surge powers Rio’s engine
['Ethan Benedicto']
Australian Mining
Copper, aluminium and lithium have driven Rio Tinto’s strong half-year performance, collectively contributing more than half of the miner’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA).
The result coincided with Rio’s Pilbara operations producing 162.3 million tonnes (Mt) of iron ore, a six per cent increase and the region’s strongest first-half production performance since 2018.
Rio’s underlying EBITDA rose 28 per cent to $US14.8 billion, with copper EBITDA surging 84 per cent to a record $US5.7 billion and aluminium and lithium EBITDA climbing 38 per cent to $US3.3 billion.
Stronger commodity prices delivered a $US3.6 billion EBITDA uplift, led by 39 per cent growth in benchmark copper prices, a 53 per cent rise in gold prices and a 33 per cent increase in aluminium prices.
As for its Pilbara iron ore shipments, it increased five per cent to 157.7Mt, with Rio’s productivity program more than offsetting cyclone impacts during the March quarter.