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Dec 31, 2024
Rio Tinto Q3 2024 Earnings Report
Rio Tinto reported strong financial results despite a decline in iron ore prices.
Key Takeaways
Rio Tinto reported revenue of $53.66 billion for FY 2024, slightly down 1% from the previous year. Net income increased by 15% to $11.55 billion, while adjusted EPS declined 8% to 669.5 cents. Operating income reached $15.65 billion, and free cash flow stood at $5.55 billion. The company maintained its strong balance sheet, with net debt rising to $5.49 billion.
Revenue declined 1% to $53.66 billion due to lower iron ore prices.
Net income rose 15% to $11.55 billion, driven by operational efficiency.
Free cash flow decreased by 27% to $5.55 billion due to higher capital investments.
Iron ore, copper, and aluminium production remained stable, with a focus on future expansion projects.
Rio Tinto
Rio Tinto
Rio Tinto Revenue by Segment
Revenue by Segment
Iron Ore Revenue
CapyFin.comAluminium Revenue
CapyFin.comCopper Revenue
CapyFin.comMinerals Revenue
CapyFin.com Forward Guidance
Rio Tinto expects capital investments of approximately $11 billion in 2025, with continued focus on growth projects, including copper and lithium expansion. Iron ore shipments are expected to range between 323 and 338 million tonnes. The company foresees stable aluminium and bauxite production but remains cautious about potential weather-related disruptions.
Positive Outlook
- Iron ore shipments expected between 323 and 338 million tonnes.
- Continued investment in copper expansion projects.
- Pilbara iron ore operations expected to maintain cost efficiency.
- Lithium production expansion plans progressing in Argentina.
- ESG initiatives advancing with a reduction in CO2 emissions.
Challenges Ahead
- Weather-related disruptions could impact production.
- Potential volatility in iron ore prices affecting revenue.
- Energy cost fluctuations may impact aluminium margins.
- Macroeconomic uncertainties could slow growth in some regions.
- Capital expenditure expected to increase to support long-term projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income