1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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No-moat Rio Tinto’s first-half 2022 net profit after tax was strong and slightly above our expectations. Adjusted net profit after tax fell nearly 30% to USD 8.6 billion or USD 5.33 per share. Adjusted EBITDA decreased 26% to USD 15.6 billion. Of the USD 5.4 billion fall in EBITDA compared with first-half 2021, virtually all of the decline was due to lower iron ore prices, with higher aluminium and minerals prices offset by higher group costs.
Rio Tinto is a global diversified miner. Iron ore is the dominant commodity, with significantly lesser contributions from copper, aluminium, diamonds, gold, and industrial minerals. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity, with shareholders in each company having equivalent economic and voting rights. Major assets included its Pilbara iron ore operations, a 30% stake in the Escondida copper mine, 34%-ownership of the Oyu Tolgoi copper mine in Mongolia, the Weipa and Gove bauxite mines in Australia, and six hydro-powered aluminium smelters in Canada.
