20 February 2025
If you are covering Rio Tinto’s FY 2024 results, please find comments below from Maurizio Carulli, energy and materials analyst at Quilter Cheviot:
"Rio Tinto's FY2024 results are broadly in line with expectations, and the company has provided a steady outlook for the future. It is reassuring to see that group earnings (EBITDA) decreased by only 2% despite an 8% fall in iron ore prices. This resilience is a positive consequence of the evolution in the earnings mix and Rio Tinto's defensive characteristics.
“Net debt has increased to $5.5 billion due to acquisitions carried out in 2024, but it remains at comfortable levels. Looking ahead, Rio Tinto is guiding for a 4% volume growth in 2025. Management has indicated that its two largest mining projects, Simandu (iron ore) and Oyu Tolgoi (underground copper), are progressing well. Additionally, the acquisition of lithium producer Arcadium is expected to be completed next month.
“Rio Tinto boasts a solid portfolio of assets, primarily positioned at the lower end of the cost curve in iron ore, copper, aluminium, and, since October, lithium. The significant barriers to entry in iron ore and copper, due to the complexity and difficulty of developing new mines, further strengthen Rio Tinto's market position."
