Alan Spence's questions to RIO TINTO (RIO) leadership • H1 2025
Question
Alan Spence of BNP Paribas asked about the specific financial metrics, such as a minimum return on capital employed, that Rio Tinto uses to evaluate its assets for potential divestment. He also sought clarification on whether the reported 2% reduction in operational FTEs included contractors.
Answer
CEO Jakob Stausholm explained that the ultimate goal is creating Net Present Value (NPV), so improving a lower-performing asset can create value, and it's not about a single metric, though he was pleased three of four product groups have double-digit ROCE. CFO Peter Cunningham confirmed that the 2% reduction in full-time equivalents (FTEs) does include contractors.