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    Alan Spence • BNP Paribas Exane

    Alan Spence's questions to Rio Tinto PLC (RIO) leadership

    Alan Spence's questions to Rio Tinto PLC (RIO) leadership • H1 2025

    Question

    Alan Spence from BNP Paribas asked about the minimum return metric an asset must meet to remain in the portfolio and whether the reported reduction in operational FTEs included contractors.

    Answer

    CEO Jakob Stausholm explained that the primary goal is creating Net Present Value (NPV), so there isn't a single minimum profitability threshold for all assets. CFO Peter Cunningham confirmed that the 2% year-on-year reduction in FTEs was a comprehensive figure that includes contractors.

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    Alan Spence's questions to Rio Tinto PLC (RIO) leadership • H1 2025

    Question

    Alan Spence from BNP Paribas Exane asked about the minimum return on capital or other metrics an asset must meet to remain in the portfolio and sought clarification on whether the reported 2% reduction in operational FTEs included contractors.

    Answer

    CEO Jakob Stausholm explained that the ultimate goal is creating NPV, so improving a lower-performing asset can create value, but noted that 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.

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    Alan Spence's questions to Freeport-McMoRan Inc (FCX) leadership

    Alan Spence's questions to Freeport-McMoRan Inc (FCX) leadership • Q2 2025

    Question

    Alan Spence of BNP Paribas asked for the expected internal operating cost of the new Indonesian smelter on a cents-per-pound basis once it is fully operational.

    Answer

    President & CEO Kathleen Quirk detailed that the smelter's direct operating cost is projected to be around 27 cents per pound. However, she clarified that after accounting for additional revenue from higher metal recovery (previously lost to third-party smelters) and the elimination of the export duty, the net cost benefit to margins is estimated to be around 15 to 16 cents per pound.

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    Alan Spence's questions to Freeport-McMoRan Inc (FCX) leadership • Q2 2025

    Question

    Alan Spence from BNP Paribas asked for the estimated internal operating cost of the new Indonesian smelter on a cents-per-pound basis.

    Answer

    President & CEO Kathleen Quirk estimated the new smelter's operating cost at approximately 27 cents per pound. She clarified that after accounting for additional revenue from higher metal recovery (around 2.5%), the net cost impact is closer to 15-16 cents per pound. Furthermore, the elimination of the export duty will provide an additional margin benefit.

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