Richard Hatch's questions to RIO TINTO (RIO) leadership • H1 2025
Question
Richard Hatch from Berenberg noted the removal of underlying earnings by business unit from disclosures and challenged the positive portrayal of the aluminium business, pointing to deteriorating margins. He also questioned the rising costs and performance at the Iron Ore Company of Canada (IOC).
Answer
CFO Peter Cunningham stated the reporting change was for simplification and alignment with peers. He clarified that the apparent margin decline in the aluminium smelting business is due to high internal transfer prices for alumina, and the underlying business is performing well. For IOC, he attributed the weaker EBITDA to lower pellet prices, the absence of a prior-year insurance claim, and necessary investment to position the mine for the future.