Rio Tinto is one of the largest iron ore producers globally. The production of iron ore reached 324.1mt in 2022 (vs 319.7mt in 2021 100% basis) with most of it in Australia's Pilbara region. The company operates a large capacity of 3.0mt of aluminum output in 2022. Bauxite output reached 54.6mt in 2022, while mined copper was 521kt and iron ore pellets and concentrate output reached 10.3mt. Rio Tinto is a diamond producer in Canada with 3.8mn carats output in 2021. Refined gold (176k oz) and silver (2.6mn oz) are the company's by-products. Rio Tinto products include titanium dioxide slag (1.0mt in 2021), molybdenum (7.6kt), salt (5.8mt), and uranium (65k lbs U3O8). Diversified commodities output with a strong market position in iron ore for the steelmaking industry makes Rio Tinto one of the most influential players in the global metals market. The company benefits from vertical integrat... Rio Tinto is one of the largest iron ore producers globally. The production of iron ore reached 324.1mt in 2022 (vs 319.7mt in 2021 100% basis) with most of it in Australia's Pilbara region. The company operates a large capacity of 3.0mt of aluminum output in 2022. Bauxite output reached 54.6mt in 2022, while mined copper was 521kt and iron ore pellets and concentrate output reached 10.3mt. Rio Tinto is a diamond producer in Canada with 3.8mn carats output in 2021. Refined gold (176k oz) and silver (2.6mn oz) are the company's by-products. Rio Tinto products include titanium dioxide slag (1.0mt in 2021), molybdenum (7.6kt), salt (5.8mt), and uranium (65k lbs U3O8). Diversified commodities output with a strong market position in iron ore for the steelmaking industry makes Rio Tinto one of the most influential players in the global metals market. The company benefits from vertical integration controlling mining and refining operations, as well as from a large scale of operations that help to keep the operating costs under control. Rio Tinto benefits from commodity price growth in the post-COVID environment. However, lockdowns in China resulted in relatively weak steelmaking performance through 2022, pushing down iron ore and steel prices and valuations of iron ore producers.
Rio Tinto plc is a UK-based metals and mining company operating in several segments: Iron Ore, Aluminium, Copper, Corporate, and Minerals. The Company has an integrated portfolio of iron ore assets, which includes a network of 17 mines, four independent port terminals, and a rail network spanning approximately 2,000 km. The Aluminium business includes 4 bauxite mines in Australia, Brazil, and Guinea; 4 alumina refineries in Australia, Brazil, and Canada; 14 aluminum smelters in Canada, Australia, New Zealand, and Oman; 7 hydropower plants in Canada. The Copper segment includes 3 copper operations in the US, Mongolia, and Chile; 3 copper projects in the US, Mongolia, and Australia. The compan... Rio Tinto plc is a UK-based metals and mining company operating in several segments: Iron Ore, Aluminium, Copper, Corporate, and Minerals. The Company has an integrated portfolio of iron ore assets, which includes a network of 17 mines, four independent port terminals, and a rail network spanning approximately 2,000 km. The Aluminium business includes 4 bauxite mines in Australia, Brazil, and Guinea; 4 alumina refineries in Australia, Brazil, and Canada; 14 aluminum smelters in Canada, Australia, New Zealand, and Oman; 7 hydropower plants in Canada. The Copper segment includes 3 copper operations in the US, Mongolia, and Chile; 3 copper projects in the US, Mongolia, and Australia. The company produces gold, silver, molybdenum, and other as by-products. The Minerals segment includes 4 sectors: borates, titanium dioxide, iron ore, and diamonds. The commercial segment encompasses global sales and marketing, procurement, and marine and logistics operations. Rio Tinto is present in 35 countries.
In 2021, the global production of usable iron ore was estimated at 2.6bt compared to 2.47bt in 2020. The largest iron ore-producing countries are Australia (c 900mt pa), Brazil (380mt), China (360mt), India (240mt), and Russia (100mt). Australia is the leading exporter of iron ore (53.6% of the global exports in 2021), followed by South Africa (4.7%), Canada (3.7%), Ukraine, Brazil, and others. Economic growth in China, the largest market for iron ore exports, was supportive of the miners' performance in 2021. However, crude steel production in the 64 largest steelmaking countries fell by 5.1% YoY to 1,253.9mt in January-August 2022, including a 5.7% decrease in crude steel output in China to 693.2mt. Lockdown in China and weak performance of the real estate sector were among the factors affecting the steelmakers and iron ore demand. Iron ore price was corrected from above $230/t in May 2021 to below $100/t in September 2022. Most of the metals were affected by the negative economic background in 2022 and demonstrated a negative price dynamic as of 27 September 2022: gold -6% YTD, silver -17%, copper -21%, steel -32%, HRC steel -58%, platinum -11%, aluminium -27%, tin -45%, zinc -5%. Among winners are nickel +16%, titanium +54% on the back of Russian supply risk, and lithium carbonate for battery use in China +193%.
Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
---|---|---|---|---|---|---|---|---|---|
Rio Tinto PLC | RIO.L | 112,729 | 2022-12-31 | 8.9 | 9.1 | 5.0 | 4.7 | 2.3 | 2.2 |
Anglo American PLC | AAL.L | 44,853 | 2022-12-31 | 8.2 | 8.5 | 4.3 | 4.3 | 1.6 | 1.6 |
Glencore PLC | GLEN.L | 71,256 | 2022-12-31 | 6.9 | 7.5 | 4.1 | 4.4 | 0.4 | 0.4 |
BHP Group Ltd | BHP.AX | 150,260 | 2022-06-30 | 9.9 | 9.8 | 5.3 | 5.2 | 2.9 | 2.8 |
Antofagasta PLC | ANTO.L | 18,117 | 2022-12-31 | 27.7 | 26.3 | 7.2 | 6.7 | 3.6 | 3.5 |
Boliden AB | BOL.ST | 10,497 | 2022-12-31 | 10.7 | 10.9 | 5.6 | 5.7 | 1.3 | 1.3 |
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
---|---|---|---|---|---|---|---|---|---|
Revenue | 40,030 | 40,522 | 43,165 | 44,611 | 63,495 | 55,554 | 50,993 | 49,944 | 49,954 |
Growth | 1% | 7% | 3% | 42% | -13% | -8% | -2% | 0% | |
EBITDA | 17,945 | 17,618 | 21,087 | 23,868 | 36,850 | 25,997 | 23,560 | 23,138 | 23,296 |
EBITDA margin | 44.8% | 43.5% | 48.9% | 53.5% | 58.0% | 46.8% | 46.2% | 46.3% | 46.6% |
Net income | 8,762 | 13,638 | 8,010 | 9,769 | 21,094 | 12,420 | 11,790 | 11,131 | 11,253 |
Net margin | 21.9% | 33.7% | 18.6% | 21.9% | 33.2% | 22.4% | 23.1% | 22.3% | 22.5% |
Net debt | 3,571 | -625 | 3,476 | 773 | -1,757 | 3,364 | 3,364 | 3,364 | 3,364 |
MktCap | 94,582 | 116,448 | 106,254 | 113,579 | 113,579 | 113,579 | 113,579 |
Historical Multiples
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
---|---|---|---|---|---|---|---|
EV/Revenue | 2.3 | 2.6 | 1.6 | 2.1 | 2.3 | 2.3 | 2.3 |
EV/EBITDA | 4.7 | 4.9 | 2.8 | 4.5 | 5.0 | 5.1 | 5.0 |
P/E | 11.8 | 11.9 | 5.0 | 9.1 | 9.6 | 10.2 | 10.1 |