Rio Tinto PLC has welcomed a long-term power agreement that will keep Australia's largest aluminium smelter operating until 2038, backed by A$1.1 billion of investment and a transition to 100% renewable electricity from 2033. The agreement between Tomago Aluminium, the Australian Government and the New South Wales Government provides a pathway for the smelter to remain internationally competitive after its existing electricity contract expires on December 31, 2028.
Rio Tinto remains a buy, trading at a forward P/E of 11, 27% below the sector average, despite a 35.5% share price rise since November 2025. Strong 2026 H1 results show free cash flow up 75% to $3.8B and underlying earnings up 43% to $6.9B, enabling a $3.4B dividend payout. AI infrastructure demand is driving copper and aluminium EBITDA to 57% of total, with copper EBITDA up 84% and aluminium up 38%, reducing reliance on iron ore.
Rio Tinto Group remains a compelling buy, driven by strong segment performance and attractive valuation after a 49.9% share price surge. Recent results show significant revenue and profitability growth, notably in Aluminum & Lithium and Copper, supported by tight supply and rising prices. RIO's diversified exposure to iron ore, aluminum, lithium, and copper positions it to benefit from structural supply deficits and energy transition trends.
Rio Tinto Group (RIO) Q2 2026 Earnings Call Transcript
Rio Tinto NYSE: RIO reported a stronger first half of 2026, with underlying EBITDA rising 28% to $14.8 billion and free cash flow increasing 75%, as higher copper and aluminium prices combined with productivity gains and operational improvements.
The world's second-biggest miner by market value raised its interim dividend as it reported a 47% rise in first-half profit, supported by higher commodity prices and production.
RIO posts an 18% sequential rise in Q2 Pilbara iron ore shipments as first-half production reached its highest level since 2018.
Q2 output was slightly ahead of expectations, led by strong Pilbara iron ore shipments. Copper and lithium production met or slightly surpassed forecasts, though copper faced operational headwinds. Copper will be impacted by maintenance and the Kennecott smelter outage. Oyu Tolgoi economics weakened slightly, but political risk improved.
Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF)'s Pilbara iron ore unit posted its strongest first-half production since 2018, beating consensus estimates alongside stronger shipment volumes, as the miner reiterated full-year guidance across all segments. Second-quarter production beat expectations in both Pilbara output and shipment volumes, while the rest of Rio's major operating assets came in line with consensus.
UBS says Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) may need to bulk up its copper pipeline if it is to avoid a growth gap after 2030, with Argentina's Los Azules project emerging as a possible answer. The bank, which rates Rio at Neutral, with a 7,300p price target, said the miner is on track to lift copper output from 883,000 tonnes in 2025 to around 1 million tonnes by 2030, helped by Oyu Tolgoi and Kennecott.
Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM) told investors it will keep direct control of the Kasiya rutile-graphite project in Malawi and sharpen its US critical minerals strategy after Rio Tinto declined an option to become project operator. Rio Tinto told Sovereign the decision reflected a change in corporate strategy and a strategic review of its iron and titanium business.
Here is how Rio Tinto (RIO) and Steel Dynamics (STLD) have performed compared to their sector so far this year.