Rio Tinto (LSE:RIO) reported a strong first-half performance for 2026, with copper equivalent production increasing 3% and underlying EBITDA rising 28% to $14.8 billion. The improvement was supported by higher production across several key commodities and continued progress at major growth projects, including the Simandou iron ore development and new lithium operations. Strong operating performance also lifted free cash flow by 75% to $3.8 billion, enabling the company to increase its interim ordinary dividend by 43% to $3.4 billion. Underlying earnings also rose 43%, while return on capital employed reached 17%.
Management said productivity initiatives continued to deliver significant benefits, with $870 million in savings already achieved and an annualised run rate of $1.8 billion targeted by the end of the year. The company is also pursuing plans to unlock between $5 billion and $10 billion through portfolio optimisation and infrastructure initiatives. During the period, Rio Tinto achieved several operational milestones, including its first shipments of high-grade iron ore from Simandou, continued development of replacement mines in the Pilbara, and initial lithium production from the Fénix 1B and Sal de Vida projects.
The group also continued advancing its decarbonisation strategy through a range of initiatives, including trials of battery-electric haul trucks, renewable energy projects across the Pilbara and Queensland, and agreements involving biofuels and bio-pellets designed to reduce Scope 1 and Scope 2 emissions. These investments form part of Rio Tinto’s broader strategy to improve operational efficiency while lowering the environmental impact of its mining operations.
Rio Tinto’s outlook remains supported by strong financial performance, healthy production growth and improving operational efficiency. However, management noted that margin pressure, higher debt levels and softer free cash flow conversion continue to present challenges in the current commodity cycle. Technical indicators remain constructive, reflecting positive price momentum, while the company’s valuation continues to benefit from an attractive dividend. Management also highlighted opportunities from productivity improvements and expanding copper production, although weaker iron ore markets, safety performance, debt levels and short-term production headwinds remain areas of focus.
About Rio Tinto
Rio Tinto is one of the world’s largest mining and metals companies, producing a diversified range of commodities including iron ore, copper, aluminium and lithium. The group operates large-scale mining assets across multiple continents and focuses on supplying the raw materials required for global infrastructure, industrial development and the energy transition.
The company continues to invest in long-life, high-quality assets while expanding its exposure to commodities that are expected to benefit from increasing demand linked to electrification and renewable energy. Alongside disciplined capital allocation and shareholder returns, Rio Tinto is investing in productivity improvements and lower-carbon technologies to strengthen its long-term competitiveness and support more sustainable mining operations.
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