Rio Tinto: Bounce-Back Quarter for Rio

Research evidence excerpt

Rio Tinto: Bounce-Back Quarter for Rio

Global | Metals & Mining

Rio Tinto EquityJulyResearch14, 2026

ESTIMATE CHANGEBounce-Back Quarter for Rio

Rio reported 2Q production that beat in both Pilbara production and shipment RATING HOLD

volumes, and was in-line with consensus across the rest of the major operating PRICE 6,955.00p^

assets. FY production guidance has been reiterated across all segments, while PRICE TARGET | % TO PT 7,700.00p | +11%

unit cost guidance in copper has been reduced from US$0.65-0.75/lb to US 52W HIGH-LOW 9,117p - 4,332p

$0.30-0.50/lb due to higher gold prices and operational improvements. Cash FLOAT (%) | ADV MM (USD) 52.1% | 256.05

generation in 1H was impacted by ~$1.6bn in tax and working capital outflows. MARKET CAP £112.9B | $151.1B

TICKER RIO LN

Iron Ore: Pilbara iron ore achieved its highest first half production since 2018 on the back of ^Prior trading day's closing price unless otherwise noted.

continued productivity initiatives, while shipment volumes rose 18% q/q as a result of shipping

excess production from 1Q that was previously impacted by extreme weather constraints. Rio's RATING HOLD

SP10 classification volumes were 8% as a percentage of sales, which compares to recent quarters

TICKER RIO

of 12%. The impact of rising diesel costs led to a ~$0.8/t y/y increase in 1H unit costs, but FY

cash cost guidance in the Pilbara is unchanged. IOC production and shipment volumes declined PRICE $93.29^

both sequentially and y/y due to lower concentrator feed and the ore dumper replacement project. PRICE TARGET | % TO PT $102.00 | +9%

FY guidance is subject to the impact of recent forest fires in Canada. At Simandou, production RATING HOLD

increased q/q following the phased restart after the 1Q fatality. Ore is expected to be delivered