Rio Tinto plc

Rio Tinto plc (NYSE, CIK 863064) — Rio Tinto is a diversified miner with major copper (Oyu Tolgoi, Kennecott) and aluminum (Rio Tinto Aluminium) operations — dual exposure to electrification metals.

Rio Tinto is a diversified mining and metals company that produces raw materials sold primarily to industrial customers: steel mills, aluminium smelters and downstream fabricators, copper cathode consumers, battery/energy-transition supply chains, and chemical/minerals buyers. Rio Tinto is not a consumer-facing company. Its revenue is overwhelmingly commodity-price-driven; the company has limited ability to set the global price of iron ore, aluminium, copper, or most minerals.

Rio Tinto reports under IFRS and files an annual report on Form 20-F with the U.S. Securities and Exchange Commission. The company is headquartered in the UK and listed on the London Stock Exchange and Australian Securities Exchange, with an ADR program in the U.S. under the RIO ticker.

Rio Tinto monetizes by selling mined, smelted, and refined commodities to industrial buyers. The pricing mechanisms vary by commodity:

• Iron ore: sold predominantly under index-linked or spot-based pricing, often referenced to Platts 62% Fe CFR China; some contracts use quarterly or monthly average pricing. Rio Tinto’s Pilbara blend products price against a 62% Fe benchmark with adjustments for grade and impurities.
• Aluminium: LME aluminium price plus regional premia; alumina is sold on its own price index.
• Copper: LME copper price, with treatment and refining charges relevant for concentrate sales.
• Minerals: a mix of long-term contracts and spot sales depending on product, e.g., borates, titanium dioxide feedstocks, and other industrial minerals.

This means Rio Tinto’s revenue is highly correlated with global commodity indices. The company does not have a recurring software-like subscription model; it has volume times price operations.

The evidence-backed customer classes from Rio Tinto’s own disclosures are broad:

1. Steel mills and iron ore traders — for Pilbara iron ore, mainly in China, Japan, South Korea, and Europe.
2. Aluminium fabricators and manufacturers — for primary aluminium, alumina, and bauxite.
3. Copper smelters, refiners, and fabricators — for copper concentrate and cathode.
4. Chemical and industrial companies — for borates, titanium dioxide feedstocks, and specialty minerals.

• Chinese steel producers: contract and spot buyers of seaborne iron ore.
• Japanese and Korean integrated steelmakers: long-term, quality-focused buyers.
• European and North American aluminium rolling mills and extruders: need consistent primary aluminium and billet.
• Electricity and construction supply chains: copper wire and cable manufacturers, transformer makers, and electrification OEMs.
• Chemical and glass producers: borates and specialty minerals.

Rio Tinto’s SEC filings do not typically name individual customers. Therefore, I do not fabricate a customer list. Any named-customer claim must be verified directly in the 20-F; if it is not there, the correct statement is that the filing does not disclose such names.

_Pending primary-source deep-dive (SEC 10-K); enqueued to company lane._

Copper (Oyu Tolgoi, Bingham Canyon/Kennecott) plus aluminum smelting — diversified major with dual copper+aluminum exposure to electrification.

• Copper (Oyu Tolgoi, Bingham Canyon/Kennecott) plus aluminum smelting — diversified major with dual copper+aluminum exposure to electrification. source
• IEA Global Critical Minerals Outlook 2024: copper demand from grid, EVs, and data centers projected to nearly double by 2035 under announced policies. source

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\text{Cash cost per dmt} = 22 + 8 + 4 = 34

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\text{EBITDA per dmt} = 109 - 34 = 75

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\text{EBIT per dmt} = 75 - 6 = 69

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\text{After-tax profit per dmt} = 69 \times (1 - 0.30) = 48.3

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