Rio Tinto’s underlying earnings for H1 2017 more than double on improved prices and performance

<p>Rio Tinto has announced production and financial results for the first half of 2017 and reported cash generation of $6.3 billion and cash returns to shareholders of $3.0 billion.</p> <p>Commenting on the results, Rio Tinto chief executive J-S Jacques said &ldquo;By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders.&rdquo;</p> <p>&ldquo;We are now shifting gear to focus on the untapped value from our productivity programme and continue to strengthen our portfolio to build higher returns for the future,&rdquo; he added.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/rio%20tinto%203.png" alt="News" width="517" height="226" /></p> <p>The company is strengthening the portfolio with all three growth projects on track and a $2.7 billion disposal announced in 2017 first half. It also reduced net debt by $2.0 billion to $7.6 billion, with gross debt4 lowered by $2.5 billion.</p> <p>The Aluminium group has more than doubled its underlying earnings to $759 million compared with H12016, driven by a strong operational performance and improved alumina and aluminium LME prices. Cash cost reductions, productivity improvements and volume increases enhanced the group&rsquo;s EBITDA margin from integrated operations to 35 per cent from 25% in H12016. Pre-tax cash cost improvements in the Aluminium group stood at $80 million.</p> <p><a title="Report6" href="http://www.alcircle.com/exclusivereport/?m=exclusivereport" target="_blank"><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Report1banner.gif" alt="Report6" width="480" height="82" /></a></p> <p>Aluminium production remains flat in comparison to H1 2017. Strong production was achieved across most smelters, offset by the partial capacity curtailment at the Boyne Island smelter in Australia due to high electricity prices in Queensland. Higher LME prices lifted Aluminium earnings 200 per cent, with Primary Metal (Canada, Europe and Middle East) earnings of $322 million, and Pacific Aluminium (Australia, New Zealand) earnings of $92 million.</p> <p>Rio Tinto projects 3.5 to 3.7 million tonnes of aluminium production for full year 2017.&nbsp;</p>