Business Description

Rio Tinto Plc is engaged in the exploration, processing, mining, and other activities related to mineral resources. Rio Tinto was established in 1873. It is headquartered in London. U.S. Borax Incorporated, a Rio Tinto subsidiary, is involved in the mining, refining, and product development for boron. It makes a variety of boron products. It has the following business segments include Copper and Diamon, Energy and Minerals, Iron Ore and Aluminium, and Other Operations.

Energy and Minerals include businesses that produce borates and uranium and feedstock, as well as coal operations. The Aluminium segment produces secondary, primary, and bauxite. Diamonds and Copper offer silver, molybdenum, gold, and other by-products. Other Operations include the Rio Tinto Marine operations and curtailed Gove Alumina refinery.

Key Financials

Revenue (US$ Mn):

• At a 42.33% increase, Rio Tinto Plc’s annual revenue of US$ 63,495 Mn was indexed in 2021
• Rio Tinto Plc generated total revenue of US$ 44,611 Mn in 2020

Operating Income (US$ Mn):

• At a 24.51% increase, Rio Tinto Plc’s operating income of US$ 32,690 Mn was indexed in 2021
• Rio Tinto Plc generated an operating income of US$ 26,254 Mn in 2020

Net Income (US$ Mn):

• At a 115.93% increase, Rio Tinto Plc’s net income of US$ 21,094 Mn was indexed in 2021
• Rio Tinto Plc generated a net income of US$ 9,769 Mn in 2020

Operating Margin %:

• At a -12.59% decrease, Rio Tinto Plc’s operating margin of 51% was indexed in 2021
• Rio Tinto Plc generated an operating margin of 59% in 2020

Gross Margin %:

• At a 1.14% increase, Rio Tinto Plc’s gross margin of 62% was indexed in 2021
• Rio Tinto Plc generated a gross margin of 62% in 2020

SWOT Analysis

Strengths

Business Performance – Iron Ore Segment

Iron Ore was the company’s main revenue stream contributor. It generated revenue of US$24.075 million in FY2019. This accounted for 53%, and the company reported a 28.5% increase year-on-year. This improvement was due to strong demand from China and an increase in average prices. EBITDA for the segment was US$16,098 million in FY2019. This represents a 41.5% increase over the previous year.

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