Rio Tinto Limited (RIO)



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General Information
Company Name: Rio Tinto Limited
Stock Code: RIO
Website: www.riotinto.com
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 27,466
Equiv. Shares (M): 436

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 63.030 $ 62.600 $ 63.030 $ 62.230 $ 63.030 1,127,549 0%

Current Broker Consensus Recommendation more
Recommendation: Strong Buy (1.3333)
Recommendation Date: 1st Sep 2014
Brokers Surveyed: 3

Company Overview

Business Description:
Rio Tinto Limited (RIO) is engaged in finding, mining and processing mineral resources. RIO’s products comprise of five main product groups which are Aluminium, Copper, Diamond & Minerals, Energy and Iron Ore. The additional support groups are including Technology & Innovation and Exploration.

Strategy Analysis:
RIO's aim is to invest in and operate large, long term, cost competitive mines and businesses. The Group concentrates on the discovery of Tier 1 orebodies and the development of Group assets into large scale, long life and low cost operations to ensure the Group can operate profitably at every stage of the commodity cycle. Rio Tinto provided its results for the year ended 31 December 2012, reporting that 2012 underlying financial results reflect record iron ore production and shipments and a second half recovery in copper volumes. This was in the context of lower average market prices in 2012 which reduced underlying earnings by $5.3bn compared with 2011: underlying earnings of $9.3bn; a net loss of $3.0bn after impairments of $14.4bn, primarily relating to aluminium businesses as well as coal assets in Mozambique; and a 15% increase in the full year dividend to 167 cents per share.


Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F 9,461.8 512.3 -10.0 12.3 246.5 3.9 100.0
2014  F 10,516.6 569.4 -1.1 11.1 216.7 3.4 100.0
2013  A 10,637.3 575.9 18.7 10.6 199.9 3.3 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
BHP Billiton (BHP) $117,869 M 0.1223 -0.0613 0.2138 13.7248 14.6203 12.0454 3.50 3.75 3.89
Iluka Resources (ILU) $3,705 M -0.6600 -0.7708 4.1309 28.8556 125.8890 24.5356 1.02 1.59 2.98
PanAust (PNA) $1,436 M -0.7034 0.5666 0.3439 33.0893 21.1215 15.7163 2.97 2.69 2.88
Rio Tinto (RIO) $27,366 M 0.5848 -0.2631 0.0031 8.1786 11.0987 11.0647 3.42 3.61 3.89
Sims Metal Management (SGM) $2,445 M 3.0215 1.1762 0.2788 35.5021 16.3140 12.7576 0.84 2.47 3.62

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
RIO 1.31 9.98 2.27 10.00 2.05
Market 1.03 16.0 1.31 1.77 1.59
Sector 0.76 11.3 0.72 0.91 5.02

Directors
Name Position Start Date
Mr Christopher James Lynch Chief Financial Officer,Executive Director 01 September 2011
Mr Samuel Maurice Cossart Walsh Executive Director 05 June 2009
Mr Jan du Plessis Non-Executive Chairman 01 September 2008
Mr Michael (Mike) Clifford Fitzpatrick Non-Executive Director 06 June 2006
Sir John Kerr Non-Executive Director 14 October 2003
Mr Simon R Thompson Non-Executive Director 01 April 2014
Mr Richard Goodmanson Non-Executive Director 01 December 2004
Mr Paul Tellier Non-Executive Director 25 October 2007
Ms Ann Frances Godbehere Non-Executive Director 09 February 2010
Mr Robert Ellis Brown Non-Executive Director 01 April 2010
Mr John Varley Non-Executive Director 01 September 2011
Ms Anne Lauvergeon Non-Executive Director 15 March 2014
Professor Michael L'Estrange Non-Executive Director 29 May 2014

Management
Name Position
Timothy (Tim) Paine --
Eleanor Evans --
Jean-Sebastien Jacques Chief executive, Copper
Alan Davies Chief executive, Diamonds & Minerals
Harry Kenyon-Slaney Chief executive, Energy
Andrew Harding Chief executive, Iron Ore
Jacynthe Cote Chief executive, Rio Tinto Alcan
Debra Valentine Group executive, Legal, External & Regulatory Affairs
Hugo Bague Group executive, Organisational Resources

Substantial Shareholders
Holding Name
127,744,871 (8.38%) BlackRock, Inc
57,950,440 (4.10%) The Capital Group Companies, Inc.
182,550,329 (12.70%) Shining Prospect Pte Ltd
48,493,873 (4.86%) AXA SA

Calendar of Events
Date Event
06 August 2015 Report (Interim)
14 April 2015 Report (Quarterly)
13 March 2015 Report (Annual)
12 February 2015 Report (Prelim)
15 January 2015 Report (Quarterly)
14 October 2014 Report (Quarterly)
11 September 2014 Div Pay Date
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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