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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): 24,093
Equiv. Shares (M): 436

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 55.290 $ 55.200 $ 55.520 $ 54.710 $ 54.680 2,680,407 $ 0.610  1.116 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 17th May 2013
12 Month Target Price (average): $76.578
Brokers Surveyed: 8

Company Overview

Business Description:
Rio Tinto Limited (RIO) is one of the world's largest international mining groups, involved in every stage of metal and mineral production. Rio Tinto comprises five principal product groups - Aluminium, Copper, Diamonds & Minerals, Energy and Iron Ore - plus two support groups: 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 (%)
2014  F 13,103.5 707.5 10.3 7.8 212.3 3.8 100.0
2013  F 11,874.5 641.2 32.1 8.6 188.3 3.4 100.0
2012  A 8,987.5 485.3 -38.0 12.3 161.3 2.7 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
BHP Billiton (BHP) $108,427 M -0.1359 -0.2169 0.2281 10.7192 13.6874 11.1456 0.0326 0.0355 0.0379
Iluka Resources (ILU) $4,526 M -0.2536 -0.6688 1.4331 11.9805 36.1780 14.8693 0.0324 0.0129 0.0313
PanAust (PNA) $1,355 M 0.0827 -0.0221 0.1452 9.5528 9.7691 8.5304 0.0306 0.0286 0.0322
Rio Tinto (RIO) $23,827 M -0.3874 0.1601 0.2231 11.2943 9.7359 7.9598 0.0294 0.0344 0.0389
Sims Metal Management (SGM) $1,996 M -0.6378 -0.2450 1.9611 29.0169 38.4343 12.9799 0.0205 0.0108 0.0373

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
RIO 1.12 11.0 2.26 0.76 2.08
Market 0.83 14.9 1.29 1.81 1.77
Sector 0.56 8.96 0.71 1.83 6.67

Directors
Name Position Start Date
Mr Guy Elliott Chief Financial Officer,Executive Director 01 January 2002
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 Richard Goodmanson Non-Executive Director 01 December 2004
Ms Vivienne Cox Non-Executive Director 01 February 2005
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

Management
Name Position
Timothy (Tim) Paine --
Jean-Se'bastien Jacques Chief executive, Copper
Alan Davies Chief executive, Diamonds & Minerals
Doug Ritchie Chief executive, Energy
Harry Kenyon-Slaney Chief executive, Energy, Diamonds & Minerals
Andrew Harding Chief executive, Iron Ore
Jacynthe Cote Chief executive, Rio Tinto Alcan
Ben Mathews Company Secretary
Bret Clayton Group executive, Business Support & Operations
Debra Valentine Group executive, Legal & External Affairs
Hugo Bague Group executive, People & Organisation
Preston Chiaro Group executive, Technology & Innovation

Substantial Shareholders
Holding Name
21,861,589 (5.02%) BlackRock Group

Calendar of Events
Date Event
15 April 2014 Report (Quarterly)
14 March 2014 Report (Annual)
13 February 2014 Report (Interim)
13 February 2014 Report (Prelim)
15 October 2013 Report (Quarterly)
07 August 2013 Report (Interim)
16 July 2013 Report (Quarterly)
© 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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