Rio Tinto Group Chief Executive Officer JS Jacques said: 'Faced with the unprecedented and continuous challenges brought by the new crown pneumonia epidemic (COVID-19) we have remained flexible and adjusted our work methods.
The performance once again proved the resilience of our business.
In the first half of the year, despite the challenging operating environment, all of our production and operation units continued to operate, with strong and stable performance, and achieved a profit before interest, tax, depreciation and amortization of US$9.6 billion ( EBITDA) and an EBITDA margin of 47%. Therefore, we will pay an interim dividend of $2.5 billion, equivalent to 155 cents per share, and reaffirm the 2020 production guidance target for all our products.'
'Our world-class excellent asset portfolio and strong balance sheet enable us to be in an advantageous position under any market conditions, and are especially valuable in the current turbulent environment. With strict capital allocation, we are able to continue to maintain production. , Increase our investment in business, pay taxes to the government, and continue to provide outstanding returns to shareholders.'
Safety performance continued to improve, Rio Tinto's All Injury Frequency Rate (AIFR) was further reduced to 0.37 (0.42 in 2019), the severity rate of work-related injuries decreased, and process safety incidents also decreased.
After the Pilbara Juukan Gorge incident, we are still committed to continuous improvement of community relations. We are communicating extensively with traditional landowners, including Puutu Kunti Kurrama and Pinikura residents, as well as the Pilbara and indigenous leaders across Australia. We are conducting a review of the cultural heritage management process led by the board of directors. We will also give a formal response to the relevant investigation initiated by the Joint Standing Committee on Northern Australia before July 31.
Operating cash flow was US$5.6 billion, down 12% from the same period in 2019, mainly due to lower prices and time differences. In June 2020, we paid $1 billion in income tax to the Australian government on 2019 profits.
Free cash flow was US$2.8 billion, a 28% decrease from the same period in 2019, reflecting lower operating cash flow and higher capital expenditures. Due to the increase in capital expenditures for development projects, total capital expenditures increased by 13% to US$2.7 billion.
Basic EBITDA for the current period was US$9.6 billion, a decrease of 6% from the same period in 2019, mainly due to the decline in aluminum and copper prices. The price of iron ore is stable, thus achieving an EBITDA margin of 47%.
The basic profit for the current period was US$4.8 billion, a 4% decrease from the same period in 2019. Due to the $1 billion impairment of the 4 electrolytic aluminum plants and the Diavik diamond mine and the impact of exchange rate fluctuations, the current net profit was $3.3 billion.
The balance sheet remained strong, and net debt increased by US$1.2 billion to US$4.8 billion, mainly reflecting the US$3.8 billion cash return paid to shareholders in the first half of 2020. The impact was partially offset by US$2.8 billion free cash flow.
Today announced the distribution of an interim dividend of US$2.5 billion in common stock. The interim dividend rate is 53% of the current basic profit, equivalent to 155 cents per share, an increase of 3% over the same period in 2019.
This financial performance was prepared in accordance with International Financial Reporting Standards (IFRS) and has not been audited.
About Rio Tinto
Rio Tinto Group is a global mining leader integrating mineral resources exploration, mining and processing. Its headquarters is located in London, England, and it is a dual-listed company structure. Rio Tinto plc is listed in London and New York, and Rio Tinto Limited is listed in Australia. The company aims to create stable and generous returns for shareholders by relying on its world-class assets, excellent business operation performance, industry top talents and a win-win partnership. Rio Tinto upholds the values of safety, cooperation, respect, integrity and excellence, with a pioneering spirit, responsible production of important materials needed by society, and working with partners to promote human progress. Rio Tinto's main products include iron ore, aluminum, copper, diamonds, borax, high-titanium slag, industrial salt, and uranium. The company's production and operation activities are spread all over the world, and its main assets are distributed in Australia and North America. It also has a large number of operations in Asia, Europe, Africa and South America.
Contact:
Pan Jiayuan
Tel: +86 (21) 6103 3686
Email: Amy.Pan@riotinto.com
RIO TINTO PLC 
