Rio Tinto, Evolution and Alcoa have released their March quarterly results for the financial year 2023, with solid performance across the board.
Rio Tinto
Rio Tinto’s Pilbara operations produced 79.3 million tonnes of iron ore (100 per cent basis) in the first quarter, which is eleven per cent higher than the same time in 2022. Iron ore shipments were recorded at 82.5 million tonnes (100 per cent basis), 16 per cent higher than the corresponding period of 2022, and a first quarter record, with stronger mine production and a drawdown of stocks.
Bauxite production of 12.1 million tonnes was eleven per cent lower than the first quarter of 2022 as the company’s Weipa operations were affected by higher-than-average rainfall during the annual wet season.
Aluminium production of 0.8 million tonnes was seven per cent higher than the first quarter of 2022 as the company benefited from the continued ramp-up of the Kitimat smelter.
Mined copper production of 145 thousand tonnes on a consolidated basis, was in line with the first quarter of 2022.
Rio Tinto Chief Executive, Jakob Stausholm, said, “We continue to make steady progress with our highest ever first quarter shipments achieved in the Pilbara iron ore business. Through the ongoing deployment of our Safe Production System we expect to see a sustainable lift in operating performance across our global portfolio over time, in line with improvements already achieved.
“We remain focused on disciplined growth in materials the world needs for the energy transition, delivering first sustainable production from the underground mine at Oyu Tolgoi in Mongolia and progressing early works on the Rincon lithium project in Argentina. We advanced the Simandou high grade iron ore project in Guinea with our partners, and entered into an agreement for a joint venture to unlock La Granja in Peru, one of the largest undeveloped copper projects in the world.
“We continue to take action to strengthen our culture and invest in genuine partnerships, implementing the recommendations of the Everyday Respect report and reaching a new agreement with the Naskapi Nation of Kawawachikamach in Canada. As we progress against our four objectives and strategy, we have a clear long-term pathway to profitable growth and continued attractive shareholder returns.”
Evolution Mining
Evolution Mining reported production of 163,910oz of gold and 9,668t of copper.
The company saw a strong operating mine cash flow of $270 million for the quarter. Mine cash flow before major capital increased to $234 million.
A significant milestone was achieved during the quarter with commencement of Cowal underground production ahead of schedule and within budget.
Commenting on the achievements in the March quarter, Evolution Mining’s Chief Executive Officer and Managing Director, Lawrie Conway, said, “This has been a pivotal quarter for Evolution where we generated net cash flow of $95.7 million and commissioned the new Cowal underground mine ahead of schedule and on budget.
“Ernest Henry has now resumed mining activities and will safely ramp up to normal production rates. The benefits of our recent investment in developing two new mining areas at Cowal and Red Lake will be the main drivers to increase production rates moving forward.
“At the end of the June quarter, Evolution will become one of the few fully unhedged gold producers. The combination of these activities positions us well to take advantage of current elevated metal prices.”
Alcoa
Alcoa’s first quarter highlights included:
- Generated revenue of $2.7 billion
- Posted sequential improvements in net loss attributable to Alcoa of $164 million and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) excluding special items of $211 million
- Finished the first quarter with a cash balance of $1.1 billion
- Paid a cash dividend of $0.10 per share of common stock, totaling $18 million
- Negotiated an updated agreement for the phased restart of the San Ciprián smelter in Spain, beginning in 2024
- Announced permanent closure of the Intalco aluminium smelter in Washington State
- Expanded EcoSourceTM brand of low carbon alumina to include non-metallurgical grades, in addition to smelter grade
Alcoa President and CEO, Roy Harvey, said, “In the first quarter of 2023, we saw improvement in some key financial metrics, including a $211 million sequential gain in adjusted EBITDA, and we continued to maintain a strong balance sheet.
“We’re also making important progress in stabilising our operations, with teams working to improve on a minute-by-minute, day-by-day basis. We plan to build on that momentum as we tackle a host of complex issues, including developing breakthrough technologies and addressing increased expectations from stakeholders.
“I have confidence in our team’s abilities to develop solutions, such as our recent decision to expand our EcoSource alumina brand to now include non-metallurgical grades as part of our SustanaTM family of low-carbon products.
“We know that all aluminium is not created equally, and being a responsible producer will be a key differentiator to help position Alcoa for the future. The world will need sustainably produced materials to help reach global decarbonization goals, and we will be the Company to provide them.”
