How Did Simandou and Lithium Growth Support Rio Tinto’s (ASX:RIO) 2026 Half Year Results?

Sonal Goyal

09 October 2026 12:12 AM AEDT

How Did Simandou and Lithium Growth Support Rio Tinto’s (ASX:RIO) 2026 Half Year Results?

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Diversified miners report group results that combine prices, volumes and cost programs. Rio Tinto (ASX:RIO) released its 2026 half year results on 29 July 2026, with growth in iron ore and lithium projects.

Company overview

Rio Tinto (ASX:RIO) is a global Mining group with iron ore, copper, aluminium and lithium businesses. It has described growth projects including Simandou iron ore in Guinea and lithium developments.

Financial results

Underlying EBITDA was US$14.8 billion, up 28%, and free Cash Flow US$3.8 billion, up 75%. Net Earnings were US$6.7 billion (up 47%), underlying earnings US$6.9 billion (up 43%) and underlying ROCE 17%. Operating Cash Flow was US$9.2 billion, consolidated sales Revenue US$31.0 billion, and taxes and royalties US$5.6 billion.

Copper equivalent production rose 3%, and copper, aluminium and lithium contributed more than 50% of underlying EBITDA.

Dividend and productivity

The interim ordinary Dividend is US$3.4 billion, or 211.0 US cents per share, up 43%, a 50% payout. Rio said it had banked US$870 million of productivity benefits and expects an annualised run-rate of US$1.8 billion by year end. Capital Investment was US$5.0 billion.

Safety, Balance Sheet and outlook items

The results announcement is a lengthy document of 75 pages covering safety, financial results, Commodity group performance, projects and outlook. The summary figures above reflect the first section only, and the full document includes segment results for iron ore, aluminium, copper, minerals and lithium.

Rio noted that its balance sheet supports continued investment in what it describes as a high-returning growth pipeline while paying the interim dividend. Shareholders seeking detail on net debt, Capital Expenditure guidance and project timetables should refer to the full release.

Growth projects and portfolio mix

Rio described growth in iron ore through the Simandou project and in lithium, with copper equivalent production up 3% on the first half of 2025. Copper, aluminium and lithium together contributed more than 50% of underlying EBITDA, which Rio said further diversified the portfolio.

Capital investment (Rio share) was US$5.0 billion, up 12%, and consolidated sales revenue was US$31.0 billion, up 15%.

Returns, taxes and payout

Underlying Earnings Per Share were 421.4 US cents, up 42%, and underlying return on capital employed was 17% compared with 14%. Taxes and government royalties were US$5.6 billion. The interim ordinary dividend of 211.0 US cents per share compares with 148.0 cents a year earlier and equates to a 50% payout ratio.

Sector backdrop

Group earnings depend on iron ore, copper and aluminium prices, and the release cites favourable commodity prices in the period.

Diversified miners’ results are influenced by iron ore, copper and aluminium prices, exchange rates, and operating costs. Large projects such as Simandou take years to build and ramp up, and early results can differ from the long-term plan.

Productivity programs are common across the sector, but outcomes depend on execution and cost inflation.

Because Rio’s businesses span several commodities, results in any half-year reflect the mix of prices and volumes across iron ore, copper, aluminium and lithium, and comparisons with prior periods should account for both. The release’s headline figures are stated in US dollars.

Risks shareholders should weigh

The result benefited from favourable prices, which can reverse. Growth projects require large capital and carry ramp-up risk.

Productivity benefits are targets until delivered.

Commodity and currency movements affect the dividend.

Reported benefits include productivity targets that are expected rather than realised, and the release notes the environment of favourable commodity prices that supported the half.

Because Rio operates globally, results are exposed to regulatory, community and geopolitical factors.

What’s next

Rio expects to reach the productivity run-rate by year end. Shareholders may wish to watch for the Interim Dividend payment and full-year results.

Shareholders may wish to watch for the interim dividend payment, operational updates and progress on Simandou and lithium projects.

FAQs

Q: What was underlying EBITDA?

A:US$14.8 billion, up 28%.

Q: What interim dividend was declared?

A:US$3.4 billion, 211.0 US cents per share.

Q: What is the productivity target?

A:An annualised run-rate of US$1.8 billion by year end.

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