Latest news with #Stausholm
The Australian
30-07-2025
- Business
- The Australian
Rio Tinto names Simon Trott as new CEO amid $11.5bn half-year profit
The Australian Business Network However, Stausholm, who hands over the business to his iron ore boss Simon Trott in coming weeks, says it's something bigger than that. 'We've been getting back the mojo,' Stausholm tells The Australian. When he steps down on August 24, the Rio boss wants to be remembered for the impact he had on cultural change and especially for rebuilding bridges after the external shock of the Juukan Gorge cave scandal. The lead up to the Juukan destruction represented a period where the miner had lost its way. 'We were on our knees,' he says. Then, the miner was increasingly run out of London, and the core of Rio's once-powerful operational managers were being sidelined. The structure of the business was a mess that hadn't been tackled, leading to complex shareholdings across some of its most important operations, like the giant copper mine in Mongolia. There's still a way to go, but Stausholm confronted some of Rio's darker cultural demons and spent much of his tenure presenting a miner who was serious about working with rather than against its partners. Stausholm, who has had top executive roles with Shell and Maersk before Rio, says the lesson is that once you get the right culture in place, this becomes the foundation to build out an entire business. 'You actually then start seeing better operational performance, better execution of projects, and for the financial community, suddenly you have a business that actually grows – consistently profitable growth,' he says. His comments came as Rio delivered first half underlying earnings of $US11.5bn ($17.7bn), this was down 5 per cent on softer iron ore prices, but slightly ahead of market expectations. However, the dividend of $US1.48 a share fell short of expectations. This weighed on the miners shares in London. Rebalancing Significantly, increased production and higher earnings from the in-demand copper and bauxite helped offset a 13 per cent drop in iron ore prices. Rio's cashflow was mostly flat at $US6.9bn. While the contributions move around on commodities prices, Rio's copper and aluminium businesses are now star performers, representing around 20 per cent of the company's cashflow each. Previously it was closer to 10 per cent. Iron ore still dominates at 55 per cent of cashflows. Earnings from aluminium jumped 50 per cent thanks to higher volumes and prices. Rio also disclosed it was hit with a $US321m tariff cost, thanks to Donald Trump, but tariffs are starting to become a net positive for the miner, given the jump in copper prices. 'When you look at other miners, basically none of them are growing, and we are growing (production). We've said long term, the next 10 years, we can grow 3 per cent a year, but the reality is, we grew 6 per cent in the first half, 13 per cent in this in the second quarter'. We're really unlocking growth here, right now, and that's just comes from these underlying things – you get it right with the people, and we are already blessed with amazing assets'. 'You have not seen the best yet'. Still, Stausholm's tenure was cut short by his board. Just weeks after the annual meeting in May, the miner announced Stausholm's sudden retirement and launched a search for his successor. Two weeks ago, Trott, an Australian, was named his successor. Stausholm's high cost growth agenda, including near $10bn bet on lithium and expanding aluminium, is thought to have sat uncomfortably with the board. Since May, Stausholm has declined to discuss his looming exit except to say he is 'very happy' the board has backed an internal successor. However, he defended broader criticism around costs. 'There were a lot of things that needed to be rebuilt,' particularly around relations with traditional landowners, he said. Rio's productivity improvement program, the Safe Operating System, has been a major investment underway for four years and this is now behind the rising volumes coming out of existing mines and downstream operations like aluminium. But the trick in any company is to balance the rising costs that come with growth, he concedes. Under Trott, the challenge for Rio will be around the execution of the slate of development projects it has in front of it. Like rival BHP, it's now moving into a period of increased capital spending of between $US10-11bn over the medium term on projects like Simandou iron ore in Guinea; expanding the Pilbara; building out aluminium capacity; and the battery minerals bets that include the acquisition of lithium major Arcadium and the development of the Rincon project in Argentina. In recent years Rio has been spending around $US6-7bn a year on capex. There was nothing in the recent results to suggest that Rio would be on a different track. Stausholm has a high conviction in the projects ahead of Rio, with the company now in a place where it is executing well. Nor is he phased on the current malaise in lithium prices, 'It doesn't really matter, to be quite frank, for us, because what matters for us is what is the lithium prize five years from now. What we're trying to be is countercyclical and think long term'. This is now all on Trott to deliver. Read related topics: Rio Tinto Eric Johnston Associate Editor Eric Johnston is an associate editor of The Australian. He has more than 25 years experience as a finance journalist, including a former business editor of The Australian. He has been business editor of The Sydney Morning Herald and The Age and financial services editor with The Australian Financial Review. His work has also appeared in The Wall Street Journal.
Sydney Morning Herald
30-07-2025
- Business
- Sydney Morning Herald
Rio Tinto takes hit as Trump trade war casts cloud over miners
Stausholm – who steps down next month to be replaced by Rio Tinto's iron ore boss Simon Trott – described the result as 'resilient', pointing to stronger core earnings and cashflow. While iron ore mines remained the 'jewel in the crown', Stausholm noted the company was becoming less dependent on the iron ore price. 'We have a much more profitable aluminium and copper business,' he said. Under Stausholm's leadership, Rio Tinto has been pushing harder to diversify away from iron ore and into other commodities that stand to benefit from growing global efforts to tackle global warming, such as electric battery raw material lithium, and copper, a key ingredient in electric wiring. While Rio Tinto's dividend and underlying earnings missed consensus expectations, analysts at RBC Capital Markets said sentiment on the result would be positive. 'Rio Tinto produced a good set of operational results across key divisions,' analysts Kaan Peker and Ben Davis said. Rio Tinto shareholders will receive a dividend of $US1.48 a share, down from $US1.77 a share at the same time last year, the company said on Wednesday. Trott, a 25-year veteran at the miner, will take the helm as chief executive from August 25. It has been almost a decade since Rio Tinto had an Australian-born boss after former chief executive Sam Walsh stepped down in 2016. Loading Trott has run Rio Tinto's critical iron ore operations in the Pilbara since 2021 and spent much of his career working at the company in senior roles including stints in Singapore, London and Hong Kong. The executive grew up in a small town of fewer than 400 people in Western Australia's wheat belt called Wikepin and has risen swiftly to the top of Rio Tinto, becoming chief executive aged 50. Trott will be paid a base salary of $2,747,590, along with further incentives and a company pension worth 14 per cent of his earnings.
The Age
30-07-2025
- Business
- The Age
Rio Tinto takes hit as Trump trade war casts cloud over miners
Stausholm – who steps down next month to be replaced by Rio Tinto's iron ore boss Simon Trott – described the result as 'resilient', pointing to stronger core earnings and cashflow. While iron ore mines remained the 'jewel in the crown', Stausholm noted the company was becoming less dependent on the iron ore price. 'We have a much more profitable aluminium and copper business,' he said. Under Stausholm's leadership, Rio Tinto has been pushing harder to diversify away from iron ore and into other commodities that stand to benefit from growing global efforts to tackle global warming, such as electric battery raw material lithium, and copper, a key ingredient in electric wiring. While Rio Tinto's dividend and underlying earnings missed consensus expectations, analysts at RBC Capital Markets said sentiment on the result would be positive. 'Rio Tinto produced a good set of operational results across key divisions,' analysts Kaan Peker and Ben Davis said. Rio Tinto shareholders will receive a dividend of $US1.48 a share, down from $US1.77 a share at the same time last year, the company said on Wednesday. Trott, a 25-year veteran at the miner, will take the helm as chief executive from August 25. It has been almost a decade since Rio Tinto had an Australian-born boss after former chief executive Sam Walsh stepped down in 2016. Loading Trott has run Rio Tinto's critical iron ore operations in the Pilbara since 2021 and spent much of his career working at the company in senior roles including stints in Singapore, London and Hong Kong. The executive grew up in a small town of fewer than 400 people in Western Australia's wheat belt called Wikepin and has risen swiftly to the top of Rio Tinto, becoming chief executive aged 50. Trott will be paid a base salary of $2,747,590, along with further incentives and a company pension worth 14 per cent of his earnings.
West Australian
16-07-2025
- Business
- West Australian
Rio Tinto recovers from cyclone impacts but cops $460m blow on US aluminium tariffs
Rio Tinto's second-quarter iron ore shipments largely recovered from cyclone impacts in the previous three months, as the major miner prepares for a new chief executive to take charge. Exports of key steel-making material iron ore reached 79.9 million tonnes for the three months ended June 30, down one per cent from the same period last year, and slightly below analyst expectations. Shipments jumped 13 per cent from the first quarter, when four cyclones impacted ports servicing WA's mining hub the Pilbara. Iron ore achieved its highest second-quarter production level since 2018, turning out 83.7mt — up 20 per cent on the first quarter and 5 per cent from the same period a year ago. The company, which on Tuesday named iron ore boss Simon Trott as its new CEO, still relies on the steelmaking material for about 80 per cent of its underlying earnings. It seeks to boost production in the Pilbara while bringing its massive Simfer mine at the Simandou project in Guinea online this year. While Rio maintained full-year iron ore export guidance at between 323mt and 338mt, it said shipments would likely be at the lower end due to the impact of the cyclones. First exports from Simandou are expected in November. The miner is also pursuing growth in commodities key for the energy transition, namely its new lithium business as well as expansions in copper and aluminium production. Over 2025's first half, Rio incurred about $US300 million ($460m) of gross costs due to the US tariffs on aluminium exports from Canada. it said. Rio's large copper business continued a strong performance, with output up 15 per cent on the same time a year ago. This was mainly thanks to a ramp up at the company's massive Oyu Tolgoi underground copper mine in Mongolia. The company had 'record production from our bauxite business and from Oyu Tolgoi as it ramps up to become the world's fourth-largest copper mine before the end of the decade', Mr Stausholm said in the statement. Bauxite and aluminium production gained 6 per cent and 2 per cent, respectively. Rio's solid production performance comes amid an increasingly volatile business environment, with geopolitical tensions and trade barriers creating ongoing near-term economic risks, it said in the statement. In biggest customer China, 'headwinds such as trade tensions and a soft property market continue to pose challenges,' it said. For the US, 'the impact of tariffs is still feeding through to inflation and sentiment', Rio said. 'The housing market continues to be weak and building activities have been hampered by elevated mortgage rates and reduced labour supply.' Bloomberg
Time of India
15-07-2025
- Business
- Time of India
Rio Tinto appoints iron ore boss Simon Trott as CEO
Rio Tinto named Simon Trott, who heads the firm's most profitable iron ore unit, its new chief executive on Tuesday, placing trust in the 20-year veteran to rein in costs at its operations and drive long term growth. Trott, 50, will replace Jakob Stausholm, who announced his intention to step down in May. The Australian national, who has led the iron ore unit, Rio's engine of profit, for the past four years, will take over at the helm of the company beginning August 25. Trott's appointment came swiftly on the heels of the unexpected news of Stausholm's departure. He will relocate to London for the role. "It's a relatively safe appointment," said Kaan Peker at RBC in Sydney. "He knows the iron ore business very well and that's the main driver of free cashflow and earnings. Obviously he has proven himself in the eyes of the chair." Hailing from a farming family in the Western Australian wheatbelt town of Wickepin southeast of Perth, Trott, who is married with children, enjoys cycling around the city's streets on weekends. He has spent time at Rio's global operations, including three years as chief commercial officer in Singapore, and has managed its salt, uranium, borates and diamonds units across Australia, Namibia, United States, Canada, and Serbia. Biggest iron ore mine In Western Australia, Trott brought to market Rio Tinto's biggest iron ore mine in more than a decade. "Simon and the Board are aligned that Rio Tinto's next phase is about unlocking significant value for shareholders from our portfolio, driven by operational performance, and cost and financial discipline," chair Dominic Barton said in a statement. Trott has faced some pushback from investors because the quality of ore in Rio's exports has dropped during his tenure and costs have climbed, while the miner has struggled to reach the top end of its production forecast. However, the unit has met its production guidance every year since Trott took the reins at the division, after missing it in five of the seven preceding years. Stausholm, who oversaw a big bet on lithium and expansions in iron ore and copper, was named chief executive in 2020 as the miner grappled with legal, public and investor angst over the destruction of Australia's ancient Juukan Gorge rock shelters, which led to the ousting of its former CEO.>
