2019 half year results

1 August 2019 London

Cautionary and supporting statements

This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ("Rio Tinto"). By accessing/attending this presentation you acknowledge that you have read and understood the following statement.

Forward-looking statements

This document, including but not limited to all forward looking figures, contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words "intend", "aim", "project", "anticipate", "estimate", "plan", "believes", "expects", "may", "should", "will", "target", "set to" or similar expressions, commonly identify such forward-looking statements.

Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation.

For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty.

In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results. In this presentation all figures are US dollars unless stated otherwise.

Disclaimer

Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies.

This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto's annual results press release and/or Annual report.

Reference to consensus figures are not based on Rio Tinto's own opinions, estimates or forecasts and are compiled and published without comment from, or endorsement or verification by, Rio Tinto. The consensus figures do not necessarily reflect guidance provided from time to time by Rio Tinto where given in relation to equivalent metrics, which to the extent available can be found on the Rio Tinto website.

By referencing consensus figures, Rio Tinto does not imply that it endorses, confirms or expresses a view on the consensus figures. The consensus figures are provided for informational purposes only and are not intended to, nor do they, constitute investment advice or any solicitation to buy, hold or sell securities or other financial instruments. No warranty or representation, either express or implied, is made by Rio Tinto or its affiliates, or their respective directors, officers and employees, in relation to the accuracy, completeness or achievability of the consensus figures and, to the fullest extent permitted by law, no responsibility or liability is accepted by any of those persons in respect of those matters. Rio Tinto assumes no obligation to update, revise or supplement the consensus figures to reflect circumstances existing after the date hereof.

J-S Jacques

Chief executive

A strong first half Delivering superior cash flows and cash returns

Financial performance

$10.3bn

Underlying EBITDA

47% Underlying EBITDA margin

$4.7bn Free cash flow*

$7.8bn Cash returns paid to shareholders in H1

Balance sheet

$4.9bn

Net debt at June 30

– Pro forma net debt of $5.6 billion**

creation $2.5bn

Value

Interim dividend

$1.0bn

Special dividend

$1.2bn

Development capital investment

23%

Return on capital employed***

4 ©2019, Rio Tinto, All Rights Reserved * Excludes capital gains tax paid on divestments of $0.9 billion | ** Pro forma net debt of $5.6 billion includes remaining share buy-back to be paid by Feb-2020 *** Return on Capital Employed (ROCE) is defined as annualised underlying earnings excluding net interest divided by average capital employed (operating assets before net debt)

Safety is our highest priority

Safety Performance

Health and Safety

Improved AIFR of 0.41 in H1 2019

Rollout of new safety maturity model while reinforcing strong focus on CRM* with 710,000 verifications in H1 2019

Continued focus on mental health and wellbeing through the application of a standardised framework across the Group

Major hazard risk management work assessed tailings & water storage risks – released publicly in June 2019

Reduction in process safety incidents from 2018

Sustainable development in action

Running a safe, responsible and profitable business

0.41

AIFR in H1 2019 undergoing ASI certification

65%

Reduction in carbon footprint at Kennecott through closing coal plant and renewable energy certificates

targets underway

134 Data released for 134 tailings facilities

Collaborating to enable long term economic benefits

Taxes paid report released

Zero 'Contracts with governments' disclosure

Pioneering

progress

4

materials for human

Coal production in H1 2019

Additional aluminium assets

$0.3bn

Additional investment in Resolution Copper in Arizona

Elysis

New R&D facility to develop carbon free aluminium

Corporate Human Rights benchmark New water and climate

Collaboration on Australia's first automation qualifications 1st

2nd

Jakob Stausholm

Chief financial officer

Strong financial results

($bn)	H1 2019	H1 2018	Comparison
Gross revenue	21.8	21.2	+ 3%
Underlying EBITDA	10.3	9.2	+ 11%
Cash flow from operations*	7.2	5.2	+ 39%
Free cash flow*	4.7	2.9	+ 64%
Underlying earnings	4.9	4.4	+ 12%
Net earnings	4.1	4.4	-6%
Dividends and share buy-backs announced	3.5	3.2	+ 9%
Pro-forma net debt	5.6	9.3	-40%

Growing with increasing profitability

Strong iron ore prices partly offset by challenging aluminium and copper market conditions

Iron Ore* (36% increase YoY) Aluminium** (17% decrease YoY) Copper** (11% decrease YoY) 200 250 300 350 400 450 500 1700 2200 2700 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 Price HY average MW Premium (RHS) $/t $/t c/lb

Global steel production growth of 4.4% in H1 2019 (YoY)

Disrupted seaborne supply throughout H1 2019 (down ~6%)

Iron ore stocks at port reduced by ~20% in H1 2019

Global demand growth dipped to ~1% in H1 2019 (YoY)

Increased supply from lifting of sanctions

Significant proportion of producers currently unprofitable

Macro headwinds and trade concerns impacting sentiment

Underlying demand unchanged compared to H1 2018

Supply disruptions of ~3% in H1 2019

Strong EBITDA driven by price

Underlying EBITDA $ billion

11 Other costs include movements in Central costs and Exploration & Evaluation costs. All variances exclude coal ©2019, Rio Tinto, All Rights Reserved

Coal EBITDA

Productivity programme challenged by Iron Ore disruptions

Post-tax mine-to-market (M2M) productivity programme $ billion (free cash flow) M2M free cash flow target of

$1-1.5 billion run-rate from 2021, dependent on:

• Increase in Iron Ore volume (subject to market conditions)
• Raw material prices in Aluminium reverting to levels at the beginning of the programme

Iron Ore world-class returns underpinned by robust price environment

Operating metrics	H1 2019	H1 2018comparison	2019guidance
Averagerealised price*	$85.3/ t	+ 35%
Shipments (100% basis)	154.6mt	-8%	320-330Mt
Operatingcost / t**	$14.6 / t	+ 9%	$14-15 / t

Financial metrics ($bn)

13

Revenue	11.0	+ 21%
EBITDA	7.5	+ 34%
Margin (FOB)	72%	+ 5pp
Operatingcash flow	5.3	+ 24%
Sustaining capex	0.5	+ 51%	~1.0
Replacement and growth capex	0.2	+ 7%
ROCE	63%	+ 23pp

Higher pricing driving increase in EBITDA and margin

14Mt shortfall due to Tropical Cyclone Veronica and fire at Cape Lambert A

Operating cost guidance includes:

• Lower shipments impact of $1.2 / t in H1 2019
• Additional costs associated with waste movement in 2019 of ~$0.25 / t

Koodaideri Phase 1 and Robe JV Sustaining development projects continue to progress

Aluminium profitability impacted by challenging price and cost environment

Operating metrics	H1 2019	H1 2018comparison	2019guidance
Average aluminium price*	$2,174 / t	-15%
Average alumina price**	$375 / t	-17%
Production –bauxite	26.2Mt	+ 1%	56-59Mt
Production –alumina	3.9Mt	-3%	8.1-8.4Mt
Production –aluminium	1.6Mt	0%	3.2-3.4Mt
Canadian smelters –hot metal cash costs****	$1,406 / t	-5%	Refer to p42
Financialmetrics ($bn)
Revenue	5.1	-17%
EBITDA	1.1	-38%
Margin (integrated operations)	27%	-8pp
Operatingcash flow	1.0	-8%
Sustaining capex	0.4	+ 8%
Replacement and growth capex	0.3	-44%
ROCE	4%	-7pp

Lower prices impacted EBITDA by $0.8 billion, notably primary metal

– Partly offset by volumes, mix and costs

Alumina legacy contracts impacted EBITDA by $0.15 billion, from peak in H2 2019

1% primary metal productivity creep***

Q1 bauxite production impacted by weather, but Amrun ramp-up progressing

14 * Realised price, including VAP and mid-west premium | ** Platts Alumina PAX FOB Australia | *** Excluding Dunkerque and Becancour smelters **** Operating costs defined as hot metal cash costs for the Canadian smelters (alumina at market price)

Copper & Diamonds stable performance against strong prior year

Operating metrics	H1 2019	H1 2018comparison	2019guidance
Copper price	280 c/lb	-11%
Production –mined copper	281kt	-5%	550-600kt
Production –refined copper	131kt	+ 11%	220-250kt
Production –diamonds	8.3Mct	-10%	15-17Mct
Unit cost*	89 c/lb	-28%	110-120 c/lb

Financial metrics ($bn)

15

Revenue	3.0	-2%
EBITDA	1.2	-11%
Margin (operations)	46%	-2pp
Operatingcash flow	0.8	-8%
Sustaining capex	0.2	+33%
Replacement andgrowth capex	0.7	+1%
ROCE	6%	-2pp

EBITDA and margin impacted by lower LME price

Further productivity improvements at Kennecott

OT underground project redesign continues

Argyle expected closure by end-2020

$0.3 billion additional funding approved to progress Resolution

Drilling continues at the Winu exploration project

©2019, Rio Tinto, All Rights Reserved

* Unit costs for Kennecott, OT and Escondida utilises the C1 unit cost calculation where Rio Tinto has chosen Adjusted Operating Costs as the appropriate cost definition. C1 costs are direct costs incurred in mining and processing, plus site G&A, freight and realisation and selling costs. Any by-product revenue is credited against costs at this stage

Energy & Minerals* strong recovery from 2018 disruptions

Operating metrics	H1 2019	H1 2018comparison	2019guidance
IOC pellets price	$141/ t	+ 24%
TiOslag price**2	$692 / t	+ 10%
Production –IOC	5.0Mt	+ 55%	10.7-11.3Mt
Production –TiO2	0.6Mt	+ 14%	1.2-1.4Mt
Production –Borates	0.25Mt	-1%	0.5Mt

Financial metrics ($bn)

Revenue	2.5	+ 33%
EBITDA	1.0	+ 113%
Margin (operations)	40%	+ 15pp
Operatingcash flow	0.7	+ 245%
Sustaining capex	0.1	+ 4%
Replacement and growth capex	0.0	unchanged
ROCE	15%	+10pp

Strong pricing and operational recovery driving 113% increase in EBITDA

Improved performance at RTIT

• 2 furnaces rebuilt at RTFT, with a third in progress
  • 1 furnace under rebuild at RBM

IOC benefitting from strong demand for premium products

• Average pellet price in H1 2019 of $141 / tonne
• EBITDA margin of 49%
• Production fully recovered from 2018 strike, but impacted by weather in Q1 2019 and flooding incident in June

$0.5 billion Zulti South project approved in April 2019

Disciplined investment of capital

Capital expenditure profile $ billion

H1 2019 capex of $2.4 billion

• Sustaining capex of $1.2 billion
• Development capex of $1.2 billion

Pilbara replacement capital includes Koodaideri and Robe River

Development capital delivers 2% CAGR (2019 – 2023)

Potential for timing of spend to be pushed from 2019 to 2020

A strong balance sheet

Net debt $ billion

Increase in reported net debt reflects operating cash flows of $7.2* billion, net of:

• Payment of dividends of $6.8 billion
• Share buy-back of $1.0 billion
• Capex of $2.4 billion
• Tax on divestments of $0.9 billion
• IFRS 16 (change to lease accounting) impact of $1.2 billion

Committed cash outflows for H2 2019 include:

– $0.7 billion in buy-backs by February 2020 previously announced in November 2018

Delivering superior returns

2019 cash returns paid to shareholders* $ billion

Interim 2019 returns to shareholders of $3.5 billion announced

• Interim dividend of $2.5 billion or 151 US cents per share to be paid in September 2019
• Special dividend of $1.0 billion or 61 US cents per share to be paid in September 2019
• Represents 70% of underlying earnings
• Total interim returns of $3.5 billion, 9% higher than H1 2018

Strong financial results

($bn)	H1 2019	H1 2018	Comparison
Gross revenue	21.8	21.2	+ 3%
Underlying EBITDA	10.3	9.2	+ 11%
EBITDA margin (%)	47%	43%	+ 4pp
Cash flow from operations*	7.2	5.2	+ 39%
Free cash flow*	4.7	2.9	+ 64%
Underlying earnings	4.9	4.4	+ 12%
Net earnings	4.1	4.4	-6%
ROCE (%)	23%	19%	+ 4pp
Dividends and share buy-backs announced	3.5	3.2	+ 9%
Pro-forma net debt	5.6	9.3	-40%

J-S Jacques

Chief executive

Stable Chinese indicators

Global GDP & IP

China's Fixed Asset Investment growth

Global economic growth

• Global growth tracking at 2015/16 cyclical lows
• Trade tension weighing on global industrial growth
• Major economy central banks becoming more accommodative

China's industrial activity mixed

• Property and infrastructure providing a cushion for other parts of the economy that are slowing
• Uncertainty over trade tensions impacting manufacturing sector

Robust iron ore and steel fundamentals

Obstacles to Chinese domestic supply response

Delivering quality through system blending

Improving Iron Ore system performance

Protecting the Pilbara Blend

Mine sequencing challenges and deficit in overburden removal

Additional waste movement programme

• 2019 material movement increase
• Expected cost of ~$80 million in 2019

Focus on rail capacity continues

Rail maintenance and upgrade to continue into 2020

• Major rail shut in October 2019
• Comprehensive multi-year capital programme

AutoHaulTM fully implemented with all trains on mainline in autonomous mode

Product quality and customer relationships

Focus on EBITDA margin

Longer-term fundamentals remain positive for aluminium and copper

Firm primary aluminium demand outlook

Challenging short-term market conditions

Positive longer-term fundamentals

– Demand growth driven by expected recovery in automotive sector and ongoing lightweighting of vehicles

Global stocks of aluminium continue to fall

Financial shorts contributing to copper weakness

Despite low mine disruptions YTD, mine supply expected to fall by ~1% in 2019

– Mine disruptions ~3% YTD; lower than 5% historically

Copper fundamentals positive, market relatively in-balance over next five years

Our growth pipeline

2% Cu equivalent growth to 2023

Oyu TolgoiUnderground	Kennecott SouthWall Pushback	Iron Orereplacementmines	ZultiSouthMineral Sands	ResolutionCopper(unapproved)	Jadar(unapproved)
World-class copperresource underdevelopment withoptions to optimisedevelopment plan	Mine development todeliver higher Cugrades and reducedvariability from late2020	High qualityreplacement projectsat Koodaideri, RobeValleyand WestAngelas, withadditional optionalityat Koodaideri Phase 2	$0.5bn* approved inApril to sustaincapacity and extendthe life of RichardsBay Minerals	Additional $0.3bn*approved in April toprogress permittingShaft #9 deepeningunderway	Lithium-boratesdeposit in SerbiaProject progressingthrough PFS

Critical infrastructure progresses at Oyu Tolgoi

• Mine dry and control centre
• Central heating plant
• Overland conveyor to stockpile
• 5,500 person camp
• Shaft 5 ventilation fans
• Mine air heaters
• Batch plant 4 & quarry

Shafts & below ground hard infrastructure Mine development

Mine dry building Lateral mine footprint development Load commissioning of Jaw Crusher

• Shaft 5 sinking to 1.2km
• Shaft 2 sinking to 1.3km
• Shaft 2 Jaw Crusher
• Ore bin 11 & transfer station
• Excavation of the Primary Crusher 1 chamber
• Critical underground facilities

24,470 eqm of vertical, lateral and mass excavation development (on & off footprint)

Schedule and cost ranges are driven by four key factors

Note: Diagrams are simplified from the underlying technical drawings for presentation purposes

©2019, Rio Tinto, All Rights Reserved

Winu drilling continues at pace

Results from 42 new drill holes at Winu

Results continue to indicate relatively wide intersections of mineralisation

Drilling with 8 diamond rigs and 3 RC rigs:

• RC rigs focused on supergene
• Diamond rigs focused on testing depth extent

Strike length of mineralisation approximately 2.1km

Mineralisation remains open at depth and to the east, north and south

Located in Western Australia, 100% owned

30 ©2019, Rio Tinto, All Rights Reserved * For full details, see the Notice to ASX dated 1 August 2019 ("Rio Tinto Exploration Update – Winu project") and accompanying information provided in accordance with the Table 1 checklist in The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition). These materials are also available on riotinto.com. Rio Tinto confirms that it is not aware of any new information that materially affects the information included in the market announcement and that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement

Strong base for future growth and profitability

Safety is our #1 priority

-1.5bn

free cash flow

Operating efficiency

$1

Additional

per year from 2021 delivered through our productivity programme

Consistent financial discipline

$12bn

Paid* to shareholders in 2019, cash generative assets and strong balance sheet

Attractive growth opportunities

2%CuEq

Annual growth rate to 2023 from broad pipeline of growth opportunities

World portfolio

-class

Through a simplified portfolio of long life, low cost assets

21st century mining company

Zero

Coal or oil production plus a leading position in technology and automation

31 ©2019, Rio Tinto, All Rights Reserved * Includes $7.8 billion paid in H1 2019, interim and special dividend to be paid in September, and remaining share buy -back to be completed by Feb -2020

Appendix 1 August 2019 London

Higher iron ore prices partly offset by lower copper and aluminium prices

Underlying EBITDA H1 2019 vs H1 2018 $ million

Strong sales in diamonds, gold and bauxite offset by lower iron ore sales

Underlying EBITDA H1 2019 vs H1 2018

34 ©2019, Rio Tinto, All Rights Reserved * Aluminium includes alumina and bauxite

Iron Ore higher prices partly offset by disruptions

Underlying EBITDA H1 2019 vs H1 2018 $ million

5,685 8,542 7,552 2,704 182 8 (37) (493) (382) (115) 4,000 6,000 8,000 10,000 H1 2018 underlying EBITDA Price Exchange rates Energy Inflation Flexed H1 2018 underlying EBITDA Volumes Cash costs Other H1 2019 underlying EBITDA

• Pilbara operations produced 155.7 million tonnes (Rio Tinto share 129.7 million tonnes), 8% lower than 2018 first half. Significant disruptions were caused by Tropical Cyclone Veronica, and a fire at our Cape Lambert A port in the first quarter. The impacts of the cyclone continued into the second quarter, with repairs to the Cape Lambert A port facilities impacting Robe Valley and Yandicoogina shipments and operations
• Our Pilbara operations delivered an underlying Free On Board (FOB) EBITDA margin of 72%, compared with 67% in 2018 first half.
• 2019 first half Pilbara unit cash costs were $14.6 per tonne (2018 first half: $13.4 per tonne). The fire and weather-related events reduced first half shipments by 14 million tonnes (100% basis), increasing unit costs by around $1.2 per tonne.
• Gross sales revenue for our Pilbara operations included freight revenue of $0.6 billion (2018 first half: $0.8 billion).
• We priced approximately 77% of our sales with reference to the current month average index; 16% with reference to the prior quarter's average index lagged by one month; 5% with reference to the current quarter average; and 2% on the spot market
• Approximately 33% of our sales were made on an FOB basis with the remainder sold including freight

Aluminium lower prices partly offset by improved volumes and costs

Underlying EBITDA H1 2019 vs H1 2018

– Underlying EBITDA of $1.1 billion declined by 38% compared with 2018 first half. A weaker pricing environment, in particular for primary metal, was the primary driver for the decline, reducing our underlying EBITDA by $0.8 billion compared with 2018 first half. This was partly offset by volume, mix and cost gains delivered through productivity improvements

• Despite the pressures, we maintained our position as a leading business in the sector, with an EBITDA margin from integrated operations of 27%
• The average realised price per tonne averaged $2,174 in H1 2019 (H1 2018: $2,547)
• The cash LME price averaged $1,826 per tonne, 17% lower than 2018 first half, and the mid-West premium rose 6% to $420 per tonne
• VAP represented 54% of the primary metal we sold (2018 first half: 58%) and generated attractive product premiums averaging $242 per tonne of VAP sold (2018 first half: $222 per tonne) aligned with our value over volume strategy
• Although broadly balanced in alumina, approximately 2.2 million tonnes of our legacy alumina sales contracts are exposed to a fixed linkage to the LME price

$ million

Copper & Diamonds solid operational performance offset by lower prices

• Notwithstanding the combined negative impact of $258 million in price declines and increased evaluation expenditure, underlying EBITDA of $1.2 billion was $147 million or 11% lower than 2018 first half. The lower price impacts were offset by increased sales volumes of copper and lower costs linked to productivity improvements at our managed operations
• We generated $0.8 billion in cash from our operating activities, an 8% decrease on 2018 first half. This included $315 million of dividends from Escondida, compared with $405 million received in 2018 first half
• Free cash flow of $(90) million, reflected a 6% increase in net capital expenditure to $855 million, mainly relating to activities at the Oyu Tolgoi underground project
• Average copper prices decreased 11% to 280 US cents per pound, and the average gold price declined 1% to $1,307 per ounce compared with 2018 first half. These price declines, together with weaker diamond pricing and provisional pricing movements, resulted in a $237 million decrease in underlying EBITDA

$ million

Underlying EBITDA H1 2019 vs H1 2018

Energy & Minerals strong operational recovery from 2018 disruptions

Underlying EBITDA H1 2019 vs H1 2018

$ million

2,000

• Underlying EBITDA of $1.0 billion was 5% lower than 2018 first half, but 113% higher excluding the 2018 first half contribution from the coking coal assets divested in 2018
• A higher price environment, in particular for iron ore pellets and concentrate, titanium dioxide feedstocks and metallics, boosted EBITDA by $169 million
• We benefited from an 87% increase in sales volumes at Iron Ore Company of Canada compared with 2018 first half when we suspended operations due to a twomonth strike. We also saw an improvement in operational performance at our titanium dioxide operations following the disruptions in 2018 first half
• We generated net cash of $0.7 billion from our operating activities and $0.5 billion of free cash flow, reflecting the stronger pricing environment and the improved operational performance
• On 26 November 2018, we announced that we had entered into a binding agreement with China National Uranium Corporation Limited for the sale of our entire 68.62% stake in Rössing Uranium. Approval has now been received from the Namibian Competition Commission and final completion occurred in July 2019

Other movements in underlying EBITDA

Underlying EBITDA impact

$ million	H1 2018	FX/ price	Energy &Inflation	Volumes	Cashcosts	E&E	Non-cash	Interest,tax, other	H1 2019
Other operations	(27)	56	(21)	1	(117)	-	(7)	27	(88)
Exploration & Evaluation (net)	(100)	-	-	-	-	(38)	-	-	(138)
Other	(559)	4	2	-	25	(3)	(46)	207	(370)
Total	(686)	60	(19)	1	(92)	(41)	(53)	234	(596)

– Other operations includes the Gove alumina refinery (curtailed in May 2014), Rio Tinto Marine and Legacy projects

– Central exploration & evaluation costs higher due to increased activity levels, primarily in copper

• Pre-tax Central pension costs, share-based payments and insurance were a $77 million credit compared with a $83 million charge in 2018 first half due to lower business unit captive insurance premiums held centrally. Restructuring, project and one-off central costs were in line with 2018 first half
• Other central costs were 9% lower due to gains delivered through investment in technology and capability to support our productivity programme

Debt maturity profile

30 June 2019 debt maturity profile* $ million

Reported gross debt increased by $1.3 billion to $14.3 billion at 30 June, mainly attributable to the implementation of IFRS 16 leases

Average outstanding debt maturity of corporate bonds at 13 years ( 10 years for Group debt)

No corporate bond maturities until 2020

Modelling EBITDA

Underlying EBITDA sensitivity	H1 2019average price / rate	($m) impact on FY 2019 underlyingEBITDA of 10% price/rate change
Copper	280c/lb	281
Aluminium	$1,826/t	462
Gold	$1,307/oz	61
Iron ore (62% Fe FOB)	$84.9/dmt	1,862
A$	0.71US$	550
C$	0.75US$	345
Oil (Brent)	$66/bbl	68

Note: The sensitivities give the estimated effect on underlying EBITDA assuming that each individual price or exchange rate moved in isolation. The relationship between currencies and commodity prices is a complex one and movements in exchange rates can affect movements in commodity prices and vice versa. The exchange rate sensitivities include the effect on operating costs but exclude the effect of revaluation of foreign currency working capital.

Modelling aluminium costs

Canadian* smelting unit cash** cost sensitivity	($/t) Impact a $100/t change ineach of the input costs below willhave on our H1 2019 Canadiansmelting unit cash cost of $1,406/t
Alumina (FOB)	191
Green petroleum coke (FOB)	34
Calcined petroleum coke (FOB)	30
Coal tar pitch (FOB)	7

metric tonne of primary aluminium.

42 ©2019, Rio Tinto, All Rights Reserved * Canadian smelters include all fully-owned smelters in Canada (Alma, AP60, Arvida, Grande-Baie, Kitimat, and Laterrière), as well as Rio Tinto's share of the Becancour and Alouette smelters ** The smelting unit cash costs refer to all costs which have been incurred before casting, excluding depreciation but including corporate allocations and with alumina at market price, to produce one

Application of the returns policy

Capital return considerations	Comments
	Operating cash flow of $7.2 billion*
Results for HY2019	FCF of $4.7 billion*
	Underlying earnings up 12%to $4.9 billion
	Focused on Oyu Tolgoi
Long term growth prospects	Investing in replacinghigh quality assets in Pilbara, Kennecott and Zulti-South
	Ongoing exploration and evaluation programme –Winu
Balance sheet strength	Strong balance sheet with net debt of $4.9 billion
Strong earnings/ cash generation –supplement with additional returns	Payout>60% threshold possible because of strong performance
40-60 per cent of underlying earnings through the cycle	Payout>60%threshold possible based on (i) strong firsthalf 2019prices(ii) strong balance sheet
Balanced between growth and shareholder returns	Definedgrowth pipeline providescapacity to allocate more to shareholder cashreturn and debt reduction
Outlook	Stable global growth, strong demand for premium productsPotential for continued price volatility

Schedule and cost ranges for OT are driven by four key factors