Record earnings from strong operational performance and markets

03 August 2005

• First half underlying earnings of $2,087 million were more than double those of the first half of 2004 ($993 million).
  
• First half net earnings were $2,165 million (first half 2004 $1,611 million).
  
• Cashflow from operations was a record $3,421 million, 69 per cent higher than that of the first half of 2004.
  
• Consistent operational performance enabled record volumes of most products to be delivered into strong markets. Higher prices increased underlying earnings by $1,004 million and higher volumes by $460 million.
  
• Construction of the major rail and port infrastructure expansion for the Western Australian iron ore operations remains on track. Commissioning of the port expansion has commenced and will progress through the second half of the year.
  
• An agreement to form a joint venture to develop the Hope Downs iron ore deposits further strengthens Rio Tinto’s position as the prime supplier of iron ore from Australia.
  
• Approval for the construction of a new ilmenite operation in Madagascar and the associated upgrade of existing processing facilities in Canada is announced today.
  
• In addition to the increased 2004 final dividend, shareholders benefited from the return of $774 million through the successful completion of Rio Tinto Limited’s off-market buyback. As a result, over half of the $1.5 billion capital management programme was completed within three months of its announcement, on favourable terms.

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