Last checked at 
(Alliance News) - Rio Tinto PLC reported a decline in yearly revenue and profit and cautioned on higher costs at the Pilbara iron ore operation in 2024.
Consolidated sales revenue in 2023 was 2.7% lower at USD54.04 billion from USD55.55 billion in 2022. Pretax profit declined 26% to USD13.79 billion from USD18.66 billion.
"We are making clear progress as we shape Rio Tinto into a stronger and even more reliable company. By focusing on our four objectives, we are building a portfolio that is fit for the future - including our Oyu Tolgoi underground copper mine in Mongolia and the Simandou iron ore project in Guinea," Chief Executive Jakob Stausholm said.
"In 2023, we lifted our overall copper equivalent production by over 3% and delivered resilient financial results."
Rio Tinto declared a 258.00 US cents per share final dividend, a rise of 15% from 225.00 cents. Its total dividend for the year, however, was 12% lower at 435.00 cents per share from 492.00 cents.
"We will continue paying attractive dividends and investing in the long-term strength of our business as we grow in the materials needed for a decarbonising world," the CEO added.
Looking to 2024, Rio Tinto is guiding for Pilbara cash costs per wet metric tonne between USD21.75-23.50, up from USD21.5 in 2023.
"2024 guidance for Pilbara unit cash costs reflects the increased work effort in the mines and persistent labour and parts inflation in Western Australia," Rio said.
However, copper costs will ebb.
"Our Copper C1 unit costs are expected to decrease in 2024, primarily driven by higher volumes at Oyu Tolgoi as the underground continues to ramp up and at Kennecott, where refined copper volumes are expected to increase following the planned smelter rebuild in 2023," it added.
"We remain focused on cost control, in particular maintaining discipline on fixed costs, which are expected to be broadly flat in 2024. While inflation has eased, we continued to see lag effects in its impact on our third party costs, such as contractor rates, consumables and some raw materials; we expect this to stabilise in 2024."
Rio Tinto shares fell 1.8% to AUD125.80 each in Sydney on Wednesday.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
