Rio Tinto’s Production and Revenue Slid in 2019, Production for 2020 Lowered
Rio Tinto, owner and operator of the Argyle mine in Australia and the Diavik mine in Canada, has published its production and revenue results for 2019. According to Rough & Polished, Rio Tinto’s production fell 8% year-on-year to 17 million carats in both mines, while its revenue fell 11% year-on-year to $619 million.
The fall in revenue is attributed to a weakening in rough diamonds. For 2019, Rio Tinto recorded a net loss of $21 million, compared with a profit of $118 million in 2018. Earnings before interest, tax, depreciation and amortization (EBITDA) fell 50% to $151 million.
As for 2020 production, the miner expects an output of 12-14 million carats – a lower production forecast that takes into account two things: The closing of the Argyle mine at the end of 2020 as well as “lower ore availability and grades from the underground portion of Diavik”.