Rio Tinto CEO Says M&A Threshold Is High

The transcript discusses Rio Tinto's financial performance, highlighting its first profit since 2013 due to rising iron ore prices. CEO Jean Sebastien Jacques talks about the company's M&A strategy, emphasizing the need for strategic alignment and value creation. The focus is on copper and diamond assets, with a priority on diamond exploration due to its long-term profitability. The sale of coal assets to Yancoal is also covered, with confidence expressed in the deal's completion despite a small breakup fee.

What was a significant factor in Rio Tinto's first profit since 2013?

• Acquisition of new coal assets

• Expansion in the diamond sector

• Higher iron ore prices

• Increased copper production

What is a major challenge in the diamond industry according to Rio Tinto's CEO?

• Fluctuating diamond prices

• Difficulty in finding new mines

• Regulatory hurdles in diamond trade

• High competition from synthetic diamonds

What is the estimated time frame from discovering a diamond area to generating cash flows?

• 30 years

• 25 years

• 15 years

• 10 years

Which company is involved in the $2.5 billion coal asset deal with Rio Tinto?

• BHP Billiton

• Yancoal

• Anglo American

• Glencore

What is a potential risk mentioned regarding the Yancoal deal?

• Lack of interest from Yancoal

• Fluctuating coal prices

• Yancoal's ability to walk away with a small breakup fee

• High regulatory fees