Final Results - Rio Zim Ltd

Rio Tinto PLC
20 February 2004


Rio Tinto Zimbabwe (Rio Tinto 56 per cent interest) issued the following
statement in Harare.

Rio Tinto Zimbabwe Limited - Statement to shareholders


The Group's audited results for the year ended 31 December 2003 were as follows:

Profit and loss statement                            
                                                                Historical
                                                                $ millions

                                                                     Dec                Dec
                                                                    2003               2002

Group turnover                                                    32,942              4,936
Cost of sales                                                   (24,471)            (4,159)

Operating profit before depreciation                               8,471                777
Depreciation                                                       (134)               (77)
Net monetary (loss) gain

Profit before interest                                             8,337                700
Net interest receivable                                                9                 41

Profit before taxation                                             8,346                741
Taxation                                                         (2,472)              (159)

Profit after taxation                                              5,874                582

Dividends payable (proposed)                                           0                  0
Earning per share (dollars)                                          262                  3
Dividends per share (dollars)                                          3                  0

Interim (dollars)                                                      3
Final  (dollars)                                                       0                  0

Number of shares in issue (millions)                                  22                 22


Abridged balance sheet

Shareholder's funds                                               7,204               1,794
Deferred tax                                                      1,301                 212
Employee welfare provision                                          624                 106
Mine closure provision                                              980                 178
Medium and long term debt                                             6                 948

Total funds employed                                             10,115               3,238

Represented by:
Fixed assets                                                      1,367               3,410
Investments                                                         515                  84

Current assets                                                   21,603               1,922
Current liabilities                                              13,370               2,178

Net current assets                                                8,233               (256)

Total net assets employed                                        10,115               3,238


IAS 29 accounts are in the process of preparation. The directors have approved
the issue of the historical accounts to maintain the normal timing of the
provision of information to shareholders.

Results

Gold production for the year was 814 kg compared to 1,182 kg in the same period
last year. The sale of Patchway Mine in August has a negative impact on the
comparison. The other production related factor was the lower available grade at
Renco Mine.



The refinery operated with a steady matte supply in the second half and 3,639
tonnes of nickel were produced bringing production for the year to 6,198 tonnes
(2002, 6,412 tonnes). Whilst a satisfactory production level was attained
intermittent power supply problems affected efficiencies. On 26 December 2003
the refinery was hit by a localized windstorm. This caused structural damage and
felled power lines in the area. The plant was off line for 2 days although the
impact on operations extended for a longer period.



The vagaries of the foreign exchange regime increasingly placed Renco in a
distressed situation during the year as it failed to generate sufficient
Zimbabwe dollars to cover its local commitments. In December the mine applied
for and was granted permission to be paid at the $60,000 per gram price paid to
smaller producers. This significantly improved the situation.



Following BCL's force majeure in the first half of the year, the refinery
entered into an agreement with its bankers to utilize a short-term credit
facility. This allowed maximization of the operation's earnings and assisted
through a period of low revenue.



The company recorded a historical profit after tax of $5,874 million compared
with $582 million in 2002.

Exploration

The exploration joint venture had been largely wound up by year end with only
final tidying up in progress. RioZim's expenditure for the year amounted to $331
million.



Murowa

Work at the resettlement site effectively concluded in December with the
handover of the agreed communal infrastructure including a primary school and
clinic to the Masvingo Rural District Council.



The project team moved on to planning and preparatory work for the Accelerated
Production Project and by year end work had commenced on a weir on the Runde
River and fencing of the mine site.

Outlook

The short term outlook for the company is not good as the continued use of an
exchange rate of 824 for part of its earnings, has left the company short of
Zimbabwe dollars to meet local and some foreign commitments. In addition the
enforced payment to ZESA of foreign currency for electricity supplies has
created a shortage of US dollars available to meet the company's commitments
from its 50 per cent retention. Despite some positive changes to the national
economic situation, these two items remain as constraints which are felt by all
exporters and must be addressed by the authorities before the country's foreign
currency earnings are severely reduced.



In more reasonable economic circumstances with current commodity prices the
company should be in a strong situation.



The formalization of the shareholders agreement in respect of Murowa Diamonds
(Private) Limited and the approval of a loan package from Rio Tinto plc
amounting to US$13.5 million (which is still subject to Reserve Bank approval)
allowed the Board to finally approve the development of the Accelerated Murowa
Production Project. Production is expected to commence in the third quarter.

Dividend

Despite the reasonable outturn for 2003 the Board deferred a decision on any
final dividend payment until the current fiscal issues impinging on the company
are resolved.





For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations

Lisa Cullimore                                       Ian Head
Office: [phone]                         Office: [phone]
Mobile: [phone]                         Mobile: [phone]

Investor Relations                                   Investor Relations

Peter Cunningham                                     Dave Skinner
Office: [phone]                         Office: [phone]
Mobile: [phone]                         Mobile: [phone]

Richard Brimelow                                     Susie Creswell
Office: [phone]                         Office: [phone]
Mobile: [phone]                         Mobile: [phone]

Website: www.riotinto.com



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