The company shipped 87.7 million tonnes of iron ore (on a 100% basis) in the December quarter, up from 80.9Mt in the September quarter, and 1% higher than the same period of 2015.
Rio said the strong performance was attributable to the ramp-up of new mines, namely the Nammuldi incremental tonnes project, productivity improvements and minimal weather disruption.
The result helped Rio ship 327.6Mt for the year, in line with revised guidance of 325-330Mt.
The average realised price achieved for 2016 was $US49.30 per wet metric tonne free-on-board or $53.60 per dry metric tonne.
Rio has set 2017 guidance at 330-340Mt with first ore from Silvergrass due in the second half of the year.
The company said it would continue to progress its AutoHaul autonomous trains project through the year, though drivers would remain on board until all safety and reliability systems could be demonstrated.
Meanwhile, copper production of 523,000 tonnes was 4% higher than 2015, but missed guidance.
Rio had already revised down copper guidance to 535,000-565,000t from 545,000-595,000t in October, but attributed the miss to lower production at Kennecott and no contribution from the troubled Grasberg operation.
Bauxite production was a record 47.7Mt, beating guidance of 47Mt, while aluminium output was 10% higher due to the ramp-up of Kitimat.
Hard coking coal production slightly beat target, while thermal and semi-soft coal production was in line.
Rio CEO J-S Jacques said the company had delivered a strong performance in 2016, underpinned by a drive for efficiency improvements and maximised cashflow.
“Our disciplined approach remains in place in 2017, with the continued focus on productivity, cost reduction and commercial excellence,” he said.
“This will ensure that we continue to deliver value for our shareholders.”
Morgans analyst Adrian Prendergast said Rio had delivered a good result.
“A better performance than we had hoped for, while mostly outperforming in areas we suspected,” he said.
“While positive, we do not expect today's result to be a significant catalyst for the stock.”
Rio shares gained 0.1% to $A63.32 this morning.
