Jakob Stausholm Named New CEO of Mining Major Rio Tinto

Rio Tinto has named Jakob Stausholm as its new CEO, replacing Chris Salisbury. Stausholm is currently Chief Strategy & Transformation Officer at Maersk Line A and has held various roles at Shell and ISS. He will take over as CEO of Rio Tinto on July 1, 2024.

Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) has appointed Jakob Stausholm as its new CEO, effective July 1, 2024, following the unexpected announcement of Chris Salisbury's resignation. Stausholm, currently the Chief Strategy & Transformation Officer at Maersk Line A, brings extensive experience from Shell and ISS. This appointment comes amidst significant challenges and opportunities for the mining giant, which trades at a 40% discount to its sum-of-the-parts net asset value (NAV) [1].

The new CEO faces a multibillion-dollar challenge to close this valuation gap. Key strategic priorities include addressing regulatory barriers to share repurchases, improving operational efficiency, and balancing growth ambitions with financial flexibility [1]. Operational improvements in Pilbara iron ore operations could unlock an additional US$1 billion in annual underlying earnings (EBITDA) [1]. Additionally, Rio Tinto plans to invest more than any other mining peer over the next decade, increasing reinvestment rates to nearly 60% of operating cash flows [1].

Geopolitical constraints, such as Chinalco’s ownership cap, remain a significant barrier to share buybacks, which could generate an internal rate of return of 16% [1]. Rio Tinto's decarbonisation ambitions, while ambitious, may need to be reassessed to align with commercial realities [1]. The company is also exploring strategic mergers, potentially with Glencore, to address its post-2028 copper growth gap [1].

Furthermore, Rio Tinto is ramping up its U.S. copper investments in response to tariff policies, aiming to further increase its presence in the American market [2]. The company's Resolution Copper project has made progress following a favorable Supreme Court ruling, and its Kennecott Copper Mine in Utah further solidifies its position in the U.S. copper industry [2].

Goldman Sachs analyst Matt Greene maintains a Buy rating on Rio Tinto with a price target of p6,500.00, reflecting a 16.60% upside [4]. Analyst consensus is Moderate Buy, with a price target consensus of p5,163.54 [4]. Corporate insider sentiment is positive, with an increase in insider buying activity [4].

The new CEO's performance will be critical in determining whether Rio Tinto can close its valuation discount and unlock shareholder value over the coming years. The company's strategic priorities and operational improvements will be key factors in achieving this goal.

References:
[1] https://www.proactiveinvestors.com/companies/news/1074554/wood-mackenzie-names-top-priorities-for-rio-tinto-s-new-ceo-to-unlock-40-valuation-discount-1074554.html
[2] https://nai500.com/blog/2025/07/rio-tinto-plans-to-ramp-up-u-s-copper-investments-in-response-to-tariff-policies/
[3] https://money.usnews.com/investing/news/articles/2025-07-15/rio-tinto-names-simon-trott-as-new-ceo
[4] https://www.theglobeandmail.com/investing/markets/stocks/RIO/pressreleases/33346377/rio-tinto-rio-new-buy-recommendation-for-this-basic-materials-giant/