Rio Tinto PLC (RIO.US) announced its full-year 2025 results on Thursday. The data revealed that while the company's core iron ore operations were weighed down by weak prices, robust performance from its copper business provided substantial support, leading to annual underlying earnings that were largely flat but slightly below market expectations. According to the financial report, for the year ending December 31, 2025, the company recorded underlying earnings of $10.87 billion. This figure was unchanged from the previous year but fell just short of the market's anticipated $11.03 billion. The company also declared a final dividend of 254 cents per share, equivalent to returning 60% of its underlying earnings to shareholders, an increase from the 225 cents per share distributed in 2024. The report indicated that the iron ore division, Rio Tinto's primary profit contributor, saw its underlying EBITDA decline by 11% year-on-year, impacted by lower prices and flat shipment volumes. Furthermore, the company's iron ore operations in the Pilbara region of Western Australia faced challenges, with annual unit costs rising by approximately $0.5 per tonne compared to 2024, due to inflationary pressures and weather-related disruptions. Rio Tinto forecasts that Pilbara iron ore unit costs will increase further this year to a range of $23.5 to $25.0 per wet metric tonne. In stark contrast to the iron ore business, Rio Tinto's copper operations delivered an outstanding performance. Benefiting from continued production increases at the Oyu Tolgoi mine in Mongolia, copper production rose by 11% in 2025, while the average realized price increased by 17%, driving the segment's underlying EBITDA to double, reaching $7.37 billion. Rio Tinto's aluminum and lithium businesses also achieved a 29% profit growth due to improved prices, although this included approximately $1 billion in total costs related to US aluminum export tariffs. Rio Tinto's results also reflect a strategic shift within the global mining industry. The growing strategic importance of metals like copper is becoming increasingly evident, driven by massive power demands from AI data centers and the accelerating global transition to clean energy. This week, Rio Tinto's competitor BHP Group also reported results where copper earnings surpassed iron ore earnings for the first time, a trend fueling a wave of mergers and acquisitions as major companies seek to secure long-life copper resources. In the earnings release, Rio Tinto's Chief Executive Officer, Simon Trott, stated that the company is focused on streamlining its business processes and has recorded $600 million in one-off restructuring costs, with the associated benefits expected to materialize in 2026. Two weeks prior to the earnings announcement, Rio Tinto had announced the termination of merger talks with another mining giant, Glencore, which involved a potential $240 billion deal. Responding to this, Trott said that constructive discussions were held but ultimately, a compelling valuation case could not be constructed. He emphasized that while acquisitions are part of the company's business development, they are not a necessity. Regarding business related to China, Trott disclosed that Rio Tinto is still in negotiations with the state-backed iron ore purchasing entity, China Minerals Resource Group (CMRG). He expressed the company's belief in market liquidity, stating that prices are determined by fundamentals, and confirmed that Rio Tinto will continue to engage with CMRG and other market participants.