Rio Tinto profit falls but dividend increases amid 'exceptional performance'

Marco Green
July 31, 2020

Net debt increased to US$4.8bn from US$3.7bn at the end of December.

Investors would receive an interim dividend of $1.55 a share, the company said.

RIO) said that its net profit in the first half (H1) of the current fiscal year came in 20% lower but still raised its dividend payout (mid-year) on Wednesday.

Navigating those shocks is a challenging task for global mining companies, with the potential to create winners and losers depending on where operations are based.

The shelter is now operating with finances in place for 25 individuals, but the additional funding will allow for the housing of five more residents, CBC News reports.

That rebound helped it report half-year underlying earnings of $4.75 billion, beating a consensus of $4.36 billion from 16 analysts compiled by Vuma. Management said the decline in statutory profit reflected higher impairment charges, exchange-rate losses and extra closure costs for some assets.

In terms of earnings, the company recorded £3.66 billion in the first half that topped the analysts' estimates but were about 4% lower on an annualised basis.

Rio Tinto's iron-ore exports rose by 1% in the three months through June and it continues to forecast annual shipments of between 324 million and 334 million tons. Even with those disputes now settled, Rio must decide whether it's prepared to spend the large amounts needed to extract and transport the super-rich ore from its part of the project.

International Olympic Committee iron ore pellets & concentrate output climbed 9% to 2.8 million tonnes during the quarter.

The funding, Rio Tinto says, will provide accommodation and food for individuals who are at high medical risk of serious illness or death if they contract novel coronavirus. Demand in the Asian nation has remained strong, Rio said in the statement on Wednesday.The producer is working with partners to "reduce capital intensity, lower operating costs and shorten the timetable for development" of the high-grade Simandou iron ore project in Guinea, Rio said.

RIO Tinto CEO, Jean-Sebastien Jacques, reiterated his group's interest in seeing how it could participate in the development of Simandou, an iron ore deposit which has been the subject of legal action for years, preventing its development. At the time of writing, the Anglo-Australian multinational mining corporation has a market cap of £60.22 billion and a price to earnings ratio of 12.80.

Other reports by Click Lancashire

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