Iron ore giant Rio Tinto has held its first-half payout to investors steady after booking only a marginal rise in underlying earnings for the six months to end of June.
In what the miner described as a “consistent, stable financial performance”, it delivered underlying earnings of $US12.1 billion ($18.5b) — up 3 per cent — for a profit of $US5.8b, which was up 14 per cent from a year earlier.
Shareholders will collect $US1.77 a share.
Chief executive Jakob Stausholm said Rio remained profitable as it charted a path for future growth, aiming to deliver around 3 per cent compound annual growth out to 2028 from existing operations and projects.
”We are at an inflection point in our growth, with a step change from our aluminium business and consistent production at our Pilbara iron ore operations,” Mr Stausholm said.
“We have considerable growth in cashflow from the ramp-up of the underground copper mine at Oyu Tolgoi, and more value to come as our Simandou investment and Rincon lithium project proceed at pace.”
Rio pinned a $200 million fall in underlying earnings on a lower iron ore price and aluminium premiums, which offset a 4 per cent rise in copper prices.
Overall, that was decline was pulled back by a weaker Australian dollar against the US greenback.
Likewise, rising costs of 3.5 per cent was offset by easing prices for diesel and natural gas.
“In general, we saw lower prices for our commodities, as supply improved, outpacing modest demand growth,” Rio said.
Source Agencies
