- ASX 200-listed Rio Tinto released its 2019 first half results today, touting one of its best performances in recent years
- Bouncing back from a US$800 million blow to its flagship Mongolian copper mine, a boom in ore prices has given the company something to grin about
- With net cash from operating activities up 22 per cent from last year, the company will be paying a total AU$5.01 billion to its shareholders
- Ordinary dividends will be paid at US$1.51 per share and special dividends at US61 cents per share
Mining giant Rio Tinto released its half year results today, with business so great it’s shelling out AU$5.01 billion to shareholders in dividends.
The company says the recent boom in iron ore prices gave way for ordinary dividends of US$1.51 per share and special dividends of US61 cents per share.
This interim for Rio Tinto, net cash from operating activities is up 22 per cent from last year’s hitting a US$6.389 billion performance.
This accompanies the company’s total earnings before taxation in the first half hitting $10.3 billion.
Rio Tinto CEO Jean-Sébastien Jacques says the company’s operations in Pilbara drove the financial performance for one of its best round-ups in recent years.
“We are taking actions to protect the Pilbara Blend and optimise performance across our iron ore system, following the operational challenges which emerged in the first half,” Jean-Sébastien said,
The challenges Jean-Sébastien is referring to is the company’s US$800 million-costing stability issues at flagship Mongolian copper mine, Oyu Tolgoi.
Thankfully for Rio Tinto, the boom in ore pricing has boosted its ability to counter these problems as evident in today’s round up.
“Our world-class portfolio and strong balance sheet serve us well in all market conditions,” Jean-Sébastien added.
“This, together with our disciplined capital allocation, underpins our ability to continue to invest in our business and deliver superior returns to shareholders in the short, medium and long term,”
Expenditure for the company stayed almost the same, only increasing one per cent from 2018 to $2.391 billion.
Despite the positive media release, the company’s share prices dipped 1.10 per cent in the ASX today. Shares opened at $97.34 before trawling down to $97.81.
Rio Tinto’s market cap is currently valued at $36.71 billion.