It declared a record dividend of $1.55 per share, up from $1.51 last year and bang on expectations but refrained from paying out a special dividend as some analysts had hoped, suggesting a more cautious view for the remainder of the year.
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. Tiwai Point smelter on New Zealand's South Island will be shuttered by next August 2021, the firm said earlier this month.The aluminum industry "continues to face challenging conditions in global markets and policy uncertainty, exacerbated by the impact of Covid-19", and Rio is working to ensure the sustainability of smelters in Australia and Iceland, the company said.Rio's board has approved funding for a feasibility study for Jadar lithium project in Serbia, the company said.
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. Learn more about capital markets. Rio attributed the decline to exchange-rate losses, higher impairment charges, and costs associated with the closure of a few of its assets. Rio is the world's largest iron ore miner.
Profits before tax of US$5.3bn were up nearly 2% while underlying profits (EBITDA) fell 6% to US$9.6bn.
Rio Tinto shares were up 1.4% at 4,829.50 pence each in London on Tuesday morning.
Elsewhere, RIO's management guided for the following 2020 production outcomes, including: Pilbara iron ore shipments (100% basis) of between 324-334 million tonnes; mined copper production of between 475-520 kilotonnes; refined copper production of between 165-205 kilotonnes; alumina production of between 7.8-8.2 million tonnes; and aluminium production of between 3.1-3.3 million tonnes.
A separate Simandou venture about 70 kilometers (44 miles) to the north, could be up and running within five years, producing about 60 million tons a year in an initial stage, according to Societe Miniere de Boke, part of a consortium with Singapore's Winning Shipping Ltd. and Guinea's government.
RBC analyst Tyler Broda went further, highlighting the company's very low $US14.50 per tonne iron ore production costs, at a time when the spot price in China is holding above $US100 per tonne and Rio was paid an average of $US85.40 a tonne for the ore it sold during the half.