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- With a prosperous 2020 driving improvements across the board, Rio Tinto (RIO) has set aside a record US$9 billion (roughly A$11.61 billion) for dividends
- Shareholders will receive US$5.57 (around A$7.18) per share, equivalent to 72 per cent of the mining giant’s underlying earnings
- It follows a 6 per cent increase in net cash generated from operating activities to US$15.9 billion (approximately A$20.51 billion) and a 22 per cent increase in net earnings to US$9.8 billion (roughly A$12.6 billion)
- A strong operational performance in the Pilbara enabled the company to take advantage of the rising price environment, which bolstered a 1 per cent climb in iron ore exports and a 2 per cent increase in production
- As of December 31, the company had a strong balance sheet with US$0.7 billion (roughly A$0.9 billion) in net debt
- Rio Tinto was up 3.59 per cent at the close of trading to $127.47 per share
With a prosperous 2020 driving improvements across the board, Rio Tinto (RIO) has set aside a record US$9 billion (roughly A$11.61 billion) for dividends.
Shareholders will receive US$5.57 (around A$7.18) per share, equivalent to 72 per cent of the mining giant’s underlying earnings, which increased 20 per cent from 2019 to US$12.4 billion (roughly A$16 billion).
Despite the impact of COVID-19, Rio Tinto posted a 6 per cent increase in net cash generated from operating activities to US$15.9 billion (about A$20.51 billion) and a 22 per cent increase in net earnings to US$9.8 billion (roughly A$12.6 billion).
The company said that a strong performance in its Pilbara operations allowed it to take advantage of the rising prices, the effect of which was bolstered by strong demand from China, a 1 per cent increase in iron ore shipments and a 2 per cent climb in production.
“Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society,” said CEO Jakob Stausholm.
However, Stausholm added that Rio Tinto’s “successful response to the COVID-19 pandemic and strong safety performance were overshadowed by the tragic events at the Juukan Gorge, which should never have happened.”
The company said it is working to restore trust with the Puutu Kunti Kurrama and Pinikura (PKKP) people following the Juukan saga, and has almost completed implementing recommendations from a Board review of its cultural heritage management.
As of December 31, the company had a strong balance sheet with US$0.7 billion (roughly A$0.9 billion) in net debt, a decrease of US$3 billion (roughly A$3.87 billion) which Rio Tinto said reflects the strength of its free cash flow.
Rio Tinto was up 3.59 per cent at the close of trading to $127.47 per share.
