Rio Tinto PLC, the world’s second-biggest mining company by market value, reported its full-year results for 2021 on Wednesday. Here’s what you need to know:
UNDERLYING PROFIT: Rio Tinto reported underlying earnings of $21.38 billion for the year, up from $12.45 billion in 2020. That was roughly in line with the $21.63 billion market consensus from 13 analyst estimates compiled by Visible Alpha.
TOTAL DIVIDEND: Rio Tinto reported a total dividend of $10.40 a share. That was up from $5.57 a share for the year earlier and beat the Visible Alpha consensus of $10.21 a share.
PAYOUT: With Rio Tinto having benefited from record iron-ore prices during the year, investors were expecting a cash windfall and they got one. Rio Tinto’s highest total dividend ever included a special dividend and represented a 79% payout of underlying earnings, up from 72% in 2020.
LITHIUM: Last month, Serbia’s government canceled the spatial plan for Rio Tinto’s Jadar project and ordered all related permits be revoked. Rio Tinto on Wednesday said it is committed to exploring all options for the project.
INFLATION: Rio Tinto said average movements in energy prices year-on-year reduced annual underlying earnings before interest, taxes, depreciation and amortization by $398 million, “mainly due to higher diesel prices for our trucks, trains and ships and an increase in power costs at Kennecott.” Rising general price inflation across its global operations resulted in a $690 million reduction in underlying Ebitda, the company said.
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