Rio Tinto Profit Falls to Lowest Since 2020
Rio Tinto Profit Falls to Lowest Since 2020

Rio Tinto Profit Falls to Lowest Since 2020

News summary

Rio Tinto reported a 22% decline in first-half profit to $4.5 billion, its weakest half-year performance since 2020, attributed to a 13% drop in iron ore prices, higher production costs in Australia, and severe weather in Western Australia. The company's underlying profit of $4.81 billion fell short of analyst expectations, prompting a reduction of the interim dividend to $1.48 per share, the lowest since 2018. Operational improvements were noted in the copper and aluminium divisions, with copper output at the Oyu Tolgoi mine increasing significantly. Free cash flow dropped 31%, largely due to increased capital expenditure, including the $6.7 billion acquisition of Arcadium Lithium, which more than doubled Rio Tinto's net debt. Outgoing CEO Jakob Stausholm emphasized the growing impact of diversified assets, as Simon Trott is set to assume the CEO role on August 25. Following the earnings release, Rio Tinto shares closed at £45.88, about 16% below their 52-week high.

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