Rio Tinto PLC 

Rio Tinto PLC (LSE: RIO) is an FTSE 100 index listed metal and mining company that produces iron ore, aluminium, copper, diamonds, gold, and other minerals. The Company has its footprints in over 36 countries around the globe. RIO has an integrated network of 16 iron ore mines in the Pilbara, Western Australia.

FY24 Results (Released on 19 February 2025)

1. Financial Performance – Underlying EBITDA declined 2% YoY to $23.3 billion despite an 11% drop in iron ore prices, while net cash generated from operating activities increased 3% YoY to $15.6 billion due to strong portfolio management, and profit after tax rose 15% YoY to $11.6 billion.

2. Shareholder Returns – Maintained a 60% payout ratio for the ninth consecutive year, distributing a full-year ordinary dividend of $6.5 billion, while underlying return on capital employed (ROCE) was 18%, down from 20% in 2023.

3. Increased Capital Expenditure and Rising Debt – Capital expenditure surged 36% YoY to $9.6 billion, focusing on iron ore, copper, lithium, and decarbonization projects, while net debt increased 30% YoY to $5.5 billion, reflecting higher investments and strategic acquisitions.

4. Operational Growth Across Key Segments – Iron ore shipments totaled 328.6 Mt, slightly lower YoY due to weather-related disruptions, copper production rose 13% YoY to 697 kt due to Oyu Tolgoi’s underground ramp-up, and a $2.5 billion investment in the Rincon lithium project in Argentina targets 60,000 tonnes of battery-grade lithium carbonate annually.

5. Commitment to Decarbonization and ESG – Reduced Scope 1 and 2 emissions by 3.2Mt CO2e, primarily through renewable energy projects, and invested $143 million in BioIron™ technology to cut CO2 emissions in steelmaking by up to 95%, supporting long-term sustainability goals.

6. Strategic Growth Initiatives – The acquisition of Arcadium Lithium plc for $6.7 billion strengthens Rio Tinto’s energy transition position, the Simandou iron ore project remains on track for first production in 2025, and capital investment guidance for 2025 is set at $11 billion, with an expected 30% effective tax rate.

Share Price Chart

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Rio Tinto PLC (LSE: RIO) was trading at the current market price of GBX 5,103.00 (as of 20 February 2025, 10:30 AM GMT) 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 20 February 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.