Rio Tinto’s world-class assets performing well
Key to Rio Tinto’s approach remains to have a portfolio of world-class assets, a strong balance sheet, a disciplined capital allocation, superior market insights and partnerships and robust performance.
All of its assets are running well and demand for its key products such as iron ore and bauxite remains strong. Rio Tinto’s Q1 production report released in April, shows its iron ore assets are performing well in a strong pricing environment.
Rio Tinto is on track to meet its 2020 iron ore guidance.
The company also paid the final dividend of $3.7 billion in April and continue to invest in its business, despite flagging lower capex for 2021, due to the impacts of the pandemic – a combination of supply chain issues, people availability and potentially, permitting delays.
Over the last four years Rio Tinto has:
- Delivered an industry leading margin with an 18% average ROCE, including a 24% ROCE in 2019;
- Invested $18 billion in capex to grow and sustain our business;
- Returned $36 billion to shareholders in the form of dividends and buy backs; and
- Contributed to society, paying $67 billion in supplier payments and $23 billion in taxes and royalties.
So, Rio Tinto has a strong track record and over the years has shown it is both, robust and resilient. The key will be maintaining this in a challenging operating environment, in the days, months and years ahead. So, so far so good but Rio Tinto says it is not complacent.