• 2 hours The U.S. Has The Tech To Go Green, But Will It Use It?
  • 8 hours Massive Losses Force Russian Commodities Giant To Slash Dividends
  • 1 day Markets Up On Stimulus Hope
  • 1 day UK To Invest In Europe's First Geothermal Lithium Recovery Plant
  • 2 days TikTok Takes Center Stage In US-China Tech War
  • 2 days Are Semiconductor Stocks Overvalued?
  • 3 days Jobs Report Doesn’t Say Much Amid COVID Uncertainty
  • 3 days Crypto FOMO Heats Up As Bitcoin Climbs Above $11,000
  • 4 days Aluminum Is Bouncing Back In China
  • 4 days The Deep-Sea Mining Debate
  • 5 days Markets Trending Down Despite Tech Blow-Out
  • 5 days Big Oil Battered On Dismal Earnings
  • 6 days Russian Billionaire Bails On Mid-Sized Gold Miner
  • 6 days Gold Stocks Gear Up For A Big Autumn
  • 7 days America Is Looking To Bring Nuclear Power To Space
  • 7 days What Is Behind Gold's Astonishing Rally?
  • 8 days Stocks Tumble On Brutal Economic Report
  • 8 days Kodak Soars By 400% After Trump Bump
  • 9 days U.S. Coal Production Falls To 42 Year Lows
  • 9 days Indonesia Moves To Bolster Mining Sector
Are Semiconductor Stocks Overvalued?

Are Semiconductor Stocks Overvalued?

Semiconductor stocks have experienced significant multiple…

Big Oil Battered On Dismal Earnings

Big Oil Battered On Dismal Earnings

Oil majors are posting very…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Investing
  3. Stocks

This Miner Is About To Give Away A $4 Billion "Special Dividend"

Miner Dividend

Rio Tinto’s (ASX, LON:RIO) investors will be celebrating Christmas in February as the miner is giving them a $4 billion special dividend, or $2.43 cent a share, after posting its highest annual underlying earnings since 2014.

The world’s second largest miner reported Wednesday a 2% increase in underlying profit to $8.8 billion, beating market forecasts of $8.5B on the back of rising revenue of $40.5B. The special dividend also came after a string of asset divestments, including Rio’s entire interest in Indonesia’s Grasberg mine for $3.9B.

Shareholders will receive a special dividend worth $4 billion, or $2.43 cent a share, as Rio Tinto recorded its highest annual underlying earnings in the last five years.

Since Jean-Sébastien Jacques took the helm in July 2016, Rio has focused on cutting costs, generating cash and returning as much of it as possible to investors through dividends and share buybacks.

Last year, the company waved all its coal assets goodbye and is now the only major miner with a fossil-fuel-free portfolio. In total, Rio has sold $12B of unwanted assets since 2015.

Not all was rosy in the company’s 2018 results. The firm flagged a further delay to first from the $5.3 billion underground expansion of its Oyu Tolgoi copper-gold-silver mine in Mongolia. That has now been scheduled for third quarter of 2021.

Jacques also acknowledged the clouds currently casting shadows over the global economy, including the threat of a trade war between the U.S. and China, the main market for Rio's iron ore.

"I believe common sense will prevail at some stage,"  Jacques said. "There is uncertainty around, but we are very well positioned. The only thing I can do is to make sure I have a business that is even stronger."

Rio Tinto investors partying like is 2014

(Click to enlarge)

Separately, Rio Tinto released a major report into its plans to transition into a low carbon future, and Jacques made a point of underlining its Environmental, Social and Governance (ESG) credentials.

The company also finally confirmed a promising copper find at its Winu project in Western Australia.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment