Rio Tinto increased its profits in 2024 despite weakened iron ore prices, showcasing the company’s strength as a global powerhouse.
Chief executive Jakob Stausholm said Rio is building on its recent momentum with another set of strong operational and financial results.
“With underlying EBITDA (earnings before interest, taxes, depreciation and amortisation) of $23.3 billion and operating cash flow of $15.6 billion, we are increasing our investments to underpin our plans for a decade of profitable growth,” he said.
“We are reporting underlying earnings of $10.9 billion after taxes and government royalties of $8.2 billion, and a healthy return on capital employed of 18 per cent.”
Shareholders can expect a healthy payout of dividends thanks to the company’s strong performance.
“Our strong balance sheet enables us to pay a $6.5 billion ordinary dividend, maintaining our practice of a 60 per cent payout, the ninth consecutive year at the top end of our payout range, as we continue to invest with discipline,” Stausholm said.
“We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March.
“We will remain disciplined in the short, medium and long term, while paying attractive returns to shareholders.”
Rio has also welcomed the decision from Mitsui & Co. to acquire a 40 per cent interest in the Rhodes Ridge joint venture (RRJV) from Rio Tinto’s partners.
The RRJV iron ore mine in Western Australia has an initial capacity is 40 million tonnes per annum (Mtpa) of iron ore production, with potential to scale to 100Mtpa.
Rio Tinto’s 50 per cent interest in the RRJV and the terms of the joint venture arrangements are unchanged.
A pre-feasibility study to progress the development of Rhodes Ridge is expected to be completed this year, with a feasibility study to follow. The development would use Rio Tinto’s rail, port and power infrastructure.
First ore from Rhodes Ridge is expected by 2030.
