Ebene News – UA – Rio Tinto surprises with record payment as iron ore exports explode

Mining giant Rio Tinto delivered its biggest dividend ever to shareholders after a dramatic rise in iron ore prices last year drove its full force profit for the year up sharply

The Anglo-Australian miner surprised investors on Wednesday by announcing a 20% better-than-expected increase in underlying profit for the year ending Dec.31 and saying he would pay total dividends of $ 5 US57 per share for the period, the most in its history

Most analysts expected Rio to announce a total dividend of US $ 480 Underlying miner’s profit of US $ 12 billion ($ 16 billion) also exceeded expectations of $ 1174 billion

This comes as the price of iron ore, the iron and steel ingredient, Australia’s most lucrative export, has doubled in the past year, boosting the fortunes of major miners including BHP, Rio Tinto and Fortescue Massive post-COVID-19 economic stimulus programs have fueled strong demand for steel in China at the same time as disruptions hit rival iron ore suppliers in Brazil

The financial results were the first to be revealed by new CEO Jakob Stausholm after the replacement of former CEO Jean-Sébastien Jacques, who resigned after being outraged by the miner’s decision to blow up shelters under Culturally important Aboriginal rock in Pilbara, Western Australia

“It has been a year of extremes,” said M Stausholm “Our successful response to the COVID-19 pandemic and our strong security performance has been overshadowed by the tragic events at Juukan Gorge, which should never have happened”

Although legally sanctioned, the explosion went against the wishes of the traditional owners, the people of Puutu Kunti Kurrama and Pinikura (PKKP), who were devastated and said they were not in the running of plans from Rio to destroy the site until it is too late for explosive charges to be removed Rio has apologized and conceded multiple failures in its engagement with the PKKP in the run-up to the May explosion of last year

M Stausholm said rebuilding trust with the traditional owners was one of his top priorities and recently traveled to Pilbara to meet with the PKKP and “express my deep regrets for the damage we have caused”

“I witnessed the pain this inflicted”, he said “It was a confronting experience and had a profound impact on me”

Rio Tinto, dividend, iron ore

Ebene News – UA – Rio Tinto surprises with record payout as iron ore exports explode

Source: https://www.smh.com.au/business/companies/rio-tinto-surprises-with-record-payout-as-iron-ore-exports-boom-20210217-p573a5.html