Rio Tinto Half-Year Profit Soars On Metal Prices, Cost Cuts

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessRio Tinto Half-Year Profit Soars On Metal Prices, Cost CutsRio Tinto Group will pay its highest interim dividend in four years as first-half profit soared on strong commodity prices and a restructuring drive that boosted earnings.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Autonomous haul trucks move along a haul road at Rio Tinto Group's Gudai-Darri iron ore mine in the Pilbara region of Western Australia, on Thursday, Oct. 19, 2023. Rio Tinto Group, BHP Group Ltd. and Fortescue Metals Group Ltd. produce almost two-thirds of the world's seaborne iron ore from Western Australia, and margins remain enviable. For the first time in a generation, though, the specter of disruption looms over mining's most reliable profit generator. Photo by Bloomberg /Photographer: Bloomberg/Bloomber(Bloomberg) — Rio Tinto Group will pay its highest interim dividend in four years as first-half profit soared on strong commodity prices and a restructuring drive that boosted earnings.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe world’s second-biggest miner posted a 43% increase in underlying profit to $6.85 billion, lifting its interim dividend to $2.11 per share, the highest since 2022. The company’s Sydney-listed shares rose more than 5% in early trading.The higher earnings were driven by a $3.6 billion benefit from stronger commodity prices, the company said in filings. Prices for copper, a key growth business for the company, have climbed about 10% this year, driven by supply disruptions and demand boost from data centers.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOver the reporting period Rio found $870 million in cost savings through productivity efforts. It plans to find further savings, bringing the total to $1.8 billion by year-end. “There is substantially more to come,” Chief Executive Officer Simon Trott said of the savings, adding the company was in a “relentless pursuit” of operational efficiencies. “You’re really seeing productivity become a structural driver of improvement in these numbers,” he added. Trott has prioritized slimming down Rio and making it a more simplified business since he was appointed in August last year. Part of the strategy involves selling non-core assets to raise $5 billion in 2026, including the company’s titanium and borates divisions. While little detail was provided on the timeline for the disposals, management was “comfortable” with how they were progressing, Trott said. The results also came as strong commodity prices outweighed the impact of China’s economic slowdown, US tariff campaigns and conflict in the Middle East.Prices of iron ore — Rio’s biggest earner —- remained steady over the six-month period, despite plateauing demand from dominant buyer China. The company is yet to complete negotiations with state-backed buyer China Mineral Resources Group Co. over forward supply agreements. “The iron ore market continues to evolve,” Trott said. The company is also working with other iron ore producers to “liberate value” in the Pilbara region of Western Australia “in ways that we probably haven’t done before.” Rio continues to push its core growth strategy in copper, the metal key for the energy transition, with a ramp-up at its Oyu Tolgoi mine in Mongolia, its only meaningful near-term copper growth project. Over the longer term, it hopes to develop the Resolution mine in Arizona, which is still years from production. The company explored buying Glencore Plc. as a transformational acquisition to bolster its copper exposure before abandoning the talks in February over valuation differences.(Updates with details throughout)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.