Rio Tinto chief executive J-S Jacques said: “Today we have announced total cash returns to shareholders of US$3 billion. By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders.
“These are strong results: operating cash flow was US$6.3 billion and we met our US$2 billion cash cost reduction target six months early. We are now shifting gear to focus on the untapped value from our productivity programme and continue to strengthen our portfolio to build higher returns for the future. We announced the sale of our thermal coal business in Australia for US$2.7 billion and are making good progress on our compelling growth projects – Oyu Tolgoi, Amrun and Silvergrass.”
First half 2017 highlights
- Generated operating cash flow of US$6.3 billion, EBITDA1 of US$9.0 billion and EBITDA margin of 45%.
- Delivered underlying earnings of US$3.9 billion and net earnings of US$3.3 billion.
- Achieved US$2.1 billion of pre-tax sustainable operating cash cost improvements3 in 2016 and 2017 first half, meeting the target six months ahead of schedule.
- Strengthening the portfolio with all three growth projects on track and a US$2.7 billion disposal announced in 2017 first half.
- Reduced net debt by US$2.0 billion to US$7.6 billion, with gross debt4 lowered by US$2.5 billion.
- Returning cash to shareholders of US$3.0 billion with respect to 2017 first half.
- Declared interim dividend of 110 US cents per share, equivalent to US$2.0 billion.
- An increased share buy-back of US$1.0 billion in Rio Tinto plc shares by the end of 2017.
- In total represents 75% of 2017 first half underlying earnings.
Read the article online at: https://www.globalminingreview.com/mining/03082017/rio-tintos-1h17-results-indicate-a-strong-performance/