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Rio Tinto’s earnings fell final 12 months attributable to weaker iron ore costs and inflationary pressures, the Anglo-Australian mining group mentioned on Wednesday.
The London-listed group, which is a number one iron ore and aluminium producer, mentioned underlying earnings fell 7 per cent to $10.9bn throughout 2024. Nonetheless, internet earnings, which keep in mind impairments and asset disposals, rose 14 per cent in contrast with the earlier 12 months to hit $11.6bn.
The typical value of iron ore bought by Rio in 2024 was 11 per cent decrease than the earlier 12 months, it mentioned, contributing to a drop in earnings from the steelmaking ingredient.
Mining teams reporting their outcomes this week, similar to Glencore and BHP, have been hit by decrease costs for iron ore and coal, in addition to inflationary pressures which can be pushing up working prices.
Though Rio has pointed to “indicators of stabilisation” within the Chinese language property market, which is a significant driver of commodities demand, it’s grappling with decrease iron ore earnings attributable to weaker total demand from the Asian nation.
Ben Davis, analyst at RBC, mentioned Rio’s annual outcomes had been “delightfully simple”, noting that dividends of $6.5bn for 2024 had been nonetheless according to expectations whilst underlying earnings fell barely under common forecasts.
Earnings from Rio’s aluminium and copper companies picked up, reflecting an enlargement of its large Oyu Tolgoi copper mine in Mongolia.
Rio, which owns important aluminium operations in Canada, is very uncovered to the fast-changing tariff insurance policies of US President Donald Trump, in line with analysts. New measures introduced by the administration embrace a 25 per cent tariff on US imports of aluminium and metal.
Chief govt Jakob Stausholm mentioned Rio would possibly redirect a few of its Canadian aluminium away from the US market because of the tariffs. Canada is the largest exporter of aluminium to the US.
“It’s in all probability not going to be important for us, it could be extra onerous for our prospects,” mentioned Stausholm, who’s in Washington this week to fulfill Trump administration officers.
Rio’s giant portfolio of commodities — which span from lithium to copper to iron ore — will assist to minimise the influence of particular tariffs, he added.
Rio has a number of US mines and processing amenities, and is ready for a call from the nation’s Supreme Courtroom that might decide the destiny of its proposed development of the Resolution copper mine in Arizona.
Three members of Rio’s board will step down this 12 months — Sam Laidlaw, Simon Henry and Kaisa Hietala — shrinking its dimension from 14 members, to 11.
Activist shareholder Palliser Capital has campaigned for the corporate to shift its major itemizing from London to Sydney, arguing the transfer will enhance the group’s valuations.
