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Rio Tinto earnings $10.2 billion

Staff writer ▼ | February 17, 2014
Rio Tinto announces a 10 percent increase in underlying earnings to $10.2 billion and 15 percent increase in full year dividend.
Rio Tinto
Rio TintoRio Tinto announces a 10 percent increase in underlying earnings to $10.2 billion and 15 percent increase in full year dividend.


Operating cash cost improvements of $2.3 billion exceeded the 2013 target of $2.0 billion. Exploration and evaluation savings delivered $1 billion, against the 2013 target of $750 million.

Production records set for iron ore, bauxite and thermal coal and a strong recovery in copper volumes. Iron ore volumes were bolstered by the completion in August of the Pilbara phase one infrastructure expansion to 290 Mt/a, with ramp-up on track to reach nameplate capacity before the end of the first half of 2014.

Net earnings of $3.7 billion reflect non-cash exchange losses of $2.9 billion and impairments of $3.4 billion, notably the impairment of a previous non-cash accounting uplift on first consolidation of Oyu Tolgoi, a project overrun at Kitimat and the previously announced curtailment of the Gove alumina refinery.

Cash flows from operations of $20.1 billion were up 22 percent and capital expenditure was down 26 percent to $12.9 billion. Net debt reduced to $18.1 billion at 31 December 2013, $4.0 billion down on the half year and $1.1 billion down on the previous year end. 15 percent increase in full year dividend to 192 cents per share reflects the sustainable growth of the business.


 

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