Rio Tinto has reported net profit attributable to its owners of $5.8bn for the first half of 2024, up from $5.1bn in the corresponding period the previous year.
This growth in profit was largely the result of higher production and prices of copper, which outweighed the hit from reduced iron ore prices.
The mining giant generated $26.8bn in consolidated sales revenue during the first six months of this year, a 1% rise from $26.7bn a year ago.
Its profit after tax for the first half of 2024 stood at $5.9bn, which included a $100m profit attributable to non-controlling interests.
This marks an improvement from the first half of 2023, where the profit after tax was $4.9bn with a $200m loss attributable to non-controlling interests.
Underlying EBITDA for the six months ending 30 June 2024 reached $12.93bn, a 3% increase from $11.72bn in the same period a year ago.
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By GlobalData
Free cash flow for H1 2024 plunged 25% to $2.84bn, down from $3.76bn in the prior year.
As of 30 June 2024, Rio Tinto’s net debt was reported at $5.07bn.
The company generated $7.1bn in net cash from operating activities in H1 2024, a 1% increase from a year earlier.
This was primarily driven by higher underlying EBITDA and a smaller seasonal increase in working capital, although this was partially offset by higher taxes paid.
Rio Tinto CEO Jakob Stausholm said: “Our overall copper equivalent production is on track to grow by around 2% this year, and our ambition is to deliver around 3% of compound annual growth from 2024 to 2028 from existing operations and projects.
“Our strengthened operations along with stable pricing for our commodities have allowed us to again deliver robust financial results, with underlying EBITDA of $12.1bn. We recorded free cash flow of $2.8bn, as we invested in growth, and underlying earnings of $5.8bn, after taxes and government royalties of $4.4bn. Return on capital employed was a healthy 19%.
“Our strong balance sheet enables us to continue to maintain our practice of a 50% interim payout with a $2.9bn ordinary dividend, as we continue to invest with discipline to shape Rio Tinto into an even stronger company.”
Earlier this month, Rio Tinto satisfied all conditions required for the development of the Simandou iron ore project in Guinea.
