19th Feb 2025 19:26
(Alliance News) - Rio Tinto PLC on Wednesday reported a healthy rise in annual profit, and looked to 2025 with optimism as it looks to close the Arcadium Lithium acquisition.
In 2024, the Anglo-Australian mining corporation said pretax profit rose 13% to USD15.62 billion from USD13.79 billion in 2023. Diluted earnings per share were 707.2 US cents, compared to 616.5 cents in 2023.
Operating profit was USD15.65 billion, up 5.6% from USD14.82 billion. Of this consolidated sales revenue declined to USD53.66 billion from USD54.04 billion and net operating costs rose to USD37.75 billion from USD37.05 billion.
The declines were offset by a USD1.21 billion in gains on consolidation and disposal of interests in business, up from none reported in 2023.
Underlying earnings before interest, tax, depreciation and amortisation eased 2.4% to USD23.31 billion from USD23.89 billion in 2023.
Chief Executive Jakob Stausholm commented: "We continue to build on our momentum with another set of strong operational and financial results. With underlying Ebitda of USD23.3 billion and operating cash flow of USD15.6 billion, we are increasing our investments to underpin our plans for a decade of profitable growth. We are reporting underlying earnings of USD10.9 billion, after taxes and government royalties of USD8.2 billion, and a healthy return on capital employed of 18%.
"Our strong balance sheet enables us to pay a USD6.5 billion ordinary dividend, maintaining our practice of a 60% payout, the ninth consecutive year at the top end of our payout range, as we continue to invest with discipline.
"We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March. We will remain disciplined in the short, medium and long term, while paying attractive returns to shareholders."
In January, Rio Tinto reported its production and sales volumes were little changed in 2024.
Pilbara operations produced 328.0 million tonnes, with shipments of 328.6 million tonnes, each 1% lower than 2023.
Bauxite production was 58.7 million tonnes in 2024, 7% higher than 2023, exceeding guidance, with the improvement driven by the implementation of the Safe Production System, delivering record annual production at Amrun and Gove.
Aluminium production of 3.3 million tonnes was 1% higher than 2023, following the ramp-up of Kitimat and completion of cell recovery efforts at Boyne in the prior year, together with increased ownership of Boyne and New Zealand Aluminium Smelter.
Mined copper production of 697,000 tonnes in 2024 was 13% higher than 2023, reflecting the ramp up of Oyu Tolgoi underground and increased production from Escondida due to higher grades fed to the concentrator.
Titanium dioxide slag production of 990,000 tonnes in 2024 was 11% lower than 2023 due to reduced market demand.
In 2025, Rio Tinto expects share of capital investment to be about USD11 billion, including about USD3 billion in growth, USD4 billion of sustaining capital, USD3 to USD4 billion in replacement capital and USD300 million of decarbonisation capital.
The group reported share of capital investment on a non-IFRS basis of USD9.52 billion in 2023, up from USD6.96 billion in the prior year.
Rio Tinto shares closed down 1.3% at 5,015.00 pence in London on Wednesday.
By Aidan Lane, Alliance News reporter
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