Rio Tinto announces operating cash generation of $13.9 billion

Rio Tinto chief executive J-S Jacques said “Today we have announced a strong set of results with operating cash flow of $13.9 billion, a record full year dividend of $5.2 billion and an additional $1 billion share buy-back. This brings total cash returns to shareholders to $9.7 billion declared for 2017.

“The strength of our cash flow is a result of resilient prices during the year coupled with a robust operational performance and a focus on mine to market productivity.

“Our strong balance sheet, world-class assets and disciplined allocation of capital puts us in the unique position of being able to invest in high-value growth through the cycle, and consistently deliver superior cash returns to shareholders.”

2017 highlights

  • Record full year ordinary dividend announced today of $5.2 billion, equivalent to 290 US cents per share, includes final dividend of $3.2 billion, equivalent to 180 US cents per share.
  • Additional share buy-back of $1.0 billion in Rio Tinto plc shares announced today, to be completed by the end of 2018.
  • Generated operating cash flow of $13.9 billion, underlying EBITDA1 of $18.6 billion and a ten year record EBITDA margin2 of 44 per cent.
  • Delivered underlying earnings of $8.6 billion and net earnings of $8.8 billion.
  • Achieved $0.4 billion of additional free cash flow from mine to market productivity programme3, against a backdrop of rising raw material costs across the industry.
  • Investing in growth with Silvergrass in production, Amrun and Oyu Tolgoi projects on track.
  • Reshaping the portfolio with $2.7 billion of divestments in 2017.
  • Reduced net debt to $3.8 billion.
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