30-07-2025
Rio Tinto trims dividend as Pilbara iron ore output and lithium investment weighs on bottom line
Pilbara cyclones, weaker iron ore prices and a lithium splurge have dented the dividend payout scores Rio Tinto's mum and dad shareholders are set to receive.
Rio generated $US26.9 billion ($41.3b) of sales revenue during the first six months of 2025, a flat result compared to the same period a year prior.
The average price Rio fetched for its most important commodity — iron ore — fell by 13 per cent year-on-year and production also went backwards after a series of cyclones in January and February savaged its key Pilbara port facilities.
This was partially offset by Rio's 'improving operational performance' and a 'rising contribution' from its aluminium and copper divisions.
Approximately $US6.9b of net cash was generated across Rio's global operations, down 2 per cent on the first-half 2024 result.
Net debt ballooned by more than 160 per cent from $US5.5b to $US15b after Rio took on fresh loans to fund its $US6.7b purchase of Arcadium Lithium, which was completed in March.
Rio progressed other lithium projects in South America and Europe during the first half.
Group net profit was 22 per cent lower at $US4.5b and this cascaded through to a 16 per cent cut in the interim dividend to $US1.48.
More to come . . .
