Rio Tinto pays out huge dividend as profits surge

Anglo-Australian miner Rio Tinto declared a massive final dividend as profits surged on the back of rising commodities prices.

The company on Wednesday said it would pay out $16.8bn for the year as earnings before interest, tax, depreciation and amortisation rose 58% to $37.7bn for the year to December 31 on revenue of $63.5bn.

Rio’s result was driven by record prices for iron ore, copper and aluminium. It maintained output guidance for 2022.

“The group considers the long-term pricing outlook for aluminium and copper is positive as these metals are critical to the global transition to a low-carbon future. The outlook for iron ore pricing is less certain and depends on the development of low-emissions steel technology,” Rio said.

Underlying earnings soared by 72% to $21.4bn, allowing its $4.79 a share in final and special dividends for a record-breaking $10.40 per share.

Rival miner BHP last week paid a record interim dividend worth $7.6bn.