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Rio Tinto PLC on Wednesday cut interim dividends after posting its lowest first-half profit in five years. The London-based mining firm focused on Australia reported pretax profit of $6.74 billion during the six months that ended June 30, down 17% from $8.12 billion the year prior. This marks the firm’s lowest first-half profit since 2020, when it was $5.28 billion. Rio Tinto said the decline was due to a 13% drop in iron ore prices. This offset an improvement in sales revenue, which rose to $26.87 billion from $26.80 billion in the first half of 2024. The firm reduced its interim dividend per share by 16% to 148.0 US cents, down from 177.0 cents. This was in line with a 16% on-year drop in underlying earnings per share to 296.0 cents from 356.0 cents. Underlying earnings before interest, tax, depreciation and amortisation totalled $11.55 billion, 5% below the previous year’s $12.09 billion. Unit costs increased to $24.3 per tonne during the first half from $23.2 per tonne on-year, though the firm’s full-year cost expectations are unchanged. Rio Tinto has maintained its 2025 production outlook for all minerals, but expects iron shipments from the flagship Pilbara project at the lower end of the guide range, which is between 323 million and 338 million tonnes. Pilbara iron shipments decreased to 150.6 million tonnes in the first half, down from 158.3 million tonnes the year prior, due to cyclones in the first quarter, Rio Tinto said. Expectations for Pilbara are subject to the timing of regulatory approval, related to the mine’s controversial impact on Aboriginal heritage and environmental conditions in north-west Australia. Rio Tinto noted it has ‘limited ability to mitigate further losses from weather if incurred’. Titanium oxide slag is also predicted to be at the lower end of guidance due to softer demand, whilst bauxite and copper are targeting full-year production at the higher end of expectations. Chief Executive Jakob Stausholm said the company’s performance was ‘resilient’ and continued to improve. ‘We are well-positioned to generate value from our best-in-class project execution, together with growing demand for our products, now and over the coming decades. We remain on track to deliver strong mid-term production growth, with solid foundations in place and a diverse pipeline of options for the future,’ he added. Stausholm will be replaced by Simon Trott, who is promoted to CEO from Iron Ore Chief Executive, effective August 25. Rio Tinto shares traded down 0.6% at 4,619.50 pence on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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