Rio Tinto PLC margins improve in 1HFY23 despite revenue drop

3 min read | August 11, 2023 04:09 PM AEST | By Team Kalkine

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Rio Tinto PLC margins improve in 1HFY23 despite revenue drop — Image source: © Supapornss | Megapixl.com

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Highlights

Rio Tinto PLC (LSE:RIO) is involved in mining and processing mineral resources.

During H1 FY23, RIO posted an increase of about 7% in the Pilbara Iron Ore production at 160.5 Mt.

The company has announced to pay an interim dividend of GBX 137.67 per share to the shareholders in September 2023.

FTSE 100 index-listed mining and metals company, Rio Tinto PLC (LSE:RIO) is involved in mining and processing mineral resources. The company's segments include iron ore, aluminium, copper and diamonds, energy and minerals, and other operations.

During the first half of the fiscal year 2023, the firm posted an increase of about 7% in the Pilbara Iron Ore production at 160.5 Mt. It registered a growth of around 7% in the Pilbara iron ore shipments at 161.7 Mt in H1 FY23, as compared to H1 FY22. This can be attributed to higher mine production and drawdown of stocks.

Also, the company recorded EBITDA margin at 41.2% versus the industry median of 19.8%. Its operating margin rose to 27.2% during the reporting period against the industry median of 12.4%. RIO’s net margin increased 18.5% in H1 FY23 versus the industry median of 6.3%.

The company has announced to pay an interim dividend of GBX 137.67 per share to the shareholders in September 2023. With this declaration, RIO’s annual dividend yield stands at 6.58%.

Vision ahead

The company believes its Pilbara iron ore unit cash cost will range from USD 21.0 to 22.5 per wet metric tonne, while the copper C1 unit cost will be between USD 180 and USD 200 per lb.

For the full year FY23, Rio Tinto expects its mined copper production to be between 590 kt and 640 kt, and its aluminium production to range from 3.1 Mt to 3.3 Mt.

Top 10 shareholders

Around 40.78% of the total shareholdings in the company are held by its top ten shareholders. While Aluminium Corporation of China Ltd holds the maximum number of shares with over 14.5% shareholding, BlackRock Investment Management (UK) Ltd. holds approximately 10.21% shareholding.

Stock Price Performance
The share price of the company has seen a drop of about 0.62% in the last three months. Its 52-week high and 52-week low price stands at GBX 6,406.00 and GBX 4,424.50, respectively.

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 08 August 2023. The reference data in this report has been partly sourced from EODHD/Others.

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