Rio Tinto PLC margins improve in 1HFY23 despite revenue drop

August 11, 2023 07:09 AM BST | By Team Kalkine
 Rio Tinto PLC margins improve in 1HFY23 despite revenue drop
Image source: © Supapornss | Megapixl.com

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 REFINITIV.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next