Rio Tinto 2023 profit falls 12%, but edges past expectations By Investing.com

© Reuters.

Investing.com– Anglo-Australian miner Rio Tinto Ltd (ASX:) clocked a weaker underlying revenue for 2023 as softer iron ore costs and demand weighed on its topline, though the determine was nonetheless barely above expectations on stronger manufacturing. 

Rio Tinto’s underlying profit- which excludes particular items- fell about 12% to $11.8 billion within the 12 months to December 31, coming in barely above Bloomberg estimates of $11.66 billion. 

The miner declared a remaining dividend of $4.2 per share, bringing its full-year dividend to $7.1, down from $8.0 per share for 2022.

Rio’s consolidated gross sales income for 2023 was $54.04 billion, down barely from $55.55 billion a 12 months in the past. The drop was pushed largely by softer commodity costs and weaker demand in China, because the world’s largest iron ore importer grappled with a sluggish post-COVID restoration.

Rio Tinto’s annual iron ore shipments nonetheless rose 2% to 331.8 metric tons in 2023, which considerably helped offset weaker sale costs. However the agency noticed increased prices because of elevated manufacturing, whereas its general margins additionally fell. 

The agency forecast barely increased iron ore unit money prices at its flagship Pilbara iron ore operations- between $21.75 to $23.50 per moist metric ton, in comparison with 2023 prices of $21.5 moist metric ton.

The miner stated it expects to spend about $1 billion per 12 months within the coming years on superior closure actions at a number of of its ageing mines in Australia, which is able to seemingly be handled as one-off gadgets.