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LONDON - Mining giant Rio Tinto (NYSE:RIO) PLC reported strong financial results for the year ended December 31, 2024, with underlying EBITDA reaching $23.3 billion, despite an 11% decrease in iron ore prices. The company’s resilient performance was underpinned by a diversified portfolio and effective cost management strategies.
Net cash generated from operating activities amounted to $15.6 billion, reflecting a 3% increase from the previous year, driven by a favorable mix in the company’s portfolio and efficient working capital management. Net earnings, attributable to Rio Tinto owners, climbed to $11.6 billion, marking a 15% rise from 2023.
The company declared a full-year ordinary dividend of $6.5 billion, consistent with a 60% payout ratio, maintaining a nine-year record of payouts at the upper end of the range. This reflects Rio Tinto’s commitment to delivering attractive shareholder returns while continuing to invest in growth and operational excellence.
Despite the challenges posed by lower iron ore prices, the company’s strong balance sheet and disciplined investment approach have enabled it to increase investments to support plans for a decade of profitable growth. Rio Tinto is poised for success in 2025, with the anticipated completion of the Arcadium acquisition in March, further diversifying its business and strengthening its position in the market for energy transition commodities.
The company’s focus on safety remains paramount, with five fatalities reported in 2024, prompting a renewed commitment to continuous safety improvement. Rio Tinto’s operational performance has improved, with over 1% production growth and a 3% increase in sales volumes on a copper equivalent basis.
In line with its strategic objectives, Rio Tinto is advancing several key development projects, including the Oyu Tolgoi copper-gold mine in Mongolia and the Simandou iron ore project in Guinea, both of which are on track to deliver significant production increases. The company is also expanding its presence in the lithium market with a $2.5 billion investment in the Rincon project in Argentina.
Rio Tinto’s efforts to achieve impeccable environmental, social, and governance (ESG) credentials include a 14% reduction in Scope 1 and 2 emissions from a 2018 baseline and significant progress in renewable energy contracts. The company is actively supporting its customers and suppliers in reducing emissions across the value chain, particularly in steelmaking.
For 2025, Rio Tinto has provided guidance on capital investment, exploration expenses, and closure activities spending, with a focus on maintaining a strong financial position and an effective tax rate on underlying earnings of around 30%.
The company’s financial results are based on a press release statement and have been prepared in accordance with IFRS. The detailed financial information, including reconciliations to IFRS measures, is available in the full financial statements and annual report.
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