Rio Tinto reported an underlying EBITDA of $23.3 billion for fiscal year 2024, representing a modest 2% decrease from the previous year. This resilience was achieved despite an 11% lower iron ore price, demonstrating the benefits of a diversified portfolio with rising contributions from aluminum and copper divisions. The company's financial health remains robust.
Operating cash flow remained strong at $15.6 billion on a trailing twelve-month basis, with an EBITDA cash conversion rate of 67%, an increase from 63% in 2023. Rio Tinto ended 2024 with a healthy net debt of $5.5 billion, even after capital investment rose to $9.5 billion. This indicates disciplined financial management.
The company reaffirmed its commitment to a 60% ordinary dividend payout, a track record maintained for nine consecutive years. This disciplined capital allocation framework balances shareholder returns with significant investments in growth and decarbonization initiatives. Despite a dip in EBITDA, the company's strategic effectiveness and financial resilience are evident.
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