Investor account oozing cash as Rio Tinto awards golden handshake.Splashing US$7.1 Billion investor bonus.
Rio Tinto shareholders accounts are oozing cash as the Global miner has lavished shareholders with a US$7.1 billion.
special dividend. The miner on Wednesday announced a $US4 billion special dividend, after reporting 2 per cent rise in underlying profit to $US8.8 billion.
The special dividend is on top of a final dividend worth a total of $US3.1 billion for shareholders and will be funded with several assets sales announced in 2018 including its Grasberg copper mine in Indonesia and its Dunkerque aluminum smelter in France. Rio Tinto declared a final dividend of 180 US cents per share and a special dividend of 243 US cents per share, both payable on 18 April 2019 to holders of ordinary shares.
The company’s total cash returns in the 2018-year hit $US13.5 billion. Rio Tinto’s net revenue was $40.5 billion in 2018, which was $0.5 billion more than in 2017 Rio declared a final dividend of $US1.80, in line with last year’s final payout of $US1.80. But it will also pay a $US4 billion special dividend, following the sale of its stake in the Grasberg copper mine in Indonesia in late 2018.
“We have once again announced record cash returns to shareholders of $US13.5 billion on the back of $US18 billions of underlying EBITDA and a return on capital employed of 19 per cent,” Mr Jacques said. The dividends take the full-year shareholder returns to $US13.5 billion, a record for the company. This includes $US7.2 billion in from share buybacks and special dividends.