Delivering superior returns
Speaking at the Bank of America Merrill Lynch event in Barcelona, J-S said that Rio Tinto is in very good shape – with world-class assets and a strong balance sheet that create a strong platform for the future. To make the company stronger still, and deliver superior value for shareholders, the focus remains on the 4Ps: Portfolio, Performance, People and Partners.
- Shareholder returns: In 2016, Rio Tinto returned US$2.7 billion – or 28 per cent of its cash – to shareholders, the highest in absolute and relative terms across the industry. The Group accounted for 60 per cent of the combined 2016 cash returns of the top five mining companies, and for 50 per cent of the total cash returns of the FTSE All Share Mining Index.
- Balance sheet strength: The company has the best balance sheet in the sector, making it resilient against volatility.
- Investing through the cycle: Rio Tinto is building its portfolio of world-class assets, an opportunity that many in the sector do not have.
- Productivity programme: The Group will be generating an additional US$5 billion of free cash flow over the next five years, and a run rate of US$1.5 billion of free cash flow per year by 2021.
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