During 2018, Rio Tinto purchased $5.4 billion of shares through a combination of on-market purchases of Rio Tinto plc shares and an off-market buy-back of Rio Tinto Limited shares.
On-market purchases of $3.3 billion Rio Tinto plc shares comprised the return of $1.904 billion of the Coal & Allied proceeds announced on 21 September 2017 (relating to US$1.925 billion of the $2.5 billion share buy-back programme attributed to the Rio Tinto plc on-market share buy-back), the US$1 billion programme announced on 7 February 2018 and $0.4 billion of the US$1 billion programme announced on 1 August 2018. The remaining $0.6 billion of this programme will be completed no later than 27 February 2019.
In addition, the Group returned $2.1 billion through a Rio Tinto Limited off-market buy-back as part of the return of approximately $3.2 billion of post-tax coal disposal proceeds announced in September 2018. The remaining $1.1 billion of post-tax coal disposal proceeds will be returned through an on-market Rio Tinto plc share buy-back commencing on 28 February 2019 and will be completed no later than 28 February 2020.
Rio Tinto plc
On 20 September 2018, Rio Tinto unveiled the details of how it intends to return approximately $3.2 billion of post-tax coal disposal proceeds to its shareholders.
Following the completion of the off-market buy-back of Rio Tinto Limited shares (see below), the aggregate maximum consideration now available for the on-market Rio Tinto plc share buy-back portion of the additional $3.2 billion share buy-back programme is US$1,119 million. This portion of the programme will commence on 28 February 2019 and will be completed no later than 28 February 2020.
This is in addition to the ongoing Rio Tinto plc buy-back programmes detailed below.
On 1 August 2018, Rio Tinto announced an on-market share buyback programme to repurchase Rio Tinto plc's ordinary shares for a maximum aggregate consideration of US$1 billion, ending no later than 27 February 2019.
Download running total for $1 billion August 2018 share buy-back
On 7 February 2018, Rio Tinto announced an on-market share buyback programme to repurchase Rio Tinto plc's ordinary shares for a maximum aggregate consideration of US$1 billion, ending no later than 31 December 2018.
Download running total for $1 billion February 2018 share buy-back
On 21 September 2017, Rio Tinto announced an on-market share buy-back programme to repurchase Rio Tinto plc's ordinary shares for a maximum aggregate consideration of US$1.925 billion, ending no later than 31 December 2018. This formed part of the $2.5 billion share buy-back programme, returning the proceeds from the sale of Coal & Allied. Please refer to 2017 share buy-back programme section below.
Rio Tinto Limited
Rio Tinto has successfully completed its off-market buy-back of Rio Tinto Limited shares, with the purchase of 41,198,134 million Shares, at an aggregated cost of A$2,871 million (US$2,081 million). The Buy-Back Price was A$69.69 per Share which represented a discount to the Market Price of 14 per cent.
Read the Notice to ASX
Download the Australian Tax Office Class Ruling (CR 2018/57) in relation to the off-market share buy-back
Important notice
This announcement, and any other documents related to the Buy-Back, are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia) or Canada.
Rio Tinto has committed an additional $2.5 billion to its ongoing share buy-back programme, returning the proceeds of the sale of Coal & Allied to its shareholders.
This is in addition to the US$500 million and US$1 billion on-market share buy-back programmes of Rio Tinto plc shares that we announced this year on 8 February and 2 August. It brings our total share buy-backs announced during 2017 to US$4 billion.
Rio Tinto chief executive J-S Jacques said “Returning the $2.5 billion proceeds from our Coal & Allied divestment shows our continued commitment to delivering superior value and returning cash to our shareholders.
This year we have announced cash returns to shareholders of $8.2 billion, comprising $4.2 billion of dividends and $4 billion of share buy-backs. Shareholder returns of this scale are made possible by maintaining the strongest balance sheet in the sector and a disciplined capital allocation process.”
Rio Tinto plc
Rio Tinto commenced its on-market share buy-back programme effective from 1 March 2017 to repurchase Rio Tinto plc's ordinary shares for a maximum aggregate consideration of US$500 million, ending not later than 31 December 2017. A further on-market share buy-back programme commenced effective from 2 August 2017 to repurchase Rio Tinto plc’s ordinary shares for a maximum aggregate consideration of US$1.0 billion, ending not later than 31 December 2017.
Download 2017 share buy-back running total
Rio Tinto has committed an additional $2.5 billion to its ongoing share buy-back programme, returning the proceeds of the sale of Coal & Allied to its shareholders.
Following the completion of the off-market buy-back of Rio Tinto Limited shares (see below), the aggregate maximum consideration now available for the on-market Rio Tinto plc share buy-back portion of the additional $2.5 billion share buy-back programme is US$1,925 million. This portion of the programme commenced on 27 December 2017 and will be completed no later than 31 December 2018.
Download the $2.5 billion share buy-back programme running total
Rio Tinto Limited
Rio Tinto has successfully completed its off-market buy-back of Rio Tinto Limited shares, which was increased to A$750 million from the indicative A$700 million announced due to strong demand. The Buy-Back Price was A$63.67 per Share which represented a discount of 14 per cent to the Market Price.
Rio Tinto Limited bought back approximately 11.8 million Shares, at an aggregate cost of A$750 million (US$575 million).
Read the Notice to ASX
Download the Australian Tax Office Class Ruling (CR 2017/84) in relation to the off-market share buy-back
Important notice
This announcement, and any other documents related to the Buy-Back, are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia) or Canada.
Rio Tinto plc
In 2015, Rio Tinto completed $2.0 billion of share buy-backs, comprising $0.4 billion off-market in Rio Tinto Limited and $1.6 billion on-market in Rio Tinto plc.
Further details of the Rio Tinto plc on-market buy-back completed on 18 December 2015 can be accessed via the link below.
Download 2015 share buy-back total
Rio Tinto Limited
Rio Tinto announced on 7 April 2015 the successful completion of its off-market buy-back tender of shares in Rio Tinto Limited, which was increased to A$560 million from the indicative A$500 million announced due to strong demand.
Under the off-market buy-back, Rio Tinto Limited bought back around 11.6 million shares at the buy-back price of A$48.44 per share, for an aggregate cost of approximately A$560 million (US$425 million).