2022 full year results.
Rio Tinto Chief Executive Jakob Stausholm said: "We are building a stronger Rio Tinto and delivering
against our four objectives. Our operational performance has improved, as evidenced by a number of
second half records being set at our Pilbara iron ore mine and rail system. We are also investing for
the future, doubling our stake in the Oyu Tolgoi copper-gold project in Mongolia through the
acquisition of Turquoise Hill Resources, progressing the Rincon Lithium Project in Argentina and
reaching milestone agreements that underpin the long-term success of our Pilbara iron ore business.
"We continue to focus on making lasting change to strengthen our workplace culture and to building
better relationships with Indigenous peoples, communities and other partners. At all times we will
seek to find better ways, in line with our purpose. We clearly have more to do but I am encouraged by
the progress we are making.
"Despite challenging market conditions, we remain resilient because of the quality of our assets, our
great people and the strength of our balance sheet. That is why we delivered strong financial results
with underlying EBITDA of $26.3 billion, free cash flow of $9.0 billion and underlying earnings of
$13.3 billion, after taxes and government royalties of $8.4 billion. This enables us to continue to invest
in strengthening the business while also paying a total dividend of $8.0 billion, a 60% payout, in line
with our policy.
"The uplift in our operational performance, strengthening of external relationships and investment in
the long-term strength of the business ensure we will be able to continue to pay attractive dividends
and invest in sustaining and growing our portfolio, while contributing to society's drive to net zero."
Solid financial results in 2022, set against a context of record prices in 2021
• $16.1 billion net cash generated from operating activities, 36% lower than 2021. This included items
of a non-recurring nature which were not representative of the underlying strength of the
performance of the business, which, in aggregate, reduced operating cash flow by around $2 billion.
See page 5 for more detail. Free cash flow1
of $9.0 billion included capital expenditure of
$6.8 billion, which decreased 9% as we commissioned our current programme of Pilbara
replacement projects, notably Gudai-Darri.
• $12.4 billion of net earnings, 41% lower than 2021, reflected the movement in commodity prices,
the impact of higher energy and raw materials prices on our operations, and higher rates of inflation
on our operating costs and closure liabilities. Effective tax rate on net earnings of 30.9% compared
with 27.7% in 2021, with the increase being primarily due to the $0.8 billion write down of deferred
tax assets in the US.
• $26.3 billion underlying EBITDA1
was 30% below 2021, with an underlying EBITDA margin1
of 45%.
• $13.3 billion underlying earnings1
(underlying EPS1
of 819.6 US cents) were 38% below 2021.
• $4.2 billion of net debt1
at year end, compared with net cash1
of $1.6 billion at the start of the year,
primarily reflected the free cash flow1
of $9.0 billion, offset by $11.7 billion of cash returns to
shareholders and $3.8 billion for the acquisitions of Turquoise Hill Resources (TRQ)2
and Rincon
Lithium Project.
• $8.0 billion full-year dividend, equivalent to 492 US cents per share. This represents 60% of
underlying earnings, in line with our shareholder returns policy.
Delivering on our strategy
• We have put climate change and the low-carbon transition at the heart of our strategy. We are
decarbonising our assets; helping our customers decarbonise by developing new products and
technologies; and growing in materials enabling the energy transition. We will deliver our strategy
through four clear objectives, which guide how we operate. Progressing our strategy and four
objectives will ensure that we provide the materials the world needs while maximising shareholder
returns and strengthening our position as a partner of choice for our customers and other key
stakeholders.
• We continue our work on social licence to restore trust and rebuild relationships, particularly with
Indigenous peoples, with an absolute determination to achieve impeccable ESG credentials:
◦ We are implementing all recommendations from the comprehensive external review of our
workplace culture published in February to ensure that everyone at Rio Tinto has a safe,
respectful and inclusive workplace. Some immediate actions include training 91% of more
than 7,000 leaders in 2022 in the foundations of building psychological safety, exceeding our
target of 80%.
◦ We increased our gender diversity by 1.4 percentage points to 22.9%, but fell short of our
target to raise female representation by two percentage points. The increases were
distributed across all levels of the organisation with female senior leaders increasing from
27.4% to 28.3%. We have also increased the number of Indigenous leaders in our workforce
to 46 (November 2020: 6), through internal promotion and recruitment.
And later;
The 2022 final ordinary dividend to be paid to our Rio Tinto Limited shareholders will be fully franked.
The Board expects Rio Tinto Limited to be in a position to pay fully franked dividends for the
foreseeable future.
On 20 April 2023, we will pay the 2022 final ordinary dividend to holders of ordinary shares and
holders of ADRs on the register at the close of business on 10 March 2023 (record date). The exdividend date is 9 March 2023.
Rio Tinto plc shareholders may choose to receive their dividend in Australian dollars or New Zealand
dollars, and Rio Tinto Limited shareholders may choose to receive theirs in pounds sterling or New
Zealand dollars. Currency conversions will be based on the pound sterling, Australian dollar and New
Zealand dollar exchange rates five business days before the dividend payment date. Rio Tinto plc and
Rio Tinto Limited shareholders must register their currency elections by 28 March 2023.
We will operate our Dividend Reinvestment Plans for the 2022 final dividend (visit riotinto.com for
details). Rio Tinto plc and Rio Tinto Limited shareholders’ election notice for the Dividend
Reinvestment Plans must be received by 28 March 2023. Purchases under the Dividend
Reinvestment Plan are made on or as soon as practicable after the dividend payment date and at
prevailing market prices. There is no discount available.
492US cents per share, 38% less than last year it seems?
The above is downloadable via here;
https://www.riotinto.com/en/invest/fina ... ce/resultsA RNS will no doubt be issued at 0700hrs UK time today.
Ian (I hold).