Rio Tinto (LSE:RIO) (ASX:RIO) reported strong financial results for the first half of 2024. The company announced an underlying EBITDA of $12.1 billion and a net cash generation of $7.1 billion from operating activities.

Strong Financial Performance

Rio Tinto achieved profit after tax attributable to its owners amounting to $5.8 billion. This led to an interim ordinary dividend of $2.9 billion, maintaining a 50% payout ratio.

Key Financial Metrics

• Net cash generated from operating activities: $7.1 billion
• Purchases of property, plant and equipment and intangible assets: $4.0 billion
• Free cash flow: $2.8 billion
• Consolidated sales revenue: $26.8 billion
• Underlying EBITDA: $12.1 billion
• Profit after tax attributable to owners: $5.8 billion
• Underlying earnings per share: 354.3 US cents
• Ordinary dividend per share: 177.0 US cents
• Underlying return on capital employed: 19%

Growth in Operations

Rio Tinto is experiencing growth driven by disciplined investments in its operations. The company’s overall copper equivalent production is expected to grow by 2% this year. From 2024 to 2028, the company aims for approximately 3% compound annual growth from current projects.

Strategic Investments

The company highlights significant initiatives like the ramp-up of the underground copper mine at Oyu Tolgoi and the progress of the Simandou and Rincon lithium projects. These, along with stable commodity pricing, have contributed to strong financial results.

Maintaining Strong Balance Sheet

With a robust balance sheet, Rio Tinto continues to practice disciplined investments, further strengthening its financial stability. The company upholds a 50% interim payout, signifying a $2.9 billion ordinary dividend for its shareholders.

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