Rio Tinto, the major mining company, has announced that in the first half of 2017, the company had a cash generation of $6.3 billion and cash returns to shareholders of $3.0 billion.
In the company’s First Half 2017 report, Rio Tinto had generated an operating cash flow of $6.3 billion, with an Earnings Before Interest, Depreciation and Amortization (EBITDA) of $9.0 billion and an EBITDA margin of 45%.
Through significant strengthening of its portfolio, Rio Tinto has also reduced its net debt by $2.0 billion, bringing it to a total $7.6 billion – the strongest balance sheet across the industry.
The cash cost savings were delivered six months early.
“Today we have announced total cash returns to shareholders of $3 billion. By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders,” said Rio Tinto Chief Executive J-S Jacques.
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“These are strong results: operating cash flow was $6.3 billion and we met our $2 billion cash cost reduction target six months early. We are now shifting gear to focus on the untapped value from our productivity programme and continue to strengthen our portfolio to build higher returns for the future. We announced the sale of our thermal coal business in Australia for $2.7 billion and are making good progress on our compelling growth projects – Oyu Tolgoi, Amrun and Silvergrass.”