UK-based Rio Tinto is one of the world’s biggest metals mining companies, with commodities like copper, iron ore, uranium, gold and even diamonds among its biggest outputs. Also stemming back to the 1800s, Rio Tinto is an LSE-listed company.
Copper ore production at Rio Tinto has suffered disruption due to Covid-19 pandemic, with mined copper production figures for 2021 (Q2) at 115,500 tonnes – 13% lower than Q2 2020.6 Production was also somewhat affected by an anticipated slope failure at the company’s operations in Kennecott in May 2021. However, the ore involved was largely recoverable, causing only a temporary disruption.
Rio Tinto is also part owner of the Oyu Tolgoi mine in Mongolia, set to be one of the largest copper mines in the world by 2030. The mine is still in the development process, with Rio Tinto in talks with the Mongolian government to expedite the process and get the mine up and running within 2022. Once Oyu Tolgoi is complete, it should increase Rio Tinto’s copper production levels significantly.
Rio Tinto’s overall results have showed significant rallying after the initial pandemic disruptions of 2020. Net cash generation from operating activities almost tripled in 2021, from $5.63 million in Q2 2020 to $13.66 million in Q2 2021. Underlying EBITDA rocketed from $9.64 billion in Q2 2020 to $21.03 billion in Q2 2021.7
The latest Rio Tinto dividend was generous, at $5.61 per share.7