Rio Tinto has big year (February 13, 2006)

Year-end financial figures from Rio Tinto (RTP-N, RIO-L, RIO-A) showed record underlying earnings in 2005.

The Anglo-Australian miner made US$5.5 billion (US$3.81 per share) on revenues of US$20.7 billion in 2005, up from US$3.2 billion on revenues of US$14.5 billion in 2004. Rio had US$7.4 billion in current assets, including US$2.3 billion in cash, at year-end.

Rio also announced a year-end dividend of US41.5 and a special dividend of US$1.10 per share, in addition to US83.5 per share paid out already in 2005.

Among the factors contributing to Rio’s top line during the year were revenues from molybdenum production at Kennecott Utah Copper and significant increases in production at the Grasberg joint venture with Freeport-McMoRan Copper & Gold (FCX-N). Higher prices for iron ore boosted operating profits from the Hamersley and Iron Ore Company of Canada divisions.