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31 Oct 2019 | 07:49

Rio Tinto reports $10bn free cash flow ahead of investor day

Mining giant Rio Tinto has reported a free cash flow of $10bn for 2019 based on current spot prices ahead of an investor seminar in London today. Chief executive J-S Jacques and the executive team will outline how Rio Tinto's portfolio, customer relationships and capital discipline has positioned the company for continued strong financial performance. Jacques said: “Rio Tinto has a world-class portfolio, delivering superior margins and free cash flows, with an established track record of generating resilient returns. This includes $32bn returned to shareholders since 2016, in a volatile macro environment. “We are not complacent, and will step up our operational performance to fully optimise our assets and maintain strong cash delivery. We will continue to create value by strengthening relationships with our customers and with other partners, both of which are crucial for our future success.” The company also said its total capital expenditure for 2019 was expected to be $0.5bn lower than previously forecast, at approximately $5.5bn, with $0.5bn deferred into 2020. As a result, guidance for 2020 is around $7bn. Guidance for 2021 remains unchanged at around $6.5bn. Guidance for 2022 was included for the first time at around $6.5bn. Rio Tinto will also detail its environmental and sustainability credentials and demonstrate what it is doing to position the business for a carbon constrained world. It is the only major diversified miner that does not extract fossil fuels, and has cut its emissions by almost 30% since 2008. New emissions targets will be set next year.

Story provided by StockMarketWire.com
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