Rio Tinto 2011 Final Results - dividend increased 34%
- Record underlying earnings of $15.5 billion, 11 per cent above 2010.
- Net earnings of $5.8 billion, 59 per cent below 2010, primarily as a result of an impairment charge of $8.9 billion related to the Group's aluminium businesses.
- Record underlying EBITDA1 of $28.5 billion, 10 per cent above 2010.
- Record cash flows from operations up 16 per cent to $27.4 billion.
- Capital expenditure of $12.3 billion in 2011, compared with $4.6 billion in 2010. Total capital expenditure for 2012 on approved projects and sustaining capital is expected to be $16 billion. Further project approvals, mainly in the Pilbara, are likely to increase this level of investment as the growth programme continues.
- - Pilbara iron ore expansion to 283 million tonnes per annum (Mt/a) now fully approved and on track to be in operation by end of 2013: second planned phase expansion of Pilbara capacity enhanced to 353 Mt/a and completion brought forward by six months to first half of 2015.
- - Growth options enhanced in Mongolia, Mozambique and South Africa: Rio Tinto moves to majority stake in Ivanhoe, completes Riversdale acquisition providing entry to an emerging major coking coal resource and announces doubling of stake in Richards Bay Minerals.
- 34 per cent increase to full year dividend to 145 US cents per share, reflecting confidence in long-term outlook.
- $7 billion share buy-back programme on track for completion by end of the first quarter. To date $6.2 billion has been completed, representing 103 million Rio Tinto plc shares equivalent to five per cent of the Group's issued share capital.
The aim of Rio Tinto's progressive dividend policy is to increase the US dollar value of ordinary dividends over time. Dividends are determined in US dollars. Rio Tinto plc dividends are declared and paid in pounds sterling and Rio Tinto Limited dividends are declared and paid in Australian dollars, converted at exchange rates applicable on 7 February 2012.
|Ordinary dividend per share||2011||2010|
|Rio Tinto Group|
|Interim (US cents)||54.00||45.00|
|Final (US cents)||91.00||63.00|
|Total dividend (US cents)||145.00||108.00|
|Rio Tinto plc|
|Total dividends (pence)||90.47||67.35|
|Rio Tinto Limited|
|Interim (Australian cents)||49.81||49.27|
|Final (Australian cents)||84.20||61.94|
|Total dividends (Australian cents)||134.01||111.21|
Rio Tinto Limited shareholders will be paid dividends which will be fully franked. The board expects Rio Tinto Limited to be in a position to pay fully franked dividends for the foreseeable future.
The respective dividends will be paid on 12 April 2012 to holders of ordinary shares and to ADR shareholders. This will apply to Rio Tinto plc and ADR shareholders on the register at the close of business on 2 March 2012 and to Rio Tinto Limited shareholders on the register at the close of business on 6 March 2012. The ex-dividend date for Rio Tinto plc, Rio Tinto Limited and Rio Tinto ADR shareholders will be 29 February 2012.
Rio Tinto plc shareholders may elect to receive their dividend in Australian dollars, and Rio Tinto Limited shareholders may elect to receive their dividend in pounds sterling. Currency conversions will be determined by reference to the exchange rates applicable to pounds sterling and Australian dollars five business days prior to the dividend payment date. Currency elections must be registered by 20 March 2012 for Rio Tinto Limited and Rio Tinto plc shareholders.
ADR shareholders receive dividends in US dollars, which will be converted from pounds sterling by reference to the exchange rate applicable on 3 April 2012.This is likely to differ from the US dollar determining rate due to currency fluctuations.
As usual, Rio Tinto will operate its Dividend Reinvestment Plans, details of which can be obtained from the Company Secretaries' offices and from the Rio Tinto website (www.riotinto.com). The last date for receipt of the election notice for the Dividend Reinvestment Plans is 20 March 2012 for both Rio Tinto Limited and Rio Tinto plc shareholders. Purchases under the Dividend Reinvestment Plan are made on or as soon as practicable after the dividend payment date and at the prevailing market price. There is no discount available.