AUSTRALIA – Rio Tinto promised earlier this week to boost its free cash flow by an additional $5 billion over the next five years. And it will meet its cash reduction target of $2 billion this year and next. The company told an investor seminar in Sydney that it will focus strongly on safety, cash generation, its world class portfolio, and capital discipline to deliver superior shareholder returns.
Rio Tinto says it is also committed to investing in growing the business. In the near term, this will be delivered via three high quality growth projects – Silvergrass iron ore in Western Australia, Amrun bauxite in Queensland, and Oyu Tolgoi copper-gold in Mongolia. This investment underpins an annual average copper equivalent growth in excess of 2% between 2015 and 2025. Longer term, exploration remains a priority.
The company said it expects total cash returns to shareholders over the longer term to be in a range of 40% to 60% of underlying earnings in aggregate through the cycle.
Please see www.RioTinto.com for more information.