Proactive Investors - Rio Tinto (LON:RIO) has reported an expected dip in profits over the year as commodity prices faltered and supply growth exceeded demand.
Underlying pre-tax earnings fell 12% to US$11.8 billion as lower prices and inflation ate into profits, the mining giant reported on Wednesday.
A dividend of US$2.58 per share was declared though, higher than 2022’s US$2.25 and better than LSEG consensus estimates for US$2.47.
This was as price rises looked to moderate in the second half of the year, the company said, though it did warn of continued cost pressure as markets remained weak.
“We remain focused on cost control, in particular maintaining discipline on fixed costs, which are expected to be broadly flat in 2024,” the company said.
“While inflation has eased, we continued to see lag effects in its impact on our third-party costs, such as contractor rates, consumables and some raw materials.”
Rio Tinto added such inflation could hit production costs at Pilbara, where the company produces most of its iron ore, over the coming year.
Production from Pilbara should rise over the year from 331.8 million tonnes in 2023 though, after shipments increased by 3% last time around.
Shares dipped 0.8% to 5,187p.