Rio Tinto achieves record financial results

The mining firm said that profit after tax improved by 116% on 2021.

Rio Tinto’s Diavik diamond mine in Canada (Newscast/PA) (PA Media)

Mining firm Rio Tinto achieved record financial results in 2021, recording a free cash flow of 17.7 billion US dollars (£13 billion) and underlying earnings of 21.4 billion (£15.7 billion).

The figures led to the company paying its biggest ever dividend to shareholders.

Net cash generated from the iron ore producer’s operating activities improved 60% on 2020 levels while profit after tax improved by 116%.

Rio Tinto chief executive Jakob Stausholm said “the recovery of the global economy, driven by industrial production, resulted in significant price strength for our major commodities” and allowed for the results.

Rio Tinto said the recovery of the global economy from the pandemic was driven by industrial production (Newscast/PA) (PA Media)

“With the launch of our new strategy, we have set a new direction for Rio Tinto to thrive in a decarbonising world.

“We have a portfolio that is well positioned and are targeting disciplined investment in commodities that will see strong demand in the coming decades.

“Our agenda is an ambitious, multi-year journey which we are determined to deliver and we have already taken the first steps, with underground operations under way following the Oyu Tolgoi agreement and a binding agreement to acquire the Rincon lithium project in Argentina.”