Rio Tinto, third global mining group by market capitalization, has made a clear choice: today, the best way to invest money copiously earned in recent years with the prices of mineral resources sustainable flight is the return to shareholders. Friday, before its annual investor seminar, Anglo-Australian mining giant announced that it would raise $ 3 billion to 7 in total, the amount allocated for capital management plan spanning the years 2006 and 2007.
All of this additional amount will be devoted to the repurchase of its own shares. Guy Elliott, financial Director of Rio Tinto, recalled that "with as favourable markets." that currently, the assets of high quality of the Group generate record risk-taking That, he said, allows the company to return value to shareholders while dedicating "substantial" investment to its organic growth. At the presentation to investors, Leigh Clifford, Executive Chairman of Rio Tinto, announced in 2006 and 2007, his company capital expenditures were respectively exceed the 4 and 5 billion dollars, against some 2.5 billion in 2005.
In the first half, activities in iron ore took up 47 of the total investment made over the period, followed by, almost ex adquo, by those in power (17) and copper (16). The company said 11 important discoveries and 19 possible projects. Some 57 of the assets of Rio are Australia, 19 in the United States and 12 in the Canada.
7 To 8 of the capitalization
The management plan for the capital applied so far featured on 6 April, the distribution of exceptional dividend to $ 1.5 billion. The remaining 2.5 billion, 1.9 billion already spent by buying shares listed by the London market. The second large stock of Rio Tinto is Sidney. Entries in cash between January 1, 2005 and June 30, 2006 amounted to $ 13.5 billion. With these liquidity, Rio Tinto has paid 2.6 billion in taxes, reduced its net debt of 1.2 billion, distributed 3.1 billion in dividends, bought shares for 2 billion and spent 500 million for minority interests.
In deciding to strengthen its management of the capital plan, Rio Tinto now appears as the most generous member to shareholders among the trio of head of the global diversified mining industry including compatriot BHP Billiton and the original South African Group Anglo American. The company led by Leigh Clifford will make the equivalent of 7 to 8 of its current market capitalization to holders of its securities. Of the $ 8 billion planned for the return to shareholders over the past three years, approximately 62 already were. In the same period, BHP Billiton has reserved $ 6.8 billion to its shareholders. "Rio prefers to give the surplus of cash which has its shareholders rather than look around for new projects", comments an analyst.
Despite this clear-cut choice, the mining giant does not have their hands tied. If the course of mineral resources remain high, as anticipates it the company Rio Tinto will be able to further enhance its ability to generate cash, which "to leave open all options on the opportunities that arise", provides an expert. The recent acquisition, for $ 1.5 billion, a strategic stake in Ivanhoe Mines is there for the show ("Les Echos" from October 19).
We will lose 300 million euros of revenues800 billion today approximately 13 of GDPIn 2009 he is expected to reach 44 or 30You have surely passed its image recentlyFrom 175 euro for 1 November to 28 DecemberIt is false it is only one model among othersAll beautiful brand new title same CheuvreuxHere is the effect of a successful campaignThis is far from being the case at present This time it should be a little positive 0
