Australia’s major miner Rio Tinto has achieved bright financial results in the first half of 2021, supported by a surge of raw materials prices, mainly those for iron ore.
“Rio Tinto managed to increase underlying EBITDA and underlying earnings by as much as 118% and 156% to $21.04 billion and $12.17 billion t respectively in January-June 2021 compared to the same period of last year. “Government stimulus in response to ongoing COVID-19 pressures has driven strong demand for our products at a time of constrained supply resulting in a significant spike in most prices ,This enabled us, despite operational challenges, to deliver record financial results,” said the company’s CEO Jakob Stausholm.
Strong free cash flows allowed the miner to reach net cash of $3.14 billion versus net debt of $664 million at the end of 2020, according to its official report.
Resilient financial performance was mainly attributed to strong results of Rio Tinto’s iron ore business, where EBITDA accounted for 76% of the company’s total underlying EBITDA in H1 2021, spiking by 109% y-o-y to $16.06 billion.