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Rio Tinto urges shareholders to abandon their main list in London and reject activist investors’ suggestions to consolidate stocks in Australia, a move that is not in the mining group’s “best interests” He claims that.
Rio, who reported low underlying revenues over five years on Wednesday, is under pressure from the capital of Paliser and others to abandon its dual listing structure in Australia and the UK, following the example of BHP.
Palliser claimed one Australian dominant holding company with a major list of Sydney’s stock exchanges unlocking $500 billion in shareholder value.
However, Rio has rejected the move as too expensive and is taking advantage of top Australian and UK shareholders over the issue.
“The board believes the resolution is not in Rio Tinto’s best interests as a whole, and recommends that shareholders of Rio Tinto PLC oppose the resolution,” the company said in its annual meeting in London and Perth. I mentioned it earlier on Wednesday. April and May.
The move follows the decision of rival mining group Glencore this week, checking the UK list and paving the way for a switch to New York and another market that would “better” its business.
Rio Tinto’s revenues fell last year due to low iron ore prices and inflationary pressures, the group said. Major iron ore and aluminum producers said underlying revenues have fallen 7% from 2023 compared to $10.9 billion. However, net income, taking into account impairment and asset settlement, rose 14% to $11.6 billion.
The average price of iron ore sold by Rio in 2024 was 11% lower than last year, contributing to a decline in revenue from steel manufacturing ingredients.
Mining groups reporting results this week, including Glencore and BHP, are suffering from inflationary pressures that have not only low prices for iron ore and coal, but are also pushing up operating costs.
Rio points out “signs of stabilization” in China’s real estate market, a major factor in product demand, but tackles a decline in iron ore revenue due to weak overall demand from Asian countries. I’m here.
RBC analyst Ben Davis said Rio’s annual results are “fun and easy,” with a $6.5 billion dividend in 2024 still remaining, even if the underlying revenues fell slightly below average forecast. He said he was in line with expectations.
Revenues from Rio’s aluminum and copper business recovered, reflecting the expansion of Mongolia’s huge Oyu Tolgoi Copper mine.
According to analysts, Rio, who owns a key aluminum tactic in Canada, is highly exposed to President Donald Trump’s rapidly changing tariff policy. New measures announced by the administration include a 25% tariff on US imports of aluminum and steel.
Chief Executive Jakob Stausholm said Rio may redirect Canadian aluminum from the US market as a result of tariffs. Canada is the largest exporter of aluminum in the United States.
“It probably doesn’t matter to us, it could be even more difficult for our customers,” said Stowsholm, who is in Washington this week to meet Trump administration officials.
Rio’s large commodity portfolio, ranging from lithium to copper to iron ore, will help minimize the impact of certain tariffs, he added.
Rio has several US mining and processing facilities, waiting for a decision from the country’s Supreme Court, which can determine the fate of the proposed development of Arizona’s resolution copper mines.
Three members of Rio’s board of directors will resign this year — Sam Raidrow, Simon Henry and Kaisa Hietala will reduce their size from 14 to 11.
