Equity Analysis /
Australia

AU : Rio Tinto - Have the good times ended?

    Adrian Prendergast
    Adrian Prendergast

    Senior Analyst - Mining and Energy

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    CGS-CIMB
    28 July 2022
    Published byCGS-CIMB

    RIO posted a reasonable 1H22 earnings result, although surprised us on pulling back its interim dividend to 50% payout with no special dividend. We do not view the cut in dividend as a signal of the end of bumper earnings, with 1H22 the third strong strongest EBITDA result ever reported for RIO. RIO CEO flagged market caution, but also a preference from the board to keep its powder dry on paying extra dividends at least until its full year result. We maintain our Add rating, with an unchanged A$113 target price.