Mining giant Rio Tinto (RIO) has cut its dividend payout to shareholders by 53% after posting disappointing fourth-quarter results.
The Australian miner blamed its poor earnings on weak iron ore prices, faltering demand in China, and higher labour and material costs.
Rio Tinto is one of several mining companies to announce lower earnings and reduced dividends in recent weeks.
The company said that it now plans to pay a total dividend to shareholders of $4.92 U.S., which is 53% lower than the record payout of $10.40 per share seen a year earlier.
The world’s second biggest miner reported earnings of $13.3 billion U.S. for all of 2022, compared with a record $21.4 billion U.S. in 2021.
The full year results missed analysts’ consensus estimates for $13.8 billion U.S. in 2022 earnings.
Looking forward, Rio Tinto lowered its capital investment guidance for 2023 to $8 billion U.S. from $8 billion U.S. to $9 billion U.S. previously. The company maintained its production guidance for the year ahead.
Rio Tinto’s stock is down 3% over the past 12 months and trading at $75.38 U.S. per share.
