Recent Income recommendation Rio Tinto (RIO) has announced record results for 2021 and that it is “targeting disciplined investment in commodities that will see strong demand in the coming decades”.
Earlier this month HERE, I observed that the ‘Methodist Church threatens to pull stake from Rio Tinto (RIO) over damning sexual harassment report’. I am not sure if its investment committee listened to the mining sector giant’s conference call earlier today but - if it did - it will be pleased with the huge amounts of ESG mentions in the first few minutes of the call. Most investors though will be more excited by the news of ‘record financial results and total dividend of 1,040 US cents per share for 2021, a 79% payout’, equivalent to over a 10% dividend yield. Whilst some of this was a special dividend reflecting remarkable metals sector prices during 2021, how should investors feel now about the FTSE-100 giant with a market cap of just shy of £94 billion?
It was a busy last week and it is going to be a busy next week too. Such is this time of the year. It's all good fun. Particularly entertaining - no doubt - will be the conference calls after full year updates from GlaxoSmithKline (GSK) and Unilever (ULVR). Sensibly the former is splitting up its business, whilst the latter really should be considering it a bit more. It will be enjoyable to listen to and react to (after all I own a bunch of shares in GlaxoSmithKline). But today I wanted to talk about Rio Tinto (RIO)...
Shares in mining giant Rio Tinto (RIO) have performed well for me ever since I realised back in October here that ‘investors should focus on China not cultural heritage’. Actually if truth is told, it is more than just China because demand for the iron ore, copper and aluminium exporter is centred on a broader changing world. Or as Rio Tinto put it on a chart in its second quarter numbers a few days ago, ‘we produce materials essentially for a low-carbon future’.
Back in August here, I observed that mining giant Rio Tinto (RIO) had been silly not to square off the various interest groups being a big mining group means you rub up against. I did also observe that 'the trajectory of the Rio Tinto share price remains centred fully on the demand levels or not from China for iron ore...for all the ESG excitement this situation will induce, that is the cold hard reality'.
So naughty old Rio Tinto (RIO) then. The iron ore, copper and coal name has fessed up that it was naughty in blowing up some ancient rockshelters at Juukan Gorge 'and have unreservedly apologised to the Puutu Kunti Kurrama and Pinikura people'. After, scrapping some executive bonuses, ponying up A$50 million to 'attract, develop and retain Indigenous professionals into our company', as well as giving such groups 'a greater voice' in its decision-making process and stating although it 'cannot change the past...we are absolutely committed to doing better in the future', right on Rio Tinto, yes?...
