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Rio Tinto in down day despite doubled earnings

Wednesday, August 02, 2017 - 01:00

Rio Tinto tempts investors with a doubling of first-half profits, a record interim dividend and an additional $1 billion share buyback. But for the moment at least, they appear to baulk - the global miner's shares sold off in early trade.

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The heat's been building in iron ore and other commodity prices. Pushing the temperature up for Rio Tinto earnings. The global miner has announced a more than doubling of first half profit to just under four billion dollars. That along with a record interim dividend - and an additional one billion dollar share buyback. It's a marked turnaround from 2015 when it posted its worst earnings in a decade. But apparently - not good enough. Rio Tinto shares sold off in early London trade by more than two per cent - on a generally weak day for mining stocks. Some analysts say they'd hoped for a bigger dividend payout instead of a buyback. Though others blamed negative sentiment for the sector. And - with higher prices and asset sales reducing its debt - others still pointed to Rio's new but better problem. What else to do with its ever larger loads of cash ....

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Rio Tinto in down day despite doubled earnings

Wednesday, August 02, 2017 - 01:00