Rio Tinto posts net earnings of $2.5 billion in H1 2009

Thursday, 20 August 2009 16:19:38 (GMT+3)   |  
       

According to the statement made by Rio Tinto, world's third largest mining company, on August 20, in the first half of the 2009, the company's underlying EBIDTA declined by 2.74 percent to US$6.1 billion, while its net earnings decreased by 65 percent to US$2.5 billion, both compared to the same period of the previous year.

The net debt of US$39.1 billion, as of 30 June 2009 was reduced by $14.8 billion following the successful completion of the rights issues on July 3. All of Facilities A and B of the Alcan acquisition facility have been repaid.

In the first six months of 2009, Rio Tinto's net capital expenditure totaled US$2.8 billion, decreasing by 22 percent year on year, while the capital expenditure forecast for 2009 is approximately US$5 billion.

Rio Tinto's chairman Jan du Plessis said, "The Group has taken swift and decisive action in response to the global economic crisis and sharp falls in metals and minerals prices. As a result of our successful rights issues, we have reduced net debt by $14.8 billion. There is more work to do, but we are better positioned with renewed financial strength and a leaner cost base."

"We are currently working closely with BHP Billiton to conclude binding agreements for the iron ore production joint venture that will cover our operations in Western Australia and which we believe will deliver substantial synergies," du Plessis stated.

As SteelOrbis previously reported, on 5 June 2009, Rio Tinto announced that it had entered a non-binding agreement with the Australian mining giant BHP Billiton to establish a production joint venture of both companies' Western Australian iron ore assets.


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