If we insist on copying/pasting pump articles, can we at least keep it to those specifically mentioning Rio or Western? For instance, apropos of Rio's earnings release today, Rhiannon Hoyle of Dow Jones:
"Rio Tinto PLC's highest-ever dividend payout isn't coming at the expense of growth, and reflects the strength of the miner's current cash flow, Chief Financial Officer Peter Cunningham said.
The world's second largest mining company by market value on Wednesday reported a record annual dividend of $10.40 a share, as net earnings surged on strong commodity prices.
"The fact that we are paying out 79% [of underlying earnings] really is just reflective of the strength of our cash flow," Mr. Cunningham told The Wall Street Journal. Rio Tinto's policy is to give investors, via dividends, 40%-60% of underlying earnings on average through commodity cycles.
"We do believe our cash flow enables us to continue with that strong and attractive return to shareholders, [while] investing in decarbonization and investing in growth," he said. He highlighted Rio Tinto's net cash balance of $1.58 billion at the end of 2021. The miner ended 2020 with net debt of $664 million.
Miners have been hesitant to invest heavily in new projects and deals since a number of those made at the peak of a commodity boom a decade ago soured, instead favoring large cash returns to shareholders. But some analysts are questioning how and when companies will increase their focus on growth, especially as stunted investment in new projects raises the specter of supply crunches.
"One challenge for Rio... is a relative lack of organic growth," Jefferies said in a client note on Wednesday. "Cash flow and capital returns matter most for now, but the company will need to pivot to growth at some point, and this likely means M&A."