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Rio Tinto urged shareholders to reject the proposal of an activist investor to abandon his main list in London and consolidate his actions in Australia, saying that this decision was not in the “best interest” of the mining group.
Rio, who published his lower underlying profits on Wednesday in five years, has been under pressure to pallize capital And others to follow the example of BHP and abandon its dual-registration structure in Australia and the United Kingdom.
Palliser argued that one Australian dominant portfolio company with a main registration on the Sydney Stock Exchange would unlock $ 50 billion in the value of shareholders.
But Rio rejected this decision as too expensive and sounded the main shareholders in Australia and the United Kingdom on the issue.
“The Council considers that the resolution is not in the best interest of Rio Tinto as a whole and recommended that the shareholders of Rio Tinto Plc vote against the resolution,” the company announced on Wednesday before its annual general meetings in London and in Perth in April and May.
This decision follows the decision of the Minier Rival group this week Review his British listOpen the way to a visit to New York or another market that “would be better” to its activities.
Rio Tinto’s benefits dropped last year due to the lower prices for iron ore and inflationary pressures, the group said. The main producer of iron and aluminum ore, said that the underlying profits dropped by 7%, compared to 2023 to 10.9 billion dollars. However, net revenues, which take into account deficiencies and asset transfers, increased by 14% to $ 11.6 billion.
The average iron ore price sold by Rio in 2024 was 11% lower than the previous year, he said, contributing to a drop in profits from the steel ingredient.
Operating operating groups reporting their results this week, such as Glencore and BHPhave been struck by lower prices for iron ore and coal, as well as inflationary pressures that increase operating costs.
Although Rio Underlined the “signs of stabilization” on the Chinese real estate market, which is a major engine of the demand for raw materials, it is struggling with revenues of lower iron ore due to the lower overall demand from the Asian country.
Ben Davis, analyst at RBC, said that Rio’s annual results were “deliciously simple”, noting that dividends of $ 6.5 billion for 2024 were still online with expectations, even if the underlying benefits were slightly lower than average forecasts.
The benefits of aluminum and copper companies in Rio have resumed, reflecting an expansion of its giant copper mine Oyu Tolgoi in Mongolia.
RIO, who has major aluminum operations in Canada, is very exposed to rapidly evolving pricing policies by US President Donald Trump, analysts said. The new measures announced by the administration include a 25% price On American imports of aluminum and steel.
The Chief Executive Officer Jakob Stausholm said Rio could redirect part of his Canadian aluminum away from the American market following prices. Canada is the largest aluminum exporter in the United States.
“It will probably not be important for us, it could be more difficult for our customers,” Stauusholm, who is in Washington this week to meet officials of the Trump administration.
The large RIO – raw materials portfolio that extends from lithium to iron ore – will help minimize the impact of specific prices, he added.
Rio has several American mines and facilities, and awaits a decision from the country’s Supreme Court which could determine the fate of its proposal Development of the resolution copper mine In Arizona.
Three members of the board of directors of Rio will resign this year – Sam Laidlaw, Simon Henry and Kaisa Hietala – narrowing its size of 14 members to 11.
